UPDATE 1-YRC gets another yes vote on labor concessions

* Modified deal includes 5 pct incremental wage cut

* Includes 18-month halt of payments to union pension fund

* Savings from pension and wage cuts about $45 mln a month

By Carey Gillam

NEW YORK , Sept 9 (Reuters) - YRC Worldwide Inc (YRCW.O) said on Wednesday union employees at regional carrier New Penn joined other union workers in approving a modified agreement the company sees as critical for its survival.

The labor deal, already approved by more than 90 percent of YRC employees represented by the International Brotherhood of Teamsters, includes a 5 percent incremental wage cut and an 18-month cessation of company contributions to the union pension fund, which will not require repayment, it said.

Savings from the pension and wage cuts total about $45 million per month and that increases to an estimated $50 million per month in 2010.

"Revisions to the contract enable the company to strengthen its financial position," said Mike Smid, YRC Worldwide chief operations officer.

The company continues to work with the Teamsters to address employee concerns in smaller bargaining units that have yet to ratify the contract changes.

YRC is the No. 1 U.S. less-than-truckload (LTL) company, taking small loads and consolidating them into single trucks. But problems with integrating two large acquisitions and a souring national economy have left YRC burdened by heavy debt and high fixed costs as demand for its services decreases.

YRC's creditors recently agreed to grant a tenth revision of the terms of the company's $950 million revolving credit facility and suspended until Oct. 13 the requirement that YRC maintain at least $100 million in liquidity. (Reporting by Carey Gillam; editing by Andre Grenon)