YRC Worldwide Inc asks union for new contract terms to get debt refinancing approval
YRC Worldwide asked union employees for new contract terms in order to get its debt refinancing approved. The trucking company's Chief Executive Officer James Welch told the union members of the International Brotherhood of Teamsters that lenders wanted to renegotiate its labor agreement before refinancing the company's loans that would mature beginning next year. In a letter dated October 30, Welch said the firm had incurred USD 1.4 billion in debt. The debt was incurred because of various missteps the trucking firm had taken before he assumed his role as Chief Executive Officer two years ago, Welch wrote.
Welch added, "Some companies in our position have simply declared bankruptcy. We have all worked too hard and sacrificed too much to go that route and lose some of the industry's best jobs."
YRC Worldwide management scheduled a meeting with the International Brotherhood of Teamsters tomorrow to talk about the labor contract which would expire on March 2015.