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Less than TruckloadNews

YRC union workers to get $4-hour wage hike over 5 years

Will the rank-and-file buy off on the contract? (Photo: Jim Allen/FreightWaves)

Unionized employees at three of less-than-truckload carrier YRC Worldwide, Inc.’s (NASDAQ:YRCW) operating units will get a $4 per hour pay raise over the next five years – including an immediate $1 per hour increase – annualized hikes in contributions toward their health and welfare benefits, and the return of one week’s paid vacation relinquished in 2010, under the terms of a tentative collective-bargaining agreement between the company and the Teamsters union disclosed late today.

However, the tentative agreement does not call for an increase in YRC’s pension contributions, which were slashed by about 75 percent in 2010 as the company was fighting for survival. Contributions have remained at the same levels ever since. The agreement covers some 20,000 workers employed at YRC’s YRC Freight long-haul unit and at regional carriers Holland and New Penn Motor Express. YRC’s third U.S. unit, Reddaway, is covered by a separate agreement.

In addition, Holland will, for the first time, be able to use purchased transportation services, which will be capped at the equivalent of 8 percent of miles driven. YRC Freight has used purchased transportation on a limited basis for the past five years. The parent company can also establish a rail intermodal service subject to strict restrictions designed to minimize any reduction in bargaining-unit driving. Teamsters officials said that union negotiators have the authority to limit or shut down the use of purchased transportation by either operating company.

Ballots will be mailed to members on April 19, with the votes set to be tallied and the results announced on May 3. The current contract had been extended for two months beyond its original March 31 expiration date. The new compact, if ratified, would be retroactive to April 1.

In a communique released prior to a conference call this evening with the rank-and-file, union leaders said the three operating companies could not afford “one more penny” beyond what they agreed to pay under the agreement. Customers were already threatening to divert freight from the units in the days leading up to the tentative agreement, Teamsters leaders wrote. A two-month contract extension until May 31 was “necessary to keep the customers in place while the ratification process takes place,” leaders wrote.

In the document, Teamsters leaders said that customers would pull their freight if the rank-and-file rejects the agreement. Voting down the contract would constitute a strike authorization under the Teamsters constitution. However, a strike would never occur because customers would have already fled to other carriers, they added.

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.

27 Comments

  1. I might have this wrong but didn’t the employees vote on allowing YRC to take 10% and then they asked for another 5%? It was voted on and it passed by the rank and file. So all of you who voted yes back then to allow this to save your job, Now want to vote no to end your job. I think that’s correct if I’m not mistaken. But, for the new employees who were not here when this give back happened, are being called uneducated and Card holders instead of teamsters because they like the $4 hr pay raise and free insurance. How can anyone blame a young man or woman with a spouse and kids who plans on voting yes to improve his personal life. He or she never voted to give it away but there going to be the ones blamed for taking this offer if it passes.

  2. So let me get this straight YRC is on multiple pay scale levels. So the seniors who voted 10 plus years ago will get a pay raise of 4$ an hour over the next 5 year making then at the end of 5 years at my terminal at around $27/$28 and hour. And everyone who had not work for yrc 10 plus years ago who is paid top scale now $19 an hour will be at $23 an hour at the end of the 5 years. I don’t think so. It’s not the people who voted 10 plus years ago who are keeping the company open it’s the new people who make a lot less who have to hear some senior workers say I won’t ever give them 100% of my effort there lucky I give them 50%. Are you joking in other company you give them 50% afford and they give a spot at unemployment office. Sorry but I just my butt for the company I give 100% of myself 99% of the time. And to be paid a lot less is no go for me. Sorry but the senior guys with 10 plus years you made your bed now you lay in it. But under 10 years we didn’t so we should be put at equal pay Plus the $4 increase. And who ever sees this and know me and has a problem with my opinion come and see. Don’t be a baby and talk behind my back.

    1. I 100% agree I say it all the time it’s not our fault the old guys gave up everything we should be able to make the same as them because we keep the company a float.

      1. You people are weak and you all sound like a bunch of complete suck ups. You are not keeping anything afloat. You just keep telling yourself you are important you are not only the whole union is. Quit being mesters and learn to be a Teamster.

        1. Thomas, your getting angry at the wrong people. You The Teamsters voted for the give back. Not the new hires. I’ve been here for 5 years and have seen how many of the senior employees have continued to do less and less walking around saying give me my 15% back. I’m only giving them 85% of my potential. Screw this company. How many of you guys who have been here for 10 or more years actually know what health insurance cost these days. It might be a lower hourly rate than you want but the money your saving in health insurance is worth 2 times the hourly rate. So vote no. Get more on the hour. Lose your company paid benefits and pay $200 a week for insurance and then a $5000.00 deductible then after you meet your deductible pay 20% on top of that. You’ll lose money. So for you to say to the ones who are voting yes are mesters and suck ups is really saying how much of an idiot you are. You gave up your 15% the new hires didn’t. You sucked the company off 10 years ago when they said they were closing the doors unless we get money back. And voted yes to save your job. So I’m voting yes now to continue my free insurance and a $4 raise. If you don’t like it leave and work somewhere else. There is a driver shortage so enjoy your search and your new career. I’m not made at you for voting no. So don’t get pissed at me for voting yes. It’s what makes America great. If we were together I’d buy you a beer and try to understand your thoughts. But I’m sure you would pass Because I’m a new hire and beneath you

  3. I left yellow in 2005, I knew the end was near because the employees did not care about their jobs or the company. They are one of the last so called union carriers left. There is no place left to go!

  4. The union say they can’t get another Penny out of YRC. Then why is it that Reddway union workers were told by the union that the union would negotiate a way better contract for them then for YRC workers. There is more that yrc can give. First comes first
    Why does Reddway get a better contracted YRC

  5. How is it a raise if you already owe me 15% more money?? 1st give us back our 15 % then we can talk raise. Or close the doors the country is short drivers I’ll just go to a better paying job.

  6. My Brother works on the Milwaukee Terminal for many yrs. The old timers and the ones Retired got it easy as they got older and the union protection of the good ole boyz so they could ride off in the sunset while everyone took it up the Butt. The Ceo’s and all the former managers got Millions in bonuses yet complained the company was broke. Teamsters union Suck!! Members should call another union to replace the corrupt one you’ve now and you’ll see a huge difference. American airlines Mechanics Machinist broke free of there crappy union years ago and Got thousands back n huge wage increases when they switched unions. Your future Pensions are being reduced n you’ve to work in your 60’s now and the good ole retired boyz are enjoying nice Pensions n a early retirement. I would tell the union to reduce the retired Teamsters pension by $1,000.00 do there will be money for you guys and watch them bury that idea fast. Good luck! Vote No get the 15% back they took then ask for a 3% raise per yr after and tell the company no more Multi million dollar bonuses 4 Managment!

  7. EA

    20+ years st YRC. Do the Yes voters know how to add? Are you really that damn that you are not able to see the millions the upper management sharing with each other and the yrc shares they are giving to each other every quarter? Is it really that hard to see the billions of dollars this company saved by the sacrifice we made? Are you that lazy that you are welling to accept less pay and no pension because you think the job is too easy? A real Teamsters knows how much money they are loosing and how much the company is making. A real Teamsters knows which work force the company honors by watching were the profits go. A real Teamsters wants to work hard for a company that honors their pension they deserve. A real Teamsters votes NO when they can see a total lie and a luck of a strong representative which results in a really weak representation once again.

    • if you work 2+ years everyone should make the same. Give back the 15%.
    • either reinstate the pension or at bare minimum pay 75% in to our 401k.
    • explain the % raise we are getting for the next 5 years, on top of the 15% you should give back that you enjoyed taking for the last 9 years.
    • profit sharing
    • for every $1 bonus we get $4 to split.
    • medical compatible with ABF.
    • bring back vacation pay to 2009 standard.
    • WE ARE NOT ASKING TOO MUCH. WE SACRIFICED TOO MUCH.
      If you are taking anything less than this, don’t get mad when someone is saying you are a very uneducated Teamster because you are voting Yes on this ridiculous only company minded contract.
  8. Well I see it this way I have been with Yellow and YRC for 38 years and it has been a damn good company. As far as the new hires not making what the old-timers are making my opinion is the old-timers gave up and yes we did vote for the reductions to keep the company afloat but the new hires gave up nothing. As far as our health insurance we don’t pay a penny for that and I can tell you that I have had more insurance claims and probably added up to more than I have made at YRC in 38 years. I figured it out 20 some years ago and with our Health and Welfare we were making over $35 an hour at that time. So my opinion is you don’t like it move on. As far as our pension plan no I don’t like the fact they are only paying 25% into the pension. It’ took us older timers 9 years to get two years in. But the union informed us at the beginning before negotiation we’re not going to get everything back. I voted YES.

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