New Penn Teamsters Approve YRC Contract
YRC Worldwide said its Teamsters union employees at regional carrier New Penn Motor Express have voted to ratify a modified labor agreement that sets a 5% pay reduction and other cost cuts.
The Teamsters sent new ballots to its member workers at New Penn last month, who previously had voted down a second round of YRC pay and benefit cuts following reductions set by the company earlier this year.
New Penn union members approved the plan in a 912-334 vote, the Teamsters said in an e-mailed statement late Wednesday.
About 1,500 workers were eligible to vote. The agreement covers drivers, dockworkers and members covered by mechanics and office agreements, the union said.
The move could give the Teamsters a potential 35% stake in the less-than-truckload carrier. The union earlier this year approved a 10% pay cut, which could have led to a 15% stake.
A YRC official said late Wednesday the company was pleased with the vote.
“Revisions to the contract enable the company to strengthen its financial position,” said Mike Smid, YRC’s chief operations officer and president of YRC Inc.
“As employee owners and stakeholders, our union workforce has made difficult decisions and demonstrated their commitment to achieving long-term success for YRC Worldwide,” he said in a statement.
The modified agreement includes a 5% incremental wage reduction and an 18-month cessation of union pension fund contributions.
Savings, which primarily began in August, will total about $45 million per month and increase to an estimated $50 million per month next year, YRC said.
The company said both it and the union are addressing employee concerns in the remaining smaller bargaining units who have yet to ratify the contract changes.
YRC is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
