YRC Worldwide reaches tentative deal with Teamsters union

Fri Jan 17, 2014 6:41pm EST

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(Reuters) - Trucking company YRC Worldwide Inc (YRCW.O) and the Teamsters union reached a tentative deal for a new labor contract that sets the stage for the struggling company to push ahead with a refinancing plan.

YRC shares rose 22 percent in extended trading.

The revised proposal would be reviewed at a meeting of local union officials on January 21 and would have to be ratified by union members, the International Brotherhood of Teamsters said in a statement.

The 26,000 YRC members represented by the union had last week voted down a proposal by the company to extend their labor contract.

That vote put in jeopardy efforts to refinance the company's debt, more than $1 billion of which will start coming due in February.

YRC said on Friday that the tentative agreement, which comes a day after the company restarted talks with the Teamsters, addresses concerns raised by the union and contains a number of revisions to the earlier proposal.

"The outcome of this week's discussions is critical to the future of the company, YRC Chief Executive James Welch said in a statement.

Welch said the deal to extend a collective bargaining agreement to March 2019 was "the best - and only remaining - path forward.

Shares of the company were trading at $18.94 after the bell. They closed at $15.82 on Friday on the Nasdaq.

(Reporting by Rohit T. K. in Bangalore; Editing by Anthony Kurian)

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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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