SCDigest Editorial Staff

SCDigest Says:

The theme of intra-company competition was cited by several writers, who say it may be good for shippers, but bad for YRC. What do you say? Click Here to Send Us Your Comments Click Here to See Reader Feedback

We received more than two dozens responses from readers of our recent piece on the financial challenges facing YRC Worldwide. (See YRC Worldwide Continues to Struggle, but Keeps Finding Ways to Cut Costs and Raise Cash.) Most of them were even printable, though a few were not, given the language.

The basic divide of the writers, of course, was between the union and “management,” but there was also quite a bit of different opinion as to the merit of the former Yellow Freight’s acquisition of Roadway, US Freightways and others – and which side in those deals was really causing the problems.

Many responders asked not to be identified.

For example, “Shawn” says that “I have worked for YRC for ten years now. I worked my way up from the dock to management. Since being a part of the management team, I am shocked to see how poorly our company operates.”

He adds: “We also have another account at the terminal I work for, in which the pricing is so bad, we are losing six figures a month. That is more than a million dollars a year loss just from this one account/facility. When the issue of how much money was being lost on the account is brought to anyone's attention in corporate, the response is 'We don't care about the money, we need to service this client.'”

On a much more positive note, “Dennis” from YRC writes that “I have worked for Yellow for 30 years and we have some of the best people in freight working there. We are in bad times right now, but the moves that YRC is doing right now will make the company stronger and I believe our management team is the best in freight.”

He adds: “The people that work there care about this company. Managers and Teamsters are working side by side now to make it happen. This is the best it has been in that regard in the 30 years I have been here. We all just get in there and get it done.”

“Pat” from YRC says, “The first point is Yellow did not drag Roadway or Holland down, it is the other way around. If Yellow had not purchased USF, the outcome would probably have been better.”

Teamster Randall Knight, on the other hand, says, “As an employee, since 2004, I have seen the steady decline of Roadway, after having been taken over by Yellow. I have watched as many knowledgeable, and quite capable behind the counter personnel have either taken a buyout offer, or, been escorted off the premises by security, only to be replaced with mainly incompetent children. Then there is the fact that Yellow sales personnel underbid freight against Roadway, essentially, robbing the hand that has fed them since their takeover of Roadway.”

(Transportation Management Article - Continued Below)