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Union leaders endorse YRC's revised contract
January 22, 2014 / 2:15 PM / 4 years ago

Union leaders endorse YRC's revised contract

Jan 22 (Reuters) - Leaders of the Teamsters union agreed to put to vote a revised labor contract from YRC Worldwide Inc , setting the stage for the struggling trucking company to go ahead with a vital restructuring plan.

YRC’s shares were up about 3 percent before the bell.

The revised five-year contract, which eliminates wage freezes and adds bonus for employees on seasonal layoff, will be put to a full vote of 26,000 YRC truckers over the weekend, the union website said. ()

“We expect Teamster rank-and-file to vote in favor of a paycheck and ratify the agreement given the dire consequences if the revised agreement is not eventually approved,” Deutsche Bank Markets Research analyst wrote in a note to clients.

A ratification of the agreement will allow the company to proceed with refinancing its debt, more than $1 billion of which starts coming due in February.

YRC restarted talks with the Teamsters last Thursday after 61 percent of the workers on Jan. 9 voted against the company’s proposal to extend its labor agreement by five years till 2019.

YRC’s shares have risen 37 percent to Tuesday’s close of $17.55 since the company restarted talks with the union.

Shares of the company were trading at $18.00 before the bell on Wednesday.

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