Unions to vote soon on YRC contract with $100M savings
As part of trucking conglomerate YRC Worldwide Inc.'s continued inching toward greater stability, its union members represented by the Teamsters will be voting in the coming weeks on a new contract proposal that could help save the company $100 million a year.
"Our union and non-union employees have played a critical role in YRC Worldwide emerging from the economic downturn and previous management missteps, and we are now driving down the road to recovery. We appreciate the sacrifices that all of our employees and their families have made," YRC Worldwide CEO James Welch said in a statement this morning.
The company said the proposal, along with other initiatives, such as retiring some of its bond debts, could save the company hundreds of millions in coming years. The company posted a third-quarter net loss of $44 million.
The contract will go to all union workers this week after leaders decided to forward the proposal for a vote, which will be counted Jan. 8, according to the union and company.
The proposed contract includes a 15 percent wage cut for workers, with bonuses in 2014 and 2015 instead of wage increases, and then 40 cents an hour after that until 2019, according to the website for Teamsters for a Democratic Union.
Some employees would also see pay freezes in the contract, and there would be a cap on vacation pay, according to TDU. However, the contract extends profit sharing to employees should the company hit a 97 percent operating ratio, or if the regional trucking firms — such as Lebanon-based New Penn Motor Express Inc. — collectively hit a 95 percent ratio.
YRC also operates a large warehousing facility in Middlesex Township, Cumberland County.