Teamster Freight Members Ratify YRCW Job Security Plan

[Omaha Steve]

http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/01-08-2009/0004951794&EDATE=

Agreement Will Protect Union Workers' Jobs, Benefits

WASHINGTON, Jan. 8 /PRNewswire-USNewswire/ -- Teamster members who work at the freight companies of YRC Worldwide Inc. (YRCW) -- Yellow, Roadway, Holland and New Penn -- have approved a plan that will protect the jobs and retirement security of tens of thousands of Teamsters. The modifications were ratified by a 77 percent to 23 percent margin, with more than 75 percent of members casting ballots.

Union members voted over the past month and ballots were counted today. The plan calls for a reduction in gross wages and mileage rates of 10 percent -- that took effect when all the ballots were counted today -- through March 31, 2013, plus suspension of a cost-of-living adjustment. The wage reductions apply to all bargaining unit and non-bargaining unit workers, including management. There is no change to any health, welfare and pension contributions.

"While we never want to see wage reductions, this vote shows that our members understand that we are facing the worst economy since the 1930s and that the company needs some help to get through this difficult period," said Tyson Johnson, Director of the Teamsters National Freight Division. "We are hopeful that this agreement will protect the livelihoods of our members and their families by protecting the jobs and health, welfare and pension benefits of our freight members."

The plan has a provision that will allow Teamster members to recover lost wages if YRCW's stock price goes up in the future. This would be done through warrants, which are similar to stock options. In addition, union members have protections, including language on monitoring and enforcement rights.

"We are facing the worst economy in our lifetime, so we needed to act now to protect our members and their families," said Jim Hoffa, Teamsters General President. "We worked hard to draft a plan that holds the company accountable, requires equal sacrifice among all YRCW employees, gave us the ability to obtain stock in the company, and placed restrictions on where the savings can be used, among other protections for our members."

FULL story at link.