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YRC YRC's proposal handout for the November 5th Meeting with the IBT

Discussion in 'YRC Freight' started by Follow Da Monie, Nov 19, 2013.

  1. Follow Da Monie

    Follow Da Monie Active Member

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    IBT/YRC WORLDWIDE
    November 5TH, 2013

    Thank You for your shared Sacrifice

    1.) We appreciate and respect the sacrifice our employess have made to keep YRC Worldwide moving forward.

    2.) The simple Fact is that without your help we would not be in business today.

    We Have Made Real Progress Together

    1.) Since James Welch returned to the company as CEO, YRC Worldwide has had a new management team and a renewed focus on our core business : North American LTL union trucking operations.

    2.) Aggressive cost controls have been implemented across the organization- from cutting corporate executive positions and wasteful marketing sponsorships, to the closing of a duplicative corporate headquarters.

    3.) Since concessions in 2009, our operating companies have paid billions in Teamster employee wages and continue to provide industry-leading health care benefits to 26,000 families.

    The Competitive Landscape is very Challenging

    1.) We operate in an overwhelmingly non-union LTL industry. Since 1995 the market share of union carriers has decreased from 61% to just 31%, while YRC Worldwide's market share has dropped from 42% to 17%.

    2.) In that same time, the market share of non-union carriers has jumped 337%.

    We are in a Difficult Financial Situation

    1.) In 2012 YRCW lost $152 million, and in the 1st half of 2013 we have lost an additional $54 million.

    2.) Furthermore, the previous management team's spending spree saddled us with crushing debt of $1.4 billion-nearly as much as all of our publicly traded competitors combined.

    3.) This massive debt costs us $150 million in interest payments annually- more than all our publicly traded competitors combined and it is strangling the company.

    4.) Debt principal repayments become due starting on Feb. 15 2014 ($69 Million), with an additional $1 billion of the total $1.4 billion due in late 2014 and early 2015.

    5.) Shareholders are concerned about our future. Our stock price has declined nearly 75% since July.

    Refinancing Our Debt is The Solution- But We Must Act Now

    1.) Refinancing can lead to lower interest payments and can reduce the company's overall debt.

    2.) Refinancing can free up cash to repay remaining debt and invest in the business to help us stay competitive.

    3.) Without a refinancing we can't satisy all of our debt obligations that come due in the next 17 months.

    4.) Refinancing typically takes 90 days to complete, and it must be completed before the 1st of our debt repayments become due-so we must start the refinancing process by November 15.

    What this means for You: A Longer Labor Agreement and Improved Performance

    1.) Our lenders will not refinance our debt unless we have a 5-year labor agreement along with and improved structure and operational performance.

    2.) As a result YRCW is asking for:

    A.) A labor agreement that extends into 2019.
    B.) Predictable future wage and benefit increases.
    C.) Improved operational efficiencies and reduced absenteeism.

    We want to Continue Working Together

    1.) By continuing our partnership, we can preserve 26,000 good union industry jobs that provide nearly 100,000 people in union families with their livelihoods.


    If you have further questions, please email DriveonTogether@YRCW.com
     
  2. Follow Da Monie

    Follow Da Monie Active Member

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    Raise your hand if your Local has discussed this proposal with their rank and file.. Their silence on this matter is DEAFINING!!

    This is a direct letter from the November meeting.. This is what was proposed to the IBT.. A power point presantation with the infamous slide of the Truck driving off the cliff!!
     
  3. newpenn107

    newpenn107 Well-Known Member

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    It wasn't a proposal, it was an explanation to the locals of where yrcw stands related to financials. The proposal is now being discussed with the national negotiating committee. Once they propose something it will be given to us to vote on.
     
  4. Follow Da Monie

    Follow Da Monie Active Member

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    AHHHH.. i see.. thanks for clarifying..that it wasn't a proposal, that it was an explanation.. ahh I see..And now the proposal...umm explanation is now being discussed by the negotiating committee.. Got it!!
     
  5. Follow Da Monie

    Follow Da Monie Active Member

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    1.) Our lenders will not refinance our debt unless we have a 5-year labor agreement along with and improved structure and operational performance.

    2.) As a result YRCW is asking for:

    A.) A labor agreement that extends into 2019.
    B.) Predictable future wage and benefit increases.
    C.) Improved operational efficiencies and reduced absenteeism.

    Got It!!
     
  6. LEHIGH vALLEY

    LEHIGH vALLEY Well-Known Member

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    Just remember what YRC wants and what YRC gets will be two different things!

    People in hell want ice water, But I don't see that happening!
     

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