Wednesday, September 29, 2010

Teamsters Union in talks with YRC

Least anyone think I bash all Unions (after the previous 3 posting), I have something good to say about the latest actions of the Teamsters.

They appear to be living in the "real world", and over the last year have been trying to keep YRC out of bankruptcy.

From The Journal of Commerce

Proposed agreement on pensions, wages would give union broad veto power over management decisions

The Teamsters union is offering to extend its current contract with YRC Worldwide for two years and accept dramatically reduced pension contributions in return for an unprecedented say in the management of the nation's largest trucking operator.

The union would extend the current suspension of pension contributions, set to expire Dec. 31, until May 31, and then require the company to resume contributing to its multiemployer pensions at 25 percent of the rate in effect in July 2009.

The union proposal also would make significant changes to YRC's work rules and make them uniform across all of its regional and supplemental agreements — a major issue for the company, which deals with several bargaining units.

The agreement would extend the National Master Freight Agreement until 2015. Wage increases already scheduled for 2013 and 2014 would take place, but wage levels would be cut by 15 percent, matching the levels agreed to last year.

The company's board agreed to the plan, which now must be approved by YRC Worldwide's Teamsters employees. A vote by the Teamsters rank-and-file is expected later this month. The concessions are aimed at helping the struggling company avoid potentially crippling pension costs and survive 2011.

In return, the Teamsters National Freight Industry Negotiating Committee would receive effective veto power over the company's plans to recapitalize and over any transactions that may occur in the restructuring of YRC Worldwide.

And, from Bloomberg News

YRC Worldwide Board of Directors Approves Tentative Labor Agreement and
Reverse Stock Split

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