YRC Worldwide Announces Full Ratification of Five-Year Labor Agreement for Three of Its Companies
May 15 2019 - 8:55AM
YRC Worldwide Inc. (NASDAQ: YRCW) (the “Company”) announced the
successful conclusion of labor contract negotiations with the full
ratification of a five-year labor agreement for three of its
operating companies. Employees from the YRCW companies of YRC
Freight, Holland, and New Penn—who are represented by the
International Brotherhood of Teamsters and covered by a National
Master Freight Agreement (NMFA) turned out in record numbers
earlier this month to vote for the new master agreement. On
May 3, 2019, the national economic vote was overwhelmingly approved
along with 26 of 27 local supplements. On May 14, 2019, the
final supplemental agreement was approved. The new labor agreement,
which covers approximately 24,000 employees, goes into effect
immediately, with economic improvements applying retroactively to
April 1, 2019 and running through March 31, 2024.
“The ratification of the contract is good for our employees, our
shareholders, and our customers. Having a five-year agreement is a
very positive event for YRC Worldwide, supporting a more
market-competitive wage and benefit package for our employees while
providing operational benefits that will allow us to provide
reliable and efficient services to our customers,” said Darren
Hawkins, YRC Worldwide Chief Executive Officer.
A few of the contract highlights include:
- Wage increases in each year of the contract, beginning April 1,
2019 through 2023
- Continuation of existing health and welfare coverage, with
predictable employer-contribution rates in each of the 5 years
beginning August 1, 2019
- Restoration of an additional one-week of vacation for certain
employees
- Increased ability to utilize purchased transportation for YRC
Freight and Holland
- Increased use of lower-wage, non-CDL and part-time positions to
improve employee availability and permit CDL-qualified drivers
additional opportunities to drive
- Expanded use of smaller equipment, or box trucks, instead of
costly third-party carriers to deliver freight
- Increased ability to utilize available Department of
Transportation (DOT) hours of service
- A newly structured profit-sharing bonus program for
employees
“In addition to creating a unique opportunity for YRCW to make
investments in the near-term, the ratified contract also positions
the Company to improve our profitability in 2020 and beyond by
taking full advantage of the new operational tools provided for in
the contract, in addition to the implementation of our ongoing
network optimization plan,” Hawkins said.
“We are pleased with the record voter turnout and overwhelming
support of the new agreement by our employees. I want to
thank each and every one of our 31,000 employees for their
continued hard work and dedication. I am confident that the
new operational opportunities approved in this contract plus our
ability to continue to attract and retain top-notch employees will
solidify a very positive future for YRCW,” Hawkins said.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended. The words “will,” “would,” “anticipate,”
“expect,” “believe,” “intend” and similar expressions are intended
to identify forward-looking statements. Forward-looking statements
are inherently uncertain and are subject to significant business,
economic, competitive, regulatory and other risks, uncertainties
and contingencies, known and unknown, many of which are beyond the
Company’s control. It is important to note that the achievement of
the operational efficiencies and the improved service to customers
we anticipate may be subject to a number of factors, including
(among others) those risk factors that are from time to time
included in the Company’s reports filed with the SEC, including the
Company’s reports on Forms 10-K and 10-Q.
About YRC Worldwide
YRC Worldwide Inc., headquartered in Overland
Park, Kan., is the holding company for a portfolio of
less-than-truckload (LTL) companies including Holland, New Penn,
Reddaway, YRC Freight, and YRC Reimer as well as the logistics
company HNRY Logistics. Collectively, YRC Worldwide companies have
one of the largest, most comprehensive logistics and LTL networks
in North America with local, regional, national and international
capabilities. Through their teams of experienced service
professionals, YRC Worldwide companies offer industry-leading
expertise in flexible supply chain solutions, ensuring customers
can ship industrial, commercial and retail goods with
confidence.
Please visit our website at www.yrcw.com for
more information.
Investor
Contact: |
Bri
Simoneau |
|
913-696-6108 |
|
investor@yrcw.com |
|
|
Media Contact: |
Mike Kelley |
|
916-696-6121 |
|
mike.kelley@yrcw.com |
SOURCE: YRC Worldwide
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