Trucker YRC Worldwide Inc. and the Teamsters union have secured preliminary agreement on a new contract for thousands of workers at one of the largest U.S. trucking companies, the union said late Thursday. YRC Worldwide – the parent company of YRC Freight, New Penn and Holland – and the Teamsters union have reached an interim agreement on a new collective agreement. Details of the new employment contract have not been released. Pension Fund Progress – YRC Worldwide announced last month [June] an agreement with central states, Southeast and Southwest Areas Pension Fund (“Central States,” the largest multi-employer pension fund of the International Brotherhood of Teamsters (“IBT”) to provide certain of the company`s real estate as collateral instead of second-quarter pension contribution payments for a deferral of $83 million. Since the announcement, seven additional funds have joined together as participants in the same agreement for an additional $11 million deferral. The company is continuing discussions with its remaining IBT pension funds with several employers. on TEAMSTER.ORG The Teamsters National Freight Industry Negotiating Committee (TNFINC) and YRC Freight, New Penn and Holland have reached a preliminary agreement in principle on a new collective agreement for the succession of the current agreement, which expires on 31 March. The union`s bargaining committee said on the Teamsters` website that it had reached a preliminary agreement in principle with YRC`s subsidiaries Freight, New Penn and Holland of YRC. The Committee granted an extension of the current agreement until 31 May to allow both parties to finalise the language and other issues and to allow ratification of votes for union members. National Freight Director and TNFINC co-chair Ernie Soehl said: “The parties have worked very hard to reach a new interim agreement in principle.
There were many topics, history and emotions related to these negotiations. I would like to thank the union`s bargaining committee for their hard work and support. We`ve certainly become creative, but I think we`ve gotten every penny we could get, and this contract will improve Teamster`s life. David Ross of Stifel Nicolaus viewed YRCW`s statement as a reaction to the sharp decline in YRCW shares, which fell below $1.00. He noted that, although a YRCW press release stated that he had reached a preliminary agreement with the International Brotherhood of Teamsters on the modification of his current employment contract, the details were not reached. “We believe the company has put concessions on the table to be reviewed by the Teamsters, which may include salary cuts, pension allowances and co-remuneration in the health sector. The way in which members vote on changes to the employment contract depends, in our view, on the proposed concessions,” said Ross. For example, an additional 5% reduction in wages could be tastier than a 15% reduction. And co-pay in the health sector has been a no-start for Teamsters in the past. In financial difficulty YRCW announced a preliminary agreement with the International Brotherhood of Teamsters on measures it said would help secure the cash position of holders on the YRCW side, the company stated that it had in fact “concluded a preliminary agreement with the International Brotherhood of Teamsters (IBT) to amend the terms of the current labor agreement for its employees , which is covered by the National Master Freight Agreement.