New Penn | YRC Climbs After Saying Talks Resumed on Teamsters Concessions

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YRC Worldwide Inc. (YRCW) rose after the trucking company said it resumed talks with the Teamsters union following workers’ rejection of a proposal last week for concessions needed to refinance debt and avoid bankruptcy.

The shares climbed 19 percent to $15.20 at 12:31 p.m. in New York after surging as much as 24 percent, the biggest intraday advance since Dec. 23. The Overland Park, Kansas-based company’s stock had dropped 32 percent through yesterday from Jan. 8, the day before the union announced the vote results.

YRC said it’s discussing a reworked proposal that will satisfy creditors and workers. Union members at the company had voted 61 percent to reject a contract extension that kept a 15 percent wage cut, delayed salary increases and reduced vacation time. Investors and creditors had demanded an accord as a condition for refinancing $1.4 billion of debt.

“Although the company must achieve operational costs savings in the agreement, we also understand that simply re-voting the same proposal is not an option,” Chief Executive Officer James Welch said in a statement today.

YRC Climbs After Saying Talks Resumed on Union Concessions - Bloomberg
 
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