Monday, August 09, 2004

Deadline extended for proposed trucker pay cuts

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Overland Park, Kan.-based YRC Worldwide, Inc. said Monday a deadline for a vote on an immediate 10% pay cut and other contract modifications for union workers has been extended by one week, to Jan. 6, 2009.
Ballots were to be counted by Dec. 30, but the company said it made the move due to holiday mail volume, winter weather, and the high number of ballot requests. YRC currently employs about 40,000 union workers.

The International Brotherhood of Teamsters and YRC agreed to a tentative plan for union members to take a pay cut to aid the company's stressed financial condition.

A trust has also been formed as part of the deal, which will give workers the opportunity to buy stock when the company recovers. Union workers will be offered warrants equal to about 15% of the company's outstanding stock, or about 10 million shares, through the trust. The trust can sell the stock after January 2010.