Teamsters’ Approval to Restructuring Keeps YRCW from Going Under
Local 916 members at Holland and the other freight companies covered by the National Master Freight Contract are breathing a little easier. After months of negotiations with YRC Worldwide, Inc., a company teetering on the brink, the union has agreed to stand with the company as it restructures to save 25,000 jobs nationwide.
“It’s an agreement in principle (AIP) at this point, which means we are still reviewing to make sure it will achieve what it’s supposed to, in terms of operational and job security,” said David Rush, Local 916 Vice President. “We anticipate a final agreement, then restructuring to take place over the summer.”
“Given the scale of what’s happening in the economy and in the freight industry, this cooperative effort was necessary. Everyone had to give so we could save jobs and protect pensions. Nobody wins if the employer goes under.” -David Rush, Local 916 Vice President
The agreement gives the Teamsters two seats on the YRCW board of directors and provides meaningful equity ownership for employees. There were concessions made by the union in order to reduce the company’s debt and allow for a capital infusion by investors. The result is expected to be long term stability for YRCW, preserving good union jobs and benefits.
“Given the scale of what’s happening in the economy and in the freight industry, this cooperative effort was necessary,” said Rush. “Everyone had to give so we could save jobs and protect pensions. Nobody wins if the employer goes under.”
KEY CONDITIONS AND PROVISIONS
GOVERNANCE
The Teamsters Union will be assured two independent director representatives on the company Board of Directors.
FINANCIAL
Meaningful equity ownership stake for the Teamsters employed by YRC in the restructured company. This ownership stake will allow Teamsters employed by YRC to receive substantial economic benefit from the company’s performance over time.
PENSION
The company will follow through on its promise to re-initiate pension contributions at the previously negotiated 25 percent of contribution rate on June 1, 2011.
Teamsters Local 916 proudly represents over 4,000 hardworking men and women throughout the State of Illinois in the private and public sectors.
