Unionized employees at three of less-than-truckload carrier YRC Worldwide, Inc.’s (NASDAQ:YRCW) operating units will get a $4 per hour pay raise over the next five years – including an immediate $1 per hour increase – annualized hikes in contributions toward their health and welfare benefits, and the return of one week’s paid vacation relinquished in 2010, under the terms of a tentative collective-bargaining agreement between the company and the Teamsters union disclosed late today.
However, the tentative agreement does not call for an increase in YRC’s pension contributions, which were slashed by about 75 percent in 2010 as the company was fighting for survival. Contributions have remained at the same levels ever since. The agreement covers some 20,000 workers employed at YRC’s YRC Freight long-haul unit and at regional carriers Holland and New Penn Motor Express. YRC’s third U.S. unit, Reddaway, is covered by a separate agreement.
In addition, Holland will, for the first time, be able to use purchased transportation services, which will be capped at the equivalent of 8 percent of miles driven. YRC Freight has used purchased transportation on a limited basis for the past five years. The parent company can also establish a rail intermodal service subject to strict restrictions designed to minimize any reduction in bargaining-unit driving. Teamsters officials said that union negotiators have the authority to limit or shut down the use of purchased transportation by either operating company.
Ballots will be mailed to members on April 19, with the votes set to be tallied and the results announced on May 3. The current contract had been extended for two months beyond its original March 31 expiration date. The new compact, if ratified, would be retroactive to April 1.
In a communique released prior to a conference call this evening with the rank-and-file, union leaders said the three operating companies could not afford “one more penny” beyond what they agreed to pay under the agreement. Customers were already threatening to divert freight from the units in the days leading up to the tentative agreement, Teamsters leaders wrote. A two-month contract extension until May 31 was “necessary to keep the customers in place while the ratification process takes place,” leaders wrote.
In the document, Teamsters leaders said that customers would pull their freight if the rank-and-file rejects the agreement. Voting down the contract would constitute a strike authorization under the Teamsters constitution. However, a strike would never occur because customers would have already fled to other carriers, they added.
Alex
THIS IS ABSOLUTELY BULLSHIT. TEAMSTERS YOU GUYS ARE COWARDS FOR ACCEPTING THIS CRAP… I HOPE YRC SHUTTS DOWN!!!
RL Dortch Jr
Eddie, people like you are the reason we are still under these concessions. If we continue to settle for less YRC will continue to under pay us. I been here 20 plus yrs and im tired of the bullshit. To give back 12 to 14 thousand dollars a year is a total rip off. They have people like you thinking this is the best job ever. It use to be before people like you voted it away. Do you think if YRC shutdown the customers will shutdown too? Vote yes and continue to get screwed.
Eddie
Vote no and close the company then. But it’s still the best job a lot of us have had and way better than what a lot of us will end up with if only for the ins. Of course I’ve only been with Yrc fo 16 years and drove cross country for over twenty years before starting here so I’ve had to pay $200. A week out of my lower pay checks for Ins. not as good job and do twice the work driving and lumping for less$$ so go ahead vote no and show them that you think they are only bluffing but when you’re on the street hoping to get a job this good don’t cry about it.. I vote Yes myself !! It’s not a bad offer!!
Mike
Remember the 300 to reverse split on our stock options. Remember the attempted purchase of ABF. Remember the secret ratification of this contract. Remember the bonuses paid to management. Call Central States to see just what our Union thinks of YRC employees. If you vote yes for this you deserve everything you get.
RL Dortch Jr
How can the Teamsters honestly negotiate a contract when they’re partners with the company? We gave back for 10 yrs and expected the concessions to end with a new and better contract. The Teamsters sold us out. I hope its voted down. Close the doors and let some other company who care about their employees have the freight. Enough is Enough!
Tj
No retirement for newer workers, no matching 401,still below abf,ups,fedx,estes,the list goes on predictions are pension is going to go broke ,there hiring rightt outof driving schools ,while experienced drivers go to competition for better wages,
Sarah Jensen
Drivers should still be paid more… at least another $2 raise. YRC Worldwide is a profitable company making tens of millions of dollars and the upper top managements are making millions in annual salary. Drivers will forever be screwed so that the CEOs can rake in millions every year.
JHT
YRC refuses to pay even close market rate after given 15% in concessions and a 15.5% corporate tax cut and sucking a major percentage from their regional carriers that actually make money. Their insulting offer backed by the IBT says one thing. They don’t deserve to exist.