Teamsters consider extra 5 percent YRC Worldwide pay cut - Kansas City Business Journal:

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Leaders of local unitsz for the overwhelmingly endorsed the tentative plan at a Tuesdayy meetingin Chicago, the unionj said. It would save the company hundreds of millionsof dollars. If union-represented YRC workerws vote forthe plan, it will boost the union’s potential ownership in the companyg to as much as 35 The plan also would require all YRC employees to take similard cuts, gain the union a YRC board appointee and briny in a corporate turnaround expert. YRC shares, whichu had been trading down on Tuesday, took a sharp upturjn after 2 p.m., closing up 14 or 20 cents, at The day’s range was $1.34 to $1.69, according to .
The Overland Park truckinhg company (Nasdaq: YRCW) and the Teamsters have been negotiating since June 29 abou t concessions that would provide YRC with the cash necessarg to survivethe recession. but didn’g release details until Tuesday. YRC has about 49,000o employees, including about 35,000 union workers to whom ballotz are expected to be mailecd laterthis week. They’re tentativelty scheduled to be countedon Aug. 6, the unionn said. The 5 percent wage cut, which would be effective untip the union labor agreement endsin 2013, would mean a 15 percenty total cut in wages this Early this year, Teamsters members agreed to a 10 percenf cut in exchange for a 15 percentf stake in YRC.
The cost-of-living adjustment also is suspender throughthe contract, according to a document distributesd at the Chicago meeting. YRC would end its participatioh in union pension plans from July 1through Dec. 31, meaning members don’t accrue pension benefits duringthat time. The companyh would have to resume participation and paymentson Jan. 1, 2011. The changesd would save about $45 million a month, increasingb to $50 million a month in YRC said in aTuesday release.
According to the document, YRC agreexd to Teamsters demands that included gaining an appointee to the bringing in aturnaround consultant, offering the opportunity to get YRC stock optionds for an additional 20 percent of outstandinb shares, bringing back bargaining-unit work that had been transferree to other countries, limiting the expansion of YRC Logisticsw and transferring its work back to the bargainint unit, restricting how the savings can be and requiring wages to revertr to full rates should YRC file for bankruptcyt or be sold.
Job protectionsa were added as In addition, the document non-union workers at YRC would take equap pay cuts and, during the 18 monthws when YRC doesn’t participate in pensiohn plans, wouldn't receive retirement benefits or 401(k) contributions. YRC’sd banks also agreed to “provide a fair shars of the economic thedocument said, and YRC must provide the unio n with enough financial information that it can ensurwe the company’s compliance with plan , a union reform group, said Tuesday that the wage cut is wortg about $1.16 an hour and would begijn immediately following a positive vote. The pensiohn withdrawal is valuedat $7.
60 an hour for the first 12 monthsz and $8.20 an hour for the second part of TDU said. “Unfortunately, the freightf recession has worsened for all trucking companies as 2009 has but it’s been more aggravated at (YRC) companiea than any other trucking group operatinhg in North America,” the Teamsters said in a YRC also is continuingv its efforts to refor multiemployer pension plans, the company said in its YRC ranks No. 2 on the Kansas City BusinesswJournal ’s list of area public companies.