YRC Worldwide in tentative deal with Teamsters

Trucking company YRC Worldwide Inc. said Friday its Yellow Transportation, Roadway, Holland and New Penn units reached a tentative agreement with the Teamsters to modify their labor agreement. 

Bill Zollars, YRC Worldwide's chairman, president and chief executive officer, said the pact will establish a more competitive cost structure allowing us to accelerate our market share recovery and capitalize on opportunities for future growth, while at the same time, defending the long-term prospects and job security of our employees.

The company said details were expected to be available this week following further discussions.

We have already taken a number of steps to strengthen our financial position and improve both our profitability and our competitiveness, including the continued successful integration of Yellow Transportation and Roadway, the exchange of equity for notes through private transactions, modification of our non-union pension and retirement plans, sales of excess properties and, most recently, the commencement of a $100 million tender offer to purchase outstanding notes, Zollars said. While these efforts have been effective, the worsening macroeconomic crisis in America and the increasingly critical state of our industry mean that we must take additional measures. 

Source: American Shipper