YRC Freight to propose second "change of operations" in four years

For the second time in more than four years, YRC Freight, the long-haul unit of less-than-truckload carrier YRC Worldwide Inc., has notified the Teamsters union representing between 20,000 and 25,000 employees that it plans to implement what is known in trucking labor-management parlance as a "change of operations."

In a June 7 memo to all YRC Freight locals, Ernie Soehl, who heads the Teamsters' freight division, said the long-haul less-than-truckload (LTL) carrier is preparing a "multi-region network enhancement" and plans to implement the program in late October.

Soehl's memo contained no details other than to say that YRC management is still reviewing and finalizing the numbers behind its proposal. YRC declined to comment.

Under the National Master Freight Agreement, the compact that governs relations between YRC and the Teamsters, a company has the right to implement a "change of operations." Management must meet with the union to discuss the proposal, and labor has substantial input into how the changes are executed. However, the Teamsters have little power to block its implementation. The proposal will be mailed to local unions in early July, with a hearing scheduled for mid to late August, Soehl said in the memo.

Overland Park, Kan.-based YRC's last change of operations, unveiled in early 2013, resulted in a network restructuring that led to the closure of three breakbulk terminals and the consolidation of 29 smaller, "end-of-line" terminals used as freight pickup and final delivery points.