YRC Still Negotiating with Pension Plans
May 29, 2009: Yellow Roadway (YRC) is still in talks with various Teamster pension plans regarding their proposal to post real estate as collateral, in lieu of pension payments for the rest of 2009.
Talks are being coordinated by the Central States Fund for a group of pension funds. Teamsters close to the talks have not been able to give us a timeline for a resolution to the pension issue.
YRC is two months behind on payments to most of the funds, at the rate of about $40 million per month.
The pension funds each have a fiduciary duty to make sure that the real estate involved is actually worth the amount YRC owes the fund, and that the funds have legal claim to that real estate (ahead of banks and other creditors) in the event of a default.
On May 20, the Western Conference of Teamsters Pension Fund sent YRC a letter demanding payment for March and April obligations. The Western fund is involved in the talks, but is covering its bases with a paper trail demanding payment, as it does routinely when an employer falls behind.
Also on May 20, Harrisburg Local 776 wrote to the International Union requesting action to force YRC to meet its pension obligations. Local 776 also wrote to the Central Pennsylvania Pension Fund objecting to that fund’s move to freeze pension accruals of YRC Teamsters for the rest of the year.
On May 27, the International Union issued a bulletin to YRC Teamsters headed “Important Information,” but it didn’t contain any information. It suggested YRC Teamsters “remain patient.”
What do you think? Click here to send your comments to Teamsters for a Democratic Union.
( categories: Freight )
robert@yrc Mustang, how did you vote? I and a very few others voted against the Hoffa re-election, against the contract and against the pay cut! Its not that we did not want to do our part, but there are many ways YRC can save 250mil a year before we agreed to a pay cut. A "NO" vote would of forced the company to cut waste and run a tighter ship, eliminate damage claims, and higher workers that have pride in their work instead of seeing how low a wage they can get away with paying. The pension plan is no longer a "Multiemployer" plan when there are only 2 employers, ABF and YRC. We can thank the Hoffa clan for this situation. They are more suited to organizing low hanging fruit, (public sector), than the trucking industry. If you think Hoffa is looking out for you, you need to take a closer look.
All members received letters on the 30th informing us that YRC has not made the required contributions to the N.E. Pension fund. Whats next?
I think we have been sold out from the top to the bottom. Looking back, this whole give back has been strategy. Giveum a contract, "in words" nothing in writing. Then cry the blues, ask for rediculous change of operations ( utility) at Roadway. Then ask for give backs... Then whine about the pension, after all that, including an agreed to contract, which hasnt been worth a hill of beans, and isnt worth putting into writting, or wasting paper on. Everyone has to ask, would you giveum 10% and the pension?? Get whipped like a scared dog, for fear of losing this crappy job? I say we strike on the pension issue and at least go out with what little pride we have left. Our for fathers fought wars so we could afford our families a average life style. Considering employers pay into it for 30 years, and we only collect on average 20 checks. Where has the money gone? I say... CHAIN THE GATES!!!
YA HAVE TO WONDER IF THE HIGHER UPS AT YRC HAVE ANY CONSCIENCE YA KNOW MORAL SENSE OF RIGHT AND WRONG WHEN THE CEO DRAWS LIKE 4 TO 5 MILL AND GOD ONLY KNOWS WHAT THE REST ARE SUCKING UP OUT OF THE GIVE BACKS . THERES PLENTY OF MONEY FOR THEM AND PLENTY OF MONEY FOR THE IDIOTOTIC LETTERS THEY SEND OUT EVERY DAY . I DON'T THINK THERE IS A SINGLE ROADWAY DRIVER THAT HASN'T HAD HIS JOB THREATEN BY ONE OF THOSE TUFF GUY MANAGERS , YELLOW NOT SO BAD . MANAGEMENT PAY SHOULD BE BROUGHT UP AT THE UP COMING MEETINGS . WHEN WE HAVE TIMES LIKE THESE THEIR TOP PAY SHOULD NOT EXCEED 150 THOUSAND. I THINK THE BIBLE SAYS IT ALL WHEN IT SAID THAT ITS HARDER FOR A CAMBELL TO GO THROUGH THE EYE OF A NEEDLE THAN A RICH MAN TO ENTER THE KINGDOM OF GOD.