NICE STRENGTH TODAY...WHEN THE SQUEEZE HITS, WATCH OUT !!!
I'm no more fan of the YRCW stock than you are, TA. But, I think you are wrong in hammering them for freezing the defined benefit plan and shifting over to a defined contribution plan. Like it or not, that is happening all over corporate America. Fedex did the same thing. With investment returns failing to keep pace with the financial obligations of a pension, companies look to make their payments up front through the 401-K plan and shift the risk to the individual. Freezing the DB plan reduces their risk and volatility. It ain't pretty, but the alternative can be having to fork huge amounts into the plan or risk the enormous underfunded liablitily that now exists at the teamster plans.
There are legitimate issues to use to single out YRCW management for criticism. I just don't think this is one of them.
You and I have always agreed on items of common sense. This is no exception.
Did YRCW have to change the defined benefit plans? Yes, of course they did. In fact, they should have done it years ago when they had a little extra money they could have used to sweeten the pot. Only management with a complete lack of foresight waited until they were completely financially desperate to make this move.
However, these guys didn't just suspend the Defined Benefit programs. They have also suspended much of their participation in Defined CONTRIBUTION programs as well. The letter to the employees claims that it is just until the end of the year then something even better will emerge.
OK. Apparently, there were a few wrinkles I hadn't heard about. (I'm not an employee.) I had assumed they were doing the standard thing of sweetening the defined contributions - not going the other way!