We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » YRC's Holland regional unit posts weak operating performance in 2014
newsworthy

YRC's Holland regional unit posts weak operating performance in 2014

January 14, 2015
Mark B. Solomon
No Comments

For years, the regional less-than-truckload (LTL) operations of YRC Worldwide Inc. has been a steady and solid performer, and, by many estimates, its Holland regional unit has been the best of the three companies that comprise YRC's regional business.

But there may be some tarnish forming on the Holland crown.

The Holland, Mich.-based company, which serves the U.S. Midwest, Southeast, and Ontario, Canada, posted surprisingly weak operating metrics for 2014, according to an internal newsletter published at the end of November. Workers compensation costs rose 21 percent year-over-year. Bodily injury and property damage costs increased by 52 percent. Cargo claims rose 42 percent. Bodily injury and property damage claims due to vehicle collisions rose 273 percent.

The higher number of workmen's compensation claims forced Holland to set aside $51 million in reserves last year, a 65-percent increase from 2013 levels, according to the newsletter. Holland's 2014 accident rate based on injuries sustained was roughly twice the industry average, according to the newsletter.

Holland President Scott Ware wrote that the data shows the company's workers are "taking far more risk and not assessing the right outcome when it comes to working safely" when compared to peers at other trucking firms. In a reflection of that, most Holland workers who get injured are hurt more than once, Ware said.

In a broad-based effort to reverse the trend, Holland has launched a mentoring program for new hires, increased the level of training for management and support staff, and upgraded its regularly scheduled maintenance programs, Ware said. He did not divulge details in the letter. A YRC spokeswoman did not reply to a request for comment.

Stephen Walski, who has been a Holland driver for nearly 20 years, said the 2014 data is the worst he's seen since he joined the company. The situation has not improved in the six weeks since the newsletter was published, Walski said in an e-mail a few days ago, with weather-related issues adding to the problems that already existed.

Walski was one of the few rank-and-file workers that spoke out publicly against a five-year contract extension agreed to last January by YRC workers. He pinned the subpar Holland numbers on poor employee morale that resulted from the outcome of a protracted battle that nearly put the company in bankruptcy protection. Walski said that, in the wake of the contract battle, worker sentiment at Holland has soured to the point that "employees don't go above and beyond anymore." He added that the number of inexperienced new hires contributed to the subpar performance during 2014.

The January extension kept in place a 15-percent wage cut that unionized workers agreed to in 2010. It also does not require the company to raise its pension contribution levels, which had been reduced by 75 percent several years ago as a cost-saving measure. In each of the first two years of the new contract, lump-sum payments will be made to workers in lieu of hourly wage increases. Wage increases will take effect during the third year and be in force for the remainder of the contract.

YRC management said a contract extension was a requirement for lenders to agree to a restructuring of $1.14 billion in debt and a reduction in the company's onerous interest rates.

The other two YRC regional units are New Penn, which serves the Northeast, Quebec, and Puerto Rico, and Reddaway, which serves mountain states, the West Coast, and British Columbia.

Transportation Trucking Less-than-Truckload
KEYWORDS Holland New Penn Motor Express Inc. Reddaway YRC Worldwide
  • Related Articles

    YRC posts brightening revenue, tonnage picture in Q4 of 2011, but operating losses persist

    YRC posts lower revenue in second quarter, weighed down by costs of unit's realignment

    Old Dominion clocks another strong quarter; YRC posts quarterly income versus 2014 loss

Marksolomon
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 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. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

Recent Articles by Mark Solomon

Coming together for road safety: interview with Joshua Girard

Off the rails

Freight rate spikes shaking up the C-suite

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • For container lines and ports, what a difference a year makes

  • Outlook 2021: What’s in store for logistics supply chain?

  • A guide to Brexit for ecommerce businesses

  • Capacity challenges will continue in 2021

Now Playing on DCV-TV

Jlt procure rugged devices thumb

What it takes to procure the right rugged devices for your warehouse

DCV-TV 4: Viewer Contributed
Procuring new rugged devices for your warehouse is often a big decision and a significant investment. It needs careful planning and consideration. It involves more than ticking boxes on a spec sheet. It includes testing and getting employee buy in. And it's about finding a partner that can work with you to deploy...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing