YRC Worldwide announced it was entering discussions with the International Brotherhood of Teamsters (IBT) to seek to modify the terms of the current labor agreement for its employees covered by the National Master Freight Agreement. These discussions will address alternatives to help to reduce the company’s cost structure and preserve operating capital going forward, said YRCW.
“Entering into discussions with the Teamsters is another important step in our overall plan to strengthen our financial position during this difficult economic climate,” said Bill Zollars, chairman, president and CEO of YRC Worldwide. “We have made progress with various stakeholders, including our pension plan trustees and our bank lending group, to modify agreements, and we are grateful to the Teamsters for their willingness to consider further adjustments to our contracts to help reduce our cost structure and enable us to be competitive with others in our industry.”
YRC Worldwide pointed out it had recently announced an agreement with Central States, Southeast and Southwest Areas Pension Fund, the largest of the company’s IBT multi-employer defined benefit pension funds, to provide certain of the company’s real estate as collateral in lieu of pension contribution payments during the second quarter. The company also announced an amendment to its bank agreement, which provides for the immediate release of escrow funds generated from the company’s prior real estate transactions to pay down the revolving credit facility without reducing the company’s borrowing availability under the facility.