Two YRC Freight Changes Of Operation Announced!

Discussion in 'YRC Freight' started by Freightmaster1, Jun 7, 2017.

  1. Freightmaster1

    Freightmaster1 Well-Known Member

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    "Double Whammy" Changes of Operations (Multi-Region Network Enhancement Change and a Utility Employee Change) were just announced by the IBT Freight Director Ernie Soehl on June 7, 2017! According to the memo (below) the Company will mail the COO to the Local Unions in early July, have a hearing in mid-to late August, and implement it in early October. Stay tuned for more details!


    [​IMG]
    :hyper:
     
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  2. BIG R GUY

    BIG R GUY Last, bag standing

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    I would hope the change they are going to propose for the utility position is not the same one from 7 years ago that did not work.....
     
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  3. LEHIGH vALLEY

    LEHIGH vALLEY Well-Known Member

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    Ok, Nothing new here. Nothing we didn't already know.
     
  4. Kennesaw Kid

    Kennesaw Kid Super Moderator Staff Member

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    Other then NOW, it is documented and not rumors...KK
     
    Last edited: Jun 7, 2017
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  5. Triplex

    Triplex Experienced stalker

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    True, but you know rumors are more fun.
     
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  6. bigtruk_us

    bigtruk_us Well-Known Member

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    Champagne wishes and sardine dreams
     
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  7. Freightmaster1

    Freightmaster1 Well-Known Member

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    What goes around...comes around?

    Roadway, Yellow, Holland Push Changes of Operation
    Posted on News by Teamsters For A Democratic Union Tdu · May 01, 2008 8:36 AM
    May 1, 2008: Roadway, Yellow and Holland have all submitted changes of operations that mark the beginning of the new “utility driver” model. Hundreds of road and city jobs would be eliminated and converted to the utility employee classification. No doubt more will follow this initial change.

    Each of the three changes establishes 12 “velocity centers” throughout the East, South, and Midwest aimed at reducing transit time for up to 25 percent of all shipments.

    Reportedly, ABF will submit a utility employee change soon.

    The hearings will be held in mid-May, where the union can approve, deny, or approve with modifications. The time to get reasonable protections for Teamster jobs is now.

    No Restrictions?

    Many Teamsters have reacted with anger, since the International Union sold the contract proposal by arguing this kind of change could not happen. The January 15 Teamster Freight Update states that: “The UE will handle next-day and second-day freight exclusively, in a designated part of the terminal.”

    But now the carriers seem to want no restriction on what is UE freight.

    “The UE will not replace ‘meet-and-turn’ runs or existing long haul turn runs.” But now this change would replace turn runs with UEs.

    “The UE will not be used to replace or eliminate employees in the existing LTL operations.” But this change calls for many existing employees to move or take a layoff.

    Other contract bulletins issued by the International Union repeated these same claims.

    Unfortunately, the actual UE contract language in Article 3, Section 7 gives wide latitude to the employers. Now is the time, with the first of such changes, to get the language clarified in a way that gives some protection to Teamsters and local unions.

    If the companies get complete freedom to designate any and all freight to be UE freight, any contract protections may be impossible to enforce.

    Time to Push for Limits

    Dock workers at breakbulks could be sitting at home while UE employees are working the dock. Locals could be played against one another.

    What does it mean for foreign power courtesy, when road drivers may be in bed where UEs are dispatched to run into the road driver’s home terminal?

    Without any limit on what is UE freight, in the future road drivers could be an endangered species.

    There are many issues to address. It’s time for the union leadership to take a hard look at our ability to enforce the contract and protect jobs in the future. By sitting down the carriers now, and getting some written guidelines Teamsters can live with, we can go a long way to protect our members and contract, while allowing the carriers to implement their changes.

    If YRC doesn’t want to negotiate reasonable guidelines, there is no reason to rush to approve their proposed changes. They’ve wanted to break down Teamster classifications for many years. They can wait another month if that is what it takes for our union to get reasonable guarantees that freight Teamsters need.

    and
    Union Reviews YRC’s Changes
    Posted on News by Teamsters For A Democratic Union Tdu · May 16, 2008 1:35 PM
    May 16, 2008: At hearings on May 12-13, the Teamster Freight Division heard Yellow, Roadway and Holland present proposed changes of operations to take advantage of new freight contract language. A few locals spoke out forcefully to include protections for the jobs and seniority of Teamsters, while allowing the companies to use the new “utility employee” language of the contract.

    Harrisburg Local 776, a freight local with two large breakbulks, came well prepared to question the companies. As one comment posted on the internet bulletin board TruckingBoards put it, they “kicked some *** for the working class.” They were backed up by a few freight locals, including Lancaster Local 771, Atlanta Local 728, and St. Louis Local 600.

    Most locals apparently didn’t raise any issues or question the company. The decision is up to the freight division; a final answer is expected next week.

    Issues raised by some local leaders include:




      • Protecting the rights of recently laid-off Teamsters. The companies proposed that anyone on layoff as of April 1 (Yellow and USF Holland) or April 11 (Roadway) be excluded from the active bidding pool. Under pressure from the concerned local leaders, this may be adjusted to allow laid-off Teamsters into the pool.
      • Protecting the seniority of dock and cartage workers. What is a “larger facility,” where the contract language (Article 3, Section 7) requires a division in the terminal between the utility employee (UE) area and the regular freight?
      • It was agreed on the record that any freight (not just expedited freight) can be utility, without restriction. This flatly contradicts promises made in writing by the International Union to sell the contract.
      • The issue of “follow the work.” Instead of a normal bidding pool, as in other changes of operations, the company wants to restrict bidding locally, using a “follow the work” principle. This would save YRC some moving expense but weaken seniority rights.
      • Protecting the rights of road drivers. One issue is foreign power courtesy. Can a UE pull freight to a terminal where a road driver is rested from that terminal without a violation? Another issue is protecting the work of road drivers on meet-and-turns.
      • The issue of UEs being used to take the work of higher seniority dock hands. If work is slow, UEs could come into a break terminal and work six or more hours on the dock, even if dock workers are on layoff status at that terminal.
    Delay Implementation of Change?

    Reportedly there may be some delay in implementation of the changes. The bid may be in late June and the implementation date may be in late July. One problem: how will they have time to train the dock workers who bid on UE positions?
    :hissyfit:

     
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  8. Canadian Flyer

    Canadian Flyer Speedy Freightshaker #411

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    You know what they say about rumors.
     
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  9. BIG R GUY

    BIG R GUY Last, bag standing

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    God. I really hate those words,velocity center.....
     
  10. Freightmaster1

    Freightmaster1 Well-Known Member

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    [​IMG]
    Yeah, that COO was supposed to be the best ever! You see what happened a year later...

    YRC Merger Hearing Wrapping Up
    Posted on News by Teamsters For A Democratic Union Tdu · January 28, 2009 12:47 PM
    January 28, 2009: The change of operations hearing in Dallas regarding issues of jobs and seniority in the Yellow-Roadway merger finished three of four regions by Wednesday afternoon.

    The meeting moved on to locals in the South. The hearing will continue on the “velocity” (utility employee) aspect of the merger tomorrow.

    Many locals worked out issues regarding the follow-the-work principle. Because that principle was used, most of the relocations will be from a specific losing terminal to a specific gaining terminal, with a minority of relocations allocated to the pool bidding.

    The most damaging aspect of the change is that it will immediately lead to nearly 1000 more layoffs.

    Following the open hearing, the union and company will make decisions in a closed-door meeting of the committee. Following that, the decision and agreements made on job transfers at every terminal will need to be compiled.

    The decision will probably issue quickly, because YRC intends to conduct bids by mid-February and implement the mega merger by March 1.

    YRC Merger Hearing Continues
    Posted on News by Teamsters For A Democratic Union Tdu · January 27, 2009 1:08 PM
    January 27, 2009: The change of operations hearing in Dallas to allocate jobs and seniority in the Yellow-Roadway merger will continue for at least a third day. It was originally scheduled for two days, but by Tuesday afternoon only the Central Region locals and half of the Eastern locals had been heard.
    A lot of the time is taken up with locals contesting the company on how many workers get to follow their work. Where a terminal is losing work to a gaining terminal, that transfer of workers will occur before the overall pool bidding.

    It is clear that the seniority lists will be dovetailed, including all active and laid off Teamsters, aside from a few possible exceptions including in Chicago. There will be a window period, during which time if work opens up in a gaining terminal, more workers will be afforded the right to move. There will also be a subcommittee set up to deal with mistakes made.

    The decision will probably issue quickly after the hearing concludes, because YRC intends to hold bids by mid-February and implement the mega merger by March 1.
    :stirthepot:
     
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  11. Freightmaster1

    Freightmaster1 Well-Known Member

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    [​IMG]

    YRC Merger Bids to Start
    Posted on News by Teamsters For A Democratic Union Tdu · February 02, 2009 6:21 AM
    February 2, 2009: Thousands of YRC Teamsters will soon be bidding on new jobs, with some 5000 moving to new terminals. According to a January 30 memorandum from Teamster freight director Tyson Johnson, local bidding and transfer-of-work bidding will be completed prior to February 15, and the national pool bidding will take place on February 16 (and 17 if necessary).



    YRC Merger Hearings End
    Posted on News by Teamsters For A Democratic Union Tdu · January 30, 2009 1:18 PM
    January 30, 2009: The hearing on management’s proposed merger of Yellow and Roadway operation concluded on Thursday, as did the hearing on the “Velocity” change dealing with utility employees.
    A decision is expected soon—perhaps in a week. That decision, on the job transfer and seniority details of the largest trucking merger in history, will be extensive. Most of the job transfers are going to be by the follow-the-work principle, with many Teamsters transferring to nearby gaining terminals. The national bidding pool will take care of others. Nearly 1000 Teamster jobs will be lost in the merger.

    YRC hopes to conduct bids in mid-February and implement the change by March 1. That date may end up being pushed back. Teamsters who relocate in the change will be given some grace period, if they are unable to start that quickly at the new location.

    The “Velocity” change of operations greatly reduced the number of utility employees, and restructured their function in a way similar to ABF: handling one- and two-day freight.

    :stirthepot:
     
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  12. Freightmaster1

    Freightmaster1 Well-Known Member

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    YRC shifts load during drive to stability
    Feb 8, 2009, 11:00pm CST Updated Feb 9, 2009, 6:00am CST





    Suzanna Stagemeyer Staff Writer





    YRC Worldwide Inc. has battened down the cost hatches, a massive ship trying to stay afloat in the face of a stormy economy.

    Efforts to accomplish that included a string of layoffs during 2008, mostly in response to a freight downturn that began in late 2006. It cut more than 12 percent of its work force, going from 63,000 employees at the end of 2007 to about 55,000 at the end of 2008. Overland Park-based YRC, which has about 2,000 local workers, shoves into 2009 buoyed by expectations of $500 million in savings from across-the-board pay reductions and the integration of its Yellow and Roadway units.

    The savings position makes CEO Bill Zollars optimistic.

    “The challenges are going to be the same for everyone in the industry,” he said. “But the opportunities are unique to us. ... This closes the gap with competitors from a cost standpoint, and at the same time, customers will be able to get better service through one integrated network.”

    This year will bring more job cuts, he said. By March, the ax will fall on positions affected by the Yellow-Roadway integration.

    JP Morgan analyst Thomas Wadewitz predicted in a Feb. 2 note that 10 percent to 15 percent of the 37,000-member Yellow and Roadway work force would need to be cut this year as freight tonnages fall further. That could save $455 million, he estimated.

    Although YRC has plenty of cost-saving potential, last year’s cuts didn’t keep it from reporting a $974.4 million loss for 2008 and a 7 percent drop in revenue to $8.94 billion. The results included write-downs of $141 million for the Roadway trade name and $59 million for YRC Logistics.

    YRC had a fourth-quarter loss of $244.4 million on revenue of $1.93 billion.

    “The biggest impact on all players in our industry has been the economic downturn,” Zollars said. “The reality is that because we’re the biggest, we have the most infrastructure and therefore the most operating leverage, and therefore we’re hit the most.”

    Analysts haven’t put any wind in YRC’s sails. Wadewitz slashed his 2009 earnings-per-share estimate for YRC from $1.07 to a loss of $3.30.

    Although YRC “has very significant drivers of cost reduction in place for 2009,” he wrote, with revenue sinking at an alarming pace, the company will find it difficult to realize a quick improvement in earnings-per-share performance.

    Con-way Inc. and Arkansas Best Corp., direct competitors a fraction the size of YRC, also posted fourth-quarter losses, though they ended with positive 2008 earnings. Both also have scrambled to cut costs, including jobs.

    “We are now over 27 months into a freight recession that is the worst I have seen during my 37 years in this industry,” Arkansas Best CEO Robert Davidson said in a statement accompanying the company’s earnings report.

    However, on Feb. 3, Con-way and Arkansas Best shares closed at $22.71 and $24.73, respectively, while YRC shares closed at $3.01.

    Zollars said the company also has been hurt by aggressive pricing in the market and played-up speculation that YRC would go bankrupt. YRC is in good shape, he said. In an earnings conference call, executives said YRC is in productive talks with banks for a revised credit agreement, is pulling in cash from sale-leaseback deals and is cutting costs.

    Wadewitz said that reaching the credit agreement is crucial for YRC’s stock.

    “While we have limited conviction, we still believe that the more likely outcome is that (YRC) reaches an agreement which allows it to continue operating in 2009,” he said in his note.

    YRC has been letting less profitable customers go and with the integration can choose which customers will fill the combined networks, each of which is running around 75 percent of capacity.

    John Wagner Jr., president of transportation logistics company Wagner Industries Inc., based in North Kansas City, acknowledged the effects of YRC’s fixed costs. And competitive pricing probably is being exacerbated by competition playing on fears about YRC’s stability.

    “It’s bad enough when customers are shipping less freight and you’re sitting there with fixed costs, but if you’re losing market share at the same time, that just compounds the problem,” Wagner said.

    Combining the Yellow and Roadway units, a process the company accelerated to hasten the expected $200 million in annual savings, also has cost YRC. But Zollars said the company’s acquisitions earlier this decade, which with all the fixed costs have meant rough waters and write-downs now, also meant banner years from 2003 to 2006.

    “People forget we had four record years in a row of earnings and revenue,” Zollars said.

    Speeding up the integration during a downturn also has created more flexibility than if the networks were at capacity, he said.

    Wagner and many in the industry say that when the tide turns, it’ll do so in a big way. Many trucking companies have gone under, meaning that when freight demand lifts, pricing will favor carriers.

    “Companies that manage to survive this are going to do quite well,” he said.

    :hissyfit:
     
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  13. Freightmaster1

    Freightmaster1 Well-Known Member

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    [​IMG]

    “People forget we had four record years in a row of earnings and revenue,” Zollars said.

    Speeding up the integration during a downturn also has created more flexibility than if the networks were at capacity, he said.
    :stirthepot::poster oops::hyper:
     
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  14. Freightmaster1

    Freightmaster1 Well-Known Member

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  15. 511monkey

    511monkey Member

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    This is purely anecdotal, but I am seeing more situations where the person that wants the freight is desperate to get the freight on a truck, any truck. No shows for pickups are becoming commonplace. We may be heading into an era that was unimaginable just a few short years ago, an era where space on the trailer will go to the highest bidder – at least in some geographic areas. The time might be right for a change of focus for the company, but they need to be very careful about treating people like pieces on a chessboard – it ain’t 2009 anymore.
     
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  16. Freight Crusher

    Freight Crusher Active Member

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    That one didn't work and the following one which eliminated it didn't work. Go figure!
     
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  17. SAC75

    SAC75 Well-Known Member

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    This is exactly what ABF is doing now. No restrictions on UE. It was initially was supposed to be a four day work week. Now they changed it so they can work five days a week and in turn never touch the dock. Totally a bait and switch.
     
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  18. wongway

    wongway -15% Pay & Broke Pension Fund

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    Couple of KEY words in this phrase , "MULTI-REGION " so is this saying it will affect the Region carriers of YRCW Dysfunction Family Tree too, down the road ??????????
     
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  19. Freightmaster1

    Freightmaster1 Well-Known Member

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    Clues to the areas that may be affected by the YRC Freight Changes of Operation coming up soon...


    IBT Agrees to Divisive YRC Pay Deal
    http://www.tdu.org/ibt_agrees_to_divisive_yrc_pay_deal

    Columbus gets a raise, but not Cleveland or Cincinnati. Minneapolis gets a raise, but not Milwaukee, Kansas City, or St. Louis. And if you are in the South, forget about it!

    The list includes terminals in some higher-wage metro areas such as New York, Washington and Seattle. And it includes some other terminals. But most terminals are left out completely.

    Wouldn't it make sense to raise the starting wages in locations where the freight may be moving to in the COO? The company could be afraid that many people will not "follow the work" so they needed to raise the starting wages to attract new employees who may be needed to make the "Multi-Region Network Enhancement" work?! Check the "specified list of terminals" and decide for yourself.

    Stay tuned!

    :stirthepot:
     
  20. BIG R GUY

    BIG R GUY Last, bag standing

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    They can have a COO, every year, but until they stop management from making poor decisions, and using outdated procedures as far as daily operations from like 1985, and no one is held accountable for things like damaged freight, and theft of time, nothing will improve. Realigning the routes to move freight from point a, to b, will do nothing if all the other ways we operate stay the same.
     

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