Teamsters sign off on proposed change of operations for YRC Freight

YRC Freight, a subsidiary of less-than-truckload transportation services provider YRC Worldwide, recently had its proposed change of operations plan approved by the Teamsters Union, according to a trucking industry message board and Teamsters for a Democratic Union (TDU).

YRC first rolled out its proposed change of operations plan in early February. As previously reported by LM, the proposed operations changes were initially reported on a trucking industry message board, which had YRCW documentation regarding this initiative.

Among the various action items YRC proposed are:
-reducing corridor hubs and freight handling;
-eliminating and reducing end of line road domiciles;
-eliminating a distribution center;
-reversing specified road primaries;
-closing a sleep road domicile; and
-adding additional sleeper runs to current sleeper domiciles.

YRC said in an operating statement that the design of the present day freight handling structure currently in place within the YRC network is to handle in excess of 70,000 shipments on a daily basis, with a marketing strategy to provide same day, next day, two day, three day, and four day service.

“The reality of the economic climate is that the company is handling, on average, 48,000 shipments per day with a linehaul network domiciled at approximately 150 locations,” said YRC. “The vast number of these domicile locations and the excessive number of freight re-handle locations must be restructured to continue the strengthening of the company’s financial position to better provide job security to its employees while at the same time growing the business and increasing employment opportunities. This change of operations request is also intended to return YRC to what it does best—to provide world class service to its customers in to 500 mile to 3,500 mile market.”

TDU reported that the scheduled implementation date for the change in operations is April 8.

As per the conditions of the agreement, which were outlined in Teamsters documentation on a trucking industry message board, Gordon Sweeton, Teamsters Vice President, Central Region stated various conditions of the approved operating agreement to Teamsters’ members.

Those conditions include: that employees applying for openings at sister companies will not be turned down as long as they have the ability to pass the pre-employment drug screen and satisfactory driving record and do not have extensive absenteeism; is not in violation of any of the terms of the National Master Freight Agreement or any of its respective Regional Supplemental Agreements; and that YRC will not divert any freight to sister or subsidiary companies.

YRCW executives were not available for comment, but a company spokesperson told LM that: “The change was heard and the company is waiting on the official decision from the Committee.”

In a recent interview with LM, YRC Freight President Jeff Rogers said that by focusing on what YRC Freight does really well, which is long haul in the 500 mile to 3,500 mile market, and focusing on two- and three-day transit times and taking handles out and doing more direct loading, will speed up its service and subsequently reduce freight claims and freight handling.

“It is in a way about de-emphasizing or not doing next-day as much, which is not a core focus, and we want to focus on what we do better and put our resources there,” said Rogers.

What’s more, he explained that YRC has short-haul covered well with its New Penn, Holland, and Reddaway regional LTL units, whom he said are the best next-day carriers in their footprints and the best use of company assets.

And YRCW CEO James Welch recently told LM that he was confident that the changes would be approved. He explained that the changes will put more service focus on shipments with a 500-to-3,500 mile length of haul.

When Yellow and Roadway were initially integrated in 2009, Welch said the network was not designed as effectively or as efficiently as it needed to be.

“We are reducing our handling and speeding up transit times and speeding up the two-to-five day service lane business,” said Welch.