from the yahoo YRC message board - could be fact or fiction:
Re: Thursday 4/30 cuts 30-Apr-09 11:32 pm
I was 1 of 600 mgmt and clerical people that got cut today. I had 20 yrs plus in management with Yellow. I am very releived that it is finally over. The decision to use rdwy's computer system and business model is a sad situation. It was choosen because it was cheaper to maintain. The operational procedures and computer system would at best be considered good in 1985. There is too much room for human error and the svc levels before the merger will never recover unless the decision is made to cheat by stopping svc on shipments that don't make it to dest in time to deliver. I cannot imagine an ISO certification being granted unless a check was handed off under the table. The poor mgmt started when Yellow bailed Rdwy out when they were in debt $181 million. Second mistake was made when the companies were not put together at that time to eliminate duplication. This is one of the main reasons the analyst have driven the stock price down so low & they are right for doing so. RDWY was bought on the backs of Yellow employees. The rdwy employees that got them in that mess should have been replaced by the Yellow employees at that time. No one would disagree now that Yellow would have had a chance to survive today had they made that decision at the time they bought rdwy. Even with the worst decision of all, buying Holland, they may have been able to make it through this recession. YRC will fail because the market will prevail. They cannot reduce cost enough to match the market price no matter what they do. The 2 companies were put together because the banks forced the issue. The side of this deal Yellow upper mgmt reveals is that they are selling prime real estate to generate capital to survive. The back side of these deals that they want discuss is to keep them drawing a large paycheck until the money runs out. And the second part that YRC nor the banks want admit too is this: If they sell the real estate and lease it back they don't own it anymore. The bank got there restructing fees, and when YRC does file bankrupcy the only asset s left will be the unwanted real estate and the rolling stock. The pension funds will be the first in line for the sale of assets and since they sold those to create capital all they will have left is the unwanted real estate and the rolling stock. This will not get close to funding the pensions. The govt will have to step in to cover the pension fund at 1/3 or less of the normal payout. This will break the union & screw the working man once again. Greed is a powerful force in the hands of very bad people. The banks have come up with this scheme and mgmt has gone along with it because they have no choice and they want to see the union fail.