March 18, 2011: John Lamar, YRC’s new restructuring officer, will pull down $80,000 per month, in addition to “director compensation” and a possible $500,000 bonus later this year, according to YRCW’s filing with the Securities and Exchange Commission. Lamar holds positions with other corporations as well.

YRC cannot afford to pay for our pensions, but does seem to have money for some people. You can read more here.

March 9, 2011: President Obama and Mexican President Felipe Calderón March 3 announce their agreement on a “path” toward resolving the protracted North American Free Trade Agreement cross-border trucking dispute with Mexico and the eventual lifting of retaliatory Mexican tariffs on over $2 billion in U.S. goods.

At a joint press conference with Calderón after a White House meeting, Obama said he was “especially pleased” that the two sides have found a “clear path” to resolving the trucking dispute.

“I look forward to consulting with Congress and moving forward in a way that strengthens the safety of cross-border trucking, lift tariffs on billions of dollars of U.S. goods, expands our exports to Mexico and creates jobs on both sides of the border,” Obama said.

The agreement in principle contemplates a reciprocal, phased-in program with the highest safety standards authorizing both Mexican and U.S. long-haul carriers to engage in cross-border operations under NAFTA, the fact sheet said.

U.S. and Mexican negotiators are continuing to iron out details and expect to have a draft final agreement “very soon,” according to a White House fact sheet.

As soon as all of the details are in place, the administration will confer with Congress and publicly share the proposed agreement and seek comment, the White House said.

Through an interpreter, Calderón said Mexico's objective has always been to reach a solution that's mutually acceptable.

Meeting Same Safety Standards

According to an American Trucking Associations press statement, the tentative agreement upholds the requirement that Mexican fleets apply for and receive authority from the Federal Motor Carrier Safety Administration. The ATA said Mexican trucks must also meet the same safety standards as U.S. fleets.

Once a final deal is reached, Mexico will suspend retaliatory tariffs it imposed in stages. When the agreement is signed, Mexico will reduce tariffs by 50 percent and will suspend the remaining 50 percent after the first Mexican carrier is granted operating authority under the program. All current tariffs will be ended by Mexico once the program is in place.

“The agreed schedule will not affect the rights and obligations of Mexico or the United States under the NAFTA, including Mexico's right to apply its retaliatory measures,” the fact sheet said.

House Ways and Means Committee Chairman Dave Camp (R-Mich.) said he looked forward to seeing the administration proceed rapidly on the path laid out, noting that U.S. exporters have paid over $4 billion in extra duties since the retaliation has been in effect.

“I am encouraged by today's announcement that the United States and Mexico have made progress toward putting in place a cross-border trucking pilot project that will allow Mexico to lift its retaliatory tariffs on U.S. exports,” Camp said in a written statement.

Similarly, Ways and Means Trade Subcommittee Chairman Kevin Brady (R-Texas) said American workers are being hurt every day the tariffs continue. He encouraged the administration to implement the plan as soon as possible.

Blocked Since 1995

Since 1982, Mexican trucks have been allowed to travel up to 25 miles across the U.S. border.

NAFTA had called for cross-border trucking to be phased in beginning in 1995. However, the provision was blocked by the Clinton administration and Congress, which had routinely prevented the provision from moving forward by denying funding in spending bills, citing safety concerns about Mexican trucks on U.S. roads.

In 2007, The Bush administration launched a pilot program to comply with the NAFTA provisions. However, Congress cut off funding and the pilot program was shut down in 2009.

The standoff led Mexico to impose the retaliatory tariffs on $2.4 billion worth of U.S. products in March 2009, including key agricultural exports such as pork, because of U.S. noncompliance with NAFTA trucking provisions (50 DLR A-5, 3/18/09). Mexico subsequently revised the tariff list. The new list of 99 items targeted U.S. products with greater exports to Mexico than the previous list of 89 goods in order to increase the impact on the United State (158 DLR A-4, 8/17/10).

After the dispute had languished for years, Transportation Secretary Ray LaHood early this year unveiled an “initial concept document” to Congress and the Mexican government on a new long-haul trucking program, accompanied by safety inspections, for Mexico (4 DLR A-1, 1/6/11). Mexico welcomed the initial concept paper but did not lift the retaliatory tariffs. However, the Mexican government indicated at that time that it would not rotate the tariff list.

IBT Condemns Action; Business Interests Pleased

The International Brotherhood of Teamsters has been at the forefront in fighting the border opening and issued a strong condemnation when the tentative deal was announced. “This deal puts Americans at risk,” Teamsters General President Jim Hoffa said in a March 3 news release. “This agreement caves in to business interests at the expense of the traveling public and American workers.”

“Why agree to a deal that threatens the jobs of U.S. truck drivers and warehouse workers when unemployment is so high? And why would we do it when drug cartel violence along the border is just getting worse?” he said.

The Owner-Operator Independent Drivers Association (OOIDA) also slammed the announcement. “Simply unbelievable,” Todd Spencer, executive vice president of OOIDA said. “For all the president's talk of helping small businesses survive, his administration is sure doing their best to destroy small trucking companies and the drivers they employ.”

The Teamsters, OOIDA, and a GOP aide said they do not have any further details on the tentative proposal.

However, business interests, including U.S. Chamber of Commerce, the National Foreign Trade Council, and the National Association of Manufacturers welcomed the announcement.

The American Trucking Associations also welcomed the agreement in principle. “We hope this agreement will be a first step to increasing trade between our two countries, more than 70 percent of which crosses the border by truck,” ATA President and CEO Bill P. Graves said.

“This is an important step to promote job growth on both sides of the border and shore up our bilateral relationship,” U.S. Chamber of Commerce President and Chief Executive Officer Thomas Donohue said in a March 3 statement. “We are now pressing the Administration and Congress to finalize the agreement, move the United States into compliance, and allow an end to these job-killing tariffs. This will be a major step toward providing certainty to trucking companies and shippers throughout North America.”

NAM Senior Vice President for Policy and Government Relations Aric Newhouse said that the United States, as a global leader in ensuring enforcement of trade laws, needs to lead by example by complying with NAFTA obligations on Mexican trucks.

By Rossella Brevetti

February 4, 2011: YRC Worldwide broke into the black in the fourth quarter, reporting a $23 million net profit on $1.09 billion in revenue, and cut its full-year loss to $322 million.

For the full year, YRC Worldwide reported $4.3 billion in revenue, a 12 percent drop from $4.9 billion in revenue in 2009. It lost $622 million that year.

Click here to read more at The Journal of Commerce.

February 3, 2011: Arkansas Best Corporation today announced a fourth quarter 2010 net loss of $3.1 million, or $0.12 per share, compared to a fourth quarter 2009 net loss of $88.7 million, or $3.54 per share. The fourth quarter 2009 results included charges for goodwill impairment of $2.55 per share and supplemental pension settlements of $0.11 per share. Excluding those charges, Arkansas Best had a fourth quarter 2009 net loss of $22.1 million, or $0.88 per share.

"Arkansas Best's fourth quarter and full year results compared to last year reflect improvement associated with increased business levels and an LTL pricing environment that began improving in the fall," said Judy R. McReynolds, Arkansas Best President and Chief Executive Officer. "The progress we have made this year is evidence of our team's diligence in maintaining our core principles of selling value and delivering it safely and efficiently. Our steady management and consistent actions have put us in a better position for the future. As we move into a new year we must work hard to achieve our goal of returning to healthy profitability levels through consistent business growth and improved account pricing."

Click here to read more at Yahoo! Finance

January 28, 2011: Citing dire financial circumstances, three subsidiaries of freight shipping firm YRC Worldwide Jan. 25 asked the U.S. Court of Appeals for the Eighth Circuit to expedite a decision on an appeal filed earlier this month by ABF Freight Systems to a federal judge's decision to dismiss its legal challenges to concessions negotiated between the company and the International Brotherhood of Teamsters (ABF Freight Sys. Inc. v. International Bhd. of Teamsters, 8th Cir., No. 11-1159, motion to expedite briefing and argument filed 1/25/11).

In the filing, the three subsidiaries—YRC, New Penn Motor Express, and USF Holland (the YRC defendants)—said their efforts to restructure their businesses and “avoid the losses of thousands of jobs in their workforce” are being hampered by the pendency of the ABF lawsuit.

Last month, Judge Susan Webber Wright of the U.S. District Court for the Western District of Arkansas granted motions to dismiss for lack of subject matter jurisdiction a lawsuit filed by ABF Freight. The suit alleged that the Teamsters and YRCW and its subsidiaries violated the National Master Freight Agreement by negotiating three concessionary amendments to the collective bargaining agreement that covers most unionized trucking employees in the country (210 DLR A-6, 11/1/10).

In her decision, Wright found that ABF bargained independent of other trucking companies in 2007 and entered into a separate collective bargaining agreement with the Teamsters apart from the one the union negotiated with YRC. Finding that ABF failed to show that it has rights under the contract it seeks to enforce, Wright said that ABF “lacks standing to bring this action and, consequently, the court lacks subject matter jurisdiction to entertain ABF's claims” (244 DLR A-2, 12/21/10).

ABF Freight Filed Appeal

ABF Freight Jan. 18 filed an appeal of Wright's decision with the Eighth Circuit. On a website dedicated to the litigation, ABF Freight said it “respectfully disagrees” with the lower court's decision, dismissing the lawsuit that sought to declare modification of the NMFA on behalf of YRCW subsidiaries “null and void. Therefore, we have chosen to exercise our right to file an appeal,” the company said.

In its motion to expedite the case, the YRC defendants said they are in financial distress and the changes to the labor agreements negotiated with the Teamsters are “a key element” of their “effort to secure new capital and to restructure its substantial existing debt load.”

“The mere pendency of this lawsuit seeking to nullify the amendments to the labor agreements—regardless of the suit's lack of merit—could substantially hamper YRC Worldwide's ongoing effort to obtain additional investment in the Company,” YRC said. “Further, if YRC Worldwide does not secure new financing and restructure its debt load by May 13, 2011 (as well as meet certain interim deadlines), the amendments to the labor agreements become void pursuant to their own terms, which is the very outcome that Appellant, the YRC defendants' biggest unionized competitor, is seeking here. This would exacerbate YRC Worldwide's already-stressed liquidity position and might ultimately force the Company to consider court-assisted restructuring alternatives.”

While the court initially set the schedule for ABF to file its brief by March 14, YRC is asking the court to shorten the time period so that ABF's brief is due Feb. 14. It also asked to have oral argument held as soon after March 21 as possible.

The Teamsters and Trucking Management Inc., which conducts the NMFA negotiations for a number of employers, told the court Jan. 27 that they have no opposition to the motion for an expedited appeal. ABF Freight had not expressed a position on the motion as of Jan. 27.

By Michelle Amber BNA Daily Labor Report.

Why is Zollars Still There?

When Teamsters were asked to approve concessions last fall, they were promised that CEO William Zollars would be gone by the end of 2010. But he’s still sitting in the CEO chair.

When the International Union approved an extension of time for YRCW to get enhanced credit agreements in place, it also allowed Zollars to stay on, running the company.

It’s time for him to move on.

Profits Expected to Rise in 2011

Every public trucking company is expected to post year-end higher profits for 2010 than 2009, and that improvement is expected to grow in 2011. YRCW is the only pubic carrier which posted a loss in 2010, expected to be about $200 million. Signs point toward improvement, so hopefully YRCW will move well in the black for 2011.

The Backbone of This Union

“Freight Teamsters were the backbone of this Union for over 50 years.

“Hoffa has clearly abandoned Freight Teamsters. His decision to not include UPS Freight into Master Freight, and our pension, has turned out to be disastrous.

“I’m running for delegate to make sure members have a real voice at the June convention, not just the Hoffa YES men. We’re going to make Sandy Pope the candidate for working Teamsters like us.”

Ed Taylor, YRC, Local 107, Philadelphia

RCW Pension No Answers Yet

What pension credits will YRCW Teamsters earn when the company resumes partial payments into pension funds in June? This is still anyone’s guess.

The Trustees of the Central States Fund met in January, and once again didn’t take up the issue. They did find time to eliminate any early retirement at all under age 57 (See article, page 5).

Members have a right to know—and plan—and not wait till June.

The Central States Fund includes some 55 percent of YRCW Teamsters. No word yet from other major pension funds, either.

A Candidate Who Knows What We Face Everyday

“Members need to make sure we keep the right to vote on IBT officers. That’s a key reason why our delegate team is running.

“Nominating Sandy Pope means getting a candidate that understands what it’s like to be a working Teamster.”

Barry Strohl, YRC, Local 509, South Carolina

January 19, 2011: ABF Freight System Inc. is appealing a federal judge’s decision last month to dismiss its legal challenge of concessions negotiated between YRC Worldwide Inc. and the International Brotherhood of Teamsters.

The trucker (Nasdaq: ABFS), based in Fort Smith, Ark., on Tuesday sent its case to the 8th U.S. Court of Appeals in St. Louis.

Click here to read more at the Kansas City Business Journal.

January 17, 2011: With a proposal to expand the requirement for electronic onboard recorders pending in the regulatory pipeline, owner-operators are fighting a legal action against the limited recorder requirement that is scheduled to take effect next year.

Last week the Owner-Operator Independent Drivers Association rebutted the Federal Motor Carrier Safety Administration's claim that OOIDA does not have standing to challenge next year's recorder requirement.

Click here to read more at TruckingInfo.

January 10, 2011: The U.S. proposed opening its highways to Mexican trucks under a second test program that would require Mexican drivers to be proficient in the English language and U.S. traffic laws.

The two countries may reach an agreement to allow cross- border trucking within weeks, Mexican Deputy Transportation Minister Humberto Trevino said today in a telephone interview.

As part of the North American Free Trade Agreement, the U.S. agreed to allow Mexican trucks access to deliver goods in the U.S., a pledge it never fully honored after safety advocates and union officials said Mexico’s trucks and drivers didn’t meet U.S. standards. The U.S. canceled its previous trucking program in 2009, leading Mexico to impose tariffs on U.S. products.

President Barack Obama’s “administration will continue to work with Congress and other stakeholders to put safety first,” the U.S. Transportation Department said in a statement. “As specifics of the program are developed, the administration will continue to ensure that the program delivers job growth and economic opportunities here at home.”

Mexican officials will send comments and clarifications by Jan. 10 on the plan the U.S. released today and U.S. transportation officials will travel to Mexico to begin talks, Trevino said.

Willingness to Negotiate

“This is where we are now: a conceptual document, willingness to work and negotiate,” he said. “The idea is to finish it in coming weeks.”

Trevino spoke following a phone call between U.S. Transportation Secretary Ray LaHood and Juan Molinar Horcasitas, Mexico’s transportation and communications minister. Olivia Alair, a spokeswoman for the U.S. Transportation Department, confirmed that the call took place and declined to comment on the timing of an agreement.

The proposed program would be an improvement over the one- year pilot project that ended in 2009 because it would last three years, would include more transportation companies and would streamline paperwork at border crossings, Trevino said.

The U.S. Chamber of Commerce, which has criticized the Obama administration for its relationships with business, praised the proposed program, saying it would help the goal of doubling U.S. exports in five years.

Mexico is the U.S.’s third-biggest trading partner, after Canada and China. Trade between the two nations was $306 billion in 2009, the last year for which data are available.

Import Tariffs

Mexico, beginning in March 2009, has imposed import tariffs on a rotating list of 99 U.S. products valued at about $2.5 billion. Products subject to the levy may include rice, beef, soy sauce and sunglasses.

Martin Rojas, the American Trucking Associations’ vice president for security and operations, called the draft “a positive development in trying to bring forth this longstanding dispute between the U.S. and Mexico.”

“We look forward to seeing more details about this proposal in the near future,” Rojas, whose Arlington, Virginia- based group represents large U.S. trucking companies including YRC Worldwide Inc., said in a telephone interview.

Jose Refugio Munoz, the head of the Mexican trucking industry group known as Canacar, said he is skeptical the program will work because of differences in Mexican and U.S. environmental and labor regulations.

“We see this as a decision by the U.S. government to get Mexico to withdraw measures such as tariffs on certain products,” he said in an interview.

Crime, Violence

Groups including the Owner-Operator Independent Drivers Association criticized the plan, saying it would jeopardize U.S. jobs because while Mexican drivers would want to drive in the U.S., drivers from the U.S. wouldn’t want to traverse Mexican highways.

“Until the Mexican government is able to significantly diminish the rampant crime and violence within its borders, commits to addressing its deteriorated infrastructure, and promulgates regulations that significantly improve its trucking industry, U.S. truckers will be unable to benefit from the anticipated reciprocity,” Todd Spencer, the group’s executive vice president, said today in an e-mailed statement.

The dispute over allowing Mexican trucks beyond a limited zone close to the U.S. border dates back to 1995 when the U.S. refused to implement the Nafta-required cross-border plan.

The rules would only allow Mexican trucks to haul goods between the U.S. and Mexico and would prohibit them from moving loads within the U.S.

By Angela Greiling Keane and Thomas Black.

January 5, 2011: The National Highway Traffic Safety Administration said it will propose requiring speed limiters on heavy trucks at 68 mph after trucking groups asked for the regulation.

NHTSA said Monday that it would grant petitions from American Trucking Associations and Road Safe America to require manufacturers to install devices that would limit heavy truck speeds to 68 mph.

Click here to read more at Transport Topics.