December 3, 2008: Read a summary of the terms of the proposed concessionary deal with Yellow Roadway, which affected Teamsters will vote on by mail ballot.
- YRC Teamsters would take a 10 percent wage cut, effective the first payroll period of 2009. This wage cut would stay in place through March 31, 2013, when the National Master Freight Agreement expires.
- Wage and mileage increases will also be cut by 10 percent every year through the end of the contract.
- The annual Cost of Living Increase that was negotiated in the contract will also be eliminated.
- Management and nonunion employees take an “equal reduction,” but that may take into account past cuts in management’s retiree healthcare, 401K contributions, and pensions. So management’s actual salary cuts will be less.
- Teamster wage cuts would be in place for four years and three months—until the end of the contract on March 31, 2013. Our wages will only snap back before that time if YRC files bankruptcy or is sold.
- Stock warrants (options to buy stock at its current price) will be issued to a trust for 15 percent of the company’s stock; about 10 million shares. If the stock goes up significantly, the trust can sells it at a profit and distribute the proceeds to YRC Teamsters. Even if the stock doubles, triples or quadruples in price, this trust would only realize a tiny fraction of the total concessions of more than $1 billion.
- YRC agrees not to buy “any new nonunion regular route common carrier freight LTL entity without union approval.” The company also agrees not to use the money gained from the concessions to expand YRC Logistics or invest overseas—however nothing stops the company from using other money to make such investments.