Local union officials are scheduled to meet Tuesday to review details of a revised proposal between the Teamsters and YRC Worldwide Inc. That committee must approve sending the memorandum of understanding to the membership for a ratification vote.
“The outcome of this week’s discussions is critical to the future of the company. The MOU extension is something our employees can have confidence is the best – and only remaining – path forward,” said James Welch, chief executive officer of YRC Worldwide (No. 3 in CCJ’s Top 250), in a statement Friday.
Teamsters working for YRC soundly rejected the previous proposal on Jan. 9, which was voted without reaching a previous agreement with the union.
“Once the vote results on this initial company proposal were in and our members’ sentiments were voiced loud and clear, we immediately pushed YRC to re-engage all stakeholders to come up with an alternative solution,” said Jim Hoffa, Teamsters general president and co-chairman of the Teamsters National Freight Industry Negotiating Committee. “We worked hard to find alternatives to save this company and to protect the jobs of our members at YRC and its regional companies.”
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If ratified by the membership, the deal will provide a pathway for substantial debt reduction and refinancing initiatives that will permit the company to protect and preserve more than 30,000 “good American jobs,” a Teamsters statement said.
The original YRC proposal would have extended the current contract into 2019, continuing pay cuts and pension reductions the Teamsters accepted in 2009 as part of an effort to shore up the finances of the struggling LTL giant.
YRC Worldwide is the holding company for YRC Freight, YRC Reimer, Holland, Reddaway, and New Penn.
“We recognize that YRC will have to go back to the financial market to obtain financing that will permit it to operate and grow its business, but the market needs to understand that YRC’s front line workers are the lifeblood of the company and, while willing to play a role, will not shoulder the entire burden,” said Tyson Johnson, director of the Teamsters National Freight Division and co-chairman of TNFINC.