YRC Worldwide Teamsters Members Ok Contract Extension

(RTTNews) - Teamsters working for YRC Worldwide Inc. (YRCW) have approved a tentative agreement aimed at protecting more than 30,000 jobs. Teamsters at YRCW approved the latest proposal by a vote of 12,267 to 6,314, International Brotherhood of Teamsters said on Sunday.

The Teamsters union voted 66 percent in favor of extending their contract until 2019. A total of 18,581 employees voted, and 12,267 said yes to continuing working with a pay cut of 15%, as well as a 75% cut to pension contributions through 2019. The Workers voted after rejecting a prior company proposal.

Teamsters noted that the plan will provide a pathway for substantial debt reduction and refinancing initiatives that will permit the company to protect jobs.

"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....Now we will hold management's feet to the fire to make sure our members' jobs are protected and redouble our efforts to make sure this company handles its finances responsibly," said Jim Hoffa, Teamsters General President and Co-Chairman of the Teamsters National Freight Industry Negotiating Committee.

Teamsters stated that the latest agreement contained significant improvements over the company's prior rejected proposal.

On 19th January, YRC Worldwide had announced that it reached a tentative agreement with officials of the International Brotherhood of Teamsters on an extension of its collective bargaining agreement to March 2019.

On 9th January, Teamsters Union had said that an initial company proposal was rejected by over 19,000 Teamster members who voted over several weeks.

In December 2013, YRC Worldwide noted that it reached an agreement with certain holders of its Series A Convertible Notes, Series B Convertible Notes and other institutional investors that would allow it to reduce debt by about $300 million.