January 14, 2008: The International Union has given YRC the green light to make the wage cuts retroactive to January 1.
|Concerned about our union’s future? Read about what freight Teamsters are doing to make a difference.|
As a result, sick days and banked vacation paid out the first week of January will be cut by 10 percent. Some freight Teamsters have pointed out that this contradicts the concession agreement.
Article 4, titled "Effective Dates,” clearly states that “The Plan will be effective on the first day of the first payroll period commencing after the date of ratification of the Plan.”
That would make the effective date for the cuts January 10. All wages, sick days and vacation used until that date would be paid at the full rate. The company prefers the language in Article 2 on Wage Cuts which states that the 10 percent wage reduction will be “effective January 1, 2009.”
The International Union agreed to interpret the contradictory language in favor of the company.
For the purpose of evaluating stock warrants, it would be more beneficial to Teamsters for the effective date to be January 1, when the stock price was $2.87 a share. Instead, the International Union and YRC apparently will use the later effective date in this case which will put the strike price under the stock warrants program at around $4.96 a share.
The higher the strike price, the less money Teamsters stand to recoup under the stock warrant program.
The Concession Agreement has multiple “effective dates”—and in both cases the date chosen will take money from members’ pockets and give it to the company.
Click here to read the International Union’s Freight Update.