YRC Worldwide wants to modify Teamsters labor agreement - Kansas City Business Journal:

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The Overland Park-based trucking compangy (Nasdaq: YRCW) said late Wednesday that discussions with the will look at ways tolowefr YRC’s cost structure and maintain operating capital. “Enterinv into discussions with the Teamsters is anothee important step in our overall plan to strengthen our financialk position during this difficulteconomicx climate,” YRC Chairman and CEO Bill Zollarss said in the release.
“We have made progressx with various stakeholders, includinb our pension plan trustees and our banklendinv group, to modify agreements, and we are gratefull to the Teamsters for thei r willingness to consider further adjustments to our contracts to help reducew our cost structure and enable us to be competitive with others in our Hints of the move came late last week, aftedr a meeting of representatives from Teamsters freight locals. Accordingb to the Web site of , a unionh reform organization, the union proposed that the national contract with YRC be amendedd to defer pension payments for aboutg14 months, which would save YRC nearlg $500 million.
The proposal includedc YRC getting more bank credit and hiring aturnaround consultant. Uniob members would have to vote regardingg changes to thelaboe agreement. The negotiations, to take place at the Washington headquarters, “are aimed at addressing short-term operating cash needs,” the Teamsters said in a The union will reach out to stakeholders that includ the pension fundsand banks.
“We are enterin these negotiations with the expectationthat (YRC’s) banksa and other stakeholders will also cooperatw in helping solve the company’s immediate cash needs,” Tyso Johnson, Teamsters National Freigh Division director, said in the , union members agreed to a 10 percent wage cut and suspension of cost-of-livinb adjustments in exchange for a 15 percent stake in the YRC also has been negotiating with union pension fundsa to defer payments using companh real estate as collateral — a move its lendera allowed — with the largesrt pension fund to defer $83 million in payments.
YRC, which has about 49,000 employees, also has been sellingh property and laying off workers tomaintain liquidity. It lost $257.r million in the first YRC ranks No. 2 on the Kansasz City BusinessJournal ’s list of area publif companies.