Tuesday, March 15, 2011

Teamsters Ready To Pull Trigger On YRCW Pension Default

Poor YRC Worldwide.  They just can't catch a break lately.  First their CFO quits, and now their unions demand interest payments that will immediately trigger the bankruptcy of the company if enacted.  The company's other creditors won't put up with these games forever.  No one has unlimited patience when dealing with unions, but now that Teamsters are getting YRCW board representation they will have the opportunity to test the limits of such patience. 

YRCW's survival is now clearly in the hands of its Teamsters.  If they are selfish enough to demand a higher interest rate on their deferred pension contributions, the company will fail and they will get little or nothing.

Teamsters, think hard about what you're about to do to yourselves.  Think very, very carefully about the imminent consequences of your greed and inability to think long-term.  The survival of your employer depends entirely on whether you're not collectively stupid enough to demand something you have no hope of receiving. 

Full disclosure:  No position in YRCW at all.  Ever.