Tuesday, September 28, 2010

Teamsters Knuckling Under At YRCW?

YRC Worldwide may be on the cusp of doing something right for a change.  Their Teamsters have tentatively agreed to . . . well, something.  The substance of the agreement will be telling once revealed.  If it's an indefinite delay in the resumption of pension plan contributions, then YRCW may keep enough cash to make it into 2011.  If it's more union greed manifested in demands for contributions, then YRCW stays a troubled penny stock.  The union vote will come just in the nick of time to impress the NASDAQ's delisting committee, so maybe the rank-and-file drivers will show some common sense by preserving their employer. Unions are prone to doing dumb things, like these Philly longshoremen shutting down NY/NJ ports even in the face of an arbitrator's decision. Let's see if truckers are smarter than dockworkers. 

It's no wonder William Zollars wants to retire as soon as possible from the CEO job.  Putting up with the Teamsters' endless huffing and puffing would eventually grate on any businessperson's nerves.  He did have the nerve to raise YRCW's rates, but that move speaks more to the improving health of the entire LTL sector since ABF Freight System is following suit with its own rate increases.  Short haulers are hoping for a bright Christmas. 

Full disclosure:  No position in YRCW or ABFS.