NEW YORK, N.Y. — The proposed merger of LTL giants Yellow has the powerful Teamsters union wondering whether jobs are at stake.
“This proposed merger raises many questions,” says Teamsters General President Jim Hoffa. “The job security of our members is at stake. We intend to thoroughly review the proposal to ensure that the financial integrity of both companies remains strong and the job security of their workers is protected.”
When the merger was announced last week, Yellow CEO Bill Zollars and Roadway CEO Jim Staley said the companies expect minimal impact on the operations of the two companies and did not anticipate job loses on the operations and sales departments (savings will come through streamlining of back office processes). There is also to be no impact on Canada’s Reimer Express Lines, owned by Roadway, and New Penn, which provides service in Quebec. As a result, CEOs did not anticipate major issues with the Teamsters union.
Despite the company’s promises, however, Hoffa pointed out the proposed merger will potentially impact more than 35,000 Teamster members.
Compounding union concerns is the fact combined Yellow and Roadway have closed more than 600 terminals in the last ten years, according to Hoffa. And there is no apparent economic value in the merge unless operations are reduced or there is a significant rebound in the economy, Teamsters said in a release.
The union is currently analyzing the proposal and the crossover business both companies share.
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