Release Date: 16 January 2009
Release ID: 1221
The integration of the Yellow and Roadway networks continues at an accelerated pace. Some important updates about the integration:
* We are creating a unified network of over 400 YRC service centers, including 12 in Mexico and 27 in Canada, providing better geographic coverage, more comprehensive solutions and the best overall service quality in the industry. While benefits will be experienced much sooner, the full integration will be completed later in 2009.
* Across the U.S. and Canada, we continue to combine service centers with the goal of combining about 120 by March 2009. The combined service centers allow for better use of facilities, employees and shipment density. The result will be better service and coverage for you. For every consolidated service center, a new YRC service center is taking its place. Compared to the individual Yellow and Roadway networks, our integrated network will feature more than 100 additional service centers, enabling the addition of approximately 21,000 direct service points.
* With many functional areas integrated in the last few years, the consolidations now underway create a single management structure and unified team to better serve your needs.
* With our unified network and increased number of shipping locations, we will be closer to you and more reliable than ever before.
During these challenging economic times, YRC Worldwide has worked hard to solidify our financial position. We are pleased to announce that the International Brotherhood of Teamsters (IBT) has voted to modify our existing labor agreements. This IBT agreement affects Yellow, Roadway, Holland and New Penn. In exchange for wage reductions and suspension of Cost of Living Adjustments (COLA), our Teamster employees will have a 15% equity stake in YRCW. Coupled with our non-union cost modifications, we are able to improve our cost structure and financial stability. All employees will share in future company performance. These are important changes that have the support of the entire YRCW team. We are excited about the prospects for 2009 and beyond.
In addition, we have an upcoming change of operations with the International Brotherhood of Teamsters (IBT) to provide operational and network changes necessary to continue to improve our service.
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