Wednesday, August 1, 2012

YRC Shares Skyrocket As Teamsters Approve Pay Cut

Shares of trucker YRC Worldwide (YRCW) are soaring this morning after the company late Friday announced that the majority of YRC employees represented by the Teamsters has ratified a modified labor contract that includes a 5% incremental wage reduction and an 18-month cessation of contributions to the union pension fund. The company said the plan twill save $45 million a month.

The company also said it signed a sale and leaseback deal to sell certain facilities to NorthAmerican Terminals Management Inc. The aggregate sales price is about $81 million. YRC said sale and financing leaseback transactions are now expected to generate $375 million in cash and that excess property sales this year should generate over $100 million.

YRCW today is up 55 cents, or 24.3%, to $2.81.

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