As expected, Teamster employees of national less-than-truckload (LTL) carrier YRC Worldwide Inc. have approved a contract extension agreement that James Welch, CEO of YRC, had described as “critical to the future of the company.” Among other things, the agreement will allow YRC to reduce its debt by $300 million, as that deal was contingent on the Teamsters agreeing to the contract extension.
According to Teamsters leadership, the new agreement passed by a vote of 12,267 to 6,314. A side-by-side comparison of the new contract and the version that was rejected earlier this month reveals that both sides conceded on some key points, but in the end came to an agreement that will keep the company in business.
“This was a very difficult vote for our members, but in the end they did what they believe will give this company the best chance to stay in business and protect their jobs,” says Jim Hoffa, Teamsters general president and co-chairman of the Teamsters National Freight Industry Negotiating Committee (TNFINC). “Now we will hold management’s feet to the fire to make sure our members’ jobs are protected and redouble our efforts to make sure this company handles its finances responsibly.”
Consult the “Related Articles” links below for MH&L’s ongoing coverage of the negotiations.