UPDATE: ECONOMIC RELIEF PLAN FOR TEAMSTERS

MILE MARKER # 49

On Wednesday, December 3, leaders of freight local unions from across the country overwhelmingly endorsed an economic relief plan for the YRC Worldwide Inc. (YRCW) companies that will protect tens of thousands of Teamster members’ jobs and their retirement security.

“Today’s overwhelming support clearly shows that local union leaders from every area of this country know how bad this recession is, and they are confident that this agreement will protect the livelihoods of our members and their families,” said Tyson Johnson, Director of the Teamsters National Freight Division. “No one wants to see wages get cut, but this agreement will help get the company through this deepening recession while protecting the jobs, health, welfare and pension benefits of our members.”

“We are facing the worst economy in decades, so we need to act now to protect our members and their families,” said Jim Hoffa, Teamsters General President. “We worked hard to draft a plan that holds the company accountable. The plan requires equal sacrifice among all YRCW employees, and we have the ability to obtain stock in the company, and to place restrictions on where the savings can be used, among other protections for our members. I am confident that when our members read the plan details, they will agree that this is a necessary step during these very, very difficult times.”

The plan calls for a reduction in gross wages and mileage rates of 10 percent effective the first payroll period after ratification through the term of the National Master Freight Agreement (NMFA)—March 31, 2013. The wage and mileage increases called for under the NMFA will also be reduced by 10 percent. The cost of living adjustment is also suspended for the life the Plan.
Plan Protects BenefitsThe economic relief provided in the plan was limited to the 10 percent wage reduction. There are no changes to any health, welfare and pension contributions. These plans are funded as provided for in the NMFA. (See further plan details later in this newsletter). In addition, a full copy of the plan will be mailed to members in the ballot packages.
Ballots are scheduled to be mailed out to members on or about December 9, and ballots are tentatively scheduled to be counted on December 30. About 40,000 Teamsters are actively employed at the affected YRCW companies—Yellow Transportation, Roadway, USF Holland and New Penn.

The economic relief plan comes as trucking companies continue to get battered by a worsening economy, especially YRCW. Most of the for-hire trucking companies are now entering the third year of a recessionary downturn. Operating results at YRCW were trending negative long before the mortgage banking and financial markets collapsed in 2008. As the largest trucking company in the country, YRCW has felt the general freight industry’s downturn most acutely, but lower volumes have been reported at virtually all national carriers for some time. Continued setbacks in the housing and automotive-related sectors coupled with collapsing consumer demand suggest it will be late 2009 if not before positive tonnage numbers return.

Information from Teamsters.org