Teamsters weigh changes to accommodate YRC Worldwide plan
Kansas City Business Journal - by Suzanna Stagemeyer Staff Writer
YRC Worldwide Inc.’s main union is considering reopening its labor agreement for negotiations, specifically to address the trucking company’s proposal to defer pension fund payments using real estate as collateral.
The International Brotherhood of Teamsters, which represents about 38,000 YRC workers, said this month that the National Freight Industry Negotiating Committee had formed a subcommittee to, among other things, weigh whether it needed to change National Master Freight Agreement language to fit with the proposal.
Overland Park-based YRC has been losing money amid a drawn-out freight recession and attempting to maintain liquidity by selling assets and cutting costs. It’s almost $120 million behind in pension payments, having not paid for close to three months.
The Teamsters declined to comment beyond a statement. It wasn’t clear what other topics the subcommittee might consider.
“It is imperative that (YRC) weathers this recession,” Tyson Johnson, co-chairman of the negotiating committee, said in the statement. “The committee also will determine whether adjustments are necessary to further our central goal of protecting the jobs and benefits of our members at (YRC) and all members covered by the NMFA.”
Teamsters members ultimately would have to approve changes, the statement said.
They already voted early this year in favor of a 10 percent wage cut and suspension of cost-of-living adjustments in exchange for a 15 percent stake in YRC.
YRC said in a statement to the Kansas City Business Journal that its discussions with its pension funds and the Teamsters remain constructive. An agreement is expected soon.
“We are pleased with the professionalism and ongoing support of our Teamsters employees, our pension funds and our banking group to advance the company’s strategic plan to manage through this economic recession,” the statement said.
While negotiations continue, the 36 pension funds have continued with the procedure for handling late payments. Some have referred the matter to lawyers, frozen pension accruals or mailed form letters saying that employees might not be credited for work hours if the issue isn’t resolved.
sstagemeyer@bizjournals.com | 816-777-2203
