Change Costs YRC Teamsters $10 Million

March 11, 2009: A change in the YRCW concession deal has just cost Teamster members $9.91 million. But it was agreed to by the International Union without so much as a whimper, let alone any vote of the affected Teamsters.

A March 4 amendment to the stock option deal has changed the date for setting the stock option price to February 12, 2009. In the memo from the International Union announcing this new deal, there is not one word of the $10 million cost to members.

The price then was $3.74, which is $.87 higher than it was on January 1, the effective date used for the wage cuts. Since that $.87 applies to 11.4 million shares in the option plan, the total difference is $9.91 million.

Assuming that the stock options end up being worth something (and we all hope they will), it will be about $10 million less than if the January 1 effective date had been used.

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