YRC Freight
Teamsters at YRC Worldwide Inc. rejected a contract extension that the company said was crucial to refinancing its debt and ensuring long-term stability.
The union announced the results of the vote late Jan. 9. A total of 26,000 union members at the less-than-truckload carrier were eligible to vote on changes that would extend their contract into 2019 from the scheduled March 2015 expiration. The vote was about 61% against the plan that was put to a rank-and-file vote last month.
Union approval of the memorandum of understanding to extend the contract was required for the company to finalize a $300 million debt refinancing plan. The debt plan was announced last month with the goal of lowering interest costs.
"The Teamsters Union believes in democracy, and we've let the democratic process take its course," said Tyson Johnson, director of the Teamsters National Freight Division "Our members have made huge sacrifices to keep this company alive, and a majority made the decision not to sacrifice anymore."
