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Analyst Predicts Teamsters Will Approve Wage Cuts at YRC
Less-than-truckload company YRC Worldwide鈥檚 Teamsters-union employees voted Tuesday on whether to accept a 10% pay cut aimed at helping the carrier, and one analyst said he expects the union to approve the vote, Bloomberg reported.
Justin Yagerman, an analyst at Wachovia Capital Markets in New York, said in a research note Tuesday that he expected the union to approve the cuts, and raised his rating on the YRC to 鈥渕arket perform鈥 from 鈥渦nderperform,鈥 Bloomberg said.
The union鈥檚 final vote tally is likely to come in on Wednesday, according to a Teamsters spokesman, Bloomberg reported.
YRC鈥檚 stock price rose 21% in Nasdaq trading Tuesday on speculation that the union鈥檚 rank and file will approve the wage concessions, aimed at saving YRC as much as $250 million a year, Bloomberg said.
The carrier has about 40,000 Teamsters-represented workers, and it posted three quarterly losses in the quarters through the end of September as its freight demand slumped, Bloomberg reported.
YRC is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.