YRC Teamsters Vote Yes to New Contract
OVERLAND PARKS, KS — YRC Worldwide's teamster members have voted in favor of an offer that clears the way for a $1.4 billion refinancing plan for the financially troubled trucking company.
Workers voted over the weekend after rejecting a prior company proposal and when the numbers were tallied, workers had approved the new proposal by a vote of 12,267 to 6,314.
“It’s a reset for the company,” CEO James Welch told Bloomberg news after balloting ended. “We’ve been working on this strategic process for a year to pay down the debt and to achieve a lower interest payment, and the labor agreement was the key ingredient.”
Earlier this month, union members had voted 61 percent against a package of concessions. YRC then negotiated a second vote on a reworked proposal. Meanwhile, the refinancing plan hinged on union members accepting a four-year contract extension with its cuts and roll-backs.
"This was a very difficult vote for our members, but in the end they did what they believe will give this company the best chance to stay in business and protect their jobs," said Jim Hoffa, Teamsters president and co-chairman of the Teamsters National Freight Industry Negotiating Committee.