what if

waffleman

Active Member
Just sitting here drinking my morning coffee and doing some reading.

according to the kansas city business journal 10-8-10 , YRCW has a 221 million dollar debt payment due on the 26th of this month. Some anylists believe they will have a hard time getting an extension from their bondholoders unless they get a yes vote on the current round of concessions.

I learned last night that Estes express, who purchased alot of YRC real estate and leased it back to YRC has had some real issues getting lease payments from them, so much that they have recently begun taking delivery of 475 tractors in lieu of payment. 225 in dallas and 250 to be delivered in chicago.

The traders on wall street are not to secure with the reverse stork split either, based upon the 2.50 dollar decline in the stock since the split.

There are alot of good peolpe who are working for them and I hate to see them in a situation like this, but should the worst occur, and they close proir to the merger, would the merger go forward?

Just wondering.
 

waffleman

Active Member
To answer my own question.

It is my belief that the merger goes forward as planned no matter what happens in the industry. The people in charge really are smart folks and made this decision based upon our business model(you know, the con way model) and our business plan. Should attrition occur, they do have a contigency plan, but that plan I am sure is based upon our post merger capicity projections.
 

Twice Pipes

Well-Known Member
Union workers must OK concessions for YRC Worldwide to survive.

The ballots went out on Monday for the members to vote on for the latest round of concessions. According to the IBT (International Brotherhood of Teamsters) there is no plan B. The line of revolving credit ends at the end of the month and the banks want a long term commitment or they will pull the plug. The banks will not wait for YRCW to burn through its existing cash. The concessions extend the current master freight agreement which is due March 2013 to March 2015. YRCW will extent non payment to the pension plan until June of 2011. At that time YRCW will start making a 25 percent contribution to the pension plan. The 15 percent wage cut will remain. Bill Zollars the current CEO will also retire soon. 25000 ballots have be mailed out to the drivers and dock workers, and it will be up to them to keep the company afloat. Good luck to all our friends over at YRCW. TP
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Gotta be a tough time for YRC employees... seems like one concession after another, with both YRC and the Teamsters saying the end is near without member-support.
 

HILLBILLY

Well-Known Member
I would think the merge would go through, but drivers and dock would probably not loose their jobs due to added freight. Depending on how much we would get of it.

I wouldn't want to be in any yrc employees shoes. Good luck to them. When is the results of the vote to be announced?
 

lost boy

Sail boat captain
Waffleman, GOOD POST.
I'm sure a lot of us have had thoughts about this subject.I know I have.
The YRC employees have had a lot to deal with the past few years, and now they are being told that the future of the company and their livelihood rests in their hands.
I feel the union has been the driving force behind YRC even remaining in buisness.It was their representives that went to wall street and exposed those blood suckers for what they are and made them play fair.
If they do approve this agreement, and YRC comes back, it will be very interesting to see how the company works seeing how it is so indebted to the union and it's members.
 

slim6596

Freight Relocation Tech
No matter what the media says about YRCW's predicament, the union workers have bent over backwards and made huge sacrifices to save the company. I hope that the company does not shutdown.
 

fedestes

Member
waffleman and others,
I spent 4 years at Freight and then about 9 months not long after the Watkins buyout before coming to Estes when a new terminal opened. Before I even left Freight, we were already speculating how long it would take before a "merger" or whatever you might call it took place. Continuing through my transition to National, I/we kept hearing "separate customer base", "different market" blah blah blah. But the signs were there from the beginning. National was a PART of Freight on the organizational chart, just like Custom Critical. And Watkins Canada didn't become National LTL Canada, it became FedEx Freight Canada. Then the uniforms changed. Then the retirement. Then we were told Freight would be spec'ing and buying all the equipment. I tried talking a few guys into coming with me, but they had drank too much of the purple kool-aid and stayed put. To get around to my point, I think this was in the plans the day they closed the deal. Too much market overlap, too many duplicate overhead costs to justify two companies long-term, regardless of the future of YRCW. As a side note, it's nice to see you guys showing some sympathy for the YRCW people. Yeah, it would be a boost for the remaing LTL players on paper, but you're talking about tens of thousands of people out of work. Almost forgot - I've heard the trucks-for-payment rumor, too, but not any specific amounts. 'Night all.
 

POPCORN

Well-Known Member
It is just my opinion. Here is what i think will happen... In the event that the new round of concessions are voted down the lame duck congress will bailout YRCW. A few things must happen first but I do believe it will happen. The National elections are November 2, About that same time the union will have the votes counted on the concessions. The democrats owe the Teamsters BIG for their campaign contributions (paid for by union dues). If YRCW is backed into a corner the dems can authorize a bailout for YRCW (remember GM, Chrysler, several banks that took TARP money). Don't get too excited about the collapse of YRCW foiling the merger layoffs. The braintrust in Memphis is betting on this to happen. They are way to connected in Washington to misstep on this issue. We the people will fund YRCW until 2012 when a new president will be steering the ship.
 

Kings disciple

Ecc. 12:13
Maybe but I doubt it.

You could be right Popcorn but I've got my doubts that the lame duck session is going to bail out anybody. But if they do, I don't think YRC is going to fall in the "to big to let fail" catagory like GM or Chrysler. When Obama took office there were in the neighborhood of 145,000 active employees at GM plus many thousands more that worked for major suppliers like Delphi. Also GM is providing health care coverage for 1.1 million retirees, independents and family members. I just don't think that any trucking company (even a big one like YRC) would be able to get the kind of priority attention from Congress that GM or Chrysler got. I think those defeated Dem. lawmakers in the lame duck session will probably just keep a low profile and ride out their term.

You have to remember also that the sale and trade of American cars here and overseas is a huge tax base for the government. A Congress (especially a Democrat majority run one) hates to lose that large amount of tax money.
A trucking company does not generate near the amount of tax money that GM etc. does, not even close. But then again those nutty Dems might surprise me. It sure wouldn't be the first time that's for sure. I've seen things rammed thru Congress in the last couple of years that I never would've thought possibe.
 
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Matt

Supah truckah
I know they guys at YRCW see this and its a good thing to worry about their company. crazy what the employees have done to keep the doors open. I hope the do vote yes and stay going at it but i have my doubts. Zollars has killed that company. to try to get a profit going is a huge undertaking. I wish them guys/gals the best. by the way if they close who else we gonna be able to pass on the road ? abf, conway thats it. and an Estes on a hill :wavey:
 

Kings disciple

Ecc. 12:13
I agree BB those guys have given till it hurts big time trying to save the company, ya got to respect them for that. But I too think that managment has run it to far in the ground. Way to much red ink to overcome. This last round of concessions seems like a hail mary from YRC and it's almost like a slap in the face to the men and ladies that have already given so much.
I think Fedex has anticipated the possible failure of YRC. Because on the decision form it said...

Note: Severance selections will only be applicable up to the number of reductions to occur in an employee's job classification/location. Should turnover occur or other business conditions change that decrease the number of initially identified reductions, employees will be allowed to continue their employment (in order of company seniority) and the severance decision will no longer be valid.

So in other words if there is a big spike in business, all bets are off.
The problem for some displaced guys that accept a follow the freight transfer over 50 miles out this week. Can they change back if freight volumes spike between now and Jan. 31st and stay in their home town? My sources are telling me no. If you accept the transfer over the 50 mile limit, you have to go no matter what happens between now and the end of the year.
 
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yrksfte

Member
Not to mention our pay. There will be no more "keeping our wages competitive" I wouldn't be so sure they wouldn't want us to give back "a lot" if yrc folded.
 

slim6596

Freight Relocation Tech
I have nothing but respect for the union workers at YRCW for all they've done to save their jobs, but I have to wonder...is upper management giving anything back to help out in trying to stay in business? If so, I have not seen it in the news.
 

fedestes

Member
yrkstfe - The "what if" pay debate is going on everywhere, and here's my thoughts on it: I don't see a pay reduction if (when?) YRCW folds. They may be a big chunk of the LTL crowd, but they are a small percentage of the IBT's total membership, and you can bet they will be trying just as hard or harder to get into you guys, us (Estes), OD and Conway. I remember hearing while I was with you guys that organized labor's two biggest targets were FedEx and Walmart. And, more importantly these days, I think the CSA program will have a big effect by reducing the qualified driver pool. An experienced, safe, doubles/triples and HazMat qualified driver will have a lot more value in the near future.

BeerBoy - I don't miss much from my days at Freight, but I do miss my Volvo. I went from a Cummins ISX400 down to an ISM330, and it hurts everytime one of you guys passes me :)
 
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