Class of Black Employees Suffered Hangman's Nooses, Racist Graffiti and Epithets, Harsher Discipline, and Tougher Work Assignments, Federal Agency Charged

CHICAGO – An $11 million consent decree entered here today in federal court has ended the U.S. Equal Employment Opportunity Commission's (EEOC) race harassment and discrimination lawsuit against a major transportation company. Magistrate Judge Susan E. Cox granted preliminary approval of the decree.

In its suit, the EEOC charged that Yellow Transportation, Inc. and YRC, Inc. subjected African-American employees at its Chicago Ridge, Ill., facility to a racially hostile working environment and discriminatory terms and conditions of employment. Yellow Transportation operated the facility until its merger with Roadway Express, when the two companies combined operations to form YRC Inc. in October 2008.

Had the case gone to trial, the EEOC was prepared to present evidence that black employees were subjected to multiple incidents of hangman's nooses and racist graffiti, comments and cartoons. The EEOC was also would have presented evidence that Yellow and YRC subjected black employees to harsher discipline and scrutiny than their white counterparts and gave them more difficult and time-consuming work assignments. This would include expert testimony that these practices resulted in statistically significant differences in the way blacks and whites were treated. Numerous black employees, according to the EEOC, had complained about all of these conditions over the years, but the company continually failed to take effective action to correct the problems.

Under the consent decree settling the suit, signed by Magistrate Judge Susan E. Cox, $11 million will be paid to the discrimination victims. The Chicago Ridge facility closed in 2009, however, many African-American employees from Chicago Ridge continue to work at YRC's Chicago Heights facility. The Chicago Heights facility was itself the subject of a separate lawsuit by the EEOC against YRC with similar allegations, resulting in a $10 million settlement in 2010. That first consent decree (Chicago Heights) will also protect the victims of the second lawsuit at Chicago Ridge.

Click here to read the entire press release.

June 28, 2012: Freight Teamsters are building a rank-and-file network to say NO to concessions. They've launched a new website to help ABF Teamsters get informed, share ideas, and unite to protect the freight contract.

Other freight Teamsters—especially YRCW brothers and sisters—are invited to join and support the struggle, because we are in this industry and union together.

No Concessions is a reasonable and winnable goal for the contract. No concessions on benefits or conditions for city, dock, road, office or garage Teamsters. And a reasonable wage increase to keep our standard of living from falling further behind inflation.

Interested? Click here to go to NoFreightConcessions.org. Sign up to receive information on contract developments. Post a comment.

Isolated, we will lose. Together, we have rank and file Teamster power.

We've Said NO Before, We Can Do It Again

"Two years ago we sent a strong and clear message: no concessions. The company claimed they couldn't stay in business without givebacks. We proved them wrong and we can do it again. Don't let them sell you another sob story. Teamster members deserve a decent contract. That means protect our pension and benefits and get us a raise."

Emmet Ramsay, ABF, Local 391, Winston-Salem

It Starts With Winning At ABF

"Every freight Teamster needs to stand behind our guys at ABF. No concessions at ABF means the rest of us at the YRC companies have a fighting chance to get back to the full rate in 2015. Our national freight contract meant greater bargaining power in the past and we need to restore it for the future. That starts with winning a decent contract at ABF in 2013."

Allen Watrous, YRC, Local 773, Allentown, Pa.

We Need a Campaign And a Plan

"Teamsters pride is about power in trucking. We can't let Hoffa forget that. We need to rebuild our strength in freight and that means having a plan. Members need to sign up on the website (www.NoFreightConcessions.org) and help light a fire. We need a contract campaign at ABF if we're going to get the contract we deserve."

Paul Host, ABF, Local 200, Milwaukee

ABF Has the Money, Let's Get Our Fair Share

"Since the company whined about being in the red we've seen a raise for the CEO and the purchase of other companies. They've got money to spend so it's time to negotiate our fair share."

Michelle Glessner, ABF, Local 957, Dayton, Ohio

June 28, 2012: The Central States Pension Fund's 2011 Financial and Analytical Reports show that the fund was down to $17.7 billion at the end of 2011.

Fund assets dipped from $19.9 billion at the start of 2011, to $17.7 at the end of the year. The fund made zero on investments during the year; in fact there was a loss of .28%, attributed to poor stock market performance.

The reports—which were received by Teamsters for a Democratic Union in early June—also reveal in more detail decisions regarding YRC Teamsters, and a new rule on withdrawal liability.

The fund is in serious condition and could possibly be insolvent within a decade. The International Union—in alliance with other unions and allies such as the AARP—needs to launch a grassroots movement aimed at strengthening the Pension Benefit Guaranty Corporation (PBGC) to protect all workers' pensions, such as the bill introduced by Senator Robert Casey (D-Pa) two years ago. Behind the scenes lobbying isn't working. Teamsters and retirees are ready to join in to defend our pensions.

The Hoffa administration, after opening the door with the UPS pull-out, has not made stopping further withdrawals from the fund a priority.

YRC on "Distressed Employer Schedule"

The report details that in 2011 the Trustees of the fund decided to accept the low contribution rate of about $1.75 per hour from YRC. However, approximately 12,000 participants employed by Holland and YRC were put on a "distressed employer schedule" which basically eliminated all early retirement options, with the remaining benefit being the accrued benefit at age 65, or sharply reduced for earlier retirement.

The fund had 67,815 active participants as of November 2011, and 213,647 retirees.

The fund is heavily dependent on investment success. In fact, to maintain its present level of assets, it has to make 12% on investments this year. This is well above any reasonable projection.

TDU members won the right to obtain quarterly reports in federal court. These 2011 reports were delayed due to the fact that the previous Special Counsel passed away in January. The new Special Counsel is retired federal judge David Coar.

A longer version of this article and the full financial reports are available here.

UPS Pensions

A YRC Worldwide Inc. subsidiary is planning to hire 450 over-the-road and local city drivers in Midwest markets.

In a release Wednesday, the Overland Park-based trucking company (Nasdaq: YRCW) said Holland is focusing on recruiting drivers in the areas of Indiana, Illinois, Ohio, Kentucky and Wisconsin.

Holland, one of YRC’s regional brands, is seeing increased demand for next-day delivery and already hired an additional 1,050 drivers during the past year and a half, the company said.

Last month, YRC Freight, which oversees Holland and other regional carriers, said it planned to hire 200 over-the-road truckers to deal with increased shipments.

YRC is busily rebuilding its status as one of the nation’s largest trucking companies after the recession cut demand and forced it to twice restructure its finances.

Those interested in applying at Holland can go online.

Arkansas Best Corporation (Nasdaq: ABFS), announced it has entered into a definitive agreement to acquire Panther Expedited Services, Inc. ("Panther"), from Fenway Partners LLC, a leading middle market private equity firm. The total transaction value is approximately $180 million, subject to post-closing adjustments, with all of Panther's outstanding debt being repaid as part of the transaction. The acquisition is scheduled to close on or about June 15, 2012, subject to customary conditions, including the funding of a new term loan agreement for Arkansas Best.

Panther is North America's largest independent expedited transportation and premium logistics provider. Panther reported approximately $215 million in revenue (unaudited) and $24 million of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") in 2011. ("Adjusted EBITDA", for this purpose, includes adjustments for management fees/expenses.) Panther's specialized equipment, technology and expertise in expedited transportation, premium logistics and global forwarding will enhance Arkansas Best's end-to-end solutions offering, providing more of the services that customers increasingly demand. The current Panther management team is expected to remain in place to manage and grow the business.

Arkansas Best expects to fund the $180 million purchase price with $80 million in cash and a five-year $100 million senior secured term loan, which can be increased to $175 million through an accordion feature. 

Following the close of the transaction, Panther will operate as a wholly owned subsidiary of Arkansas Best and a sister company to ABF. Andrew Clarke will remain with Panther as President and CEO, reporting directly to Ms. McReynolds. Additionally, all other members of the Panther executive team are expected to remain in their current roles with the company.

In 2011, Panther reported gross revenues of approximately $215 million (unaudited) and Adjusted EBITDA of $24 million. Panther's Adjusted EBITDA has averaged more than $20 million since 2006 despite the recent economic downturn. 

Stifel Nicolaus Weisel acted as financial advisor to Arkansas Best for the transaction while J.P. Morgan Securities LLC acted as financial advisor for Fenway Partners and Panther. U.S. Bank National Association is acting as the lead arranger of the loan syndicate for the transaction. Stephens Inc. provided a fairness opinion to Arkansas Best. Vinson & Elkins acted as legal advisor to Arkansas Best. Scudder Law Firm acted as legal advisor to Fenway Partners and Panther.

June 8, 2012: The Central States Pension Fund’s 2011 Financial and Analytical Reports show that the fund was down to $17.7 billion at the end of 2011. The reports – which were received by Teamsters for a Democratic Union this week – also describe in more detail decisions regarding YRC Teamsters, and a new rule on withdrawal liability.

Fund assets dipped from $19.9 billion at the start of 2011, to $17.7 at the end of the year. The fund made zero on investments during the year; in fact there was a loss of .28%, attributed to poor stock market performance.

Employer contributions for the year were $737 million, but benefits paid were $2.83 billion. Thus employer contributions cover only one-fourth of benefits, and the rest must be made up by return on investment. Employer contributions were up in 2011 by $100 million over 2010, primarily due to increases in employer contribution levels. A secondary factor was the return of YRC contributions in June 2011, at a very low contribution level.

The fund is in serious condition and could possibly be insolvent within a decade. The International Union – in alliance with other unions and allies such as the AARP – needs to launch a grassroots movement aimed at strengthening the Pension Benefit Guaranty Corporation (PBGC) to protect all workers’ pensions, such as the bill introduced by Senator Robert Casey (D-Pa) two years ago. Behind the scenes lobbying isn’t working. Teamsters and retirees are ready to join in to defend our pensions.

YRC on “Distressed Employer Schedule”

The report details that in 2011 the Trustees of the fund decided to accept the low contribution rate of about $1.75 per hour from YRC. However, approximately 12,000 participants employed by Holland and YRC were put on a “distressed employer schedule” which basically eliminated all early retirement options, with the remaining benefit being the accrued benefit at age 65, or sharply reduced for earlier retirement.

Thousands of YRC Teamsters were hit hard by this big cut. Some, with more than 25 years, were permitted to retire by mid-2011 with their benefits intact.

YRC is making monthly payments at the $1.75 rate of $3.64 million per month. YRC still owes $89.5 million from previous obligations, and the amount is due in a lump sum payment on March 31, 2015, the date that the concession agreement expires.

The Fund took another hit when Hostess Brands stopped making payments last August on 2,800 Teamsters. Later Hostess filed Chapter 11 bankruptcy in a move to escape its pension obligations.

The fund had 67,815 active participants as of November 2011, and 213,647 retirees.

“Hybrid Withdrawal Liability”

In July 2011 the fund adopted an alternative withdrawal liability method. Any new employer in the fund will only have withdrawal obligations based on the “direct attribution” method, which would be much lower, because they will have no obligations regarding existing retirees from other companies. Existing employers in the fund have the option of paying off their present withdrawal liability, and then becoming “new” employers. Whether any employers will take this option is unknown, but may be doubtful.

The fund is heavily dependent on investment success. In fact, to maintain its present level of assets, it has to make 12% on investments this year. This is well above any reasonable projection.

The fund uses Northern Trust to manage about half of the $17.7 billion in assets. Approximately half of the assets are now under passive investment (index funds), to reduce the cost of money management. The fund has 67% of assets in stocks.

The Central States Health and Welfare Fund, which has 83,385 participants due to the fact that UPS still participates in many areas in the H&W fund, continues to operate in the black, with growing assets.

TDU members won the right to obtain quarterly reports in federal court. These 2011 reports were delayed due to the fact that the previous Special Counsel passed away in January. The new Special Counsel is retired federal judge David Coar.

Full reports for your review

Independent Special Counsel Report

Fourth quarter financial and analytical report

Third quarter financial and analytical report

Trucking giant YRC Worldwide chose a Scott D. Ware, a 27-year trucking veteran, to serve as president of its regional less-than-truckload subsidiary Holland.

Ware, 51, who has worked for Holland since 2007, succeeds Michael J. Naatz, who left the trucking company May 4 to become CIO at railroad Kansas City Southern.

Ware formerly was vice president of operations at the Holland, Mich.-based company, one of three regional LTL carriers owned by YRC Worldwide.

"Scott has been an integral part of the Holland success story for the past five years," James Welch, CEO of the $4.9 billion LTL holding company, said in a statement.

Before joining Holland, Ware directed line haul operations at regional LTL carrier Saia and Jevic Transportation and was a freight flow manager at Con-way.

The regional carrier group, which includes Holland, New Penn Motor Express and Reddaway, accounts for about a third of YRC's $4.9 billion annual business.

Holland is the largest of the three regional companies in terms of locations and power equipment, with 57 service centers and more than 5,400 tractors.

In the first quarter, the regional carriers increased their combined revenue 9.8 percent from a year ago to $402 million, boosting net profit to $11.4 million.

Strong automotive sales and a related surge in manufacturing have helped Holland increase freight volume and revenue in its 12-state Central U.S. territory.

May 22, 2012: Freight Teamsters need to get organized into a national contract network before the upcoming negotiations, to defend what we have and improve what we can.

Freight Teamsters are starting to come together. It's no secret we've been on a rough road. Now is the time to get involved and put an end to concessions in our industry.

If we sit back, we'll continue to slide downhill. But we don't plan to sit back.

The National Master Freight Agreement (NMFA) expires on March 31, 2013, just ten months away. And the Hoffa administration is fond of giving the companies early bargaining, so you can expect negotiations to start later this year.

ABF is the lead dog in this bargaining round, because YRC has a concession addendum until 2015. But YRC Teamsters will be affected by this contract, too.

YRC wages are pegged at 85 percent of the contract wage, and so will go up (or even down) with the contract. YRC health benefits, working conditions and job protections (or lack thereof) are on the line, too.

No More Concessions

The TDU Freight Committee is bringing Teamsters together to say No Concessions—period. ABF is coming after givebacks. Freight Teamsters need to make clear early on that we will Vote No and reject any contract that includes concessions.

When management sees that, we will get a reasonable settlement.

The pension issue at ABF is going to be a lot easier this time around, because changes adopted by the Central States Pension Fund dramatically reduced ABF’s future pension costs.

In 2011 the Central States Pension Fund changed its rules so that no new contribution increases are required for contracts in Class 18, including ABF. 

In the last contract, ABF paid increased pension contributions of about $3 per hour into the Central States. This time you can expect increases of zero. That is what was negotiated in the national carhaul agreement, and amounts to a big savings in labor cost.

Of course there are other pension funds that will require increased contribution levels, but the majority of ABF Teamsters are in Central States.

There is persistent talk that ABF will again demand to pull out of Teamster pension plans. This is a company scare tactic—and a non-starter. Teamster members at ABF will never vote to accept a contract with a pension pullout.

When we make that clear, it will be pushed off the bargaining table just like it was the last time around.

No concessions. No pension theft. And no distractions from the ABF lawsuit.

A National Contract Network

ABF and YRC Teamsters need to put any divisions aside and work together. In the short term, we've got to put a decisive end to the string of contract concessions in our industry.

In the long term, we've got to rebuild a strong national freight division.

Freight Teamsters and the TDU Freight Committee are planning local and national conference calls to launch a contract campaign to share information, defend our rights, and put forward contract proposals that can unite freight members.

Stay tuned for an upcoming website and Facebook page too.

Click here to contact TDU's Freight Network. Or call (313) 842-2600 or send an email to: freight [at] tdu.org with your questions or ideas, to sign up for contract updates and to get involved in the national freight

YRC Freight plans to hire 200 over-the-road truck drivers in 13 U.S. cities, including Kansas City.

The company, a subsidiary of Overland Park-based YRC Worldwide Inc. (Nasdaq: YRCW), said Tuesday that the new hires are needed because business is improving.

“YRC Freight is growing, and our volumes are building,” Jeff Rogers, the unit’s president, said in a release.

YRC and its parent company have spent the past three years trying to dig out from the economic doldrums of the recession, which drastically reducing shipping and pushed the company close to bankruptcy. Earlier this year, the company negotiated with its labor unions a series of changes to its delivery network that were expected to cost some jobs and close or scale back some depots.

Click here to read more.

Can James Welch, the new CEO of one time transportation giant YRC Worldwide, succeed in retooling and rehabilitating the company that was close to bankruptcy last year? The quick answer is yes, based on his less-than-a-year performance as helmsman of the ailing YRC.

Click here to read more at Forbes.