YRC, Teamsters Reach Tentative Agreement; Shares Surge

[Omaha Steve]

http://online.wsj.com/article/BT-CO-20090709-710173.html

* JULY 9, 2009, 11:26 A.M. ET

DOW JONES NEWSWIRES


YRC Worldwide Inc. (YRCW) reached a tentative agreement with the International Brotherhood of Teamsters Thursday to modify the terms of its current labor agreement.

Shares surged 93% to $1.72 following the news. Still, the stock has lost over 90% of its value from its 52-week high last July.

The largest independent less-than-truckload carrier said the proposed changes would help lower the company's cost structure and preserve operating capital.

YRC Worldwide has been forced to secure concessions from lenders amid sagging volume and multiple restructuring efforts.

The company said it would release additional details about the tentative agreement next week, following further discussions with labor leadership. The modified agreement will be voted on by YRC Worldwide employees who are represented by the Teamsters.

The Teamsters agreed to $200 million in wage cuts in January, and further pay and pension concessions were expected to be on the agenda for this round of talks.

-By John Kell, Dow Jones Newswires; 212-416-2480; [e-mail]