YRC Worldwide has merged its two largest subsidiaries, Yellow Transportation and Roadway, in an attempt to reduce duplicate functions, share technology and form common management teams, the company has announced.

According to YRC, the two companies will bring together their respective local sales teams to offer services through one national operating network, occurring in phases to provide service continuity to customers and a seamless transition to employees.

"The economic downturn has created the capacity in our networks needed to effectively integrate our operations, while improving service reliability and speed,” said Bill Zollars, chairman, president & CEO of YRC. “By offering a comprehensive service portfolio through one unified network, we can more effectively serve our customers and simplify their experience."

YRC added that it expects a profit in the third quarter of 2008 due to a curtailment gain of approximately $0.70 per share as a result of the harmonization of its nonunion employees retirement plans. However, the company said it expects a loss from core operations for the quarter.

In response, the International Brotherhood of Teamsters said it will “closely review” the impact the action will have on the jobs and working conditions of its members.

"There is a process outlined in the National Master Freight Agreement that the union will utilize to ensure that our members are treated fairly throughout what will inevitably be a very difficult process," said Tyson Johnson, Teamsters international vp and national freight director.

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