YRC CEO asks union to extend labor agreement through 2019


YRC Worldwide (YRCW -0.7%) CEO James Welch asked union bosses to extend a labor accord into 2019 to aid the struggling trucker in its effort to refinance its debt, Bloomberg reports. "Our lenders will not refinance our debt unless we have a five-year agreement along with an improved cost structure and operational performance," YRC's presentation read.

YRC delayed its earnings release to Nov. 12 due to meetings with the Teamsters Union in which the company asked the group to reduce absenteeism and provide predictable future wage/benefit increases.

The company faces a grim fate, and is using it as a bargaining chip. A graph in the presentation depicted 2 options - the first refinancing, the second a truck driving off a cliff.

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Comments (4)
  • Michael Bryant
    , contributor
    Comments (6942) | Send Message
     
    And if union doesn't agree, (YRCW) goes bankrupt, and workers may lose their job.
    8 Nov 2013, 08:17 PM Reply Like
  • mom0108
    , contributor
    Comment (1) | Send Message
     
    Huge upside when union agrees, as they pretty much have to.
    Priced at bankruptcy now.
    8 Nov 2013, 11:48 PM Reply Like
  • BigGuy
    , contributor
    Comments (146) | Send Message
     
    The 10% notes due in 2015 traded at 75 on 11/1 - a YTM in excess of 33%.
    9 Nov 2013, 09:18 AM Reply Like
  • OPPORTUNISTIC 71
    , contributor
    Comments (41) | Send Message
     
    Since the recession UPS has been eating Yellow freight's lunch. Since UPS bought Overnight Freight and converted it to UPS freight they've been taking marketshare from less capitalized companies. It's funny because the UPS is also run by Teamster labor and they have been subsidizing the whole pension fund since the recession. It's been like Social Security where the winners subsidize the weaker rivals in the pension fund.
    9 Nov 2013, 01:50 PM Reply Like
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