UPDATED YRC Presents Contract Proposals to Union

UPDATED November 27, 2013: The Freight Division has scheduled a two-man meeting for December 6 in Dallas to review proposals made by YRC to extend the current MOU. All locals representing YRC Teamsters have been asked to send representatives for the meeting.

On November 20-21, YRC negotiators presented proposals to the Teamsters Freight Division for a five-year contract extension. While they are not proposing any wage cuts, they are asking for other concessions.

Reports indicate that YRC’s proposals include these:

  • Continued annual wage increases in 2015 and beyond, but with no increase in 2014.
  • Overtime pay after 40 hours per week, instead of after 8 hours.
  • Change H&W language so that a partial week of work will not pay for a full week of H&W coverage.
  • Work rule changes, including outsourcing some maintenance and use of outside contractors for certain road work.

Reportedly the IBT Freight Division has not agreed to anything yet, and talks will continue.

YRC management is firm that they need to get an extension with labor cost savings in place soon to be able to re-finance their substantial debt in order to lower interest payments and keep the company on track.

One question that comes up is why can’t YRC negotiate with the banks and the Teamsters simultaneously, so that the banks – who want YRC to keep making payments – could agree to refinance terms at the same time as IBT negotiators agree to submit a contract extension for a vote.

YRC CEO James Welch is taking the case to members, with a DVD mailed to every Teamster’s home. Reportedly the company will follow that by creating a website for Teamsters to access information and the company’s viewpoint.

The IBT constitution requires a majority vote of approval by the 26,000 YRCW Teamsters for any contract extension. Members should have a chance to discuss and evaluate any proposal before it is mailed out for a vote. TDU will continue to post information as it becomes available.

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