Facing continuing troubles as it tries to put itself on solid financial footing, YRC Worldwide has submitted a contract proposal to the Teamsters. YRC said the International Brotherhood of Teamsters (IBT) has set a “two-man committee” meeting date of Dec. 6 for leaders to review the proposal and decide whether to submit it to the membership for a ratification vote.
YRC did not release any details of the proposal.
“This meeting and the subsequent vote, which we believe will be ratified, is another important and positive development in our long-planned refinancing process and the continued implementation of our turnaround plan. We are grateful to our union and non-union employees who have made significant sacrifices to keep our company moving forward and our customers who have shown solid support in this
process,” said James Welch, CEO of YRC Worldwide, in a statement.
As recently as two weeks ago, analysts were uncertain of the likelihood of a new union contract.
“IBT negotiations are currently ongoing, as management approached Teamsters leaders for a five-year extension to the current labor contract, which entails, among other items, 15% in wage concessions,” analysts at Wall Street firm Stifel Nicolaus & Co. noted in a recent report.
The analysts believe a proposed contract extension will encounter resistance from the Teamsters membership.