January 8, 2014. 3:30 p.m. The ballots for the YRCW contract extension will be counted today and tomorrow. At the first postal pick up at 8 am, the post office count was 19,483 ballots. The final pick up at Noon brought about 150 more. The postal estimates may be subject to correction when the ballots are counted later.

They are sorting the ballots into the various local union trays, and starting to open some ballots, but none have been counted yet. They are not checking eligibility; but accepting all ballots mailed in as valid, unless an observer challenges a particular ballot.

We do not expect any results until late today or very possibly until tomorrow, as processing and sorting by local will take a long time. The count supervisor, Ed Hartfield, estimates that the count will be completed by Thursday afternoon.

In the October 2010 YRCW concession vote, there were 23,000 ballots counted, but there were many more YRCW Teamsters at that time. The postal estimate today reflects about a 75% turnout.

This site will be updated as information becomes available. Stay tuned. We will post results by local union after they begin counting.

Two days of ballot counting starts Wednesday morning, with the paychecks of 26,000 Teamsters and the future of YRC Worldwide Inc. hanging on the outcome.

This is the fourth time in five years the unionized drivers, dock workers, mechanics, clerks, porters, janitors and maintenance workers have voted on reduced pay and benefits. Each time, the struggling Overland Park-based trucking giant has said it needs the concessions to survive and compete.

Click here to read more at the Kansas City Star.

YRC Worldwide Inc. (YRCW), the U.S. trucker that averted bankruptcy in 2011, is seeking $1.15 billion in loans to refinance debt, according to a person with knowledge of the transaction.

Click here to read more at Bloomberg News.

January 3, 2014: Millionaires like Harry Wilson are getting rich off the concessions that are destroying good union jobs.

Our union should be leading the fight, but Hoffa Jr. is no Hoffa. He has turned his back on freight, UPS freight, carhaul, and trucking Teamsters.

Complaining in the break room won’t save our pensions or our union. But rank-and-file Teamsters standing together can take back our union.

In some locals, TDU members have defeated pension cuts, elected new leadership, and won better contracts. To take back the International union, we need a united movement.

Don’t give up, step up. Join TDU today.

Teamsters before us put their lives on the line to win what we have. $40 is a small investment to stop Hoffa Jr. from throwing it all away.

January 3, 2014: It has been one of the biggest failures of leadership in Hoffa’s 15 years in office. YRCW Teamsters were mailed a ballot for a five-year contract extension, without the union leadership even bargaining for them.

Whatever the outcome fo the vote is, we know this for sure: the Hoffa-Hall leadership has abandoned freight Teamsters.

For 15 years they have done nothing to defend our union or to organize in freight, or in carhaul, or other trucking fields. They don’t have a strategy and don’t understand Teamster power. They have not organized; they have not defended the national master contracts or the members’ pensions.

Now they have refused to even bargain for YRC Teamsters. They have left members to fend for themselves.

They take better care of their hedge-fund friend Harry Wilson than they do the Teamsters at the center of Teamster power and Teamster history.

If you voted yes, or if you voted no, know this: Hoffa and Hall gotta go. We need a new direction in our union. The time to build a movement to make it happen is now.

We Need to Clean House

“Regardless of how you voted on the new round of givebacks, you know we didn’t get any real leadership out of Hoffa and the freight division. And we do need leadership if our union is going to survive in freight. We need to clean house at the top of our union.”

Don McClure, YRC, Local 728, Atlanta

What “Equal Sacrifice?”

“Upper management continues to take high salaries and annual bonuses. Terminal management is over staffed in many locations. Where are their cuts and so-called “equal sacrifice”? Welch and his buddies put it all on Zollars, but working Teamsters continue to see mismanagement and incompetence. Why should Teamsters have to pay for it?”

Jim Price, YRC, Local 107, Philadelphia

January 3, 2014: Meet Harry Wilson. Hoffa appointed this Wall Street tycoon to the YRC Board of Directors. Now Wilson is making millions on the YRC concessions deal.

Hoffa appointee Harry Wilson has received, or stands to receive, as much as $15 million for dealing with distressed companies that bargain with the Teamsters since he was first tagged by James Hoffa to work on YRCW’s 2011 restructuring. This includes a $5.5 million bonus if YRC members approve the concessions and a bank deal is consummated.

Who is this man?

Wilson’s early career was with various hedge fund and private equity firms. He made it big on Wall Street and retired at age 36.

He entered government work, and served as a major player on the Auto Industry Task Force, working on the GM and Chrysler bankruptcy cases. Then Wilson, a Republican, went into politics. He unsuccessfully ran for Comptroller of New York State in 2010.

Soon after that political foray, Wilson formed MAEVA Advisors in 2011. MAEVA is a low-profile operation, with a one-page website (maevaadvisors.com) that lists nothing but a phone number and an email address.

Then he hooked up with the Hoffa administration.

On February 28, 2011, Hoffa announced that Wilson was joining the YRCW restructuring efforts on behalf of the Teamsters to “break the logjam between the company and the lenders’ group.” Wilson also had a role in the Hostess restructuring, with MAEVA reportedly receiving $200,000 per month over an extended period. In October 2013 MAEVA filed papers requesting payment of $3.5 million in the bankruptcy court in the case. If Hostess had survived, the company would have been required to pay MAEVA’s fees.

But YRCW was a bigger cash cow. Wilson’s initial YRCW work in early 2011 paid him $125,000 per month, plus a bonus of $1.5 million in July 2011. That was just weeks after Tyson Johnson excitedly told the Teamster Convention in Las Vegas of the YRCW restructuring, in which Hoffa named Wilson as an IBT appointee to YRCW's board. Sources claim that Wilson convinced his fellow board members to pay him an additional $1.5 million for his role in the restructuring, for a total payout of over $3 million for work that lasted only five months.

Wilson is paid $175,000 per year as a member of YRCW’s board.

During the November meeting of Teamster local officers in Dallas, YRCW’s CFO, Jamie Pierson, told the Teamster officials that they had evaluated various restructuring experts and determined that MAEVA was the best resource to lead the restructuring.

On February 1, 2013, the YRCW Board engaged fellow board member Wilson to lead a strategic initiative related to restructuring again the company’s deals with the banks. The engagement agreement (contained in SEC filings) explicitly states that the IBT approved of this arrangement! According to the contract Wilson is receiving $250,000 per month and is eligible to receive a completion bonus not to exceed $5.5 million if members approve the concessions and the deal is consummated. Wow.

It seems odd for a public corporate board to select one of the directors to function as the company’s investment banker. This is complicated by the fact that Wilson was appointed by the IBT in part to protect the interests of Teamster employees. But the deal he has engineered requires those Teamsters to accept new concessions. Add to that the extra $5.5 million Wilson has riding on the concession vote. That’s quite a web of potential conflicts.

One thing is certain: no concessions will be taken by Hoffa, Ken Hall, or their appointee, Harry Wilson.

Freight Teamsters: Don't Give Up. Step Up.

Millionaires like Harry Wilson are getting rich off the concessions that are destroying good union jobs. To take back the International Union, we need a united movement. Don't give up, step up.
 

About two months after YRC Worldwide Inc. invoked the threat of bankruptcy, the trucking company has announced a deal to reduce its $1.4 billion debt load by $300 million.

Overland Park, Kansas-based YRC said in a Monday, Dec. 23 statement that unnamed investors have agreed to pay $250 million in cash for new common shares in the company. YRC will use the proceeds to take out its convertible notes.

After YRC completes this debt reduction, it hopes to tap the senior debt markets to refinance its term loan and asset-based loans at more favorable interest rates, the company said.

The deal hinges on two conditions. YRC must secure a ratified memorandum of understanding from the International Brotherhood of Teamsters, the union that represents a contingent of YRC's employees, and it must also convince 90% of holders of its pension fund debt to amend and extend their debt.

The proposed deal would meet the Teamsters' demand that YRC must retire at least 90% of its Series A and B Convertible Notes. The Teamsters are expected to conclude their vote on the memorandum by Jan. 8. A Teamsters spokesman declined to comment on the proposed deal or the vote.

YRC said Monday that certain noteholders and other institutional investors will pay $15 per share for their $250 million in new common stock.

The proceeds will go toward paying off the existing $69.4 million in 6% convertible notes due Feb. 15, 2014, and paying off or defeasing the outstanding $173.5 million in Series A Convertible Notes due Mar. 31, 2015.

Furthermore, holders of about $50 million in principal of the outstanding $68.2 million in Series B Convertible Notes due Mar. 31, 2015, will convert their notes to common stock at prices between $15.00 and $16.01 per share. The remaining Series B notes will remain outstanding through their original maturity date.

"These transactions will result in a substantial reduction of our debt and will position the company to address impending maturities, including the 6% Convertible Notes due in February 2014," YRC CFO Jamie Pierson said in the statement.

Eliminating the debt due in February would give YRC more breathing room, as the company's senior credit agreement requires that it must repay, extend, restructure or refinance those notes by Feb. 1.

If YRC fails to find a solution for those notes, it will be in default under its senior credit facility starting on Feb. 13.

A Monday regulatory filing noted that the investors behind the debt reduction may cancel their stock purchase agreements if the deal hasn't closed either by Feb. 13, or within five business days after satisfying the closing requirements.

That leaves YRC with just under five weeks between the Jan. 8 Teamsters vote and the Feb. 13 closing deadline to work out the details of the deal, including hammering out an agreement with the pension debtholders.

YRC CEO James Welch warned in an Oct. 30 letter to employees, "In the past, some companies in our position have simply declared bankruptcy," adding, "the better path is to refinance the debt before the due dates are upon us."

Credit Suisse AG and MAEVA Group LLC are advising YRC on its financing options and strategic initiatives.

Representatives from those firms were not available to comment.

In addition to its convertible notes, YRC has two first lien loans with JP Morgan Chase Bank NA as administrative agent.

The company has a term loan that bears interest at Libor plus 650 basis points with a Libor floor at 350, and matures on Mar. 31, 2015. The loan had $298.7 million outstanding as of Sept. 30.

YRC also has $222.2 million outstanding on a letter of credit due Mar. 31, 2015.

Some of YRC's major investors have cut their positions in the company in recent months.

Marc Lasry's hedge fund Avenue Capital Group disclosed a 17.75% stake on Aug. 19, then sold down its position in the company at the end of October. Avenue reported a 13.71% position in the company in a regulatory filing made Dec. 19. Carlyle Group LP disclosed a 13.3% stake on Dec. 19, noting that it had sold a $12.66 million principal amount of YRC's Series A 10% Convertible Notes for $11.76 million.

Another major investor, Cyrus Capital Partners LP, said it had cut its previously disclosed 17.2% stake to an 11% stake, according to an Oct. 18 regulatory filing.

And New York-based middle market debt investor CM Finance Inc. disclosed on Dec. 20 that, since Sept. 30, it has sold its $12.3 million investment in YRC's letter of credit facility.

Avenue and Cyrus declined to comment. Carlyle and CM Finance did not respond to requests for comment.

YRC reported a net loss of $44.4 million for the quarter ended Sept. 30.

As of Sept. 30, the company had $2.13 billion in assets and about $2.8 billion in liabilities.

At that time, its liquidity, including cash, cash equivalents, and availability under its asset-based loan facility, stood at $233.7 million.

YRC's debt woes stretch back to 2003, when the company paid $1.05 billion to acquire Roadway Corp.

YRC is listed on the Nasdaq exchange under the symbol YRCW. The company's stock closed up 21.91% or $3.28, at $18.25 per share, giving it a market capitalization of $163.64 million.

YRC Worldwide Inc. announced on Monday a deal to raise $250 million in equity and trade another $50 million in notes for stock. The deal, which will allow the company to pay down debt, is contingent on getting union employees to approve a new labor agreement.

The Overland Park-based trucking company said it reached a deal on Sunday to sell a combination of common and convertible preferred stock to investors for $250 million in cash. The common stock will sell for $15 a share and the preferred stock for $60 a share, according to a filing with the Securities and Exchange Commission.

In addition, YRC said that certain holders of its Series B Notes will exchange notes with an aggregate principal amount of $37.7 million for approximately 2.5 million shares of common stock. The company said the move would allow it to reduce debt by $50 million.

The agreements are contingent on two conditions: Holders of at least 90 percent of the $124 million of the company’s pension fund debt must extend an outstanding note, and members of the International Brotherhood of Teamsters must ratify a new labor agreement that extends previous concessions through March 2019.

CEO James Welch characterized the agreement as a momentous step toward a healthier financial situation for the company.

“With a positive ratification vote and an amended and extended pension fund note, the improved financial picture will allow the company to increase its investment in new tractors, trailers, technology and equally if not more importantly training and developing its people.” Welch said in a release.

YRC may face a challenge in getting the union to ratify the new labor deal. The union has not recommended voting yes or no, and locally-based Teamsters have said the agreement is not popular with rank-and-file members.

Welch has said he’s confident the union will ratify the agreement. On Monday, he said there will be consequences if the union does not ratify.

“If we are not successful, it would unfortunately mean some very difficult decisions for the company and its employees,” Welch said in a release.

Ballots have been mailed out to Teamster employees. Votes are due to be counted after Jan. 8.

YRC Worldwide Inc. (YRCW), the trucker seeking to refinance almost $1 billion in borrowings, rose the most since May after creditors agreed to cut about $300 million in debt, a step toward winning union contract givebacks.

The accord calls for some creditors and other investors to buy $250 million of new shares at a price of $15 each, YRC said today in a statement. Bond owners will convert $50 million of their holdings to stock in a price range of $15 to $16.01.

The shares surged 21 percent to $18.12 at 10:07 a.m. in New York. That followed a gain of 37 percent earlier today, the biggest intraday increase since May 6. Overland Park, Kansas-based YRC is rushing to complete the refinancing before a $69.4 million bond issue matures on Feb. 15.

YRC’s 26,000 Teamsters-represented employees will vote by Jan. 8 on extending their contract into 2019, maintaining terms that reduced wages by 15 percent and giving the trucker new operating flexibility. Creditors had sought the labor agreement before refinancing debt, while Teamsters leaders have insisted on concessions from bondholders.

YRC piled up $1.4 billion in debt from acquisitions and what Chief Executive Officer James Welch has called “numerous missteps” before he took the job in 2011.

As of Sept. 30, the company had about $170 million of cash. It has $952 million of bonds and loans maturing by March 2015, according to data compiled by Bloomberg. The debt-reduction deal also hinges on getting holders of at least 90 percent of $124 million of pension fund debt to extend the maturity on that note, YRC said.

UPDATED December 19, 2013: Some 26,000 YRCW Teamsters are voting on a five-year contract extension with new concessions, and yet the leadership of their union never negotiated with the corporation. What’s wrong with this picture?

At the meeting of local officials held on December 6, IBT Freight Director Tyson Johnson was asked this question directly. His answer was that since he had heard loud and clear that the members didn’t want more concessions, he refused to bargain with the company. So, instead he sat for days with the company negotiators, but didn’t bargain on behalf of the members.

Then the Hoffa administration simply mailed the company’s proposal to the members, as a kind of, “accept it or watch your job disappear” ultimatum. What kind of leadership is that? None at all.

The union leadership could have told YRCW that they would negotiate at the same time that YRCW negotiated with their lenders, and so the union would have some leverage over the outcome. Not to ask members to first give concessions, then hope for the best from the bankers.

That’s why so many YRC Teamsters are speaking out against the concessionary deal, and many local officers are refusing to endorse it as well.

If you're a member of Facebook, you may want to see what YRCW Teamsters are saying there, you can check out the No More Concessions! page on Facebook. As well as Teamster brothers under YRC Worldwide want justice.

The lack of leadership from the Hoffa administration goes much deeper. For the past 15 years they have done nothing to defend our union or to organize in freight, or in carhaul or other trucking fields. They don’t have a strategy and don’t understand Teamster power. They have not organized; they have not defended the national master contracts or the members’ pensions.

So now YRC Teamsters are left to fend for themselves. Shame on you, James Hoffa, Ken Hall, Tyson Johnson, and Gordon Sweeton. 

To see if these IBT leaders have taken a 15% cut or given up their pensions, see the $150,000 Club report.

YRC Teamsters: Read the proposal before you vote

Read this report in the Kansas City Business Journal.