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Appeals Court Rules Some FedEx Ground Workers Are Employees

Thu, 08/28/2014 - 12:21
Transport TopicsAugust 28, 2014View the original piece

In the latest decision on worker status, a federal appeals court in California ruled that 2,300 workers at FedEx Corp.’s Ground unit were employees and not contractors to the package delivery company.

The 35-page decision by the 9th U.S. Circuit Court of Appeals, ruled that the Ground workers were misclassified as independent contractors, in violation of California law.

Click here to read more at Transport Topics.

Issues: Grocery
Categories: Labor News, Unions

Ex-Kroger CEO Admits He Was Paid A 'Ludicrous' Amount

Wed, 08/27/2014 - 07:02
Kevin ShortThe Huffington PostAugust 27, 2014View the original piece

CEO pay has skyrocketed over the last few decades, and corporate leaders are usually tight-lipped on the subject.

But we were offered a rare moment of candor last month from David Dillon, chairman and former CEO of the grocery chain Kroger, who called his own eight-figure paycheck "ludicrous" during an Aspen Ideas Festival panel.

Click here to read more at The Huffington Post.

Issues: Grocery
Categories: Labor News, Unions

IRB Charges All Local 710 Officers

Thu, 08/21/2014 - 10:01

August 21, 2014: The Independent Review Board (IRB) has moved to bring charges against all the officers of Chicago Local 710. According to the report of charges dated August 15, all members of the Executive Board violated their fiduciary duty when they repeatedly approved the purchase of excess visa gift cards under the control of Local Secretary Treasurer Pat Flynn.

Flynn was charged in July, and on July 30 the local was put into trusteeship following a recommendation by the IRB. Those actions are detailed here.

The new charges hit Local 710 president Mike Sweeney and fellow officers Gerald Pauli, Charles DeCola, Larry Alexander, Anthony Lamy, and Kevin Wagoner. They were already removed from office when the trusteeship was imposed. Now they face a hearing and possible expulsion or suspension from Teamster membership.

The report states that between 2008 and September 2013, the officers breached their fiduciary duty and failed to protect the members’ assets. For example, in November 2011 they approved the purchase of 1000 visa gift cards to be given to meeting attendees, but only 600 members were present, and the remaining 400 cards were under Flynn’s personal control.

Hoffa appointed International vice president John Coli as Trustee of Local 710. Coli has no experience in representing the UPS, freight, trucking, and grocery Teamsters who make up the 13,000 member local. He has political operative Brian Rainville running the local. Rainville was paid $178,080 in 2013 by the International and Chicago Joint Council 25. Some 7000 UPS Teamsters in Local 710 rejected a concessionary contract last February by 73% No vote, and have heard nothing since about negotiating an improved contract.

Issues: Local Union ReformHoffa Watch
Categories: Labor News, Unions

Chicago Movers Stage Groundbreaking Strike

Tue, 08/19/2014 - 09:22
Kari LydersenIn These TimesAugust 19, 2014View the original piece

Every morning, workers at Golan’s Moving & Storage in the Chicago suburb of Skokie are ordered to arrive at work by 6 a.m. to prepare trucks for the day. If they are late, they can be suspended for several days or otherwise disciplined. Yet they typically don’t even start getting paid until about 8 a.m.—when they board a truck bound for their assignment.

This situation is among the many injustices that spurred Golan’s workers to organize with the faith-based workers rights group Arise Chicago last year before unionizing with Teamsters Local 705. Since December 2013, the first contract negotiations have dragged on, with management canceling planned sessions 12 times in six months, according to the Teamsters.

So on July 28, about four-fifths of Golan’s workers walked out on strike. Negotiations are theoretically continuing, but Teamsters Local 705 business agent Richard De Vries says that the company officials walked out of their most recent session, on August 14, after just 41 minutes. 

The union has filed various Unfair Labor Practices charges with the National Labor Relations Board, and a federal mediator was brought in to oversee the negotiations. Still, De Vries tells In These Times that these measures have so far not prevented Golan’s from essentially refusing to bargain. He thinks that the company is trying to delay signing a contract until December, at which point under labor law they can call for an election to decertify the union—because a year will have passed with no contract signed.

“This is our remedy: going on strike,” says De Vries. He reports that more than 80 workers out of a total of about 100 are on strike, including members of the company’s two separate sections, which do local and long-distance moves.

On Saturday, August 16, more than 100 supporters, including Teamsters members from other companies, joined the workers on the picket line. Leaders of Christian, Jewish and Muslim faiths spoke to the crowd and asked the owners—Israelis who reportedly named the company for the region Israel captured from Syria during the Six-Day War—to recognize the concepts of workers’ rights and human dignity enshrined in all three world religions.

Onesimo Peña was one of the workers who contacted Arise last summer, frustrated with what he told In These Times was “so many abuses” suffered by his co-workers. He also notes that in more than a decade working for the company, his wages have only risen from $12 to $12.50 an hour, even though he has often been called on in emergencies or for important jobs.

“We’ve tried too many times to get the owners to listen to us but they wouldn’t,” says Peña. “So we went to Arise Chicago.”

In turn, Arise connected the workers with Teamsters Local 705. And marshaling support for unionizing was easy, Peña remembers.

“Everyone was tired of this situation,” he says.

Shortly after the workers voted to unionize, Peña says his wages increased to $14 an hour. The company also started paying overtime and made a few other concessions, including with regard to safety. De Vries says he can only speculate as to why, though Golan's may have been trying to dissuade workers from going on strike or trying to weaken the union in bargaining.

Golan’s workers don’t have insurance, paid sick days or vacation days or any other benefits. According to organizers, such as Arise Chicago’s Jorge Mujica, “There is wage theft all over the place,” including the aforementioned unpaid preparation work time, and logged hours that go missing from paychecks until workers complain.

Plus, workers’ wages are often further reduced by fines for a wide range of infractions. Jose Reyes, a Golan’s employee for 10 years, says he was once fined $700 because one of the other movers in the crew he oversaw had a small tear in his pants. Reyes tells In These Times that workers could also be charged for forgetting to leave the keys to their personal car with management before they head off to a job, or for failing to call the customer to say they are running late.

“There’s no warning, you get back from the job and they are waiting for you with a fine,” he says.

He and Peña also say managers have offered them incentives for reporting other workers for violations.

“They approached me and said, ‘If you turn people in, you will have your job forever, you can have a raise,’” says Reyes, who is on the union negotiating committee. “They were trying to buy me off.”

Worker Miguel Flores tells In These Times that under the terms worked by long-distance drivers who move customers to other states, he has earned only $40 for spending 10 hours unloading boxes at a home. (Mujica explains that this is likely technically legal under labor provisions for interstate commerce.)  

Movers in the long-distance unit are particularly upset that they are not compensated for waiting time of up to a day or more if customers are not ready when they arrive. These employees are paid based on factors such as miles driven and the volume of the move. So when a customer isn’t ready, they’re forced to spend time on the road unpaid, sleeping and waiting in their truck when they otherwise could be earning money.

De Vries says payment for such “detention time” is a major demand in negotiations. So far, though, management has offered only token concessions during the negotiation sessions that have occurred. “They have agreed to pay for showers at a truck stop,” which cost a few dollars, he says. And in response to union demands for paid days off, Golan’s offered a total of $10 a day for up to 10 vacation days, De Vries continues.

Golan’s also employs workers under the J-1 visa “work and study-based exchange” program, drawing students from around the world for 90-day stays in the United States. Silviu Radu joined the program while studying for his Masters in business administration at a university in his home country of Romania. After starting work at Golan’s in June and got to know many of his co-workers. He hadn’t been present for many of the complications surrounding organizing and negotiating, so the strike came as a bit of a surprise to him.

“I rode my bike to work and everyone was outside,” he tells In These Times. “I was like ‘Hey guys, what’s going on?’”

Once he learned about the walkout, though, he promptly joined it, as did several other J-1 workers, according to Radu and De Vries. The visa does not allow companies involved in walkouts to staff J-1 employees, so Radu is looking for another job while spending time on the picket lines.

“You get to bond with your colleagues,” Radu says. “These are good people, hard-working people who help each other.”

The J-1 visa—which has drawn controversy in the past over its reported abuse by employers including Hershey’s—cost Radu about $2,000, he says, including other fees connected to the program. Even so, he notes, laughing, that he “was making $10.50 an hour on the truck.”

For its part, Golan’s has largely responded to the actions with denial. Two large green signs outside the company, dated August 12 and addressed to workers from company secretary Yehuda Bitton, read: “The many reckless and dishonest statements about Golan’s and me are fabrications by the union and its representatives. Those of you who have worked for Golan’s for many years know these statements are not true.”

A Golan’s official inside the company during the rally declined to talk, and the spokesperson he referred In These Times to did not return a call for comment.

The company has also attempted to play on the fears on many of its workers regarding deportation. The signs, which are written in English and Spanish, go on to read that the union has threatened to call immigration authorities. De Vries says the U.S. State Department found out about the strike through the J-1 students, likely spurring the company to make that statement. The union has not contacted immigration authorities and would not do so, he argues.

Various workers tell In These Times they are confident the strike will force the company into meaningful negotiations for a contract with significant improvements. They say they’ve heard customers have canceled jobs because of the strike, and that little or no work has been happening at Golan’s. During the Saturday rally a moving truck entered the facility, but because it was manned by only one employee, De Vries said it was likely just a “show.” “You can’t move furniture with one person,” he says.

“We’ve seen trucks leaving and then find them parked 20 blocks away; they’re not working,” Mujica adds.

De Vries says that very few moving companies are organized, and most non-unionized workplaces do not offer their largely immigrant workforce insurance or benefits. Hence, the Golan’s workers’ unionization and strike could be seen as a precedent-setting development for the industry.

Both Reyes and Peña says they take pride in their work and want to continue at Golan’s, only under better conditions. Still, Reyes says he tells his three kids, only half joking, “When you see a Golan’s truck, run and hide, so you don’t end up like me.”

Issues: Labor Movement
Categories: Labor News, Unions

Here's The Real Reason Why The Trucking Industry Is Running Out Of Drivers

Tue, 08/19/2014 - 07:59
Mamta Badkar and Rob WileBusiness InsiderAugust 19, 2014View the original piece

Higher driving costs and falling pay have created a truck-driver shortage that's likely to worsen in the coming years.

The American Trucking Associations (ATA) estimates the U.S. is short 30,000 truck drivers — a number expected to surge to 239,000 by 2022.

In July 2013, new federal hours-of-service rules went into effect. 

The key provision was a limit to the use of a 34-hour "restart." Drivers have a 70-hour-a-week cap on how much time they can be on the road. Previously, they'd been able to artificially reset that cap to zero if they took 34 consecutive hours off. Now, many are unable to do so.

As a result, according to a survey from the American Transportation Research Institute, more than 80% of motor carriers have experienced a productivity loss, with nearly half saying they require more drivers to haul the same amount of freight.

"Smaller 'owner/operator' firms are increasingly dropping by the wayside as the cost of operations and maintenance are simply becoming too expensive to stay in business," Paul Pittman, a planner at a North Carolina-based logisitcs company, told Business Insider by email. 

So drivers are suddenly faced with the choice of leaving the profession entirely or moving to a larger company where wages are likely to be lower. 

"As controls continue to tighten, many of the existing drivers currently employed are turning to other areas of employment simply to get off the road and escape some of the regulations implemented to govern their operations," Pittman said.

To hang on, small operators are forced to cut corners. For Jeff, a driver who asked to be identified by only his first name, the pay isn't the biggest issue — it's the compromises some firms are making on driver compliance.

"With how my lifestyle is [the pay is] pretty decent. I don’t go out and blow money on speed boats, or the best electronics, or hookers and blow," Jeff said. "I’m married and I have four children. We prioritize our finances. Two years ago we finally bought an HDTV. My main issue is the safety aspect."

Violating Rules

His primary issue with trucking companies is the pressure they put on drivers to violate federal rules. Jeff worked for a small outfit in the Midwest. The owner of that company, he says, wanted him to take a dry van load from Hubbard, Ohio, to Syracuse, New York, which is about 327 miles.

Jeff explained that this trip takes longer for trucks than it does for cars, because trucks carry heavier loads, and it takes longer for them to speed up and slow down. It would take a truck about five hours and 15 minutes from Hubbard to Syracuse. 

The owner, whom Jeff didn't want named, asked him to drive back to Hubbard empty, do a drop-and-hook (drop one trailer, hook another) and take another trailer up to Binghamton, New York, the same day. And the trip from Hubbard to Binghamton is about five and a half hours, meaning a round trip would only leave him about 30 minutes of driving for the day and legally Jeff couldn't.

"When you're non-compliant as a driver you run the risk of fatigue and the risk of hurting other people," he said. "And as a driver it's my license on the line." Jeff said he was asked by multiple trucking companies to falsify his logs, but he refused to.

"I consider myself a safety-oriented driver, and I have found that is a bad thing," Jeff said. "Because since I got my CDL [commercial driver's license] in 2008, I have worked for about 10 different trucking companies. That doesn't look good because it looks like it is job hopping ... I'm sticking to my guns."

Time Away From Home

Another problem is lack of time spent at home. Todd Feucht of Wisconsin says drivers can expect to spend as little as 52 days at home a year. Feucht, who hauls oversize loads, averages about three to five weeks. Last year he was home 54 days, including his vacation days. "Back in the day you were treated like a knight, but now you're treated like a peon," Feucht says.

All of this helps explain why the turnover rate at large truckload carriers was 92% annualized in Q1, according to the ATA. Turnover refers to the rate at which drivers leave the industry and are replaced.

"One-hundred percent turnover doesn’t mean that every driver left," ATA chief economist Bob Costello says. "If you keep a driver for 90 days, the rate generally drops in half. However, there are a group of drivers that churn, and they generally stay at a carrier for a short length of time (just weeks or a couple of months). Many drivers stay with a carrier for years."

Getting Squeezed

Meanwhile, drivers with less experience or bargaining power get squeezed. Feucht has been driving trucks for 20 years and thinks trucking companies need to be more honest when recruiting.

The new drivers are "greener than grass," he said. Those who attempt to lease trucks quickly discover the significant cost of maintenance and overhead. Young drivers who go this route end up having very little to show for it. 

"I meet these guys at truck-stops and they can barely afford to eat ramen during the week," Feucht told Business Insider. "They're dropping $850 on a truck a week."

Truck drivers typically get paid hourly or by the mile. Some get a percentage of the load. If you're getting less than 33 cents a mile "you're getting ripped off," Jeff, a 36-year old truck driver from Ohio, told Business Insider.

The truck drivers suggest if these companies want to see this turnover decrease they need to focus on improving pay, improving training for new entrants, and they need to not push them to violate federal regulations.

There may finally be some movement on this front. Last month, Swift, one of the largest haulers in the U.S., announced it would refocus expenditures on better labor conditions for employees, including higher wages.

"After assessing the current and expected environment, we believe the best investment we can make at this time, for all of our stakeholders, is in our drivers," the firm said in its earnings release. "Our goal is to clear the path for our drivers by helping them overcome challenges, eliminate wait times and take home more money."


 

Issues: Freight
Categories: Labor News, Unions

Teamster Rail Workers Revolt vs Driving Solo

Tue, 08/19/2014 - 07:41

August 19, 2014: There’s a rank and file rebellion brewing among rail workers, and Teamster engineers are in the thick of it. They are fighting back against a deal made secretly by the conductors union with the Burlington Northern Santa Fe (BNSF) Railway.

Most rail engineers belong to the Brotherhood of Locomotive Engineers (BLET) which is a part of the Teamsters Union. The organization leading the charge against the deal to allow one-person crews is Rail Workers United (RWU), a solidarity network of rail workers in various unions.

Read the story here:  http://labornotes.org/2014/08/rail-workers-revolt-against-driving-solo

Categories: Labor News, Unions

Central States Extends YRC’s $100M Debt till 2019

Fri, 08/15/2014 - 12:37

August 15, 2014: The Central States Pension Fund has given YRCW an extension until 2019 to repay $109 million that YRC owes the pension fund. This was revealed in a filing with the Securities and Exchange Commission and in the 2014 First Quarter Report filed by the Independent Special Counsel on July 30.

That report, along with the Financial and Analytical Report obtained by TDU, indicates that the fund’s assets fell from $18.7 billion to $18.5 billion during the first quarter.

YRC has owed the $109 million to the fund since 2009, when it failed to make required payments, and has twice extended the deadline for making a balloon payment. The latest extension came by vote of the Central States union and management trustees in January, 2014. The trustees are reluctant to strain YRC’s weak finances. YRC makes interest payments of $550,000 per month.

While $109 million is small compared to the fund’s assets, it is still a very significant debt obligation to the troubled fund, as some YRC Teamsters and Central States retirees have already noted.

Central States lost $209 million in assets in the first quarter        because the investment return of 1.7% could not keep up with pension payments.

Meanwhile, the Central States Health and Welfare Fund continues to run in the black and build up its outsized reserves. As its number of Teamster participants has more than doubled, with the addition of UPS part-time and full-time members, future reports will bear watching closely. Many UPS Teamsters recently put into the Central States Fund (TeamCare) are finding that certain benefits are falling short of promises made by the Hoffa-Hall administration.

Issues: Pension and BenefitsFreight
Categories: Labor News, Unions

Rail Workers Revolt against Driving Solo

Thu, 08/14/2014 - 10:49
Alexandra BradburyLabor NotesAugust 12, 2014View the original piece

“There’s a real rank-and-file rebellion going on right now,” says Jen Wallis, a Seattle switchman-conductor for Burlington Northern Santa Fe (BNSF) Railway. “People who’ve never been involved in the union, never went to a union meeting, they are showing up and they’re joining Railroad Workers United in droves.

“People are saying, ‘We have to take action now to stop it. We can’t let our union officers do this to us.’”

What’s all the fuss? On July 16, thousands of railroaders abruptly learned their union officers had held secret negotiations with BNSF, one of the country’s biggest freight carriers, and reached a deal to allow single-person train crews: a safety disaster.

Ballots on the tentative agreement went out in early August, and are due back in early September. If the vote goes up, huge freight trains could rumble through towns across the western U.S. with just an engineer onboard, no conductor.

This would be a first on a major railway, and a foot in the door for the whole industry. BNSF is owned by Warren Buffett, one of the world’s richest people.

“Members had no clue this was even coming,” said John Paul Wright, a locomotive engineer working out of Louisville, Kentucky. “The membership is basically saying, “What in the hell is going on? We never thought our own union would sell us out.’”

Wright is co-chair of the cross-union, rank-and-file group Railroad Workers United, which has been campaigning against the looming threat of single-person crews for a decade. With just weeks to go, its members are suddenly busy sending out “vote no” stickers and appealing to local labor councils to pass resolutions backing two-person crews.

“We weren’t expecting it this soon,” says Robert Hill, a BNSF engineer in Spokane, Washington. “We were expecting it.”

Railroaders are seeking out RWU and a new Facebook group, “Spouses & Families Against One-Man Crews,” to get information and coordinate the push for a “No” vote. Much of the opposition is being led by railroaders’ family members.

Engineers and conductors are represented by separate unions. The conductors, members of SMART, are the ones voting on this contract.

“This vote will affect far more people than just the ones that vote on it,” said James Wallace, a BNSF conductor in Lincoln, Nebraska, and RWU co-chair, “because it is going to set a precedent for all freight railroads in the U.S., and potentially endanger the job of every conductor in this country.”

- See more at: http://labornotes.org/2014/08/rail-workers-revolt-against-driving-solo#s...

“There’s a real rank-and-file rebellion going on right now,” says Jen Wallis, a Seattle switchman-conductor for Burlington Northern Santa Fe (BNSF) Railway. “People who’ve never been involved in the union, never went to a union meeting, they are showing up and they’re joining Railroad Workers United in droves.

“People are saying, ‘We have to take action now to stop it. We can’t let our union officers do this to us.’”

What’s all the fuss? On July 16, thousands of railroaders abruptly learned their union officers had held secret negotiations with BNSF, one of the country’s biggest freight carriers, and reached a deal to allow single-person train crews: a safety disaster.

Ballots on the tentative agreement went out in early August, and are due back in early September. If the vote goes up, huge freight trains could rumble through towns across the western U.S. with just an engineer onboard, no conductor.

This would be a first on a major railway, and a foot in the door for the whole industry. BNSF is owned by Warren Buffett, one of the world’s richest people.

“Members had no clue this was even coming,” said John Paul Wright, a locomotive engineer working out of Louisville, Kentucky. “The membership is basically saying, “What in the hell is going on? We never thought our own union would sell us out.’”

Wright is co-chair of the cross-union, rank-and-file group Railroad Workers United, which has been campaigning against the looming threat of single-person crews for a decade. With just weeks to go, its members are suddenly busy sending out “vote no” stickers and appealing to local labor councils to pass resolutions backing two-person crews.

“We weren’t expecting it this soon,” says Robert Hill, a BNSF engineer in Spokane, Washington. “We were expecting it.”

Railroaders are seeking out RWU and a new Facebook group, “Spouses & Families Against One-Man Crews,” to get information and coordinate the push for a “No” vote. Much of the opposition is being led by railroaders’ family members.

Engineers and conductors are represented by separate unions. The conductors, members of SMART, are the ones voting on this contract.

“This vote will affect far more people than just the ones that vote on it,” said James Wallace, a BNSF conductor in Lincoln, Nebraska, and RWU co-chair, “because it is going to set a precedent for all freight railroads in the U.S., and potentially endanger the job of every conductor in this country.”

- See more at: http://labornotes.org/2014/08/rail-workers-revolt-against-driving-solo#s...

“There’s a real rank-and-file rebellion going on right now,” says Jen Wallis, a Seattle switchman-conductor for Burlington Northern Santa Fe (BNSF) Railway. “People who’ve never been involved in the union, never went to a union meeting, they are showing up and they’re joining Railroad Workers United in droves.

“People are saying, ‘We have to take action now to stop it. We can’t let our union officers do this to us.’”

What’s all the fuss? On July 16, thousands of railroaders abruptly learned their union officers had held secret negotiations with BNSF, one of the country’s biggest freight carriers, and reached a deal to allow single-person train crews: a safety disaster.

Ballots on the tentative agreement went out in early August, and are due back in early September. If the vote goes up, huge freight trains could rumble through towns across the western U.S. with just an engineer onboard, no conductor.

This would be a first on a major railway, and a foot in the door for the whole industry. BNSF is owned by Warren Buffett, one of the world’s richest people.

“Members had no clue this was even coming,” said John Paul Wright, a locomotive engineer working out of Louisville, Kentucky. “The membership is basically saying, “What in the hell is going on? We never thought our own union would sell us out.’”

Wright is co-chair of the cross-union, rank-and-file group Railroad Workers United, which has been campaigning against the looming threat of single-person crews for a decade. With just weeks to go, its members are suddenly busy sending out “vote no” stickers and appealing to local labor councils to pass resolutions backing two-person crews.

“We weren’t expecting it this soon,” says Robert Hill, a BNSF engineer in Spokane, Washington. “We were expecting it.”

Railroaders are seeking out RWU and a new Facebook group, “Spouses & Families Against One-Man Crews,” to get information and coordinate the push for a “No” vote. Much of the opposition is being led by railroaders’ family members.

Engineers and conductors are represented by separate unions. The conductors, members of SMART, are the ones voting on this contract.

“This vote will affect far more people than just the ones that vote on it,” said James Wallace, a BNSF conductor in Lincoln, Nebraska, and RWU co-chair, “because it is going to set a precedent for all freight railroads in the U.S., and potentially endanger the job of every conductor in this country.”

DOWN TO TWO

At its 20th-century peak, railroad employment totaled 2 million. Today it’s 10 percent of that.

That’s not because the country is shipping less freight. On the contrary, says Ron Kaminkow, RWU’s general secretary and a working engineer in Nevada, “We’re moving more tonnage than ever before.”

But as feuding unions allowed new technologies to replace workers, rail freight crews dwindled from five to two. These days a train carries an engineer, who drives the train, and a conductor, who does everything else.

Here’s an incomplete list of those activities: hopping off to throw the switch that moves the train to another track; adding and removing cars; updating the list of which cars have hazardous materials in them (crucial for first responders in case of a wreck); problem-solving if a busted air hose or some other mechanical problem stops the train; and conferring with the engineer about hazards, approaching speed restrictions, and pedestrian or road crossings coming up.

Crucially, the conductor also helps make sure the engineer is still awake and alert. If that sounds like it shouldn’t be necessary, consider how freight railroaders are generally scheduled: on 12-hour shifts and on-call 24/7, with no predictable schedule.

“Sometimes you’re up 48 hours at a time, with maybe five hours of sleep,” says Wallis. “There have been times we’re both hallucinating at 3 o’clock in the morning, trying to keep each other awake.”

The conductor may also be teaching the engineer details of the complex job. “It takes about two years to really learn what you’re doing,” Wallis said. “It’s this classroom in the cab. It’s scary, you could have two people in the cab with six months’ experience between them. But at least there’s two of them.”

And the conductor is on hand in case the engineer has, say, a heart attack while at the helm of a 15,000-ton train. As SMART Transportation Division President John Previsich pointed out in a memo opposing the BNSF deal, “No one would permit an airliner to fly with just one pilot, even though they can fly themselves.”

A SAFETY DISASTER

The proposed pact would pull conductors off the trains, replacing several with a single “master conductor” who’d drive around in a van, on-call for radio dispatch to any train that might need assistance.

How many trains would one conductor cover? Four, eight? There’s no limit—like much else in the deal, it’s left to the carrier’s discretion.

It’s not hard to spot the risks in this plan. Freight tracks cross remote territory. The train might get stopped where there’s no road for miles and miles. It could take the conductor a long time to arrive. And the engineer loses a second pair of eyes to help prevent accidents.

Part of the excuse for single-person crews is the coming of yet another new technology, positive train control, which Congress is mandating the rail carriers all adopt by 2015. This automated system will track trains’ speed and position, and apply the brakes in certain situations.

Railroaders call this tech advance a good thing—but as an additional boost to safety, not something you’d want to rely on to replace a human. “The railroad unions have been asking for PTC to be implemented as a safety overlay, not in place of a crew member,” Wright says.

Even as companies have been lobbying to delay PTC because of its cost, they’ve also been eyeing it as an opportunity to cut labor costs.

They will save billions of dollars if they can implement one-person crews, says Kaminkow. “So for the occasional pedestrian who gets run over or car that gets hit, the railroad is willing to roll the dice.”

WORKING ALONE

“I haven’t come across a single engineer who is for this at all,” says Wallace. “They would rather have someone there to keep them alert, to job-brief as situations change—and somebody just to keep them company.

“We will often spend 12 or more hours on a train every day. At times when we’re busy, we spend up to 70 hours a week on the train.

“It’s going to be a large portion of engineers’ lives they’re going to be spending alone.” (For more on how working alone hurts solidarity, see this article).

However, engineers aren’t voting on this deal. Conductors are, and the deal has sweeteners in it for them—a signing bonus, higher pay for the lucky few who become “master conductors,” and the promise of buyouts or layoffs with full pay.

But most, especially newer conductors, won’t see those perks. Instead, they’re likely slated to become engineers, whether that’s their plan or not.

Though the unions are separate, most engineers are drawn from conductors’ ranks. You can volunteer to go to engineer school, but you can also be forced into it, from the bottom of the seniority list, if more engineers are needed.

“Probably a lot of these conductors won’t ever work under this contract,” Wallace said. “They’ll end up as engineers, working alone in a cab by themselves.”

‘THE CRAFT WAR’

The secret pact is controversial even among leaders of SMART. But division leaders responsible for the contract are pushing it hard.

The Brotherhood of Locomotive Engineers and Trainmen, a Teamsters division, represents most engineers. Both SMART and the BLET formally oppose one-person crews, though they haven’t exactly presented a strong united front.

The rivalry between the unions—and a fatalistic sense that the change is inevitable—have fueled a series of backstabbing deals. As crews dwindled, the rail unions mainly battled over who would represent the remaining workers.

“While the unions had been on and off paying lip service to the idea of a two-person crew and intolerance for single-person crews, they’ve also been hedging their bets, saying ‘Meanwhile we’re going to cut whatever deal we need to make sure if there’s going to be a last man standing, by God, it’s going to be us,’” sighs Kaminkow.

“We call it the craft war. I’d much rather fight the class war.”

RAUCOUS MEETINGS

SMART leaders immediately launched a PR tour, taking a PowerPoint presentation on the road to promote the deal.

“A lot of the presentation and the campaign to get this is focused on fear,” Wallace said. “There’s a lot of fear that if we don’t accept this contract it’ll just be a lot worse down the road, that we won’t have any bargaining power to negotiate anything better.”

Among their first stops was Seattle, where they met with raucous opposition. “Once I found out about it I immediately created a Facebook event for the meeting, and invited everyone I know,” Wallis said.

That meant not just railroaders but also teachers, Teamsters, guitar players, environmentalists. After all, “one-person crews are not just dangerous for workers, but for the environment and the communities we live in,” she said.

Other railroaders, too, see the writing on the wall for them if this deal goes through. “I had four Union Pacific guys show up at my picket line,” Wallis said. And since that night, “We’re getting emails every day from all over the country saying ‘We saw what you did. How do we do that?’”

The next night’s meeting in Spokane brought out 60 angry railroaders and their families. “A lot of people were in disbelief,” reports Hill. The touring officers started the PowerPoint, but “the president of Local 426 told them to shut it off, we weren’t interested in looking at their propaganda. We wanted to start asking questions.”

When the officers’ answers to their questions about contract specifics were “a lot of could or should or possibly,” Hill said, “it turned a little hostile… Everybody started getting pretty fired up.

“A lot of [members] were accusing [the officers] of taking buyouts, payouts. A lot of our leaders are close to retirement.”

A second Spokane meeting, planned for the next morning, was canceled.

And in Creston, Iowa, opponents of the deal aren’t waiting till the August 25 meeting—they’re holding rallies twice a day, all month.

 

Categories: Labor News, Unions

OSHA Awards Damages and Reinstatement for Truck Driver

Wed, 08/13/2014 - 12:52
Truckers Justice CenterTruckers Justice CenterAugust 13, 2014

In a decision issued August 11, 2014, the Occupational Safety and Health Administration (“OSHA”) has found that truck owner Terry Unrein fired truck driver Rebecca Barnhard for refusing to drive a truck with a defective steer tire and for complaining that a headlight on the truck operated only intermittently. Unrein owned and operated five trucks, and transported goods under contract with Gulick Trucking.

OSHA ordered Unrein to reinstate Ms. Barnhard to her former position as a truck driver, to pay her back pay, and to pay her attorney fees. OSHA also ordered Unrein to post a copy of a notice at its work place indicating that Ms. Barnard had won her case, and that the Surface Transportation Assistance Act protects drivers from retaliation for making complaints about violations of commercial vehicle safety regulations, and for refusing to drive in violation of a commercial vehicle safety regulation.

Ms. Barnhard states, “I am delighted with OSHA’s decision and feel that my decision to refuse to drive an unsafe truck has been vindicated. My employer wanted me to take shortcuts to sidestep DOT regulations and I am happy that the law protected me when I refused to take shortcuts with safety.” 

Mr. Barnhard was represented by Paul O. Taylor, an attorney with Truckers Justice Center in Burnsville, MN. www.truckersjusticecenter.com

Categories: Labor News, Unions

Louisville Take Back Our Union Meeting Slideshow

Mon, 08/11/2014 - 14:20
 (function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = "//connect.facebook.net/en_US/all.js#xfbml=1"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk'));Post by Paul Trujillo.
Categories: Labor News, Unions

Take Back Our Union!

Mon, 08/11/2014 - 13:49

August 11, 2014: Over 200 Teamsters turned out on August 9 in Louisville, Kentucky and Dayton, Ohio to hear Fred Zuckerman, Sandy Pope, Tim Sylvester and Tony Jones talk about the growing coalition to take back our union in 2016. 

The meetings were sponsored by Take Back Our Union.

The Dayton meeting drew Teamsters from Cleveland, Columbus, Cincinnati, Akron, Columbus and Lima, Ohio, as well as Dayton, and a few who made the trip from Indianapolis.

A packed hall in Louisville showed their agreement with the speakers that our union is going in the wrong direction and it’s time for a change. Members from Local 89 were the largest contingent but there were also Teamsters attending from Atlanta Local 728, Chattanooga Local 519, Paducah, Kentucky Local 236, Owensboro, Kentucky Local 215 and a carload from Columbus, Ohio Local 413.

Each speaker spoke to aspects of what it will take to win: a grassroots mobilization, getting delegates elected at the local level, member-to-member contact and info distribution, fundraising, organizing ongoing campaign committees, local meetings, and so much more.

Sandy Pope, the president of New York Local 805, ran for General President in 2011 and has a long record of experience and service to our union. Fred Zuckerman, president Louisville Local 89, was an outspoken critic of concessions in the recent UPS contract.  Tony Jones is the president of Columbus Local 413; he and Zuckerman ran for International vice president in 2011. Tim Sylvester is the president of New York Local 804, where he and an active membership won the best UPS contract supplement in the country.

Click here to view a slideshow of photos from the Louisville meeting.

Categories: Labor News, Unions

Take Back Our Union in Louisvile

Mon, 08/11/2014 - 10:25
 (function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = "//connect.facebook.net/en_US/all.js#xfbml=1"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk'));Post by Paul Trujillo.
Categories: Labor News, Unions

The Trucking Industry Needs More Drivers. Maybe It Needs to Pay More.

Mon, 08/11/2014 - 06:57
Neil IrwinNew York TimesAugust 11, 2014View the original piece

Swift Transportation’s 20,000 workers haul goods in almost 14,000 big-rig trucks that travel the interstates and back roads of the United States every day. The company’s performance is closely tied to the nation’s economy, which has been looking increasingly sunny lately.

So it was surprising last month when Swift’s stock plummeted nearly 18 percent in a single day. The tumble came for an odd reason. It wasn’t because there was too little business — but rather, too much.

“We were constrained by the challenging driver market,” the company said in its quarterly earnings announcement. “Our driver turnover and unseated truck count were higher than anticipated.”

In other words, Swift had plenty of customers wanting to ship goods. But in a time of elevated unemployment, it somehow couldn’t find enough drivers to take those goods from Point A to Point B. How is that possible? The reasons for that conundrum tell us a great deal about what has been ailing American workers and why a full-throated economic recovery has been so slow in coming.

Consider this: The American Trucking Associations has estimated that there was a shortage of 30,000 qualified drivers earlier this year, a number on track to rise to 200,000 over the next decade. Trucking companies are turning down business for want of workers.

Yet the idea that there is a huge shortage of truck drivers flies in the face of a jobless rate of more than 6 percent, not to mention Economics 101. The most basic of economic theories would suggest that when supply isn’t enough to meet demand, it’s because the price — in this case, truckers’ wages — is too low. Raise wages, and an ample supply of workers should follow.

But corporate America has become so parsimonious about paying workers outside the executive suite that meaningful wage increases may seem an unacceptable affront. In this environment, it may be easier to say “There is a shortage of skilled workers” than “We aren’t paying our workers enough,” even if, in economic terms, those come down to the same thing.

The numbers are revealing: Even as trucking companies and their trade association bemoan the driver shortage, truckers — or as the Bureau of Labor Statistics calls them, heavy and tractor-trailer truck drivers — were paid 6 percent less, on average, in 2013 than a decade earlier, adjusted for inflation. It takes a peculiar form of logic to cut pay steadily and then be shocked that fewer people want to do the job.

Millions of able-bodied Americans need work, yet there aren’t enough middle-income jobs for them. That is especially the case for men without advanced educations, who have seen their wages depressed over the last few decades. Trucking would seem to be an excellent option.

It’s not an ideal job for everyone. There is no question that trucking is hard work, necessitating long hours and longer stretches away from family. But that’s why it is well compensated, at least in comparison to other jobs not requiring college degrees. The average pay for a long-haul trucker is just shy of $50,000, according to the A.T.A., and an experienced trucker with a good safety record can make significantly more than that. The work typically offers lavish benefits that are increasingly rare for nonunion blue-collar employees.

The job can be learned fairly quickly. In some industries, companies complain of shortages of workers for jobs that require years of advanced training, like certain engineering specialties. Trucking is not one of those industries, however.

A person can get a commercial driver’s license after a course that can be as brief as six weeks of intensive study. Moreover, there were actually fewer truckers working last year (1.585 million) than five years earlier (1.673 million). Some of the missing workers could presumably be coaxed back into the industry if the money were right.

To be sure, the trucker-shortage picture is more complex than this, notes Bob Costello, the A.T.A.’s chief economist. He says these complications make a straightforward story of truckers simply being underpaid not quite fair.

For example, new safety requirements mean that individual truckers drive fewer miles than a decade ago: An average long-haul truck can now cover 8,000 miles a month, down from almost 11,000 in 2007, according to the trade association. This helps account for downward wage pressure. And the trucking companies themselves are typically working on thin profit margins and serving customers on long-term contracts, which means that if they simply raised pay sharply to recruit more truckers, they could end up losing money.

But every industry has its special challenges, and the trucker shortage — and falling inflation-adjusted wages over the last decade — are part of a bigger story.

The reasons are the subject of endless debate, and you can pick the one you prefer to emphasize: technological change, globalization or a decline of union power. But wages of workers without advanced skills have been under downward pressure in the United States and across the developed world over the last generation. The deep recession and slow recovery have only made the trend more pronounced.

That has led to a mind-set in which executives sometimes think of line workers as merely resources to be tapped at the lowest price. Companies have been able to keep wages low: It’s hard to demand a raise when your colleagues are being laid off or there is a long line of job seekers. Some corporations may have come to view this as a natural state of affairs.

By now, wage income is as low a percentage of gross domestic product as it has been since 1947, while corporate profits are at postwar highs. These are two sides of the same coin. Money that once accrued to workers now goes to shareholders.

Yet there are some indications that this state of affairs may not last: The shortage of truckers is one piece of evidence that the balance of power is shifting. In recent earnings calls, executives from companies as varied as JetBlue and the Dr Pepper Snapple Group have expressed worry about rising wage pressures.

The trucker shortage is already resulting in higher wages in parts of that industry. There have been $2,000 signing bonuses from companies looking to poach truckers and, as Kevin P. Knight of Knight Transportation mentioned in that trucking company’s latest earnings call, per-mile pay increases have been working out to 5 to 10 percent jumps in driver pay.

Executives may bemoan higher pay for workers because it could cut profit margins. But after a generation in which the median American household has seen flat to declining inflation-adjusted income, wage increases are a welcome corrective. When workers begin to have more leverage in salary negotiations, it is a sign of an improving economy, not a liability that businesses should be complaining about.

Categories: Labor News, Unions

Taking a Bite Out of Overtime Abuse

Mon, 08/04/2014 - 07:59
Jenny Brown Labor NotesAugust 4, 2014View the original piece

“When you get up, the kids are sleeping. When you get home, the kids are sleeping.”

That’s how Rich Pawlikowski, a UPS package car driver in Queens, New York, described his lengthening workday. “Only six to eight years ago, the summer months were light. [Now] they send us out with 10, 11, 12 hours of work,” he said.

“It’s not healthy. You’ve got to get some rest. When the end of week comes, you see all the accidents and injuries.”

UPS, with its growing package business, isn’t refusing to hire because it’s hurting. On the contrary, business is booming. Like other chronic overtime abusers, such as lucrative television production companies and Verizon with its fat franchise agreements, UPS does it because it can.

Contract provisions and laws can help. But those only get enforced if workers get organized and do it themselves.

It takes vigilance, member involvement, and in some cases a collective “Hell no!”

An overtime boycott by hospital nurses, for instance, got management’s attention fast (see “Pushed to the Wall, Nurses Refuse Overtime”). They were helped by a law against mandatory overtime, but only saw motion after emergency room staff refused any assignments.

CHRISTMAS DEBACLE

UPS Teamsters have long had contract provisions to curb overtime abuse. But workers in New York found direct action was required to get the full benefit.

The contract allows drivers to file a grievance if they work more than nine-and-a-half hours for three days in a given week. The penalty is triple-time pay for hours worked over 9.5—but what the drivers really want is a load adjustment, so they can get home before 10 p.m.

Pawlikowski said he kept grieving it, but management wouldn’t adjust his workload, preferring to pay the penalty.

During the last two Christmas seasons, Pawlikowski said, they were so understaffed that he and his co-workers were unable to get through the work. The company got nervous and even set up a task force to study the problem.

Then in February, 250 Queens drivers, members of Teamsters Local 804, were suspended after a short work stoppage. Though the immediate cause was to protest the firing of one of their members, that came on the heels of an accumulation of other contract violations.

The company started firing them in waves, but a vigorous union campaign and community pressure forced the company to rehire everyone by April.

After that flexing of union muscle, managers started adjusting workloads in earnest. The company has even started hiring.

“Drivers are ecstatic,” Pawlikowski said.

The system is elaborate. Workers have to go to a manager to get on the “9.5 list.” Previously, managers simply posted the list, but so many people signed up, they took it down. Now managers try to gatekeep.

“They always threaten, some people get intimidated. But there’s nothing they can do to you except look at you funny,” said Pawlikowski. The union provides advice and forms.

Once you’re on the list, you can tell them how much overtime you want. The limits don’t apply during peak—from Thanksgiving to New Year’s—but the improvement is noticeable.

“That’s the beauty of 9.5,” said Pawlikowski. “You get everybody on the list, it creates jobs, you get to see your family, everybody’s happy.”

REALITY BITES

Writer-producers in the highly profitable “nonfiction” section of television production, known to most of us as reality TV, are deemed “exempt” and not eligible for overtime pay—even when they work grueling 80- to 100-hour weeks. (See box at right.)

These workers create the ideas in the shows, develop scenarios, write interview questions and even dialog, prep characters, set up shoots, film, tear down, and move to the next location.

A 30-year veteran of the industry said union jobs she’s worked paid $2,500-$3,500 a week—but these non-union jobs are paying $1,000. With the long weeks, it works out to $10-12 an hour.

On a union job, she said, “You work, put in a few extra hours…but I’m not working seven days a week for a month without a day off. You can say no.”

“Production companies are trying to deliver TV shows at cheaper and cheaper prices,” said Justin Molito, an organizer with the Writers Guild (WGAE). The shows are increasingly being made on a shorter timeline and with longer hours, he said.

A union survey in New York found that 84 percent of writer-producers worked more than 40 hours a week, every week, and 85 percent never received overtime pay. The union estimated the wage theft at $40 million a year.

That’s starting to change now that the Guild is organizing the workforce. About one-third have already voted the union in, said Molito. That and the prospect of being sued for wage theft have made some employers curb their worst abuses.

Still, workers are going before New York’s city council to expose labor violations in nonfiction TV—which is, not coincidentally, the most profitable segment of TV production.

NOT GETTING BETTER

While overtime use goes up when the economy gets better, usually abuse goes down, said Catherine Ruckelshaus of the National Employment Law Project. That’s because workers are more able to stand up for themselves.

But not in this recovery. “In the low-wage sector, it’s still a buyer’s market for the employer,” she said.

Overtime violations are rampant. These include clocking people out before they’ve finished working, paying straight time when overtime is required, misclassifying workers—like those in nonfiction TV—as exempt professionals, and claiming workers are supervisors when they aren’t.

Allegedly “independent” contractors are even found in unionized auto plants, where fly-by-night hiring agencies have workers on 10-hour days, seven days a week, with no overtime protections and at rock-bottom pay.

After this article ran in print, a truck driver called us who works 12-hour shifts, six or seven days a week, transporting parts for a Ford assembly plant in Chicago. But “we don’t get overtime or anything,” he said.

That’s because the company that pays him, CWS, has been getting away with the “independent contractor” ruse for years—though it’s clear he and his co-workers should legally be employees. The boss sets his hours, he punches a time clock, and he certainly doesn’t own the truck he drives. “Half the time we don’t even get to have lunch,” he said.

It’s a common setup. The driver said CWS has accounts with GM and Chrysler too.

NOT ENOUGH PENALTY

Overtime premium pay is part of the Depression-era Fair Labor Standards Act. It was intended to cause employers to hire more workers, by making it more costly to push existing workforces into longer and longer hours.

But the deterrent doesn’t work unless there’s enforcement to keep employers from ducking the premium, said Ruckelshaus.

Even when employers are forced into paying the premium, time-and-a-half may not be enough to have the intended effect.

Ironically, good union contracts can make paying time-and-a-half cheaper than hiring additional workers. A 1990s study by Labor Notes found that in the auto industry, only double-time pay provided enough of a goad to get factories to hire more people. This was because “adding another Social Security number” carried its own costs in training, health insurance, workers compensation, and pension coverage.

Workers at Verizon can’t remember the last time the company was hiring, but it’s not for lack of work. Verizon promised in a 2008 franchise agreement that it would finish installing its fiber optic network (FiOS) in New York City by June 30, 2014. The city can impose penalties for lateness.

Instead of hiring more staff locally, the company has been pulling workers away from their homes in other parts of the Northeast for three-week shifts. Local employees, members of the Communications Workers (CWA), are working three out of four Saturdays. Even those who volunteered for the FiOS build-out, hoping for lots of overtime to pay debts or big bills, are starting to balk.

The company announced in June that it will miss the deadline. Instead of examining its hiring practices, it blamed hurricanes, uncooperative landlords, and even the 2011 strike by CWA and the Electricians (IBEW), even though in 2013 it claimed to be ahead of schedule.

‘AWFUL WORK SCHEDULE’

A scheme to evade Saturday overtime pay hit autoworkers last year at two Detroit-area Chrysler plants.

The Autoworkers (UAW) contract provides for overtime pay for working on Saturdays. But the company created a 10-hour shift system, the “Alternative Work Schedule,” with two-thirds of the production workforce scheduled every Saturday—at straight time. The idea is, it doesn’t count as a weekend if it’s part of your regular schedule.

Half those workers must switch back and forth between day and evening shifts each week. The system also evades break and lunch times.

Even the best shift, Monday through Thursday, 5:30 a.m. to 4:00 p.m., is grueling, said Alex Wassell, a welder repair technician at the Warren Stamping Plant.

“It’s a long day [on that shift], too,” he said. “Even three days in a row off, you’re still tired on the 10-hour-a-day schedule.”

To the dismay of rank and filers, the union allowed the unpopular new schedule to stand. UAW’s vice president even tried to sell it to indignant members at a raucous meeting with Warren Stamping workers. Local 869 members at the plant organized against it—petitioning, wearing stickers, mass-texting the company and the union, even picketing the plant.

After the picket, Wassell was fired for supposedly disparaging the company. He got reinstated and won a long fight to clear his record.

For now, the bad schedule prevails at Warren Stamping. But “Sterling Stamping is still on the traditional schedule,” Wassell said, and “that could have been because of the ruckus we made. Management and union felt they’d stay with what they had.”

Members of the local are making abolishing the “awful work schedule” a high priority in 2015 negotiations. If they’re still on it after that, Wassell said, “people will be beyond themselves.”

Alexandra Bradbury contributed to this article.


 

Categories: Labor News, Unions

YRC Worldwide Reports 2014 Second Quarter Results

Fri, 08/01/2014 - 13:07
YRC WorldwideYRC WorldwideAugust 1, 2014View the original piece

OVERLAND PARK, Kan., July 31, 2014 (GLOBE NEWSWIRE) -- YRC Worldwide Inc. (Nasdaq:YRCW) today reported financial results for the second quarter of 2014.

Consolidated operating revenue for the second quarter of 2014 was $1.318 billion with consolidated operating income reported at $20.0 million, which included a $6.5 million gain on asset disposals. As a comparison, the company reported consolidated operating revenue of $1.243 billion for the second quarter of 2013 and consolidated operating income of $14.3 million, which included a $1.3 million loss on asset disposals.

The company reported, on a non-GAAP basis, adjusted EBITDA of $63.0 million for the second quarter of 2014, as compared to adjusted EBITDA of $74.1 million for the second quarter of 2013 (as detailed in the reconciliation below).

YRC Freight Second Quarter Results

"During the second quarter of 2014, YRC Freight experienced a 5.6% increase in operating revenue, despite a half workday less as compared to the second quarter of 2013," said YRC Worldwide CEO James Welch. "The additional revenue is due to increased volumes as well as a slight gain in revenue per hundredweight. The growth in shipments and tonnage per day is a result of the overall economic improvement and renewed shipper confidence due to the successful completion of our refinancing and modified labor agreement in February 2014," continued Welch. "However, profitability for the second quarter was negatively impacted by the network not being fully in cycle which resulted in a decrease in productivities, the re-handling of freight and less than optimal use of purchased transportation. The year-over-year decline in profitability can also be attributed to a $7.5 million increase in expense related to bodily injury claims as well as a $2.9 million increase in cargo claims expense when compared to the second quarter of 2013. The increase in our bodily injury claims expense was driven by an increase in outstanding claims and an increase in development of prior year claims that remain unsettled.

"In order to improve network performance during the quarter, we opened three terminals, increased the use of purchased transportation and increased the utilization of part-time dock employees," stated Darren Hawkins, YRC Freight President. "Additionally, our plans to convert three current terminals to distribution centers in the third quarter remain on target which we anticipate will better balance our capacity and match it to increasing demand.

"Overall, the freight environment in which we are currently operating bodes well for YRC Freight. From a macro perspective, we are experiencing a robust pricing environment, and at YRC Freight specifically we are being disciplined in obtaining pricing increases on lower margin accounts," continued Hawkins.

"As the second quarter progressed, we achieved significant contractual negotiated pricing increases and in July we continue to see these levels of increases. With continued improvement in the economy and our service levels, we expect our ability to increase pricing should remain strong," said Hawkins.

"In the second quarter, we continued to follow through with our commitment to invest in technology by installing 13 of the 40 planned dimensioners in the YRC Freight network. These dimensioners allow us the ability to cost each shipment based on the actual cubic volume of the shipment," said Hawkins. "Also, we implemented a new third-party customer relationship management (CRM) tool. This solution is designed to allow us to drive sales productivity, customer satisfaction and loyalty," concluded Hawkins.

Regional Transportation Second Quarter Results

Even with 1.5 fewer workdays, operating revenue for the Regional segment grew by 6.9% during the second quarter of 2014 as compared to the same period in 2013. The increase is due to the growth in the overall economy and continued tightness of capacity in certain regions of the country. "I am satisfied with the execution of our Regional carriers as they continue to demonstrate strength in the marketplace by growing revenue and increasing yield and volume," said Welch.

Profitability for the Regional segment was impacted by increased purchased local cartage and the increased use of short-term revenue equipment rentals to handle the increase in volume as well as an increase in revenue equipment expense related to new equipment leases. Additionally, profitability was negatively impacted by a $3.0 million increase in expense related to bodily injury and property damage claims and a $1.4 million increase in cargo claims expense. The increase in bodily injury and property damage claims expense was driven by an increase in outstanding claims and an increase in development of prior year claims that remain unsettled.

"During the second quarter, pricing increases for our Regional carriers continued and provided increased profitability. With the strong demand for our Regional carrier service, we anticipate that the pricing momentum will continue and will provide them the opportunity to produce favorable results in the second half of 2014," said Welch. 

Key Segment Information - second quarter 2014 compared to the second quarter of 2013

   PercentYRC Freight20142013ChangeWorkdays63.564.0 Operating revenues (in millions)$842.1$797.65.6%Operating loss (in millions)(0.3)(8.5)96.5%Operating ratio100.0101.11.1ppTotal tonnage per day (in thousands)28.2926.715.9%Total shipments per day (in thousands)48.3546.124.8%Revenue per hundredweight$23.36$23.320.2%Revenue per shipment$273$2701.2%           Percent Regional Transportation20142013ChangeWorkdays62.564.0 Operating revenues (in millions)$475.5$444.96.9%Operating income (in millions)23.225.2(7.9)%Operating ratio95.194.3(0.8)ppTotal tonnage per day (in thousands)32.8630.796.7%Total shipments per day (in thousands)44.9142.356.0%Revenue per hundredweight$11.58$11.302.5%Revenue per shipment$169$1643.2%

Liquidity

As of June 30, 2014, we had cash and cash equivalents and availability under our ABL Facility totaling $253.2 million, and cash and cash equivalents and amounts able to be drawn under our ABL Facility totaling $209.4 million.  The amount which is actually able to be drawn is limited by certain financial covenants in the ABL Facility. For comparison, as of March 31, 2014, we had cash and cash equivalents and availability of $223.0 million, and cash and cash equivalents and amounts able to be drawn totaling $183.2 million. For the six months ended June 30, 2014, cash used in operating activities was $55.6 million as compared to cash used in operating activities of $18.2 million for the six months ended June 30, 2013. 

Review of Financial Results

YRCW will host a conference call with the investment community today, Thursday, July 31, 2014, beginning at 4:30 p.m. EDT, 3:30 p.m. CDT. The call will be available to listeners as a live webcast and as a replay via the YRC Worldwide website yrcw.com.

Non-GAAP Financial Measures

Adjusted EBITDA (defined in our credit facilities as Consolidated EBITDA) is a non-GAAP measure that reflects the company's earnings before interest, taxes, depreciation, and amortization expense, and further adjusted for letter of credit fees, equity-based compensation expense, net gains or losses on property disposals and certain other items, including restructuring professional fees, expenses associated with certain lump sum payments to our IBT employees and results of permitted dispositions and discontinued operations as defined in the company's credit facilities. Adjusted EBITDA is used for internal management purposes as a financial measure that reflects the company's core operating performance. In addition, management uses adjusted EBITDA to measure compliance with financial covenants in the company's credit facilities.  Free cash flow and adjusted free cash flow are non-GAAP measures that reflect the company's operating cash flow minus gross capital expenditures and operating cash flow minus gross capital expenditures, excluding the restructuring professional fees included in operating cash flow, respectively. However, these financial measures should not be construed as better measurements than operating cash flow, net income or earnings per share, as defined by generally accepted accounting principles (GAAP).

Adjusted EBITDA, free cash flow and adjusted free cash flow have the following limitations:

  • Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to fund restructuring professional fees, letter of credit fees, service interest or principal payments on our outstanding debt or fund our lump sum payments to our IBT employees required under the ratified MOU;
  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will have to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for such replacements;
  • Equity-based compensation is an element of our long-term incentive compensation program, although adjusted EBITDA excludes certain employee equity-based compensation expense when presenting our ongoing operating performance for a particular period;
  • Adjusted free cash flow excludes the cash usage by the company's restructuring professional fees, debt issuance costs, equity issuance costs and principal payments on our outstanding debt and the resulting reduction in the company's liquidity position from those cash outflows;
  • Other companies in our industry may calculate adjusted EBITDA differently than we do, limiting their usefulness as a comparative measure.

Because of these limitations, adjusted EBITDA, free cash flow and adjusted free cash flow should not be considered a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using adjusted EBITDA, free cash flow and adjusted free cash flow as a secondary measure. The company has provided reconciliations of its non-GAAP measures, adjusted EBITDA, free cash flow and adjusted free cash flow, to GAAP operating income (loss) within the supplemental financial information in this release.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as "will," "expect," "intend," "anticipate," "believe," "project," "forecast," "propose," "plan," "designed," "enable," and similar expressions are intended to identify forward-looking statements. Forward-looking statements are inherently uncertain and are subject to significant business, economic, competitive, regulatory and other risks, uncertainties and contingencies, known and unknown, many of which are beyond our control. Our future financial condition and results could differ materially from those predicted in such forward-looking statements because of a number of factors, including (without limitation) our ability to generate sufficient cash flows and liquidity to fund operations and satisfy our cash needs and future cash commitments, including (without limitation) our obligations related to our substantial indebtedness and lease and pension funding requirements; the success of our management team in implementing its strategic plan and operational and productivity improvements, including (without limitation) our continued ability to meet high on-time and quality delivery performance standards, and the impact of those improvements to meet our future liquidity and profitability; our ability to finance the maintenance, acquisition and replacement of revenue equipment and other necessary capital expenditures; potential increase in our operating lease obligations resulting from our decision to defer the purchase of new revenue equipment; changes in equity and debt markets; inclement weather; price and availability of fuel; sudden changes in the cost of fuel or the index upon which we base our fuel surcharge and the effectiveness of our fuel surcharge program in protecting us against fuel price volatility; competition and competitive pressure on service and pricing; expense volatility, including (without limitation) volatility due to changes in purchased transportation service or pricing for purchased transportation; our ability to comply and the cost of compliance with federal, state, local and foreign laws and regulations, including (without limitation) laws and regulations for the protection of employee safety and health and the environment; terrorist attack; labor relations, including (without limitation) our ability to attract and retain qualified drivers, the continued support of our union employees with respect to our strategic plan, the impact of work rules, work stoppages, strikes or other disruptions, our obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction; the impact of claims and litigation to which we are or may become exposed; and other risks and contingencies, including (without limitation) the risk factors that are included in our reports filed with the SEC, including those described under "Risk Factors" in our annual report on Form 10-K and quarterly reports on Form 10-Q.

About YRC Worldwide

YRC Worldwide Inc., headquartered in Overland Park, Kan., is the holding company for a portfolio of successful companies including YRC Freight, YRC Reimer, Holland, Reddaway, and New Penn. YRC Worldwide has one of the largest, most comprehensive less-than-truckload (LTL) networks in North America with local, regional, national and international capabilities. Through its team of experienced service professionals, YRC Worldwide offers industry-leading expertise in heavyweight shipments and flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence.

Please visit our website at www.yrcw.com for more information.

CONSOLIDATED BALANCE SHEETSYRC Worldwide Inc. and Subsidiaries(Amounts in millions except share and per share data)    June 30,December 31, 20142013ASSETS (Unaudited)     CURRENT ASSETS:  Cash and cash equivalents $ 173.9 $ 176.3Restricted amounts held in escrow 128.3 90.1Accounts receivable, net 556.6 460.9Prepaid expenses and other 100.7 70.6Total current assets 959.5 797.9   PROPERTY AND EQUIPMENT:  Cost 2,831.3 2,844.2Less - accumulated depreciation (1,800.2) (1,754.4)Net property and equipment 1,031.1 1,089.8   OTHER ASSETS:  Intangibles, net 70.5 79.8Restricted amounts held in escrow -- 0.6Deferred income taxes, net 18.4 18.3Other assets 100.0 78.5Total assets $ 2,179.5 $ 2,064.9   LIABILITIES AND SHAREHOLDERS' DEFICIT     CURRENT LIABILITIES:  Accounts payable $ 206.2 $ 176.7Wages, vacations, and employees' benefits 224.0 191.2Deferred income taxes, net 18.6 18.6Other current and accrued liabilities 197.7 189.5Current maturities of long-term debt 111.8 8.6Total current liabilities 758.3 584.6   OTHER LIABILITIES:  Long-term debt, less current portion 1,083.4 1,354.8Deferred income taxes, net 1.8 1.8Pension and postretirement 359.9 384.8Claims and other liabilities 338.5 336.3Commitments and contingencies     SHAREHOLDERS' DEFICIT:  Preferred stock, $1.00 par value per share  -- --Common stock, $0.01 par value per share  0.3 0.1Capital surplus 2,287.9 1,964.4Accumulated deficit (2,247.4) (2,154.2)Accumulated other comprehensive loss (310.5) (315.0)Treasury stock, at cost (410 shares) (92.7) (92.7) Total shareholders' deficit (362.4) (597.4)Total liabilities and shareholders' deficit $ 2,179.5 $ 2,064.9  STATEMENTS OF CONSOLIDATED COMPREHENSIVE LOSSYRC Worldwide Inc. and SubsidiariesFor the Three and Six Months Ended June 30(Amounts in millions except per share data, shares in thousands)(Unaudited)      Three MonthsSix Months 2014201320142013     OPERATING REVENUE $ 1,317.6 $ 1,242.5 $ 2,528.5 $ 2,405.0     OPERATING EXPENSES:    Salaries, wages and employees' benefits 740.7 717.5 1,466.4 1,398.5Operating expenses and supplies 292.0 285.8 575.7 553.6Purchased transportation 159.8 125.7 291.7 240.6Depreciation and amortization 41.0 43.5 82.0 87.1Other operating expenses 70.6 54.4 131.4 104.2(Gains) losses on property disposals, net (6.5) 1.3 (6.3) (3.2)Total operating expenses 1,297.6 1,228.2 2,540.9 2,380.8OPERATING INCOME (LOSS) 20.0 14.3 (12.4) 24.2     NONOPERATING (INCOME) EXPENSES:    Interest expense 31.7 41.9 89.9 81.1Gain on extinguishment of debt -- -- (11.2) --Other, net 1.1 (2.5) (4.0) (2.8)Nonoperating expenses, net 32.8 39.4 74.7 78.3     LOSS BEFORE INCOME TAXES (12.8) (25.1) (87.1) (54.1)INCOME TAX BENEFIT  (7.9) (10.0) (12.0) (14.5)NET LOSS (4.9) (15.1) (75.1) (39.6)AMORTIZATION OF BENEFICIAL CONVERSION FEATURE ON PREFERRED STOCK -- -- (18.1) -- NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (4.9) $ (15.1) $ (93.2) $ (39.6)      NET LOSS  $ (4.9) $ (15.1) $ (75.1) $ (39.6)OTHER COMPREHENSIVE INCOME, NET OF TAX 3.6 2.1 4.5 5.2 COMPREHENSIVE LOSS ATTRIBUTABLE TO YRC WORLDWIDE INC. $ (1.3) $ (13.0) $ (70.6) $ (34.4)     AVERAGE COMMON SHARES OUTSTANDING-BASIC 30,612 8,784 26,501 8,583AVERAGE COMMON SHARES OUTSTANDING-DILUTED 30,612 8,784 26,501 8,583     NET LOSS PER SHARE - BASIC $ (0.16) $ (1.72) $ (3.52) $ (4.62)NET LOSS PER SHARE - DILUTED $ (0.16) $ (1.72) $ (3.52) $ (4.62)  STATEMENTS OF CONSOLIDATED CASH FLOWSYRC Worldwide Inc. and SubsidiariesFor the Six Months Ended June 30(Amounts in millions)(unaudited)    20142013   OPERATING ACTIVITIES:  Net loss $ (75.1) $ (39.6)Noncash items included in net loss:  Depreciation and amortization 82.0 87.1Gain on extinguishment of debt (11.2) --Paid-in-kind interest on Series A Notes and Series B Notes 12.7 16.1Amortization of deferred debt costs 4.9 3.3Amortization of premiums and discounts on debt 20.1 4.2Equity based compensation expense  9.1 4.0Deferred income tax benefit, net (1.1) (0.8)Gains on property disposals, net (6.3) (3.2)Other noncash items, net (3.7) (1.1)Changes in assets and liabilities, net:  Accounts receivable (95.5) (65.5)Accounts payable 22.3 5.5Other operating assets (15.8) 0.4Other operating liabilities 2.0 (28.6)Net cash used in operating activities (55.6) (18.2)   INVESTING ACTIVITIES:  Acquisition of property and equipment (24.7) (39.1)Proceeds from disposal of property and equipment 7.3 4.2Restricted escrow receipts (deposits), net (37.5) 12.8Other 5.3 1.8Net cash used in investing activities (49.6) (20.3)   FINANCING ACTIVITIES:  Issuance of long-term debt 693.0 0.3Repayment of long-term debt (795.7) (4.6)Debt issuance costs (27.4) --Equity issuance costs (17.1) --Equity issuance proceeds 250.0 --Net cash provided by (used in) financing activities 102.8 (4.3)NET DECREASE IN CASH AND CASH EQUIVALENTS (2.4) (42.8)CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 176.3 208.7CASH AND CASH EQUIVALENTS, END OF PERIOD $ 173.9 $ 165.9   SUPPLEMENTAL CASH FLOW INFORMATION  Interest paid  $ (67.7) $ (57.2)Income tax refund, net 9.9 11.8  SUPPLEMENTAL FINANCIAL INFORMATIONYRC Worldwide Inc. and SubsidiariesFor the Three and Six Months Ended June 30(Amounts in millions)(Unaudited)       SEGMENT INFORMATION              Three MonthsSix Months 2014 2013%2014 2013%       Operating revenue:      YRC Freight $ 842.1 $ 797.6 5.6 $ 1,598.9 $ 1,551.4 3.1Regional Transportation 475.5 444.9 6.9 929.6 853.6 8.9Other, net of eliminations --  --   --  --  Consolidated  1,317.6 1,242.5 6.0 2,528.5 2,405.0 5.1       Operating income (loss):      YRC Freight (0.3) (8.5)  (32.8) (6.1) Regional Transportation 23.2 25.2  31.1 37.2 Corporate and other (2.9) (2.4)  (10.7) (6.9) Consolidated  $ 20.0 $ 14.3  $ (12.4) $ 24.2        Operating ratio:      YRC Freight100.0%101.1% 102.1%100.4% Regional Transportation95.1%94.3% 96.7%95.6% Consolidated98.5%98.8% 100.5%99.0%        Operating ratio is calculated as (i) 100 percent (ii) minus the result of dividing operating income by operating revenue or (iii) plus the result of dividing operating loss by operating revenue, and expressed as a percentage.       SUPPLEMENTAL INFORMATION    Book  As of June 30, 2014 Par ValueDiscountValue New term loan   $ 696.5 $ (6.5) $ 690.0 ABL facility - (capacity $450M; borrowing base $446.8M; availability $79.3M; amount able to be drawn $35.5M)   --  --  --  Series A Notes   88.8 (5.4) 83.4 Series B Notes   16.9 (1.8) 15.1 Secured Second A&R CDA   47.8 --  47.8 Unsecured Second A&R CDA   73.2 --  73.2 Lease financing obligations   285.5 --  285.5 Other   0.2 --  0.2  Total debt   $ 1,208.9 $ (13.7) $ 1,195.2            Premium/Book  As of December 31, 2013 Par Value(Discount)Value Restructured term loan   $ 298.1 $ 37.7 $ 335.8 ABL facility - Term A - (capacity $175M; borrowing base $156.5M; availability $51.5M)   105.0 (2.1) 102.9 ABL facility - Term B - (capacity $219.9M; borrowing base $219.9M; availability $0)   219.9 (3.9) 216.0 Series A Notes   177.8 (17.8) 160.0 Series B Notes   69.2 (10.5) 58.7 6% convertible senior notes   69.4 (1.1) 68.3 Pension contribution deferral obligations   124.2 (0.2) 124.0 Lease financing obligations   297.5 --  297.5 Other   0.2 --  0.2  Total debt   $ 1,361.3 $ 2.1 $ 1,363.4   SUPPLEMENTAL FINANCIAL INFORMATIONYRC Worldwide Inc. and SubsidiariesFor the Three and Six Months Ended June 30(Amounts in millions)(Unaudited)      Three Months Six Months  2014 20132014 2013Reconciliation of operating income (loss) to adjusted EBITDA:    Operating income (loss) $ 20.0 $ 14.3 $ (12.4) $ 24.2Depreciation and amortization 41.0 43.5 82.0 87.1(Gains) losses on property disposals, net (6.5) 1.3 (6.3) (3.2)Letter of credit expense 2.1 8.9 7.3 17.8Restructuring professional fees -- 1.5 1.1 2.8Permitted dispositions and other  -- (0.2) 0.1 (0.1)Equity based compensation expense 2.5 3.0 9.1 4.0Amortization of ratification bonus 5.2 -- 5.2 --Other nonoperating, net (a) (1.3) 1.8 (0.3) 1.7Adjusted EBITDA  $ 63.0 $ 74.1 $ 85.8 $ 134.3     (a) Other nonoperating, net excludes the impact of earnings (loss) of our equity method investment as well as non-cash foreign currency gains or losses.      Three Months Six Months Adjusted EBITDA by segment:2014 20132014 2013 YRC Freight $ 21.5 $ 30.0 $ 17.8 $ 63.6 Regional Transportation 42.1 42.5 68.0 71.5 Corporate and other (0.6) 1.6 0.0 (0.8)Adjusted EBITDA  $ 63.0 $ 74.1 $ 85.8 $ 134.3      Three Months Six Months  2014 20132014 2013Reconciliation of adjusted EBITDA to adjusted free cash flow (deficit):    Adjusted EBITDA  $ 63.0 $ 74.1 $ 85.8 $ 134.3Total restructuring professional fees -- (1.5) (1.1) (2.8)Cash paid for interest (28.3) (28.7) (67.7) (57.2)Cash paid for letter of credit fees (0.1) (9.0) (4.1) (15.0)Working capital cash flows excluding income tax, net (30.3) (36.4) (78.4) (89.3)Net cash provided by (used) in operating activities before income taxes 4.3 (1.5) (65.5) (30.0)Cash (paid for) received from income taxes, net (3.7) (2.8) 9.9 11.8Net cash provided by (used in) operating activities  0.6 (4.3) (55.6) (18.2)Acquisition of property and equipment (13.0) (21.9) (24.7) (39.1)Total restructuring professional fees --  1.5 1.1 2.8Adjusted free cash flow (deficit) $ (12.4) $ (24.7) $ (79.2) $ (54.5)  SUPPLEMENTAL FINANCIAL INFORMATIONYRC Worldwide Inc. and SubsidiariesFor the Three and Six Months Ended June 30(Amounts in millions)(Unaudited)      Three MonthsSix MonthsYRC Freight segment2014 20132014 2013Reconciliation of operating loss to adjusted EBITDA:    Operating loss $ (0.3) $ (8.5) $(32.8) $ (6.1)Depreciation and amortization 24.9 27.9 49.6 55.9(Gains) losses on property disposals, net (6.7) 1.0 (6.9) (3.5)Letter of credit expense 1.4 7.2 5.0 14.6Amortization of ratification bonus 3.3 -- 3.3 --Other nonoperating, net (a) (1.1) 2.4 (0.4) 2.7Adjusted EBITDA  $21.5 $30.0 $ 17.8 $63.6     (a) Other nonoperating, net excludes the impact of non-cash foreign currency gains or losses.      Three MonthsSix MonthsRegional Transportation segment2014 20132014 2013Reconciliation of operating income to adjusted EBITDA:    Operating income  $23.2 $25.2 $ 31.1 $37.2Depreciation and amortization 16.2 15.6 32.6 31.1Losses on property disposals, net  0.2 0.1 0.6 0.1Letter of credit expense 0.6 1.6 1.8 3.0Amortization of ratification bonus 1.9 --  1.9 Other nonoperating, net --  --  --  0.1Adjusted EBITDA $42.1 $42.5 $ 68.0 $71.5      Three MonthsSix MonthsCorporate and other segment2014 20132014 2013Reconciliation of operating loss to adjusted EBITDA:    Operating loss $ (2.9) $ (2.4) $(10.7) $ (6.9)Depreciation and amortization (0.1) --  (0.2) 0.1Losses on property disposals, net  --  0.2 --  0.2Letter of credit expense 0.1 0.1 0.5 0.2Restructuring professional fees --  1.5 1.1 2.8Permitted dispositions and other  --  (0.2) 0.1 (0.1)Equity based compensation expense 2.5 3.0 9.1 4.0Other nonoperating, net (a) (0.2) (0.6) 0.1 (1.1)Adjusted EBITDA $ (0.6) $ 1.6 $ 0.0 $ (0.8)     (a) Other nonoperating, net excludes the impact of earnings (loss) of our equity method investment as well as non-cash foreign currency gains or losses.  SUPPLEMENTAL FINANCIAL INFORMATIONYRC Worldwide Inc. and SubsidiariesFor the Trailing Twelve Months Ended June 30, 2014(Amounts in millions)(Unaudited)   2014Reconciliation of operating income (loss) to adjusted EBITDA: Operating loss $ (8.2)Depreciation and amortization 167.2Gains on property disposals, net (5.3)Letter of credit expense 23.4Restructuring professional fees 10.3Permitted dispositions and other  1.8Equity based compensation expense 10.9Amortization of ratification bonus 5.2Other nonoperating, net (a) 1.2Adjusted EBITDA  $ 206.5  (a) Other nonoperating, net excludes the impact of earnings (loss) of our equity method investment as well as non-cash foreign currency gains or losses.            YRC Worldwide Inc.Segment StatisticsQuarterly Comparison       YRC Freight    Y/YSequential 2Q142Q131Q14% (b)% (b)Workdays 63.5 64.0 63.0        Total picked up revenue (in millions) (a) $ 839.2 $ 797.5 $ 755.9 5.2 11.0Total tonnage (in thousands) 1,796 1,710 1,646 5.1 9.1Total tonnage per day (in thousands) 28.29 26.71 26.13 5.9 8.2Total shipments (in thousands) 3,070 2,952 2,772 4.0 10.8Total shipments per day (in thousands) 48.35 46.12 44.00 4.8 9.9Total picked up revenue/cwt. $ 23.36 $ 23.32 $ 22.96 0.2 1.8Total picked up revenue/shipment $ 273 $ 270 $ 273 1.2 0.2Total weight/shipment (in pounds) 1,170 1,159 1,188 1.0 (1.5)      (a) Reconciliation of operating revenue to total picked up revenue (in millions):  Operating revenue $ 842.1 $ 797.6 $ 756.8  Change in revenue deferral and other (2.9) (0.1) (0.9)  Total picked up revenue $ 839.2 $ 797.5 $ 755.9          Regional Transportation     Y/YSequential 2Q142Q131Q14% (b)% (b)Workdays 62.5 64.0 67.0        Total picked up revenue (in millions) (a) $ 475.6 $ 445.1 $ 454.4 6.9 4.7Total tonnage (in thousands) 2,054 1,970 2,015 4.2 1.9Total tonnage per day (in thousands) 32.86 30.79 30.08 6.7 9.2Total shipments (in thousands) 2,807 2,710 2,706 3.6 3.7Total shipments per day (in thousands) 44.91 42.35 40.38 6.0 11.2Total picked up revenue/cwt. $ 11.58 $ 11.30 $ 11.28 2.5 2.7Total picked up revenue/shipment $ 169 $ 164 $ 168 3.2 0.9Total weight/shipment (in pounds) 1,463 1,454 1,490 0.6 (1.8)      (a) Reconciliation of operating revenue to total picked up revenue (in millions): Operating revenue $ 475.5 $ 444.9 $ 454.1  Change in revenue deferral and other 0.1 0.2 0.3  Total picked up revenue $ 475.6 $ 445.1 $ 454.4        (a) Does not equal financial statement revenue due to revenue recognition adjustments between accounting periods.(b) Percent change based on unrounded figures and not rounded figures presented.        YRC Worldwide Inc.Segment StatisticsAnnual Comparison     YRC Freight YTDYTDY/Y 2Q142Q13% (b)Workdays 126.5 126.5     Total picked up revenue (in millions) (a) $1,595.2 $1,554.4 2.6Total tonnage (in thousands) 3,443 3,315 3.8Total tonnage per day (in thousands) 27.21 26.21 3.8Total shipments (in thousands) 5,842 5,716 2.2Total shipments per day (in thousands) 46.18 45.18 2.2Total picked up revenue/cwt. $ 23.17 $ 23.44 (1.2)Total picked up revenue/shipment $ 273 $ 272 0.4Total weight/shipment (in pounds) 1,179 1,160 1.6    (a) Reconciliation of operating revenue to total picked up revenue (in millions):Operating revenue $1,598.9 $1,551.4 Change in revenue deferral and other (3.7) 3.0 Total picked up revenue $1,595.2 $1,554.4       Regional Transportation  YTDYTDY/Y 2Q142Q13% (b)Workdays 129.5 126.5     Total picked up revenue (in millions) (a) $ 930.0 $ 854.1 8.9Total tonnage (in thousands) 4,069 3,802 7.0Total tonnage per day (in thousands) 31.42 30.05 4.5Total shipments (in thousands) 5,512 5,190 6.2Total shipments per day (in thousands) 42.57 41.03 3.7Total picked up revenue/cwt. $ 11.43 $ 11.23 1.7Total picked up revenue/shipment $ 169 $ 165 2.5Total weight/shipment (in pounds) 1,476 1,465 0.8    (a) Reconciliation of operating revenue to total picked up revenue (in millions):Operating revenue $ 929.6 $ 853.6 Change in revenue deferral and other 0.4 0.5 Total picked up revenue $ 930.0 $ 854.1     (a) Does not equal financial statement revenue due to revenue recognition adjustments between accounting periods.(b) Percent change based on unrounded figures and not rounded figures presented.

 

Issues: Freight
Categories: Labor News, Unions

Trusteeship Hits Chicago Local 710

Thu, 07/31/2014 - 08:15

July 31, 2014: James Hoffa yesterday imposed an “emergency” trusteeship over Local 710, and appointed Chicago Teamster boss John Coli as trustee. The trusteeship follows a July 17 report by the Independent Review Board on the lack of financial controls in the local union.

Many members of Local 710 are eager to clean house in the next election, and want to know how this trusteeship will affect those efforts.

A trusteeship is “presumed invalid” after 18 months, so we fully expect an election on that time schedule. That will be in early 2016, just the same time that Local 710 – and almost all locals – will elect delegates to the 2016 IBT Convention where candidates will be nominated to run for General President and all IBT offices, including Coli’s office.

A majority of the local’s 13,000 members are employed by UPS, ABF, UPS Freight and YRC. All of those groups of workers have rejected concessions by big margins in the past year, and are ready for real changes. Many have contacted Teamsters for a Democratic Union since yesterday to talk about future plans

The local includes all UPS Teamsters in Illinois outside the Chicago area, as well as Northern Indiana and Davenport, Iowa.

Those 6,000 UPS Teamsters rejected their contract last February by a 73% margin, and since then have been in the dark. The union falsely put on the ballot that a rejection would lead to an immediate strike. 

Trustee John Coli will now oversee bargaining with UPS. Coli supported every concessionary deal that the IBT has served up at UPS, UPS Freight, ABF and YRC.

The IRB Report details the charges against Local 710 secretary-treasurer Pat Flynn for purchasing $58,000 worth of gift cards over several years, without any accounting of what happened to those visa cards. It goes on to note that the local entered into leases and car purchases without executive board approval; that the trustees on the executive board did not review the cancelled checks compared to the books; and that the local financial reports failed to disclose $494,468 in “commissions” owed to officers. That liability would have led to the local reporting large negative net assets.

Members of Local 710 interested in being kept informed of developments can contact TDU by calling 313-842-2600 or emailing info [at] tdu [dot] org


 

Categories: Labor News, Unions

ABF Reports 14 Percent Revenue Increase

Thu, 07/31/2014 - 07:57
John LovettTimes RecordJuly 31, 2014View the original piece

Fort Smith-based ArcBest Corp. reported a 14-percent increase in revenue for this year’s second quarter led by performances at its two largest operating companies, ABF Freight and Panther Premium Logistics.

ArcBest’s second-quarter 2014 revenue was $658.6 million compared to revenue of $576.9 million in the second quarter of 2013, an increase of 14 percent. Second-quarter net income was $17.2 million compared to second-quarter 2013 net income of $4.9 million. On a per-share basis, this represents ArcBest’s most profitable quarter in six years, a news release states.

At ABF Freight, second-quarter revenue rose to $492.9 million from $446.8 million, while operating income increased to $22.8 million from $5.5 million in second quarter 2013. Cost as a percentage of revenue improved to 95.4 percent following implementation of the new labor agreement in November 2013, compared with 98.8 percent in the year-ago period.

ArcBest’s emerging, non-asset-based businesses, including Panther, grew combined revenues at a rate of 28 percent. During the second quarter, these businesses equaled 27 percent of total consolidated revenue compared to 24 percent during the same period last year. Second quarter 2014 earnings before interest, taxes, depreciation and amortization (EBITDA) at the non-asset-based businesses was $10.2 million, an increase of 47 percent compared to EBITDA in the second quarter of 2013.

“Our second-quarter results improved significantly from both the first quarter of 2014 and the year-ago quarter, which was welcome news as we emerged from the harsh winter weather earlier this year,” ArcBest President and CEO Judy R. McReynolds stated in the release.

McReynolds noted as the economy picked up in the second quarter, ABF Freight saw better pricing conditions and a positive impact from the new labor agreement with the Teamsters union.

“Panther reported one of the strongest quarters in its history,” she stated. “We are also seeing more customers buying at the enterprise level, when they require two or more ArcBest services.”

McReynolds said the company’s new brand identity, logos, advertising campaign and tagline, “The Skill & The Will” — which were launched on April 30 — have been well-received by customers and employees. A new website, TheSkillandTheWill.com, will be launched in early August to tell the stories of customers who have “benefited from employees’ willingness to go above and beyond, every day, to solve complex logistics challenges,” and “the broader story of the company’s culture through the eyes of the customer,” McReynolds said.

- See more at: http://swtimes.com/business/arcbest-reports-14-percent-revenue-increase#...

Fort Smith-based ArcBest Corp. reported a 14-percent increase in revenue for this year’s second quarter led by performances at its two largest operating companies, ABF Freight and Panther Premium Logistics.

ArcBest’s second-quarter 2014 revenue was $658.6 million compared to revenue of $576.9 million in the second quarter of 2013, an increase of 14 percent. Second-quarter net income was $17.2 million compared to second-quarter 2013 net income of $4.9 million. On a per-share basis, this represents ArcBest’s most profitable quarter in six years, a news release states.

At ABF Freight, second-quarter revenue rose to $492.9 million from $446.8 million, while operating income increased to $22.8 million from $5.5 million in second quarter 2013. Cost as a percentage of revenue improved to 95.4 percent following implementation of the new labor agreement in November 2013, compared with 98.8 percent in the year-ago period.

ArcBest’s emerging, non-asset-based businesses, including Panther, grew combined revenues at a rate of 28 percent. During the second quarter, these businesses equaled 27 percent of total consolidated revenue compared to 24 percent during the same period last year. Second quarter 2014 earnings before interest, taxes, depreciation and amortization (EBITDA) at the non-asset-based businesses was $10.2 million, an increase of 47 percent compared to EBITDA in the second quarter of 2013.

“Our second-quarter results improved significantly from both the first quarter of 2014 and the year-ago quarter, which was welcome news as we emerged from the harsh winter weather earlier this year,” ArcBest President and CEO Judy R. McReynolds stated in the release.

McReynolds noted as the economy picked up in the second quarter, ABF Freight saw better pricing conditions and a positive impact from the new labor agreement with the Teamsters union.

“Panther reported one of the strongest quarters in its history,” she stated. “We are also seeing more customers buying at the enterprise level, when they require two or more ArcBest services.”

McReynolds said the company’s new brand identity, logos, advertising campaign and tagline, “The Skill & The Will” — which were launched on April 30 — have been well-received by customers and employees. A new website, TheSkillandTheWill.com, will be launched in early August to tell the stories of customers who have “benefited from employees’ willingness to go above and beyond, every day, to solve complex logistics challenges,” and “the broader story of the company’s culture through the eyes of the customer,” McReynolds said.

- See more at: http://swtimes.com/business/arcbest-reports-14-percent-revenue-increase#...

Fort Smith-based ArcBest Corp. reported a 14-percent increase in revenue for this year’s second quarter led by performances at its two largest operating companies, ABF Freight and Panther Premium Logistics.

ArcBest’s second-quarter 2014 revenue was $658.6 million compared to revenue of $576.9 million in the second quarter of 2013, an increase of 14 percent. Second-quarter net income was $17.2 million compared to second-quarter 2013 net income of $4.9 million. On a per-share basis, this represents ArcBest’s most profitable quarter in six years, a news release states.

At ABF Freight, second-quarter revenue rose to $492.9 million from $446.8 million, while operating income increased to $22.8 million from $5.5 million in second quarter 2013. Cost as a percentage of revenue improved to 95.4 percent following implementation of the new labor agreement in November 2013, compared with 98.8 percent in the year-ago period.

ArcBest’s emerging, non-asset-based businesses, including Panther, grew combined revenues at a rate of 28 percent. During the second quarter, these businesses equaled 27 percent of total consolidated revenue compared to 24 percent during the same period last year. Second quarter 2014 earnings before interest, taxes, depreciation and amortization (EBITDA) at the non-asset-based businesses was $10.2 million, an increase of 47 percent compared to EBITDA in the second quarter of 2013.

“Our second-quarter results improved significantly from both the first quarter of 2014 and the year-ago quarter, which was welcome news as we emerged from the harsh winter weather earlier this year,” ArcBest President and CEO Judy R. McReynolds stated in the release.

McReynolds noted as the economy picked up in the second quarter, ABF Freight saw better pricing conditions and a positive impact from the new labor agreement with the Teamsters union.

“Panther reported one of the strongest quarters in its history,” she stated. “We are also seeing more customers buying at the enterprise level, when they require two or more ArcBest services.”

McReynolds said the company’s new brand identity, logos, advertising campaign and tagline, “The Skill & The Will” — which were launched on April 30 — have been well-received by customers and employees. A new website, TheSkillandTheWill.com, will be launched in early August to tell the stories of customers who have “benefited from employees’ willingness to go above and beyond, every day, to solve complex logistics challenges,” and “the broader story of the company’s culture through the eyes of the customer,” McReynolds said.

Categories: Labor News, Unions

Hoffa Escalates Attack on the Right to Vote

Wed, 07/30/2014 - 12:12

july 30, 2014: The Hoffa administration is escalating its attack on Teamster voting rights. Hoffa administration lawyers are filing new papers with Judge Loretta Preska in a bid to end fair, independently supervised elections in the Teamsters. The case could be decided as early as September.

Judge Preska can’t just hear from Hoffa. She needs to hear from us.

More than 3,000 Teamsters have signed an Open Letter to Judge Preska, including 1,744 who have signed online.

We’ve set a goal of delivering 10,000 petition signatures to Judge Loretta Preska by Labor Day.

Can you help us reach our goal and save the right to vote by:

Clicking here to sign the petition?

Emailing a link to the petition to your friends and asking them to sign and sharing it on your Facebook wall?

If you’d like copies of the petition form and a leaflet explaining the issue to distribute, please contact TDU at 313-842-2600 or info [at] tdu [dot] org and we’ll be happy to mail you a packet immediately.

You can click here to read more background on this campaign and on the importance of independent oversight in protecting members’ rights.

Categories: Labor News, Unions

Take Back Our Union Meetings Ohio and Kentucky

Wed, 07/30/2014 - 11:24

Members are holding Take Back Our Union meetings in Ohio and Louisville to reach out to concerned Teamsters and organize for change.

Teamster are tired of Hoffa, Hall and contract concessions. Members have launched Take Back Our Union to organize for change. 

Two Take Back Our Union meetings are organized for Saturday, August 9. Invited guest speakers include Teamster local leaders Sandy Pope, Fred Zuckerman, Tim Sylvester, and Tony Jones.

For more information on these meetings, email takebackourunion2016 [at] gmail [dot] com

Take Back Our Union—Dayton

Saturday, Aug.99:30 AMHilton Garden Inn3520 Pentagon Park Blvd. Beavercreek, Ohio Click here to download a flyer with Ohio meeting details.Take Back Our Union—Louisville Saturday, Aug. 93:30 PM—5:30 PMCrowne PlazaLouisville AirportCrowne C Room830 Phillips Lane, Louisville Click here to download a flyer with Louisville meeting details.

 

Categories: Labor News, Unions

FedEx indicted for drug dealing. Not a delivery guy — the whole company

Wed, 07/30/2014 - 07:56
Justin MoyerThe Washington PostJuly 30, 2014View the original piece

There might be something more interesting than a tennis ball in that FedEx package.

File that illicit drug revenue under “miscellaneous.”

That’s more or less the policy the shipping giant FedEx followed starting in the mid-aughts, according to a 15-count indictment filed in U.S. District Court in California on Thursday. According to prosecutors, the company knew the shipping services it provided to two Internet pharmacies ran afoul of the law.

Click here to read more at The Washington Post.

Categories: Labor News, Unions

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