YRC, Teamsters Reach Tentative Agreement on Contract Modification

YRC Worldwide and the Teamsters union have agreed tentatively on a cost-reduction package to reduce expenses, the two said.

Details of the plan could be revealed as soon as Wednesday to local union leaders, who will be asked to vote on it. If approved, as many as 40,000 Teamsters would vote on whether to approve the reductions.

“The industry decline in volumes and pricing is continuing in the current quarter, affecting our profits and cash flow and our ability to pay down debt from operating funds,” said YRC Chief Executive Officer Bill Zollars.

“The modification to the agreement, which we expect to be ratified in December, will establish a more competitive cost structure,” he said in a statement.

YRC has taken other cost-reduction steps, including a current tender offer for $100 million in debt that can only be completed if the union approves the cuts.

“This agreement will help the company get through this deepening recession and protect the jobs, welfare and pension benefits of our freight Teamsters,” said Tyson Johnson, director of the union’s freight division.

YRC Worldwide is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.