November 1, 2010 2:30 PM, EDT
Teamsters Approve YRC Contract

The Teamsters union’s rank-and-file membership at YRC Worldwide ratified a new labor agreement to run through 2015 it said is aimed at saving 25,000 jobs at the less-than-truckload carrier.

YRC Worldwide and its USF Holland regional LTL unit’s union members ratified the agreement 62% to 38%, while members at YRC’s New Penn Motor Express division ratified it by a 69% 31% margin, the Teamsters said in a statement. About two-thirds of YRC’s Teamsters members cast ballots.

The new contract extends the previous agreement, slated to expire in 2013, until March 31, 2015. The two sides had reached preliminary agreement in late September on the deal, which YRC said would save it $350 million a year. (Click here for previous coverage.)

The union and YRC said Sept. 29 their leadership had agreed to extend a previous 15% pay cut for two more years, partially restore pension contributions next year and obtain a $300 million capital infusion from a new investor.

This contract positions YRC for “improved performance by providing a long-term market competitive cost structure as well as enhanced efficiency to meet the demands of today's transportation and supply chain customers,” Mike Smid, president of YRC Inc. and chief operations officer of YRC Worldwide, said in a statement.

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