Teamsters give YRC more time on restructuring plan
KANSAS CITY – The Teamsters and LTL giant YRC have agreed on an extension on a cost restructuring plan for the embattled carrier.
The conditional extension gives YRC some more time (March 2011) to fix its balance sheet.
The two sides say the additional time was needed because they had to deal with a lawsuit from YRC rival Freight System.
ABF wanted a court to block a recent labor concession agreement between YRC and the Teamsters because it gives YRC a competitive labor cost advantage over other Teamster-unionized carriers.
The suit was dismissed last month by a U.S. District Judge.
"With the economy and the freight industry still struggling and the company’s lenders hesitant to make any significant concessions given the financial and legal uncertainties created by ABF’s lawsuit, YRC ran out of time to complete any of the significant restructuring elements,” said Teamsters National Freight Division Director Tyson Johnson.
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