Yellow | Yrcw Takes Reorganization To A New Level (part 1)

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YRCW takes reorganization to a new level
William B. Cassidy, Senior Editor
| Nov 13, 2019 2:28PM EST

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YRC Worldwide expects to have about 64 fewer standalone terminals by the end of 2020. Photo credit: YRC Worldwide.

Ten years after a near-fatal brush with bankruptcy, YRC Worldwide once again is resizing and reorganizing its less-than-truckload (LTL) network, in some cases bringing regional and national subsidiaries under the same roof. The company is seeking greater freight density, faster service from locations closer to shippers, and a more stable platform on which to build profits after racking up losses in much of 2019.

This streamlining of the network and “co-habitation” of national and regional LTL brands within its terminals will bring the number of facilities operated by the LTL trucking holding company across its four subsidiaries down from a current 384 to 320 by the end of next year, Darren Hawkins, CEO, and T.J. O’Connor, president and COO, said in an interview with JOC.com.

The consolidation is the third part of a five-step long-term strategic plan that builds on steps taken by Hawkins' predecessor, James Welch, who steered YRCW back to profitability after being named CEO in 2011. After network optimization, the next steps are customer growth initiatives to build volume and additional capital investment, Hawkins said.

The Overland Park, Kansas-based company expects to complete 25 terminal consolidations this year and another 25 next year, they said. And when it comes to optimization, “we think we’re just scratching the surface,” Hawkins said. “We’re doing this as opportunities present themselves and being very methodical, so there’s not any adverse impact on the customer.”

In comparison, YRC Freight alone had 571 terminals after the 2009 merger of Yellow Transportation and Roadway Express. The current network optimization plan is the latest in a series of consolidations meant to increase freight density and improve customer service and profitability, including consolidation post-merger in 2012 and 2013, and changes in 2017.

The latest changes go beyond the consolidation of the physical plant to embrace sales, management, and back-office changes that will transform the way the company and its subsidiaries operate, enough so that its top executives hope the transformation will restart a recovery in profitability that seems to have stalled in the slow freight market of 2019.

No mergers planned
All of YRCW’s carriers are among the top 25 US LTL trucking companies, with YRC Freight ranked fourth, Holland 11th, Reddaway 19th, and New Penn 22nd, according to SJ Consulting Group data. The operating company’s consolidated revenue topped $5 billion in 2018. The LTL holding company ranks sixth among the 50 largest US trucking companies.

The carriers represent a significant source of LTL capacity for shippers, giving them a stake in its success. YRC Freight moves approximately 10.1 million shipments annually an average distance of 1,250 miles. The YRC regional companies combined move about 9.8 million shipments an average distance of 400 miles each year, according to YRC Worldwide’s latest annual report.

thumbnail


Click to enlarge.

Hawkins expects the consolidation and resulting new operations structure to provide $60 million to $80 million in margin improvements in 2020, as well as millions of dollars in cash proceeds from property sales. He and O’Connor stressed the terminal consolidation and “co-habitation” of national and regional carriers does not represent — in any way — a merger of brands.

“We’re not taking down any brands, they’re all vibrant and powerful in the marketplace,” Hawkins said. But the brands will operate differently going forward. Until now, they’ve been largely autonomous subsidiaries, with their own sales and management teams as well as terminals. That is changing quickly, with many off-road functions transferred to YRCW.

For example, about 80 administrative jobs at the former Lebanon, Pennsylvania, headquarters of Northeast regional carrier New Penn have been eliminated and the work shifted to the YRC Worldwide Field Resource Center in Overland Park. The back-office consolidation launched a flurry of merger rumors but didn’t affect New Penn LTL services or field operations.

YRCW also consolidated and reorganized its sales force this year, giving customers a single point of contact for the three regional carriers, YRC Freight, and non-asset subsidiary HNRY Logistics. “I would point out there's been no change in terminal management by brand,” in the consolidation, O’Connor said. “The YRC Freight and regional managers remain the same.”

What’s changing is the corporate reporting structure for the four brands. A single operations leadership team, divided into four divisions and 17 operational areas, now exists for Holland, New Penn, Reddaway, and YRC Freight. Managers at each brand ultimately report to Don Hinkle, vice president of operations, who in turn reports to YRCW COO O’Connor.

“This structure allows us to share resources among the carriers more fluidly, because the terminal managers report to the person who is responsible for all brands,” said O’Connor.

Hawkins stressed the importance of maintaining the brands. “We're very proud of our four brands. We've got three best-in-class regionals. Reddaway is celebrating its centennial this year, and our other companies are nearing that mark. We're in a negative tonnage environment right now but the whole industry has been there the last 12 months.”

YRCW's predecessor company, Yellow, acquired New Penn when it purchased Roadway in 2003. Holland and Reddaway were added to the group through the acquisition of USF in 2005.

Shippers shouldn’t even be aware of many of these behind-the-scenes changes, unless as a result of improved service, Hawkins and O’Connor claimed. “T.J.’s rule of thumb is that we will [consolidate terminals] where we would see service improve and efficiency improve and not in a market where consolidation would take away services,” Hawkins said.

Contact William B. Cassidy at [email protected] and follow him on Twitter: @willbcassidy.
See the rest of the story on Part 2 below.
https://www.joc.com/trucking-logist...-takes-reorganization-new-level_20191113.html

:funky:
 
Yrcw Takes Reorganization To A New Level (part 2)

‘Follow the work’
A methodical approach is necessary when you’re dealing with a Teamster workforce that has strict seniority rules for drivers and dockworkers. Any shifting of personnel among terminals is covered by change of operations agreements between the company and the union. Rumors about layoffs of union and salaried nonunion workers abound in online trucking forums.

O’Connor said the intent is to move drivers to where work will be. “There’s a prescribed change of operations procedure” under the Teamsters contract, he said. O’Connor pointed to a planned merger of YRC Freight terminals in Alpena and Cadillac, Michigan, into a larger Holland facility in Gaylord, Michigan, the subject of a change of operations YRCW proposed in October.

“Gaylord has the capacity to take on the work we’re doing at the YRC Freight terminals in Cadillac and Alpena,” he said. “Later this month [November] or in December, the combined operation of those terminals will go to Gaylord. There will be YRC Freight as well as Holland equipment there. Drivers impacted will have the opportunity to follow that work.”

According to the proposed change of operations, the terminal consolidation in Michigan would affect eight local cartage jobs in Alpena and Cadillac. The Gaylord facility and a Holland terminal in Grand Rapids would gain eight positions. The Gaylord terminal would gain two YRC Freight road drivers from terminals in Detroit and South Bend, Indiana.

“Cohabitation” doesn’t mean the absorption of regional carriers, O’Connor pointed out. “We love the regional next-day, second-day model, and the regionals can perform in that model way better than YRC Freight,” he said. “Regionals will handle next- and same-day freight, and YRC Freight will take shipments leaving the regional network for other parts of the country.”

Under the YRCW-Teamsters contract, “we can blend seniority rosters where people are protected and can follow the work, but we can blend efficiencies for both brands,” O’Connor said. “We can service both brands through one terminal, and ultimately through one dedicated service team.” That will improve, rather than complicate or dilute, customer service, he said.

“We have a couple of customers who are very excited about the idea of being able to load a single YRCW branded trailer, whether it’s New Penn or YRC Freight, with their freight,” O’Connor said. “When it comes back to the co-hab facility, we separate the freight that goes to the long-haul network and the shorthaul network. Today, they have to use two different trailers.”

This year is a critical one for YRCW, Hawkins said. The company and its carriers have had a rough ride in 2019, as revenue and volume dropped and last year’s profits turned to losses. YRCW had a consolidated $88.7 million loss in the first nine months of 2019, and a $16.5 million loss in the third quarter. Its regional group had a third-quarter operating loss, although YRC Freight increased its operating profit 28 percent year over year.

Manufacturing slowdown hurts regionals
The terminal consolidations and behind-the-scenes streamlining of sales and management come at a time when the regional carriers — which returned to profitability before YRC Freight and often outperformed the national carrier — are mired in an industrial economic slowdown, particularly in the Midwest. The industrial slowdown affects YRC Freight, as well, but the carrier benefits from national scale.

YRC Freight revenue dropped 2.3 percent in the third quarter, while the regional group's revenue fell 5.8 percent.

“The toughest part of the freight economy across the nation was the Rust Belt,” Hawkins said. “On top of that, a labor disruption at one of the Big Three automakers [General Motors] made that situation even more acute.” In 2018, he said, “our regionals had very high demand. It was difficult for us to hire fast enough to handle that regional. Now the tables have turned.”

The United States economy slowed significantly in mid-2019, with US gross domestic product dropping from 3.1 percent in the first quarter to 2 percent in the second quarter, as YRCW won its first negotiated Teamsters contract in a decade and implemented a new capital funding structure. “Our largest expense is labor, so we have to manage hours closely,” Hawkins said.

In terms of the slowdown, “I think the worst of that situation is behind us,” said Hawkins. “Typically, the freight economy is the tip of the sword for the overall economy. I would hope we’re close to the bottom of the dip, and we’re seeing that across the LTL sector. As we think about 2020, we could see this tide turn somewhat. LTL pricing is still stable, and that’s encouraging.

“I’m excited about the prospects of the LTL industry and YRC Worldwide,” Hawkins said. “We’re looking well beyond the five-year contract.”

Contact William B. Cassidy at [email protected] and follow him on Twitter: @willbcassidy.

https://www.joc.com/trucking-logist...-takes-reorganization-new-level_20191113.html

:chairshot:



 
Under the YRCW-Teamsters contract, “we can blend seniority rosters where people are protected and can follow the work, but we can blend efficiencies for both brands,” O’Connor said.:heykoolaid::guiness:
 
Wow.. why retire when I can stay here and do nothing but put a FORK in the plans.
Hoss and Shutter-Down the underground leaders and future Teamsters president.
Wow.. why retire when I can stay here and do nothing but put a FORK in the plans.
Hoss and Shutter-Down the underground leaders and future Teamsters president.

uKnPBu3.jpg

Which size?
 
Under the YRCW-Teamsters contract, “we can blend seniority rosters where people are protected and can follow the work, but we can blend efficiencies for both brands,” O’Connor said.:heykoolaid::guiness:
And the company can do this because their Teamster employees agreed to this NEW language in the latest contract...

(YRCW NMFA Article 8, Section 6, "New Language" on page 8)

Merger of Terminal by Commonly-Owned Separate Employers Covered by this Agreement
Seniority shall be dovetailed when commonly owned separate employers covered by this agreement merge (in a shutdown or partial shutdown) two (2) or more terminals. If, after the dovetail, there is insufficient work at the remaining location(s), the remaining affected employees shall be entitled to all contractual rights including Article 5, Section 5 rights but shall have moving expenses paid as set forth in Article 8, Section 6. For purposes of this entire section, employees shall remain in their previous health and welfare and pension funds. The Employer at the remaining location(s) shall use all efforts to find work opportunity for all displaced employees. All items under this provision shall be contained in an approved Change of Operations Committee decision. All other issues shall be addressed by the Change of Operations Committee consistent with the language of the Agreement.



1WSV2lG.jpg

You people voted for this didn't you?
https://www.logisticsmgmt.com/artic..._members_sign_off_on_national_master_contract
:chairshot:
 
And the company can do this because their Teamster employees agreed to this NEW language in the latest contract...

(YRCW NMFA Article 8, Section 6, "New Language" on page 8)

Merger of Terminal by Commonly-Owned Separate Employers Covered by this Agreement
Seniority shall be dovetailed when commonly owned separate employers covered by this agreement merge (in a shutdown or partial shutdown) two (2) or more terminals. If, after the dovetail, there is insufficient work at the remaining location(s), the remaining affected employees shall be entitled to all contractual rights including Article 5, Section 5 rights but shall have moving expenses paid as set forth in Article 8, Section 6. For purposes of this entire section, employees shall remain in their previous health and welfare and pension funds. The Employer at the remaining location(s) shall use all efforts to find work opportunity for all displaced employees. All items under this provision shall be contained in an approved Change of Operations Committee decision. All other issues shall be addressed by the Change of Operations Committee consistent with the language of the Agreement.



1WSV2lG.jpg

You people voted for this didn't you?
https://www.logisticsmgmt.com/artic..._members_sign_off_on_national_master_contract
:chairshot:
Yes our YES Voters said its all OK , do what ever you want too , we are our own worst enemy , voting to give back what our brothers fought for years ago , pretty sad the new age of pansies voters ..........................
 
Yes our YES Voters said its all OK , do what ever you want too , we are our own worst enemy , voting to give back what our brothers fought for years ago , pretty sad the new age of pansies voters ..........................

Nephew, you're getting yourself all worked up again and you know that stress takes a toll on your life expectany! Chill, have another Snickers, I want to see you around over the holidays.
 
YRCW takes reorganization to a new level
William B. Cassidy, Senior Editor
| Nov 13, 2019 2:28PM EST
Lets see here, I taint thu sharpisist nife in the
drawers, but we got us one cumpaniy exsecutive saying 25 terminals by yer end and nother 25 next yer, I think that be 50.
We got nother exsecutive saying 64 terminals les, now I taint no rocut pilot butt them their nummers donut addd up.

YRC Worldwide expects to have about 64 fewer standalone terminals by the end of 2020. Photo credit: YRC Worldwide.

Ten years after a near-fatal brush with bankruptcy, YRC Worldwide once again is resizing and reorganizing its less-than-truckload (LTL) network, in some cases bringing regional and national subsidiaries under the same roof. The company is seeking greater freight density, faster service from locations closer to shippers, and a more stable platform on which to build profits after racking up losses in much of 2019.

This streamlining of the network and “co-habitation” of national and regional LTL brands within its terminals will bring the number of facilities operated by the LTL trucking holding company across its four subsidiaries down from a current 384 to 320 by the end of next year, Darren Hawkins, CEO, and T.J. O’Connor, president and COO, said in an interview with JOC.com.

The consolidation is the third part of a five-step long-term strategic plan that builds on steps taken by Hawkins' predecessor, James Welch, who steered YRCW back to profitability after being named CEO in 2011. After network optimization, the next steps are customer growth initiatives to build volume and additional capital investment, Hawkins said.

The Overland Park, Kansas-based company expects to complete 25 terminal consolidations this year and another 25 next year, they said. And when it comes to optimization, “we think we’re just scratching the surface,” Hawkins said. “We’re doing this as opportunities present themselves and being very methodical, so there’s not any adverse impact on the customer.”

In comparison, YRC Freight alone had 571 terminals after the 2009 merger of Yellow Transportation and Roadway Express. The current network optimization plan is the latest in a series of consolidations meant to increase freight density and improve customer service and profitability, including consolidation post-merger in 2012 and 2013, and changes in 2017.

The latest changes go beyond the consolidation of the physical plant to embrace sales, management, and back-office changes that will transform the way the company and its subsidiaries operate, enough so that its top executives hope the transformation will restart a recovery in profitability that seems to have stalled in the slow freight market of 2019.

No mergers planned
All of YRCW’s carriers are among the top 25 US LTL trucking companies, with YRC Freight ranked fourth, Holland 11th, Reddaway 19th, and New Penn 22nd, according to SJ Consulting Group data. The operating company’s consolidated revenue topped $5 billion in 2018. The LTL holding company ranks sixth among the 50 largest US trucking companies.

The carriers represent a significant source of LTL capacity for shippers, giving them a stake in its success. YRC Freight moves approximately 10.1 million shipments annually an average distance of 1,250 miles. The YRC regional companies combined move about 9.8 million shipments an average distance of 400 miles each year, according to YRC Worldwide’s latest annual report.

thumbnail


Click to enlarge.

Hawkins expects the consolidation and resulting new operations structure to provide $60 million to $80 million in margin improvements in 2020, as well as millions of dollars in cash proceeds from property sales. He and O’Connor stressed the terminal consolidation and “co-habitation” of national and regional carriers does not represent — in any way — a merger of brands.

“We’re not taking down any brands, they’re all vibrant and powerful in the marketplace,” Hawkins said. But the brands will operate differently going forward. Until now, they’ve been largely autonomous subsidiaries, with their own sales and management teams as well as terminals. That is changing quickly, with many off-road functions transferred to YRCW.

For example, about 80 administrative jobs at the former Lebanon, Pennsylvania, headquarters of Northeast regional carrier New Penn have been eliminated and the work shifted to the YRC Worldwide Field Resource Center in Overland Park. The back-office consolidation launched a flurry of merger rumors but didn’t affect New Penn LTL services or field operations.

YRCW also consolidated and reorganized its sales force this year, giving customers a single point of contact for the three regional carriers, YRC Freight, and non-asset subsidiary HNRY Logistics. “I would point out there's been no change in terminal management by brand,” in the consolidation, O’Connor said. “The YRC Freight and regional managers remain the same.”

What’s changing is the corporate reporting structure for the four brands. A single operations leadership team, divided into four divisions and 17 operational areas, now exists for Holland, New Penn, Reddaway, and YRC Freight. Managers at each brand ultimately report to Don Hinkle, vice president of operations, who in turn reports to YRCW COO O’Connor.

“This structure allows us to share resources among the carriers more fluidly, because the terminal managers report to the person who is responsible for all brands,” said O’Connor.

Hawkins stressed the importance of maintaining the brands. “We're very proud of our four brands. We've got three best-in-class regionals. Reddaway is celebrating its centennial this year, and our other companies are nearing that mark. We're in a negative tonnage environment right now but the whole industry has been there the last 12 months.”

YRCW's predecessor company, Yellow, acquired New Penn when it purchased Roadway in 2003. Holland and Reddaway were added to the group through the acquisition of USF in 2005.

Shippers shouldn’t even be aware of many of these behind-the-scenes changes, unless as a result of improved service, Hawkins and O’Connor claimed. “T.J.’s rule of thumb is that we will [consolidate terminals] where we would see service improve and efficiency improve and not in a market where consolidation would take away services,” Hawkins said.

Contact William B. Cassidy at [email protected] and follow him on Twitter: @willbcassidy.
See the rest of the story on Part 2 below.
https://www.joc.com/trucking-logist...-takes-reorganization-new-level_20191113.html

:funky:
 
YRCW takes reorganization to a new level
William B. Cassidy, Senior Editor
| Nov 13, 2019 2:28PM EST

thumbnail


YRC Worldwide expects to have about 64 fewer standalone terminals by the end of 2020. Photo credit: YRC Worldwide.

Ten years after a near-fatal brush with bankruptcy, YRC Worldwide once again is resizing and reorganizing its less-than-truckload (LTL) network, in some cases bringing regional and national subsidiaries under the same roof. The company is seeking greater freight density, faster service from locations closer to shippers, and a more stable platform on which to build profits after racking up losses in much of 2019.

This streamlining of the network and “co-habitation” of national and regional LTL brands within its terminals will bring the number of facilities operated by the LTL trucking holding company across its four subsidiaries down from a current 384 to 320 by the end of next year, Darren Hawkins, CEO, and T.J. O’Connor, president and COO, said in an interview with JOC.com.

The consolidation is the third part of a five-step long-term strategic plan that builds on steps taken by Hawkins' predecessor, James Welch, who steered YRCW back to profitability after being named CEO in 2011. After network optimization, the next steps are customer growth initiatives to build volume and additional capital investment, Hawkins said.

The Overland Park, Kansas-based company expects to complete 25 terminal consolidations this year and another 25 next year, they said. And when it comes to optimization, “we think we’re just scratching the surface,” Hawkins said. “We’re doing this as opportunities present themselves and being very methodical, so there’s not any adverse impact on the customer.”

In comparison, YRC Freight alone had 571 terminals after the 2009 merger of Yellow Transportation and Roadway Express. The current network optimization plan is the latest in a series of consolidations meant to increase freight density and improve customer service and profitability, including consolidation post-merger in 2012 and 2013, and changes in 2017.

The latest changes go beyond the consolidation of the physical plant to embrace sales, management, and back-office changes that will transform the way the company and its subsidiaries operate, enough so that its top executives hope the transformation will restart a recovery in profitability that seems to have stalled in the slow freight market of 2019.

No mergers planned
All of YRCW’s carriers are among the top 25 US LTL trucking companies, with YRC Freight ranked fourth, Holland 11th, Reddaway 19th, and New Penn 22nd, according to SJ Consulting Group data. The operating company’s consolidated revenue topped $5 billion in 2018. The LTL holding company ranks sixth among the 50 largest US trucking companies.

The carriers represent a significant source of LTL capacity for shippers, giving them a stake in its success. YRC Freight moves approximately 10.1 million shipments annually an average distance of 1,250 miles. The YRC regional companies combined move about 9.8 million shipments an average distance of 400 miles each year, according to YRC Worldwide’s latest annual report.

thumbnail


Click to enlarge.

Hawkins expects the consolidation and resulting new operations structure to provide $60 million to $80 million in margin improvements in 2020, as well as millions of dollars in cash proceeds from property sales. He and O’Connor stressed the terminal consolidation and “co-habitation” of national and regional carriers does not represent — in any way — a merger of brands.

“We’re not taking down any brands, they’re all vibrant and powerful in the marketplace,” Hawkins said. But the brands will operate differently going forward. Until now, they’ve been largely autonomous subsidiaries, with their own sales and management teams as well as terminals. That is changing quickly, with many off-road functions transferred to YRCW.

For example, about 80 administrative jobs at the former Lebanon, Pennsylvania, headquarters of Northeast regional carrier New Penn have been eliminated and the work shifted to the YRC Worldwide Field Resource Center in Overland Park. The back-office consolidation launched a flurry of merger rumors but didn’t affect New Penn LTL services or field operations.

YRCW also consolidated and reorganized its sales force this year, giving customers a single point of contact for the three regional carriers, YRC Freight, and non-asset subsidiary HNRY Logistics. “I would point out there's been no change in terminal management by brand,” in the consolidation, O’Connor said. “The YRC Freight and regional managers remain the same.”

What’s changing is the corporate reporting structure for the four brands. A single operations leadership team, divided into four divisions and 17 operational areas, now exists for Holland, New Penn, Reddaway, and YRC Freight. Managers at each brand ultimately report to Don Hinkle, vice president of operations, who in turn reports to YRCW COO O’Connor.

“This structure allows us to share resources among the carriers more fluidly, because the terminal managers report to the person who is responsible for all brands,” said O’Connor.

Hawkins stressed the importance of maintaining the brands. “We're very proud of our four brands. We've got three best-in-class regionals. Reddaway is celebrating its centennial this year, and our other companies are nearing that mark. We're in a negative tonnage environment right now but the whole industry has been there the last 12 months.”

YRCW's predecessor company, Yellow, acquired New Penn when it purchased Roadway in 2003. Holland and Reddaway were added to the group through the acquisition of USF in 2005.

Shippers shouldn’t even be aware of many of these behind-the-scenes changes, unless as a result of improved service, Hawkins and O’Connor claimed. “T.J.’s rule of thumb is that we will [consolidate terminals] where we would see service improve and efficiency improve and not in a market where consolidation would take away services,” Hawkins said.

Contact William B. Cassidy at [email protected] and follow him on Twitter: @willbcassidy.
See the rest of the story on Part 2 below.
https://www.joc.com/trucking-logist...-takes-reorganization-new-level_20191113.html

YRC Worldwide expects to have about 64 fewer standalone terminals by the end of 2020. Photo credit: YRC Worldwide.
:funky:
Lets see here, I taint thu sharpisist nife in the
drawers, but we got us one cumpaniy exsecutive saying 25 terminals by yer end and nother 25 next yer, I think that be 50.
We got nother exsecutive saying 64 terminals les, now I taint no rocut pilot butt them their nummers donut addd up.

YRC Worldwide expects to have about 64 fewer standalone terminals by the end of 2020. Photo credit: YRC Worldwide.
 
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