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Freight Members Attend Meeting On YRC Financial Troubles
Feb 07, 2014

Freight members met at the Local 89 today to hear details regarding the recent revelation that YRC is facing dire financial problems.  Local 89 President Fred Zuckerman and Freight Agent Kevin Oliva attended a meeting in Dallas on Tuesday November 6th in which the Company gave the specifics on its plan to bring itself back from the financial brink. YRC has asked the IBT to enter into negotiations immediately to come to an agreement on a possible five-year contract extension to help shore up the company to save it from collapse.  However, the foundation of YRC’s plan rests on concessions by the membership.

The membership is currently under an agreement that resulted in heavy concessions.  Now Teamsters at both YRC and Holland (which is now owned by YRC) may be faced with a choice between more concessions or the possible bankruptcy of the Company. This could result in the loss of jobs or liquidation.  

YRC now has $1.4 billion in debt in which $150 million is paid annually in interest payments. The Company is now in a situation in which it must refinance this debt. YRC lost $152 million in 2012 and $54 million in the first half of 2013.  Its stock prices have declined nearly 75% since July as a result of analysts losing faith in the company. YRC asserts it cannot find any lenders willing to take on the risks of refinancing this debt as the Company currently stands.  

What is particularly sad about this situation is this was the direct result of a Company mismanaged at the highest level.  Now, hard-working Teamster brothers and sisters and their families, once again, are forced to sacrifice for the long-term health of the Company. While this is certainly a crisis for YRC “brass”, this is potentially devastating to our YRC and Holland families.  Please keep these workers in your thoughts and prayers.   We will keep you informed as more information on future negotiations comes available. 


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Teamsters Local 89
3813 Taylor Blvd
Louisville, KY 40215
  502-368-5885


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