YRC Delays Earnings, Plans Teamsters Contract Extension Talks
YRC Worldwide Inc. delayed its scheduled Nov. 7 third-quarter earnings announcement until Nov. 12 to provide more time for contract modification talks with the Teamsters as lenders press the less-than-truckload carrier to lower its costs.
The company’s announcement late Nov. 6 said, “It is the company’s intent to engage in formal negotiations, extend its current contract and increase its competitiveness in the market.”
YRC’s contract with the Teamsters expires in March 2015, but some of its $1.4 billion in debt comes due next year. After CEO James Welch told employees that lenders wanted a contract extension beyond the upcoming debt maturity, the company met with the Teamsters on Nov. 5 to begin discussing modifications.
No details of this week’s meetings have been released, and YRC didn’t say when formal talks would begin.
The earnings announcement was rescheduled for Nov. 12.
“Reaching an understanding would be a positive and important step in the future of this company. In addition to securing the jobs of over 26,000 union employees, it will substantially increase the likelihood of a holistic refinancing solution to address the debt maturities in 2014 and 2015,” Welch said in a statement.
