(Adds details and updates share movement)
Jan 27 Teamsters union members have approved YRC
Worldwide Inc's revised contract, clearing the way for
the struggling trucking company to proceed with refinancing its
more than $1 billion debt, sending its shares up as much as 11
The company will meet lenders on Tuesday, sources told
Thomson Reuters LPC. An earlier meeting was called off on Jan.
10 after an overwhelming majority of workers rejected extending
cuts in pay and overtime agreed six years ago.
The contract extension, which won the support of 66 percent
of the union members who voted over the weekend, adds bonus
payments for employees on seasonal layoffs and keeps the
three-week vacation. (r.reuters.com/jaf46v)
YRC, which was on the verge of bankruptcy about two years
ago, has been struggling with its huge debt and the approval
gives the Overland Park, Kansas-based company much-needed labor
stability to focus on restructuring.
The first payment of $69.4 million is due on Feb. 15. YRC
Worldwide has a market capitalization of about $200 million.
"This was a very difficult vote for our members, but in the
end they did what they believe will give this company the best
chance to stay in business and protect their jobs," Jim Hoffa,
Teamsters general president, said in a statement late on Sunday.
"Now we will hold management's feet to the fire to make sure
our members' jobs are protected," he said.
YRC restarted talks with the Teamsters on Jan. 16, a week
after the company's proposal to extend the labor agreement was
The company had then said a contract extension through 2019
was "the best - and only remaining - path forward."
YRC shares rose about 47 percent since Jan. 16 to their
Friday close. The stock lost about 31 percent of its value from
Jan. 9, when the workers rejected the contract, through Jan. 15.
The stock was up 4 percent at $19.60 at midday on the Nasdaq
(Reporting by Mridhula Raghavan in Bangalore; Editing by Kirti