Wild Journey Continues For YRC Worldwide Inc. (NASDAQ:YRCW)
YRC Worldwide, Inc. (NASDAQ:YRCW)’s stock has seen the wildest swing this year with its 52 week high of $36.99 during July 2013 to 52 week low of $5.75 during November 2013. Yesterday the stock surged close to 18.35% especially when the peers were trading flat including Arkansas Best Corporation (NASDAQ:ABFS) which fell 0.21% and Con-way Inc. (NYSE:CNW) that fell 0.31%. As a reminder, YRC Worldwide, Inc. is a Kansas based transportation services provider and operates through YRC Freight segment and Regional Transportation segment. The company also offers online resources to manage transportation activities through its e-commerce Websites, NewPenn.com and my.yrcregional.com.
The Stock Booster
The stock prices soared on Monday after the YRC Worldwide, Inc. (NASDAQ:YRCW)’s union agreed to vote on extending an agreement which in turn would allow the company to refinance some debt. James Welch, YRC World wide’s Chief Executive Officer said, “The affirmative vote from local IBT leaders allows us to begin the ratification process by which the company is seeking to extend the current MOU [Memorandum of Understanding] to March 31, 2019; and allows us to move forward with our effort to refinance the company’s balance sheet.”
The Confident Note
Moreover James Welch affirmed his confidence in union workers and expressed that most of them would support this agreement as it is proposed in a way that minimize the impact on salaries and also maintains health benefits which are at par with industry standards. The CEO stated in a telephone interview that this would put YRC Worldwide, Inc. (NASDAQ:YRCW) on a much better track than the company has been on in almost a decade.
The Labor Agreement
The proposed agreement will allow for sub-contracting a part of transportation services to counter a driver shortage with and effective call for action to deal with absenteeism that costs the company $40 million annually. Moreover the agreement also proposes to cut the starting salary for new joiners and reduce vacation time for some workers.