Union employees represented by the International Brotherhood of Teamsters have voted to modify the current labor agreements for the company's Yellow Transportation, Roadway, Holland and New Penn business units.
The modified contract includes a 10 percent reduction in all wages paid, inclusive of scheduled increases, and the suspension of cost-of-living adjustments for the remaining life of the contract. In exchange, Teamsters employees will receive a 15 percent ownership stake in YRC Worldwide, allowing them to share in future company performance. Contributions to the health, welfare and pension plans will continue as previously negotiated.
Non-union employees will experience the same or greater percent reduction in total compensation as their union counterparts, including modifications made last year to the non-union pension, retirement and other benefit programs. Non-union employees have also received options to purchase up to a seven percent ownership stake in the company. Senior executives will reduce total compensation, but will not be eligible to participate in the stock option program.
Bill Zollars, chairman, president and CEO of YRC Worldwide, says: "During a time of economic hardship, we are proud of the understanding and support of our employees. The amended contract will provide our company with significant annual cost reductions that will also have long-term benefits as the economy recovers."
Source: YRC Worldwide