Trucking Hot Stock; YRCW’s Future Hinges on Union Concessions

R-14Driver

Well-Known Member
YRC Worldwide Inc. (NASDAQ: YRCW) is trying to negotiate with the Teamsters union that gave concessions to the company last year to help it avert a bankruptcy. In light of continued financial struggles, YRCW is trying to renew the concessions that will provide greater financial flexibility. These concessions are set to expire at the end of 2010, and YRCW is finding it tough to negotiate with the union and meet its renewal requirements.

The union said that it will only negotiate if its conditions are met. Among other demands, the union has voiced that YRCW should not renew the contract of current YRCW chairman and CEO Bill Zollars, whose contract expires in December. The union scheduled a meeting on September 29 to inform its local unions and pension fund representatives about the negotiations with YRCW, but did not provide any information other than confirmation it is indeed continuing negotiations with the struggling trucking company.

The company is seeking to extend the 18-month waiver of its obligation to contribute to union pension funds. The company earlier said that it may not be able to fulfill its obligations if the concessions are not renewed.

In order to boost its financial position, YRCW also sold a stake in is logistics arm. The company entered into a deal with Austin Ventures, a strategic private equity company, to sell a portion of YRC Logistics. The deal was completed last month. The gross proceeds from the transaction were around $38.7 million.....................


Trucking Hot Stock; YRCW
 

Jay C

Banned
The company is seeking to extend the 18-month waiver of its obligation to contribute to union pension funds. The company earlier said that it may not be able to fulfill its obligations if the concessions are not renewed.


 

Vwaggs

Well-Known Member
I think Austin Ventures is one of the primary shell owners of YRCW. I think they are just another link in making sure the company DOES NOT show a real profit. I believe they are investing heavily with the money YRCW gets in foreign trucking. I will not vote for any extension. I will not work here for $15 an hour like some seem willing to do.
 

canadian

Active Member
I think Austin Ventures is one of the primary shell owners of YRCW. I think they are just another link in making sure the company DOES NOT show a real profit. I believe they are investing heavily with the money YRCW gets in foreign trucking. I will not vote for any extension. I will not work here for $15 an hour like some seem willing to do.


It does make one wonder (re Austin). There seems to be no need or at least there has been no urgency to consider going chapter 11 or 7 to protect from creditors, because the creditors must be getting paid enough to be satisfied, other than that little dust up with Deutsche Bank over the bond swap deal.

We now run with 40% less staff (in every dept including sales/office) and that amount of customers as well (I keep thinking 'shrinking to prosperity).

There is also no urgency in obtaining new accounts and seemingly, not that much concern about keeping present ones.

But the onus for the Companies survival comes down to the Unionized employees and not the Executives who must be communicating the day to day operations down the line to the terminals in determining how many employees they need on a given day to satisy the demand but is always too few?

I notice none of these articles ever publish the cause of YRC's downfall which is too much debt aquired from unnecessary aquisitions.

It has become a very strange place indeed.............
 
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Jay C

Banned
It does make one wonder (re Austin).

There seems to be no need or at least there has been no urgency to consider going chapter 11 or 7 to protect from creditors, because the creditors must be getting paid enough to be satisfied,

I notice none of these articles ever publish the cause of YRC's downfall which is too much debt aquired from unnecessary aquisitions.

It has become a very strange place indeed.............

protect against creditors while agreeing to pay a pension? I doubt the creditors like JP Morgan who have stood by YRC all this time would like that idea..

that's almost as bad as Foxwoods casino who owes $2B dollars telling the bondholders that the tribe members who some have 2 BMW's in the driveway get their dividend before any payment is made on the debt-- (true)

I think the plan is to pay the debt off..JP Morgan gets hefty interest payments on the loan. ya, I'm sure they thought the acquisitions were a good idea
 
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