Saturday, November 20, 2010

Major US Freight Truck Company Still Under Pressure

YRC Set to Shut Over 40 Facilities
Shipping News Feature

US – For over a year now we have charted the ups and downs of holding company YRC who through their wholly owned subsidiary companies offer less than truckload (LTL), full load and national and international freight and logistics services. Sometimes it has been good news and sometimes not and occasionally awful but one’s view on the companies latest strategy will depend whether you are a stockholder or an employee.

YRC have previously managed to convince unions, principally the Teamsters, that cuts in salary packages by the many were necessary to maintain employment for all but now it seems further action is required to keep the company solvent. YRC themselves have not commented directly but a spokesman from their representatives told local press yesterday that around forty of the groups freight depots would be ‘consolidated’ starting two weeks before Christmas and continuing for a month.

The publicity agent stated that this was not a reduction in service and employees would be offered work from alternative locations with the company. Deliveries would be unaffected but the system would be more efficient if less hubs were involved thus concentrating the work, presumably at a lower cost.

YRC are understood to be ready to once again fully involve workers and unions at each stage of the rationalisation. The group currently operates 334 freight terminals in North America thus the reduction will equate to around 12% of the companies cargo handling capacity.