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Teamsters Union Approves Wage Cuts for Truckers
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Harley Shaiken, an economist at the University of California at Berkeley who specializes in labor issues, said there would be "fierce pressures for unions to give back in the coming year . . . Right now, unions are willing to do painful things to make sure the companies are successful."
The fortunes for YRC Worldwide, which includes Yellow, Roadway and USF Holland, began to unravel about 18 months ago, when the stock price began a slide from $37 to about $4. Its descent accelerated in September during some of the country's worst economic turmoil.
The amount of regional freight it carries per day has plummeted 20 percent over the past year. Moody's, the rating service, downgraded its credit.
Some analysts attributed the troubles to management's decisions to buy other companies.
"They were stupid acquisitions," said David G. Ross, an analyst at Stifel Nicolaus who follows the company.
And even though the truckers have given up some of their pay, the company's fate -- and the truckers' jobs -- are far from secure.
"Even with the union concessions, it could still go into bankruptcy and close the doors," Ross said.
Of about 30,000 ballots cast, 77 percent of the union members voted for the pay cut, the union said last night. The agreement does not affect health and pension benefits.
"We are facing the worst economy in our lifetime, so we needed to act now to protect our members and their families," James P. Hoffa, Teamsters general president, said in a statement.
Chuck Deaver, 50, a Seattle area trucker who works for YRC Worldwide, said he was outraged at the idea of giving back wages. But in the end, realizing that he is just a few years from a pension, he voted for it.
"Ten percent seems like a small price to pay to keep your job," he said.
Deaver and his wife are halfway done remodeling their home but stopped because of the downturn. And even now that the union has given the company the concessions, he wonders, as many do, what lies ahead.
"Maybe we'll keep our job -- maybe we won't," he said. "There's no guarantees in any of this."
