Tuesday, March 12, 2013

LTL Road Haulage Operator Announces More Staff and Service Changes

Trucking Firm Continues to Work with Unions in an Effort to Regain Profitability
Shipping News Feature

US – The restructuring plan which was agreed between trucking group YRC Worldwide and the Teamsters Union continue to take effect with the news this week that there are to be 128 redundancies at the company’s YRC Freight depot in St. Louis, YRC Freight handles LTL shipments for the group. It was the flexibility of the workforce when the road haulage outfit was facing disaster which enabled it to continue in business. Today the Kansas headquartered group mailed union representatives a proposal for a further set of network ‘improvements’.

According to reports the current agreement allows for over 2,000 staff to be shed in a bid to ensure the group’s survival, the first encouraging signs of which were seen when it recorded considerably improved figures in the second quarter of last year (although still short of making a profit) and has been followed by last month’s revelation that holding company YRC Worldwide was able to report a positive annual operating income for the first time in six years for 2012 as a whole.

Consolidated operating revenue for the year ended December 31, 2012 was $4.851 billion, 0.4% lower than 2011, but consolidated operating income increased $162.3 million to $24.1 million, which included a $9.7 million gain on asset disposals. Comparatively, the company reported consolidated operating revenue of $4.869 billion for the year ended December 31, 2011 and a consolidated operating loss of $138.2 million, which included an $8.2 million gain on asset disposals.

Now YRC Freight will join a committee composed of union and company leadership to convene a formal hearing, expected to take place next month, to consider the changes which the company wishes to initiate from May 2013. Jeff Rogers, president of YRC Freight, said today:

"By realigning our network, YRC Freight will reduce the number of handling and relay locations in order to build network density. These network improvements will be seamless to our customers and when implemented will improve our service. The ongoing effort to optimize our network is also a key part of our sustainability efforts as we reduce mileage and emissions. Better density means fewer empty miles and fewer emissions.

"This is all about improving customer service and taking another step to regain a lead position in the North American LTL market. This change also moves us closer to sustained profitability."