yrc regional companies, in trouble or not?

They have been fighting for the last few years to not have their credit rating lowered. Once that happens they won't be able to borrow money and the banks will then start calling in the notes they gave them. Just look back over this past year for what they have sold off. Your right about them selling off other divisions, except they have been doing that for the last few years. Just wait until the master freight contract runs out next year and they have to pony up more money to these union members. If they haven't gone out by then that next contract should be the final straw.

 

Workind as a subsidiary to NEMF I am very familiar with the ltl race to the bottom on freight rates. There was a concerted effort to force YRC out of business through the competition lowering rates to the point EVERY ltl carrier was losing money.

While NEMF is NOT a Teamster organized company it is union organized and has tried to get some of the pay concessions the workers gave back during the recession. The answer was; "hell no" from the owner. The dispute went to arbitration and the arbitrator ruled in Shevells favor. The workers will get NO give backs nor raises for the next several years. This sucks for all of us but at least we still have a job.

Couple the preceeding statement with many ltl carriers raising the non contract freight rates 7% and I believe YRC will stay in business for the foreseeable future.

The teamsters know they will have to keep YRC running or they will lose a huge membership base. They will hold the line just to keep their jobs. CF is still fresh in the minds of the teamsters, and I believe, they will do everything to see that doesn't happen again.

 

I agree and understand everything you say. But, the bottom line is, if YRC head honchos that sit on the board of directors say enough is enough, they won't care one bit about their employees or the union. They will pull the plug, maybe not on all of it but on enough to stop the bleeding. At the end of the day it's about the almighty dollar, not the person.

 

The way corporate finances work if you are making 3-400 million a quarter for 5 or 6 years and now only making 1-200 million a quarter now that means you are loosing 200 million a quarter. They are still making money or they wouldn't still be in business. Think about it if they was doing 300 million in the red what would the pay for fuel with. I doubt the stock holders would come out their pockets every month and say heres 100K to help with the fuel for the month. Anyone that has worked in the corp world knows how this work crook book I dont think I meant to put that r in cook

 

While I am not Pro-union. I currently have an application in with YRC worldwide in MN.

I would not like to see a prospective employer lose money.
But I am honest enough to understand that without that "almighty Dollar" coming in every month on a steady basis.
It matters not what the workers do, they won't have enough money to pay them, and for fuel, and their taxes, or any other business expense. Without the "almighty dollar" the union workers don't have a job.

So there must be some balance here between the front office and the union office.

 

I'm just throwing out my thoughts. As far as money is concerned YRC the corporation sold off about 400 million dollars worth of divisions last year just to have an influx of money and to avoid having their credit rating lowered. If that happens then whatever money supply they have, be it banks or investors will stop lending then they will be up the creek so to speak. There stock right now borders on junk bond status. What it seems to me is they are trying to keep the trucking porion of YRC afloat with the hopes this economy will turn itself around. Look, if the US itself has money problems what do you think a corporation on the brink is having? It's amazing that they bought out a profitable competitor and is running them into the ground. (Big R). Time will tell, I hope I'm wrong.

Their problems are far greater than the "Company, Union" issue. It all has to do with the board of directors and how they ran this corporation into the ground.

 

I think it means that many thousands of drivers and support personnel will be looking for work.
I think it means that while the unions may have tried to strike a balance between the demands of the workers and the front office, it didn't take and the front office caused the downfall. However, I won't back the greed of the union either, because without the Front office, the unions have no one to make demands of.

 

S&P upgrades trucker YRC Worldwide
http://www.kansascity.com/2011/08/10/3068476/sp-upgrades-trucker-yrc-worldwide.html

 

And the saga continues. When will you guys realize YRC is like GM and Ford, Too big to fail.