YRC Worldwide In Talks With Teamsters, Plans To Revise Labor Contract; Stock Up

(RTTNews) - Transportation company YRC Worldwide Inc. (YRCW) announced Thursday that it is in discussions with officials of the International Brotherhood of Teamsters or IBT to determine the next steps to move the company forward, after contract extension proposal was rejected by Teamsters union in last week.

The company said it plans to revise its proposal to both work within the requirements of the capital markets to refinance the company and protect the jobs of its 32,000 employees.

"It is clear the Teamsters understand the urgency of the current situation.Although the company must achieve operational costs savings in the agreement, we also understand that simply re-voting the same proposal is not an option. Over the past few days, many employees have reached out to me expressing concern about the future of the company and about how they could protect their jobs,"said YRC Worldwide CEO James Welch.

"While we are in discussions with the IBT to set the blueprint for the long-term future of the company, our drivers, dockworkers, account executives and customer service teams have been hard at work serving our customers," Welch said.

Last week, YRC Worldwide Inc.'s union employees voted against extending their contract. The International Brotherhood of Teamsters had announced that the employees did not approve the Memorandum of Understanding or MOU extension proposal made by YRC Worldwide.

The contract extension would have extended Teamsters' agreement with YRC for five years till March 31, 2019.

YRCW is currently trading at $15.50, up $2.72 or 21.28%.