YRC Teamsters to vote on 10% pay cut

International Brotherhood of Teamsters officials Wednesday approved an immediate 10 percent pay cut for union members employed by trucking firm YRC Worldwide Inc.

   The move, taken to help shore up YRC's deteriorating financial situation, will affect 40,000 union members at YRC. The union members, covered by a five-year contract that began in March, are expected to vote on the leadership-approved measure on Dec. 9. A final ballot count is expected by the end of the year.

   The pay reduction, labeled an amendment by the Teamsters, would also cut executive pay if approved by all parties. The agreement will not affect union member benefits such as health care and pension.

   The union said the measure was necessary due to liquidity problems being faced by the firm. In recent days, YRC has taken a host of steps to shore up its financial situation including swapping stock for notes, modifying pension and retirement plans for about 18,000 nonunion employees, selling real estate, and starting a $100 million stock buyback offer.

   The firm, based in Overland Park, Kan., also said it would seek to cut up to 20 percent of its union workers, or 8,000 jobs, as it completes consolidation of its Roadway and Yellow operations.

   YRC stock, traded on the NYSE, has shed more than 75 percent of its value in the past 12 months. 

Source: American Shipper