I was just wondering how we plan on updating our fleet of roughly 8700 tractors. According to yahoo financial we only have about 170 million cash on hand and we have to keep the majority of that without spending it. The last cuts we took would save the company about 50 million a year but we can't count that because the money was never really there. One new tractor cost about $90,000 bucks and to replace one third of our fleet would cost about 250 million dollars. Our freight prices are the lowest around so how do we do it? Raise rates? Down size? Barrow more money? This isn't even taking into account the trailers we need or the goats we need or the forklifts we need and only would cover one third of the trucks needed! It doesn't add up.
Yellow | There's no way!
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Linedriver
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Simple answer to your ?
Lower the wages of the labors.
Lower the wages of the labors.
We just did that. And as many on here contend you can't count that money because it was never there in the first place. NEXT!
You needn't wonder.....Just sit back....do your Job and watch how it all unfolds...... Why stress about something that you have no control over....
Maybe if we all (including management) worked more instead of le$$.
Simple, they won't utilize cash to purchase. They will just dig a bigger hole, kicking the can further down the road. The cost of doing business for YRCW is unsustainable, it's just a matter of how long. Someone will lease them tractors with a big balloon payment due that they won't be able to make, the lessor will trade for some equity.
Raising the rates isn't the answer unless you can raise it a higher percentage than the volume you will lose. If you raise prices 5% and volume decreases 5%, you could be better off as the revenue would be the same, but what happens when you lose 10% of the volume?
Bottom line is YRCW still spends way too much on labor to move $1 of freight. How they fix that, only time will tell.
Raising the rates isn't the answer unless you can raise it a higher percentage than the volume you will lose. If you raise prices 5% and volume decreases 5%, you could be better off as the revenue would be the same, but what happens when you lose 10% of the volume?
Bottom line is YRCW still spends way too much on labor to move $1 of freight. How they fix that, only time will tell.
Real Teamster
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Your question is a good one. Actually, the tractors cost slightly more than that, closer to $100K. What we as drivers need to do is take really good care of what we have to work with, because replacement is a difficult proposition. There has been a fair amount of "refurb"; taking a million-mile tractor, putting an engine and a seat plus other components as required, and putting it back out on the road. That expense is about $25K and up. That is a pretty good stop-gap measure, but it's not enough. We simply have to take care of the equipment, take care of business and do our jobs really well. That's our best hope.
They already had that chance. Guess who blew it?
If in your opinion YRC is doomed no matter what then why all the rah rah speeches?
Your right, it does`nt add up. I think that it would be a pretty good guess they will be doing more leasing in the future. It doe`snt really address the problem long term but it puts a band aid on things for a little while longer. I`m sure that reduction of operational costs ( wages and benefits ) will continue to be something that is looked at to address cap expenditures.
And the people moving 2.5 bills per hour, hooking mavbe 1 set per hour, making less than 6 switches per hour, and making 1.5 stops per hour, they had no hand in this either?
Yea. If asked, we might need to do our part. I'm certainly willing
To give up a week of vacation if asked ,or maybe extend to 2024.
I guess it's like cancer, would you rather go thru chemo and live a poor quality of life a little longer or just be gone a little earlier. I personally don't see how it's better. At least if they close and you know when you can be prepared a little better.
So in you view we should be prepared for more givebacks is that it? This is why we just gave back so a group of educated idiots could solve the problem. WHAT IS THE PLAN? More stealing from the employee?