OVERLAND PARKS, KS — Financially troubled truck giant YRC Worldwide and Teamsters union are looking to strike a different agreement after the union voted down a contract extension.
“The company plans to revise its proposal to both work within the requirements of the capital markets to refinance the company and protect the jobs of its 32,000 employees,” YRC stated.
Last week, Teamsters members rejected a proposal to extend their current work agreements into 2019, following the union earlier making wage and benefits concessions. They voted the proposal down by 61 percent to 39 percent.
YRC had hoped the proposal would pass because it was necessary if the company was going to receive $1.15 billion in loans to refinance its debt.
“It is clear the Teamsters understand the urgency of the current situation,” said YRC Worldwide CEO James Welch. “Although the company must achieve operational costs savings in the agreement, we also understand that simply re-voting the same proposal is not an option.”
But the union is willing to consider “a modified proposal that would protect our members and enhance the company’s financial position, but that it must contain meaningful improvements over the last proposal.”
“In light of the rejection we have asked YRC Worldwide to review its position with all of its key stakeholders including their existing lenders and potential investors. In addition, as we communicated with Teamster local unions, we have told the company that we will not revote the same proposal that was rejected,” Teamsters stated.
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