YRC to cut 1,100 workers, shutter 27 service centers

YRC to cut 1,100 workers, shutter 27 service centers Domestic trucking giant YRC Worldwide Inc. plans to cut 1,100 positions and shutter 27 service centers in the South and the Southwest as part of a cost-saving move to boost sagging profits.
   The Overland Park, Kan.-based firm said Thursday it plans to close 21 centers operated by subsidiary regional carrier USF Reddaway across four states — Louisiana, Oklahoma, New Mexico and Texas — eliminating 800 employees.
   YRC also plans to cut 300 positions at subsidiary regional carrier USF Holland and close terminals in Mobile, Ala.; Little Rock, Ark.; Albany and Metter, Ga.; Jackson, Miss.; and Lumberton, N.C.
   The total job cuts represent about 2 percent of the YRC workforce of about 60,000 employees.
   About 85 percent of the affected workers are union-represented drivers and dockworkers, with the remaining 15 percent set to be trimmed from management, clerical and support ranks, YRC said. The service center closures are set to take effect Feb. 22.
   The closures and staffing cuts are part of what YRC calls a 'back to basics' strategy that focuses on geographic regions where the firm's seven regional carriers have traditionally been strong. The reductions are also part of YRC's previously announced plan to increase profits by $50 million for subsidiary YRC Regional Transportation, which manages the regional carriers. The lagging service centers were a main contributor to YRC's reported net loss last year of $640 million.
   Following YRC's acquisition of USF in 2005, the parent firm consolidated several of the USF lines into the Holland and Reddaway subsidiaries. YRC has hoped to use the USF lines to provide regional service to its long-haul subsidiaries Yellow Transportation and Roadway. However, YRC conceded Thursday that the merged USF lines have dragged down the performance of Holland and Reddaway by creating unwieldy geographic areas.
   YRC added that customers shipping to the areas affected by the closures would be offered service with other YRC lines.
   The International Brotherhood of Teamsters said union employees laid off by the service center closures will have preferential hiring status at Yellow Transportation and Roadway after any permanent Yellow and Roadway union workers or union workers covered under the national contract.
   The YRC announcement of the closures and layoffs come as the Teamsters are in the middle of counting votes on a new five-year contract with YRC, which offers workers wage and benefit increases and give YRC more work rule flexibility.