Debt-burdened Freight Employers Wanted More Concessions
Teamsters at YRC Worldwide Inc. (YRCW) have rejected the company’s proposal that would have extended and modified the existing memorandum of understanding. Members voted over the past several weeks and ballots were counted January 10. The proposed extension and modification was soundly rejected, 61 percent to 39 percent. “The Teamsters Union believes in democracy and we’ve let the democratic process take its course,” said Tyson Johnson, Director of the Teamsters National Freight Division and Cochairman of the Teamsters National Freight Industry Negotiating Committee (TNFINC). “Our members at this company have made huge sacrifices to keep this company alive and a majority made the decision not to sacrifice anymore.” YRCW management communicated with Teamster members and leaders in late October and early November 2013 about the need to make modifications and get an extension. At stake, according to YRCW, was the very existence of the company, as the banks holding the notes had threatened to call the notes for repayment if the agreement with the union was not modified. The current agreement does not expire for 18 months. The company submitted a proposal that Teamster local union leaders agreed to send to members for their vote, while management also worked to line up new money to reduce company debt and go to market on refinancing its remaining debt – with all three contingent on the other.
