Loan Saves 30,000 Freight Jobs
A $700-million loan provided by the United States Treasury under the CARES Act has helped YRC Worldwide, Inc.’s operating companies pay its employees’ health care and other benefits and get through this pandemic while protecting the livelihoods of about 24,000 Teamsters and their families, Teamsters General President Jim Hoffa announced in early July.
“I want to thank Congress for passing the CARES Act, and the President and the Treasury Secretary for their help in making this essential bridge loan possible,” Hoffa said. “They recognized the urgency and acted swiftly to avoid our members’ health benefits from being cut and, in the long term, to protect 24,000 Teamster jobs at YRC Freight, Holland, Reddaway and New Penn.”
The CARES Act assistance will be used to pay for employee health care and pension costs and other obligations. YRCW employs 30,000 freight workers, including 24,000 Teamsters.
“I echo General President Hoffa in thanking the government for providing this loan and protecting our members’ livelihoods,” said Ernie Soehl, Freight Division Director. “Like so many Teamsters who are essential workers, our members working at the YRCW operating companies have continued to keep our nation’s supply chain moving to serve millions of Americans. They are true heroes. This assistance gives them some peace of mind moving forward and we hope it gives YRCW the economic stability it needs in the months and years to come.”
Anthony Fischetti, a member of Local 701 in New Jersey and 36-year YRC employee, said he and his co-workers’ anxiety eased after the loan was announced.
“YRCW was facing difficult economic conditions, so this loan has helped save the livelihoods of 24,000 Teamsters, including mine,” Fischetti said. “This means 24,000 Teamsters will continue working and will receive medical coverage, dental coverage, vision coverage and other benefits for themselves and for their families.”