YRCW Teamsters Approve Agreement Aimed At Saving 30,000 Jobs
In late January, Teamsters working for YRC Worldwide Inc. (YRCW) approved an agreement aimed at protecting more than 30,000 jobs. Workers rejected a prior company proposal. Teamsters at YRCW approved the latest proposal by a 2-1 margin. The proposal approved by members modifies and extends the 2010 Restructuring Agreement, which will now remain in full force and effect through March 31, 2019.
“This was a very difficult vote for our members, but in the end they did what they believe will give this company the best chance to stay in business and protect their jobs,” said Jim Hoffa, Teamsters General President and Co-Chairman of the Teamsters National Freight Industry Negotiating Committee (TNFINC). “Now we will hold management’s feet to the fire to make sure our members’ jobs are protected and redouble our efforts to make sure this company handles its finances responsibly.”
The plan will provide a pathway for substantial debt reduction and refinancing initiatives that will permit the company to protect jobs.
“Once again, our members’ sacrifices are providing the lifeline for the company,” said Tyson Johnson, Director of the Teamsters National Freight Division and Co-Chairman of TNFINC. “Now we fully expect the company to successfully conclude the refinancing components of the restructuring to once and for all put this company on a sustainable path.”
Several days after the YRCW Teamsters voted to approve the plan, the company announced that it closed a deal to attempt to reduce its debt by $300 million. The company will issue $250 million in new stock. It will also convert $50 million in convertible notes to common stock and use the proceeds to reduce its roughly $1 billion in debt.