Here's something to read and ponder after receiving the stupid union bashing letter that was mailed to all Sacramento Drivers. That letter was the most ignorant one I have ever seen. Not only is it based on emotion and lacking facts the writer needs serious spelling and grammar classes.

With an 86% operating ratio in August 2004, USF Reddaway was tied with New Penn for the best operating ratio out of the top 100 LTL companies in America.

In February 2005, Yellow Roadway Corporation purchased the USF Corporation for 1.47 billion dollars. The purchase included: USF Reddaway, USF Holland, USF Dugan, USF Bestway, USF Glenmore, USF Logistics and New Penn, which formed YRC Regional Transportation. Shortly after this acquisition, USF Bestway purchased USF Dugan. One year later, USF Reddaway purchased USF Bestway, consequently driving USF Reddaway’s operating ratio through the roof.

On February 8th 2008, YRCW shut down 27 USF Reddaway service centers in the South.

Here is a reality: USF Bestway was a profitable company prior to buying USF Dugan. They became un-profitable after buying USF Dugan. USF Reddaway was a very profitable company prior to buying USF Bestway. We became a very un-profitable after buying USF Bestway.

Do you really believe this was unforeseen by the management of both YRCW and USF Reddaway? As John Croslin said “We were forced to swallow the poisonous pill”. YRCW did not spend 1.47 Billion dollars to purchase a corporation that was not profitable. Since the YRCW acquisition of USF Corporation, two of our sister companies have been shut down, our operating ratio has been flushed down the toilet, and many of our long term customers are now being serviced by Yellow and Roadway.

As I sit here and read a silly document that was mailed to the homes of 80 employees at the Sacramento California USF Reddaway terminal, one of the first thoughts that comes to my mind is a question: Why would the author of this document not put his name to their creation? Is it that because they are a coward, or because they are management? Who among all of you would have the addresses of every employee in your terminal other than management? In whichever case, there are many points that lack validity, and I would like to take the opportunity to point out a few:

First, understand that the same USF Reddaway that existed prior to February 2005 has not employed us. YRCW management now calls the shots. To address the anonymous author’s first point, concerning the “great benefits” you had:

Thanks to Keith and Ed, our union brothers in Boise, Idaho, the company and the union are negotiating to bring all union members under the Western regional agreement and therein under the Northwest Administrators Health and Welfare (plan B).

This is the same plan that the Local 174 members in Seattle have. The only reason for the substandard medical plan you are currently under is due to the medical benefit information provided to the union by your employer. Thanks to Keith and Ed in Boise filing a grievance on this issue, this will be worked out in the very near future.

In regards to the company’s “100% tax free” 401K plan and the “free money” on top of that: Any 401K plan allows for pre-tax contribution. This money is TAX FREE until you begin to draw these funds at retirement. You will pay tax on this money at retirement. No employer is in the practice of giving FREE MONEY to its employees.

Union dues are typically 2.5 times your hourly salary. If you make $22.00 per hour, your dues will amount to $55.00 each month. For $55.00 dollars a month you receive:

- A legally binding contract with your employer;
- access to a grievance procedure including arbitration;
- a voice on the job;
- Teamster’s pension;
- Union health care, and most important of all:
- a business agent to speak on your behalf when you need help.

The Unknown author asks, “Why in the world do we need a middle man?” If you ever find yourself facing disciplinary action, the answer is quite obvious.

As a Teamster, you have access to the grievance process, and therein access to highly skilled business representatives who make their living arbitrating labor disputes. If your termination reaches arbitration, the average cost of the process ranges between $7000 and $10,000 dollars. Your Union pays those costs and the cost of the attorneys that handle said arbitration. These are what those dues pay for.

As to the salaries of the officers and employees of Teamsters 150: Is $100,000 dollars too much for a man who spends easily 80 hours a week representing eight to ten contracts and thousands of employees in contract negotiations, joint conference board hearings, grievance hearings and arbitrations? They spend countless nights away from home, representing the members that pay their salaries. I personally know multiple USF Reddaway line drivers making close to $100,000.00 dollars per year, and they are putting in approximately the same amount of hours.

The true abomination of people’s earnings is included in executive compensation:


William Zollars…………………………………………………………$5,708,224.00
Michael Smid…………………………………………………………..$1,345,308.00
Daniel Churay.……......................................... ..................................$734,422.00
Stephen L. Bruffett………………………………………………………$599,058.00

This doesn’t include what was paid to outgoing executives. James Stately $5,951,827.00, which was raised from $2,144,737.00 in 2006. He received a 3.8 million dollar raise to resign. These figures do not include stock options, such as the $14,000,000 in options for Bill Zollars reported by Forbes magazine.

Your unknown author makes mention of so-called union corruption by citing a strike against Browning Ferris Industries (BFI). However, he gives no details as to why the Teamsters chose to strike.

As a Teamster for 18 years, I have worked with multiple Union employers. I have served 7 of my 11 years with USF Reddaway as a union steward. I have never been on strike. I can assure you that the Teamster’s Union will exhaust every possible avenue of negotiation and fair bargaining in attempts to settle an issue before taking measures to strike a company. The union does not want its members out on strike.

The prime example is the current contract negotiations with Oak Harbor Freight Lines. The employer refuses to fairly bargain a contract with its employees and have dug their heels in on fundamental issues such as wages, benefits and retirement. The employees have been working without a contract for a year and the union is still trying to get the company to collectively bargain a contract. The Teamsters Union does not take its members out on strike without a strike vote by its members; the employees decide to strike their employer if they feel they are being treated unfairly, and only as a last resort .

The final issue I would like to address is corporate corruption. I should only have to say Adelphia, Enron, Tyco, Worldcom, Arthur Anderson, and IM Clone to merely demonstrate the long line of corruption in the corporate world.

Some might say that in a year of financial failure in a major corporation, which resulted in the closure of 27 service centers as well as the displacement of thousands of union and non-union employees, paying $117.3 million dollars to outgoing executives is, at the very least, disgusting.

Fraternally Yours,
Loyd
Line Driver