YRC Worldwide falls after union rejects contract

The Associated Press
January 10, 2014

Shares of YRC Worldwide Inc. fell sharply Friday, a day after a union rejected the trucking company's contract extension proposal.

The proposed deal would have extended the contract to March 2019 and would have given the Overland Park, Kan., company greater operational flexibility without reducing wages or health or pension contributions of existing workers.

The union, International Brotherhood of Teamsters, has asked the company to cut its debt in order to renew its contract.

"Our members have sacrificed billions of dollars in wages and pension benefits over the past five years and yet the company has been unable to recover from the disastrous policies of the previous management," said Teamsters President Jim Hoffa.

YRC Worldwide said last month it had agreed to cut $300 million in debt, but that announcement was made after many union members had already turned in their ballots.

The company said it is exploring options with the union.

Shares of YRC Worldwide fell $1.99, or 13 percent, to $13.68 in afternoon trading.