International Brotherhood of Teamsters workers will vote on
a proposal from YRC Worldwide Inc. to extend and modify a labor agreement, the
union said Friday. While the company has said that such an agreement is crucial
to helping it meet its debt obligations, the vote will come without an endorsement
from Teamsters negotiators.
A document listing terms of the proposed labor agreement
includes provisions that would pay Teamsters workers lump-sum payments instead
of raises for the next two years and extend a 15 percent wage cut in the
existing agreement.
Tyson Johnson, director of the Teamsters National Freight
Division and co-chairman of the Teamsters National Freight Industry Negotiating
Committee, said in a release that he is not going to make a recommendation to
vote "yes" or "no" on the new agreement. Ballots are set to
be mailed around Tuesday, Dec. 10. They are due to be counted around Jan. 8.
The Teamsters posted a document on Friday with proposed
terms of a new labor agreement with the less-than-truckload carrier. That
document [PDF] confirmed that the Overland Park less-than-truckload carrier
(Nasdaq: YRCW) is looking to extend a modified version of its existing labor
agreement — which expires in March 2015 — through March 2019.
The document said there will be modifications on Teamster
wages and pension contributions. It also said YRC is requesting to use more
subcontractors for deliveries and is considering opening up a profit sharing
plan with the labor union that represents more than 25,000 of the company's
32,000 employees.
Wages
YRC is proposing to extend a 15 percent wage reduction in
the existing agreement through April 2016. Teamsters in trucking and shop
mechanic jobs would be in line for increases of roughly 34 cents an hour in
April of 2016, 2017 and 2018. Salaries for other union employees will be frozen
until March 2019.
The company is offering a lump-sum payment of $750 for each
regular employee on the seniority list — if the proposal is ratified, and
another $750 on April 1, 2015. However, the payments would come in lieu of a
40-cent wage increase due April 1, 2014, and any hourly/mileage pay increase
during 2015.
Pension Contributions
YRC will continue to make pension contributions at 25
percent of the 2009 rate. This would be consistent with the 2010 agreement.
Profit sharing
Starting in 2016, YRC will offer profit-sharing bonuses
"payable based on the prior calendar year's performance" related to
the "annual published operating ratio." The bonus amounts would be
different for YRC Freight's operating ratio and YRC's regional carriers —
Holland, Reddaway and New Penn — depending on those segments performances.
Other modifications
YRC would "allow limited use of road
subcontractors" for up to 6 percent of total annual miles and 26 percent
of total miles maximum combined road and intermodal rail. The document said
road drivers would be "red-circled" and protected from layoff and
runaround caused by the use of purchased transportation.
The company has asked the union to help the company pay off
$1.4 billion in debts that will come due in 2014 and 2015. The first payment,
expected to be around $69 million, is due in February. YRC intends to sell an
additional 3 million shares of stock to help raise money to make that first
payment.
Source: Kansas
City Business Journal
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