YRC, Teamsters Reach Tentative Pact on 10% Pay Cut
YRC Worldwide and Teamsters union leaders reached a tentative agreement on a 10% pay cut for union employees to help reduce costs, Bloomberg reported late Wednesday.
If approved, the plan would give the less-than-truckload carrier’s 40,000 Teamsters employees a 15% ownership stake in the company, allowing them to share in future company performance through stock price appreciation, YRC said in a statement.
Contributions to the health, welfare and pension plans would continue as previously negotiated, the statement said.
The accord, which requires ratification by union members, was reached at a meeting in Scottsdale, Ariz., between YRC executives and Teamsters leaders, Bloomberg reported.
YRC said the estimated cost savings would be $220 million to $250 million annually and that it expects a ratification vote to occur by to the end of the year, with an expected effective date of Jan. 1.
Bloomberg said the move would help YRC, after its debt rating was cut last month by Standard & Poor’s, forcing it to put up $1.5 billion in assets for collateral.
YRC Worldwide is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
