Memorandum from Bill Zollars on Management's Salary Cuts

From: Office of Bill Zollars
Sent: Friday, December 05, 2008 4:53 PM
To: All_YRCW_NonUnionEmployees [at] yrcw.com
Subject: Cost-saving measures that impact non-union employees

To: All non-union YRC Worldwide employees

In follow up to today's Town Hall Meeting, I want to recap the cost-saving measures we're putting in place - especially for those who may not have been able to participate in the meeting. It's important you understand how your total compensation will be affected and why we must take these steps.

For non-union employees including management, actions already taken earlier this year included modifications to our pension and retirement plans. Along with the new measures being announced today, they're comparable in value to contract modifications for our employees represented by unions. The changes for non-union employees, which are more significant in the first half of 2009, include:

  • A reduction in gross wages of 10 percent January-June, and 5 percent from July-December
  • Merit increases delayed until the third quarter
  • Suspension of the 401(k) matching contribution January-June, with a 3 percent match for July-December
  • A new ownership stake in the company for non-union employees that increases in value as our stock price recovers

Our board of directors' compensation is also being reduced.

As announced, we've worked with Teamsters leadership to propose modification of the National Master Freight Agreement for our union employees and we expect ratification in December. The labor contract change will result in a 10 percent gross wage reduction and suspension of cost of living allowances for four years, and an ownership stake in the company.

Frozen credit markets, drops in manufacturing, declines in consumer confidence, low shipping volumes and predatory price-cutting by our competitors are taking a financial toll on the YRC Worldwide companies. The moves we're making are designed to secure the company and employee positions, and to prepare us for the future when we start seeing signs of broader economic recovery.

These tough near-term actions personally impact every employee across our company But the steps are critical to our success over the next several quarters, which economists expect to continue to be challenging. We must act now to competitively position ourselves for growth on the other side of the downturn. For the first time in our history, every employee will have a clear ownership stake in our company and even more incentive for us to succeed.

I know you have questions. Please keep asking them and we'll continue to communicate answers as these plans are finalized for January.

Thank you for your hard work and for your continued commitment to our future.

Sincerely,
Bill Zollars
Chairman, President & CEO
YRC Worldwide
BillZ [at] yrcw.com


Be the first to comment

Please check your e-mail for a link to activate your account.
Get Advice Join TDU Donate

Recent News

Proposed “Butch Lewis Act” Introduced

The Butch Lewis Act to protect earned pensions was introduced at a press conference today, with the entire Democratic caucus in Congress lined up in support. Now the challenge is to continue the grassroots mobilization and lobbying effort to build bipartisan support for pension protection.

Butch Lewis

The pension protection bill is named in honor of Butch Lewis, who died in December 2015, and was an important leader in the pension protection movement. His widow, Rita Lewis, has carried on the fight and was a featured speaker at the Washington DC press conference.

View More News Posts