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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
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