Stock prices for YRC Worldwide Inc., the Kansas-based trucking company with two midstate subsidiaries, fell sharply today after it surged following the Teamstersí ratification of contract concessions on Saturday.
YRCís stock price began a sharp decline Monday afternoon and closed at $4.68 a share, a 15.5 percent drop from its opening, according to Google Finance. That decline continued today with the stock down about 4.5 percent around 12:30 p.m. from its opening of $4.73.
The companyís stock price surged to $5.54 per share Monday morning after the Teamstersí 25,000 YRC members voted to approve the concessions with 62 percent in favor of the new contract. The Teamsters announced the voting results Saturday.
The concessions, including wage cuts and pension contribution delays, are designed to save YRC $350 million a year.
New Pennís union members, who vote separately, approved the concessions by 69 percent in favor to 31 percent against, according to the Teamsters.
YRC is restructuring its contracts, corporate leadership and credit to stay in business. The company has been saddled by high debt and declining business.