Teamsters bless YRC's exit from short-haul business
Change to take effect April 8.
The Teamsters union has agreed to allow YRC Worldwide Inc. to proceed with a realignment of its less-than-truckload operations that will allow the carrier to effectively exit the shorter-haul delivery business.
In a memo dated March 16, Gordon Sweeton, a Teamsters international vice president overseeing the union's response to YRC's proposed change of operations, said the Overland Park, Kan.-based carrier could implement the change as soon as April 8. A YRC spokeswoman said the company would implement the change on that date.
YRC proposed in January to remove its long-haul carrier, YRC Freight, from the market for freight moving 500 miles or less. The objective for the carrier was to streamline its operations, reduce its payout for damage claims by minimizing "touches" of the freight, and to return it to its core competency of hauling freight over longer distances.
As part of the proposal, the short-haul freight would be turned over to the company's three regional units: Holland, Reddaway, and New Penn. However, in a strange twist, the mid-March memo from Sweeton states that the company has repeatedly pledged it will not turn over any of the freight to "subsidiary or sister companies."
Ken Paff, national organizer for dissident group Teamsters for a Democratic Union (TDU) and a frequent critic of Teamster policies, said the provision was included for "popular consumption" and that it is "180 degrees opposite of reality." Paff said YRC executives have said repeatedly that the idea is to divert the freight from the national operations to the three regional carriers. One of the regional carriers, Reddaway, is mostly non-union.
YRC, a unionized carrier subject to the National Master Freight Agreement that governs labor relations in the trucking industry, was required to get Teamsters approval before implementing the change.
About the Author
Mark Solomon has spent 25 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. Mr. Solomon graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
More articles by Mark B. Solomon
Resources Mentioned In This Article
- Ship backlogs at San Pedro ports should not hurt flow of holiday goods, NRF supply chain chief says
- Diesel prices hit lowest levels since February 2011, government data show
- Celadon buys A&S Services to expand scope in Northeast, mid-Atlantic
- Goldman cuts 2015 projections for U.S., world oil prices; domestic prices could hit $70 a barrel in spring
- Special deliveries: Drones already having an impact overseas
Join the Discussion
After you comment, click Post. If you're not already logged in, you will be asked to log in or register.
Feedback: What did you think of this article? We'd like to hear from you. DC VELOCITY is committed to accuracy and clarity in the delivery of important and useful logistics and supply chain news and information. If you find anything in DC VELOCITY you feel is inaccurate or warrants further explanation, please ?Subject=Feedback - : Teamsters bless YRC's exit from short-haul business">contact Editorial Director Peter Bradley. All comments are eligible for publication in the letters section of DC VELOCITY magazine. Please include you name and the name of the company or organization your work for.