Teamsters bless YRC’s exit from short-haul business
The Teamsters union has agreed to allow YRC Worldwide
Inc. to proceed with a realignment of its less-than-truck-load (LTL) 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.
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