On the YRCW side, the company stated that it had in fact entered into „a preliminary agreement with the management of the International Brotherhood of Teamsters (IBT) to amend the terms of the current employment contract for its employees covered by the National Master Freight Agreement. The proposed amendments are intended to reduce the company`s cost structure and preserve working capital. Pension Fund Progress – YRC Worldwide announced last month [June] an agreement with Central States, Southeast and Southwest Areas Pension Fund („Central States,“ the largest multi-employer pension fund of the International Brotherhood of Teamsters („IBT“) to provide certain of the company`s real estate as collateral instead of second-quarter pension contribution payments for a deferral of $83 million. Since the announcement, seven additional funds have joined together as participants in the same agreement for an additional $11 million deferral. The company is continuing discussions with its remaining IBT pension funds with several employers. David Ross of Stifel Nicolaus viewed YRCW`s statement as a reaction to the sharp decline in YRCW shares, which fell below $1.00. He noted that, although a YRCW press release stated that he had reached a preliminary agreement with the International Brotherhood of Teamsters on the modification of his current employment contract, the details were not reached. „We believe the company has put concessions on the table to be reviewed by the Teamsters, which may include salary cuts, pension allowances and co-remuneration in the health sector. The way in which members vote on changes to the employment contract depends, in our view, on the proposed concessions,“ said Ross. For example, an additional 5% reduction in wages could be tastier than a 15% reduction. And co-pay in the health sector has been a no-start for Teamsters in the past. The company stated that „details of the interim agreement are expected to be available next week [13-17 July] after further discussions with labour management. The amended agreement will be put to the vote of YRC Worldwide staff, represented by the IBT. Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hard-working men and women in the United States, Canada and Puerto Rico.
Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and „like“ on Facebook at www.facebook.com/teamsters. Teamsters Discussions – The company is holding personal talks with the IBT this week [July 8] to change the terms of the current employment contract for its employees covered by the National Master Freight Agreement. Discussions remain productive. Continued support of the lender group – In the month [June], the Company announced an amendment to its bank agreement to provide for the immediate release of trust funds generated by the company`s previous asset sales in order to repay the revolving credit facility without reducing the company`s borrowing under the facility. (WASHINGTON) – The latest addition to the YRC Freight, Holland and New Penn National Master Freight Agreement has been ratified by the relevant membership, meaning that the new national collective agreement and all endorsements are now fully ratified and will enter into force immediately.