YRC layoffs

Discussion in 'YRC' started by smokyjuan, Apr 11, 2009.

  1. smokyjuan

    smokyjuan Light Load Member

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    http://www.reuters.com/article/idCNN2317227020091224?rpc=44
     
    Last edited by a moderator: Dec 24, 2009
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  2. 1billybigrigger

    1billybigrigger Bobtail Member

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    So how that Hope and Change working out for you. The unions gave millions to elect Obama. So how is it working out for you. And don't say you didn't vote for him. You paid your union dues so he could be elected. And none of you stood up to the union. You deserve what you get.
     
  3. dancnoone

    dancnoone "Village Idiot"

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    Please let the political stuff stay out of the thread. I'm not Union, but I have been following this closely. As it WILL have an effect on both our jobs.

    Sure freight will pick up for others if they close. But, it will also make it very hard for anyone to move within this industry when that many drivers turn out for new jobs....and there are none.

    When that number of drivers hit the ground seeking jobs. The entry level will sky rocket at most companies. People will be wishing for the days that companies only required 3 years experience with ZERO previous violations.

    And the pay will absolutely suck for all of us.
     
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  4. smokyjuan

    smokyjuan Light Load Member

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    All of the captains of the U.S. economy at the time, including Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke and President George W. Bush, as well as the vast majority of Wall Street analysts were saying that perhaps a slowdown of the U.S. economy could be expected, but there wouldn't be a deep recession. Stock market investors apparently agreed with them, since the indexes were close to their all-time highs.
    [​IMG]

    But in an interview with the CNBC financial television network Zollars said he didn't care what all the Wall Street analysts and the Washington economists were saying. He argued that the experts were staring at computer screens too much to see what was happening right in front of their faces. After decades in the transportation industry, Zollars said, he knew a recession when he saw one. He told the interviewer, Maria Bartiromo, who stared at him in apparent disbelief,.............

    http://www.haaretz.com/hasen/spages/1138427.html
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    The article says he knew about the recession in 2007 yet he went ahead and bought a chinese trucking company in august of 2008 for 45 million dollars.

    Worldwide acquires Chinese trucking company - Boston.com

    This was August 2008:

    "OVERLAND PARK, Kan.—Trucking company YRC Worldwide Inc. said Tuesday it has completed its acquisition of one of the largest less-than-truckload carriers in China.

    YRC, the largest less-than-truckload carrier in the U.S., said it paid $44.7 million for 65 percent of the stock of Shanghai Jiayu Logistics Co. It plans to buy the remaining 35 percent in 2010 for up to $39 million, depending on the company's performance over the next two years.

    Jiayu has more than 30,000 customers, 1,800 employees and more than 3,000 vehicles. Less-than-truckload haulers combine several parcels in a single shipment."

    NTP
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    A very well written piece and a very believable conclusion. Heck, most of us knew that we were arse deep in a recession long before the 'smart people' told us we were. You make the same number of pick up's and get half as much freight..... heck we all saw that coming.
    nobody
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    Actually if you Google articles on Zollars,you will see one that he acknowledged the economy was slowing down in 2006.The point is he did nothing to streamline our operations at all then,and then in late 2008,decides to integrate the two companies because of falling volumes.He clearly stated at that time it would take the rest of 08, and all of 09 to complete it,then in January of this year they dropped the bomb that we would do it literallly in 30 days.All because of his poor decisions.
    big r guy
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    If Zollares was so aware of the economic down turn so long ago maybe he should have had better plans than the ones he implimented because his plans didn't work. Or did they, maybe this was just what he needed to break the Nat. Mast. Freight model of the Teamsters??
    JV4344
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    I cannot believe how many post and even threads I have seen lately about the big bad former Roadway management and the way they treat the poor misunderstood yellow people. Good lord how many post are there now complaining about getting a letter from a former Roadway manager and how that's not the way dear old yellow used to do it ! "I mean at yellow they used to treat us like family" when I seen that I wanted to PUKE !!!! It's a JOB you slow witted people !! Ninety percent of all the letters I got at Roadway I DESERVED no if's ands or butt's about it ! Hell two weeks before I left I got a letter for being absence do you know what I WAS ABSENTED for four day's the week before do you think I cried about the letter NO I MAN UP and said OK where do I sign !
    R-14 Driver
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    10-4 most of my suspensions ( for stuff I did ) I had change to a warning letter ! I used to have a problem showing up to work, was it Roadways fault ? No more like Jack Daniels fault ( my good friend ) ! When I pulled the wrong trailer 500 miles was it Roadways fault ? It was all mine because I didn’t look at the dispatch and double check my trailer number !!
    R-14 Driver
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    "This is BS!!! I want this letter out of my file" is what I hear all the time. I got a certified letter sent to my house that was a warning letter boo hoo....., tell me why the freak did you sign for it then. Since when did the company ever send you something in the mail thanking you (Oh my bad, they sent you a thank you letter (warning letter) for "##### up")

    Even my kids know if the postman rings the bell with a certified letter from YRC they will refuse to sign for it and tell the postman to RTS (return to sender) address unknown. They probably know some of the contract lingo better then some of my fellow Teamster brothers.....
    screwy louiey
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    I've recieved more letters since the merger and since I went over to the yellow barn in the last year than I did in my previous 3 yrs at Roadway. Who cares? It's just a letter. It takes 3 for the same occurance before you get suspended anyway, so why cry about it.
    regular 342
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    You should be on the receiving end of a certified letter for lousy grammar, punctuation, and wasting our time trying to decipher the meaning to your posts.
    hollandboomer
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    Since I'm laid off & had to get a crappy non-union job, holding my breath hoping Yellow makes it, how are the freight levels lately? Have they dropped off since Christmas is over? I personally think people are going to clamp down on spending now that the warm fuzzies of the holidays are over. And I feel the recession is going to get worse before it gets better. There is actually a new freight company starting up here, but I'm leery about applying for a job there....is there enough freight around to start a new company assuming YRC makes it?
    CDLGuy
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    Not until manufacturing comes back, IMHO. Find a job in the food hauling niche if you can. I myself am hauling food grade tanker now (no milk jokes please! because I'm a big chicken to get back into freight right now.
    annieo
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    Same here, afraid of the freight business. Afraid I'll be out of another job again. I tried the food business, but it didn't pay enough. Are you hauling OTR? And does it pay enough? I won't go OTR; tried it & it wasn't for me. I'm also hauling tankers, but not food. Locally, not OTR. It doesn't pay like Yellow, but I make enough to keep the house & cars, the utilities & food on the table. Maybe a few bucks left over. Horrible insurance. But I'm beginning to be glad I just found a job...period. And praying Yellow makes it.
    CDLGuy
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    On Tuesday December 29, 2009, 12:19 pm EST
    NEW YORK (AP) -- Shares of YRC Worldwide Inc. rose Tuesday after it extended the deadline for its debt exchange again, but an analyst said the move might merely be delaying an inevitable bankruptcy filing.
    YRC shares rose 6 cents, or 6 percent, to $1.01 in midday trading.
    The cash-strapped company, one of the country's largest truckers, gave itself until Tuesday at midnight to persuade bondholders to exchange their notes for equity. YRC has already extended the deadline several times in hopes of getting more bondholders to jump on board. It also lowered the threshold of debt holders it needs to approve the swap.
    As of midnight Monday, 53 percent of the 8.5 percent notes and 92 percent of the 5 percent and 3.375 percent notes had been tendered. It needs 70 percent of the 8.5 notes and 85 percent of the 5 percent and 3.375 percent notes to be tendered for approval.

    http://finance.yahoo.com/news/YRC-Worldwide-extends-swap-apf-1833538525.html?x=0&.v=1

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  5. smokyjuan

    smokyjuan Light Load Member

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    By Samantha Bomkamp, AP Transportation Writer , On Wednesday December 30, 2009, 4:07 pm
    OVERLAND PARK, Kan. (AP) -- An analyst said Wednesday that YRC Worldwide Inc., one of the nation's largest trucking companies, could file for bankruptcy and close its doors as early as this weekend despite its effort to complete a critical debt-to-exchange offer.
    YRC, based in Overland Park, Kan., extended its offer to bondholders for the sixth time. It now expires midnight Wednesday. The offer is considered a last resort for the company because it will free up much-needed cash. But it would also make current shareholders' stakes virtually worthless.
    The company said it made progress in its push to get debt holders to swap their bonds for equity, though it still doesn't have enough. And time is running out.
    YRC needs to make a $19 million interest and fee payment on Thursday. It said earlier this month that if it didn't have access to some extra cash by Dec. 31, its "liquidity position would become unsustainable."
    If YRC does not complete the bond exchange, the company's last chance to avoid bankruptcy is a waiver from its lenders, according to Stifel Nicolaus analyst David Ross. If that doesn't happen, the company could file bankruptcy and close its doors as early as this weekend, Ross said.
    Company spokeswoman Suzanne Dawson rejected that assumption.
    "The company will be open for business as usual on Monday," Dawson said.
    Iain Gold, Director of the Teamsters Strategic Research Department, said he believes the company will survive as well, noting the effort to convince bondholders that saving the company is in their best interest.
    "We figured out how to get this far, so I think there's enough willpower and interest to get this over the goal line," Gold said. "We think it's in everybody's best interest to get this done outside of bankruptcy ... we believe the lenders will continue to work for it."
    But Ross said even if a bankruptcy filing doesn't occur this week, it might not be far away.
    "Whether or not the exchange goes through and the interest payment is made, we believe the company may still burn through all of its cash and borrowing capacity in the next two months, as customers are getting increasingly nervous about having their freight stranded in YRC's network," Ross said.
    The last time a trucking company about the size of YRC went out of business was in 2002, after Consolidated Freightways filed for Chapter 11 protection. Less-than-truckload carriers like Consolidated and YRC, which consolidate shipments from many sources at company terminals, historically have not been able to keep their doors open after filing for bankruptcy because of their high fixed costs and customer defections.
    YRC's shares fell 4 cents, or 3.9 percent, to close at 99 cents.

    http://finance.yahoo.com/news/Analyst-says-YRC-could-close-apf-1481266520.html?x=0&.v=4
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  6. Mooney

    Mooney Road Train Member

    Hmm, about time to cover my $5.52 short position.
     
  7. freightliner1557

    freightliner1557 Bobtail Member

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    can anyone give me any information on this? I was told today that the bank creditor for yellow roadway has moved to seize the company in its entirety...Is that any where near true ?
     
  8. smokyjuan

    smokyjuan Light Load Member

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    By Matt Andrejczak, MarketWatch
    SAN FRANCISCO (MarketWatch) -- Trucking firm YRC Worldwide on Thursday staved off a possible bankruptcy filing after reaching a debt-for-equity exchange with its bondholders.

    The deal will enable YRC, which has been scrambling to shore up its liquidity this year, to defer $19 million in lender interest and fee payments in the fourth quarter as well as $20 million to $25 million per quarter during 2010. The company launched the offer Nov. 2. said it collected exchange offers valued at $470 million, representing 88% of its outstanding notes. In return, tendering noteholders will get 37 million shares of YRC common stock and 4.346 million of Class A convertible preferred stock, which together on a converted basis, will represent 94% of YRC total issued and outstanding common shares.

    YRC's shares dropped 15.2% to close at 84 cents. Shares of rival Con-Way also fell, down 9.8% to $34.91. Overland Park, Kan.-based YRC expects the deal to be settled by Jan. 5. The deal gives YRC "a new lease on life," said debt-rating firm Egan-Jones, which is paid for its services by investors rather than corporations. "However, challenges remain."
    The exchange offer yield savings pegged at $35 million a year, but that might not be enough, Egan-Jones said in a research note.

    "The success of this note exchange marks a major turning point for YRC Worldwide -- with our significantly restructured balance sheet and enhanced liquidity, we will move forward from a more solid financial foundation," CEO Bill Zollars said in a statement.

    The International Brotherhood of Teamsters had been putting pressure on YRC bondholders to agree to the deal to save 30,000 jobs. On Wednesday, the union canceled a protest planned for today outside the headquarters of hedge fund Brigade Capital Management.
    The protest was called off after Brigade said it didn't own any YRC bonds.

    This month YRC was booted from the Dow Jones Transportation Average Index due to the threat of bankruptcy. It was replaced by Delta Air Lines.
    Through Sept. 30, YRC posted a net loss of $741.5 million. Sales fell 41% to $4.1 billion from the same nine-month period in 2008. Total debt was $1.6 billion.
    Its shares are down 71% for the year.
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    They are still in business. The equity swap buys them more time, however if the economy does not improve substantially they will still eventually be required to file bankruptcy.
     
  9. runningman0661

    runningman0661 Road Train Member

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    Well they got a reprive, but a company that has lost over 2 BILLION dollars in the last two years better change there buisness model, or they will be right back in this position in the not to distant future
     
  10. smokyjuan

    smokyjuan Light Load Member

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    Here is an excerpt from the recent Zollar's interview:

    "Barron’s: How would you rate yourself as a leader in all this?

    Zollars: I would put this management team up against anybody. We turned in four years of record earnings and revenue before we got hit by the worst recession we’ve ever seen. For myself, I try not to do much Monday-morning quarterbacking. As for where we’ve made mistakes, I’d rather not comment on that."

    How many misstatements of fact can one man make in a single paragraph? I'll let you be the judge. Below are the numbers for YRC/YRCW for the past seven years. (By the way 2003 was not a record year for earnings. Did the recession hit in 2007?, etc.)
    Year/Net Earnings
    2003/$40.1 million
    2004/$184.3 million
    2005/$288.1 million
    2006/$276.6 million
    2007/($638.4) million
    2008/($974.4) million
    2009 YTD/($796.9) million

    Under Zollar's leadership from 2003-2009 YTD the company made $789.1 Million and lost $2,409.7 Billion. The company is sure to lose another $300 million combined in Q4 2009 and Q1 2010. But, hey, Bill is a visionary always looking into the future with no time to Monday morning quarterback. As for mistakes, well "No comment." I mean who wants to talk about the decisions that led to billions in losses and cost thousands of "little" people their jobs.

    Bill is willing to put his management team up against the other competitors in the marketplace. Guess what? They stink. They're dead last.(Somebody find me another transportation company that lost $1.8 billion over the past seven years, or ever for that matter.) The man has virtually bankrupted some of the best brands in the transportation business.
    http://messages.finance.yahoo.com/S...m=tm&bn=27297&tid=76103&mid=76103&tof=3&frt=1

    dueduhman
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