NEW YORK (AP) -- YRC Worldwide's stock climbed Monday after the trucking company's union agreed to vote on extending an agreement that would help it refinance some debt.
THE SPARK: CEO James Welch said in a statement that savings from the proposed agreement and other corporate initiatives are expected to be about $100 million a year. The agreement does not reduce current wages of existing workers or lower their health and pension contributions, he added.
Chief Financial Officer Jamie Pierson said that the agreement and its related savings should help to lower YRC's interest expense and reduce its debt.
YRC, based in Overland Park, Kan., said that the International Brotherhood of Teamsters union vote will be completed by Jan. 8. If approved, the current contract would be extended to March 31, 2019 and would give the company more operational flexibility to deal with debt.
YRC Worldwide Inc. has more than 26,000 union employees.
SHARE ACTION: Up 82 cents, or 10 percent, to $9.27. Year to date, the stock is up 37 percent but it's well below its 52-week high of $36.99.