INTERNATIONAL BROTHERHOOD OF TEAMSTERS
25 Louisiana Avenue, NW
Washington, DC 20001
202.624.6800
International Brotherhood of TeamstersHome
JAMES P. HOFFA
General President
C. THOMAS KEEGEL
General Secretary-Treasurer
September 8, 2008
Dear YRC Teamster:
YRC announced earlier today that it intends to combine the Yellow and Roadway operations
into one unit over the next 18 months. We are concerned about this development and its
potential impact on you and your family.
The Teamsters Union will closely review the potential impact of today’s announcement on
the jobs and conditions of Teamsters at Yellow and Roadway. YRC laid-off 300 nonunion
employees and made significant changes and cuts to the remaining nonunion employee’s benefits.
Those cuts do not extend to Teamsters at YRC.
We will utilize the processes outlined in the National Master Freight Agreement to ensure
that you are treated fairly throughout what will inevitably be a very difficult process.
The government’s adoption of deregulation in the trucking industry has had a long-term
negative impact on unionized carriers, with market share shifting to nonunion carriers. In
addition, a slow economy has put severe financial pressure on the national carriers who already
have very thin margins. All of this is made worse by very high fuel costs. Nonunion carriers
haul approximately 35 million tons of LTL freight annually whereas union companies haul
approximately 25 million tons. Today, union companies represent approximately 40% of the
market share with the rest made up of nonunion carriers. The nature of the business has been
changing as well. Over the last decade, there has been a move to lighter, more frequent, and
shorter hauls that favor carrier groups with a regional focus. Also, discounts offered by bundle
servers with air delivery connections have impacted negatively national carriers who cannot
compete with that service.
The economy in the past two years has not been supportive of growth in the freight industry.
2007 was the third year of flat or negative demand for freight transportation services of all
modes. Record fuel costs continue to negatively impact margins. The housing and auto slump
have reduced the demand for freight shipments as has the manufacturing turndown and rising
unemployment. These are trends that are not likely to see substantial improvement in the
remainder of the year.
While we recognize that the Bush administration’s economic policies have had a dramatic
effect on freight and the entire transportation sector with high fuel prices and reduced economic
activity, the Teamsters Union will fight to preserve your jobs and benefits in this restructuring
through vigorous enforcement of the freight contract negotiated and ratified earlier this year.
In the meantime, go to
International Brotherhood of TeamstersHome for regular updates. It is important that we all stand
together in the coming days and months.
Fraternally,
James P. Hoffa Tyson Johnson
General President National Freight Director
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