YRC, Teamsters reach tentative deal for 5 pct. wage cut and pension deferral, according to TDU
By APTuesday, July 14, 2009
TDU: YRC, Teamsters reach deal for 5 pct. wage cut
NEW YORK — The Teamsters for a Democratic Union Web site said Tuesday that YRC Worldwide Inc. and union workers have reached a deal to cut wages by an additional 5 percent and end pension contributions for 18 months.
The TDU, the national reform movement within the Teamsters, said that if the deal is approved by members, the additional pay cut will go into effect immediately. The additional pay cut is about $1.16 per hour. The Teamsters already took a 10 percent pay cut in January to help boost the trucking company’s ailing finances.
Along with Teamster concessions, Overland Park, Kan.-based YRC Worldwide has cut thousands of employees, sold real estate and renegotiated terms of its debt to stay afloat. The company has about 35,000 union members.
TDU spokesman Ken Paff said he expects the deal to go out to union members “very quickly,” possibly as early as Friday. He said that Teamsters want the ballots back by Aug. 6.
A spokeswoman for the International Brotherhood of Teamsters was not immediately available to comment.
