Numbers
"Bill Zollars, YRC chairman and chief executive, said in an interview that the company’s plan to combine the operations of Yellow Transportation and Roadway could reduce the hourly work force by 15 percent.
Although the number of Yellow and Roadway drivers and dock workers varies by season, Zollars said the 15 percent reduction would come from a base of about 25,000 employees.
Using those figures would mean about 3,750 jobs would be lost nationwide. “That’s pretty close,” Zollars said."
Above Quote from the Kansas City Star.
During the conference call Zollars was quoted as saying:
"I still feel very comfortable with a run rate of about $200 million of operating income improvement by the end of 2009. To put this number in perspective Yellow and Roadway had about $6.5 [billion] of annual expense of which labor costs for line haul, P&D and dock are about $3 [billion]. If we removed just 5% of that base, we’re talking about $150 million of annual savings."
Above quote fom Seeking Alpha conference call transcript.
I am having a hard time making these numbers jive.
If you use $60,000 as an average salary $60,000.00 x 3750= $225,000,000.00 It would seem the $200,000,000.00 in annual savings was coming just from the union side.
If you use the conference call numbers 5% of $3,000,000,000.00 that would equal $150,000,000.00 divide that by $60,000.00 and you come up with 2500 jobs?
Just trying to think this through.The 5% of 3 Billion represents all labor, but, the 15% represents a pool of 25,000 from labor.