YRC Teamsters to Vote on 10 Percent Cuts

December 3, 2008: Teamsters at YRC will vote on a proposal to cut wages by 10 percent and to give back scheduled COLA increases under a concessions package that would stay in place through 2013.

The Hoffa administration presented its YRC Economic Relief Plan to officers from affected Teamster Local Unions today in Scottsdale, Arizona.

The decision will soon be in the hands of affected freight Teamsters, who will vote by mail ballot.

Click here to read TDU’s Summary of the YRC Concessions Deal.

Click here to read the IBT’s Summary and the full Memorandum of Understanding.

Click here to download a bulletin with a summary of the YRC Concessions Deal that you can distribute to other Teamsters.

Click here to tell us what you think of the proposed deal—or to send us a question or comment.

$1 Billion in Givebacks

Under the proposed concessions, the company would initially get an extra $240 million a year from Teamsters, or $20 million per month. The total value of the givebacks through the end of the contract would exceed $1 billion.

The wage concessions for working Teamsters would actually top 10 percent, because the proposal also eliminates any COLA raises in the next four years of the contract. Negotiated wage and mileage increases would also be reduced by 10 percent each year through the end of the contract.

There is no provision to stop the concessions if YRC becomes profitable before the end of the contract. The only exceptions are Chapter 11 bankruptcy or if the company is sold.

YRC Teamsters will have very limited opportunities to make up these the givebacks, even if they help the company restore profitability. The proposed agreement would establish a complicated system of stock options in place. But even if the stock doubles, triples or quadruples in price, Teamsters will only recoup a tiny fraction of the $1 billion in concessions.

Equality of Sacrifice

The cut is supposed to be across the board, including nonunion employees, but cuts can take into account reductions in management’s retiree health care and retirement. Thus, management’s salary reductions may be less than 10 percent.

Many Teamsters at YRC have already been hit with benefit cuts that are not counted towards the 10 percent wage cuts (plus COLA elimination) that are being proposed. YRC will continue to pay the full amount of hourly contributions to Teamster benefit funds.

Up to Teamster Members

YRCW management and the Hoffa administration have put forward this concession package to help the company survive and grow.

Ballots will be mailed to all YRCW Teamsters on December 9, and counted December 30. YRC and Holland will vote as one unit, by majority rule. New Penn Motor Express will vote as a separate unit.

It’s not an easy choice for many Teamsters who not only want to protect their job and their pension, but also know the history of freight Teamsters left holding the bag in previous concessionary deals in our industry.

TDU urges all freight Teamsters to carefully review the proposed concessions and to talk with other Teamsters about what they mean for our industry and future. Only you can decide what’s best for freight Teamsters, our families and our union.

TDU will continue to provide freight Teamsters with up-to-date information and analysis.

Click here to tell us what you think of the proposed deal—or to send us a question or comment.

Click here to download a bulletin with a summary of the YRC Concessions Deal that you can distribute to other Teamsters. 

Click here to read TDU’s Summary of the YRC Concessions Deal.

Click here to read the IBT’s Summary and the full Memorandum of Understanding.

Issues: 

Comments

I say we should reject this proposal and alter it by limiting the time frame to a two year period. Then reevaluate. 

I have to agree. I believe they are going after the low hanging fruit, and Hoffa is "aiding and abedding". They have all the lower senority members already worried about their jobs, so why not kick us while we are down! They want a vote before they lay all these men off. This was a done deal long ago, maybe during contract negotiations? Hoffa, is this "the change working families can believe in"? robert@yrc