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YRC Freight Rescinds Pay Cuts—But Not for All Workers

May 1, 2017 
By Steven Wishnia and Neal Tepel

Kansas City, MO - Three years after the Teamsters agreed to pay cuts to prevent the YRC Freight trucking company from going bankrupt, the company is rescinding the cuts—but only for workers in some areas.

YRC Freight and two of its regional trucking affiliates agreed Apr. 10 to end the two-tier system for newly hired truckers and mechanics and gradually eliminate the 15% pay cut for dockworkers. The catch is that workers will get raises only in some regions: Those at terminals in New York, Chicago, Seattle, and Southern California will, but those in Cleveland, Kansas City, St. Louis, and the South won’t. The agreement called the increases “market-based adjustments” and said they were necessary because “the recruitment and retention of qualified employees in certain areas of the country continues to be challenging.” The dissident Teamsters for a Democratic Union, which posted the memorandum online, criticized the union’s leadership for “a big break with Teamster solidarity.” “For the first time ever, freight Teamsters at the same company will make different wages at different terminals,” it said. “We’re happy to have anyone get a raise, but it should go to all,” TDU recruiter Ken Paff told the Kansas City Star. “Why didn’t they demand it everywhere?” Read more

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