The Teamsters Union announced Monday, Dec. 29, that it is extending voting on the YRC Worldwide modifications until Tuesday, Jan. 6, due to a high volume of ballot requests from affected members, the company’s change in plans to gain financial stability that eliminates a Dec. 31 deadline, holiday mail volume and bad weather that shut airports.
The Teamsters say the original timeline of Dec. 31, agreed to jointly during negotiations, was extended after YRCW announced on Dec. 24 it was cancelling its tender offer for certain outstanding bonds and is renegotiating its credit facilities. The company said it will not have to spend $150 million to purchase about $310 million worth of senior notes and instead will renegotiate the terms of its debt with its banks. The union says it believes this path offers a move viable long-term recovery plan.
YRCW said it was pursuing the new strategy in part because the Teamster membership had not yet ratified the contract modifications. The union says it was proceeding with ratification on the schedule that was jointly agreed to and dictated by the now-aborted tender offer, but since the company’s recent decision provides more flexibility, the union is extending the balloting deadline.