Posted on : 10-07-2009 | By : Truckdriversnews | In : truck driver Industry
YRC Worldwide Inc. has forged a tentative agreement with the International Brotherhood of Teamsters that would help the trucking company cut costs and maintain cash.
The Overland Park-based company (Nasdaq: YRCW) said Thursday that Teamster leaders had agreed to modify the current labor agreement for certain employees, but details probably won’t be released until next week, after the agreement has been explained to local union leaders. The changes still require a vote of YRC employees who are members of the union.
“We appreciate the ongoing willingness of the Teamsters leadership to work with the company to identify ways to improve the financial position of YRC Worldwide during this severe economic recession,” YRC COO Mike Smid said in the release.
YRC shares turned sharply upward in Thursday trading and closed at $1.49, up 60 cents, or 67 percent, on volume of 35.9 million shares, according to Yahoo Finance. The stock’s average daily volume the past three months is 3.8 million shares.
Talks reportedly were weighing whether YRC would end its participation in Teamsters pension plans for 14 months, which would bring estimated savings of $500 million.
The tentative agreement requires shared sacrifice but preserves good jobs and benefits for the 35,000 YRC workers represented by the Teamsters, their families and tens of thousands of Teamster retirees, union General President James Hoffa said in a Thursday statement.
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