Traffic World: Zollars Says Pact Levels Field

December 4, 2008: YRC Worldwide Chairman, President and CEO William D. Zollars said the money saved by the wage concessions sought from the Teamsters union will level the playing field between his company and its nonunion competition.

"This pretty much wipes out the difference between union and non-union in our industry, in terms of our cost-base," Zollars said in an interview this morning with CNBC.

YRC is seeking a 10 percent wage cut from its Yellow Transportation, Roadway, Holland and New Penn subsidiaries and a suspension of cost of living adjustments. In exchange, Teamsters employees would receive a 15 percent ownership stake through YRC stock. YRC estimates the cost savings from the modifications to the National Master Freight Agreement at $220-$250 million annually. A vote on ratification of the agreement by union members is scheduled for later this month.

Zollars said freight levels declined in "double digits" compared with a year ago.

"It's a pretty ugly situation out there. We're just putting ourselves in a position to be able to make it through no matter how bad it gets."

By John Gallagher for Traffic World

Be the first to comment

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

Recent News

“GROW” Act: A Threat to Workers’ Pensions

A new threat to retirees and workers’ pensions was introduced in Congress last month: the misnamed “Give Retirement Options to Workers” Act. It does not give options to workers, but it could shift risk and uncertainty to some workers, and undermine stable pensions.

UPS Contract Call to Action: Teamsters United Launches Petition Drive

Teamsters United has launched a petition drive to demand a fair UPS contract and TDU activists are making plans.

View More News Posts