YRCW ask Teamsters for "relief"...

Discussion in 'YRC' started by latanea, Nov 25, 2008.

  1. Carl

    Carl Bobtail Member

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    Dec 1, 2008
    Pennsylvania
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    Well, the market seems to still have some confidence in YRCW, although stock prices are still eratic, as seen on google finance (code YRCW). Of course, the market instabilitiy is across the board, not just YRCW, and stock prices are just one of several indicators about a company's health.

    Also, i was encouraged to see company and Teamster information at the terminals saying that the top company officers and others are taking cuts too, though they may look different, and all of that will be monitored for compliance.
    I think they are on the right track. I just wish they would get their stuff together to make money. You have to reduce expenses and increase or stabilize income. For instance, we need to figure out how to get Exact Express shipments delivered on time; otherwise, we are shipping for free. Although they never did quite get that straight yet, the distraction of the economy and the company's future certainly is making things worse. Someone should be asking questions about every free delivery, not to bang heads in every instance but to improve processes. If you always bang heads, then everyone is just looking for someone else to blame when the stuff hits the fan rather than looking to actually fix anything. If we could have that kind of continuous improvement attitude, all of this would just be a bump in the road. All in my humble opinion of course.
     
    latanea Thanks this.
  2. latanea

    latanea Road Train Member

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    Sep 21, 2007
    cincinnati (sharonville)
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    okedoke -


    here is the deal


    whatever you make today (right now) take away 10%


    the 5 yearly raises agreed to in the last contract (good til 2013) will also be reduced by 10%

    i.e. instead of a 1$ an hour raise every year - it will be a 90 cent


    no change to health and welfare


    and the diamond in the rough is the 15% stock deal...


    in a nutshell

    starting jan 1st 2009 - take what you grossed - multiply by .15 and that dollar amount will be applied to the purchase of YRCW stock (held in trust by thrid party...
    (sock volume to be determined by whatever it was last trading at on the morning of jan 1.

    then

    repeat for the next years (duration of contract)...


    at the end of the contract - YRC will issue YOU a check (minus cap gains) for the difference.

    (clause states that if everything turns around fast - "yeah right" - that the cash out may come as early as 2010)

    i.e.

    100K a year = 15K in stock a year

    lets say the qoute is 5$ a share and it never goes up or down...

    15K X 5 years = $75,000
    (no gain tax ) - dispersment of 75K in 2013...

    if the volume were to increase by 50% i.e. qoute to 7.50 a share

    you would make out with close to 90K - after taxes

    (hypothetical and not acurate - just an example)

    You will only pay taxes on your GAIN - not on your buy in volume.


    It will more than make up for the 10% loss in the short term.
     
  3. The_Wife

    The_Wife Bobtail Member

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    Dec 10, 2008
    Tacoma, WA
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    latanea,

    I just read in the Freight UPDATE that there would be no cost of Living Adjustments for the duration of the contract. They will be suspended under this new agreement.

    Do you have new information?
    :smt017
     
  4. Mooney

    Mooney Road Train Member

    Would I own some YRCW stock? No. First, this warrant would be held by a trust, not by individual employees. Second, it is not stock ownership, but an option to buy, if the stock goes up.
    How much is it worth? The warrants cover stock worth about $48 million. However, it is worth zero unless the stock goes up, because the warrant value equals the future stock price minus the locked in stock price. Thus, if YRCW stock doubles in value, the warrants would be worth about $48 million.
    How much would YRCW stock have to go up to make it equal to our concessions? Over the next 4.25 years, Teamsters, under the proposal, would concede over $1 billion dollars. If YRCW stock goes up by 2100 percent, then the warrants would get to the range of the concession value. Obviously, no one in their wildest dreams would expect that kind of skyrocketing stock price.
    If a trust holds the warrants, what do I get? The trust is free to exercise the options anytime after Jan. 1, 2010 up until 2018. Thus if the International Union decides to exercise the warrants at some point, and the stock has gone up, the money will be paid out to YRCW employees on a basis of how much the employee made in wages. So, if the stock goes up, YRC Teamsters will get a check at some point in the future. How much you will get depends on how much it goes up. If YRCW stock doubles in value, each Teamster will get an average of about $1,200. Each employee would concede, on average, about $26,000 over the next 4.25 years.

    http://www.tdu.org/node/2598
     
  5. The_Wife

    The_Wife Bobtail Member

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    Dec 10, 2008
    Tacoma, WA
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    I read the link with a different perspective.

    It's true that individuals won't own hold the stock. The Teamsters, as a group, will hold it much like individuals don't make a union, but individuals comes together to form a union.

    Doubles in value from the bottom of the barrel or doubles in value from what it was a year ago? I didn't see the figure that this article is using to double up. Do you know what it is?


    Again, I need to see the number the article is using as a base.


    Right now my reaction is that the Teamsters need to come together to do what they can to avoid layoffs for their fellow Teamsters. I'm not thrilled with a 10% pay cut or with COLA's being suspended, but I think we can get through it.

    The value of the stock is a crap shoot and I think they intended it to be that way. YRCW is desperate for cash to pay off their debt. The union is desperate to avoid layoffs during this economic mess. By offering this stock option the union is banking on its members to step up and help YRCW survive......and get a payback of some kind in the end.

    I don't expect that anyone thinks the stock option is going to make up for the loss of wages, but it's better than nothing and it gives the company and the Teamsters a common goal......to get the company to thrive.


    http://www.tdu.org/node/2598
     
  6. HOLDYOURGROUND

    HOLDYOURGROUND Light Load Member

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    Mar 14, 2008
    Hwy, USA
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    To stay in the game it is a must to trim fat. As a Glen Moore driver I would hope that YRC who owns Glen Moore dont cut our wages, miles are down and cant afford a 10% cut. Glen Moore and New Penn our showing profits. The only up side we get out of YRC is health benifits. And to be honest that dont matter my wife has a better plan. Glen Moore is a good company to work for but at this time just like most other drivers I have spoke to we would like to see yellow sell us.
     
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