Item 8.01. Other Events.
As previously disclosed, on March 21, 2019, YRC Worldwide Inc. (“YRC Worldwide”) operating companies YRC Inc., USF Holland LLC and New Penn Motor Express LLC (collectively, the “Companies”) and Teamsters National Freight Industry Negotiating Committee (“TNFINC”), the negotiating arm of the International Brotherhood of Teamsters (“IBT”), on behalf of itself and the Teamster Local Unions representing employees covered by the National Master Freight Agreement (“NMFA”), reached a tentative agreement in principle for a new collective bargaining agreement (the “New NMFA”), subject to ratification by the Companies’ union employees (the “Union Employees”).
On May 3, 2019, YRC Worldwide was notified that the Union Employees ratified the New NMFA. YRC Worldwide was also notified that while the Union Employees ratified 25 of the 26 applicable supplemental agreements to the New NMFA that were subject to a ratification vote simultaneously with the New NMFA, the Union Employees declined to ratify one applicable supplemental agreement. The supplemental agreement covers localized operational and work rule type items, and does not supersede the New NMFA and its terms. As a result, YRC Worldwide does not anticipate that any further negotiations regarding the one remaining supplemental agreement will affect the financial terms of the New NMFA. In accordance with the IBT’s ratification procedures, however, the approved New NMFA and supplemental agreements will not take effect until issues pertaining to that supplemental agreement are resolved. The Companies’ current NMFA and related supplemental agreements expire on May 31, 2019.
The Companies have begun discussions with TNFINC concerning the one supplemental agreement that the applicable Union Employees declined to ratify. A copy of a press release providing an update on this development is furnished as an exhibit to this Report on Form8-K.
Item 9.01. Financial Statements and Exhibits.
Forward-Looking Statements
This Current Report onForm 8-K and the attached press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “will,” “would,” “anticipate,” “expect,” “believe,” “intend” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are inherently uncertain and are subject to significant business, economic, competitive, regulatory and other risks, uncertainties and contingencies, known and unknown, many of which are beyond the Company’s control. It is important to note that the results of future discussions and negotiations with the IBT and the process to address the supplemental agreement that was not ratified on May 3, 2019, as well as the outcome thereof, may be subject to a number of factors, including (among others) those risk factors that are from time to time included in the Company’s reports filed with the SEC, including the Company’s reports onForms 10-K and 10-Q.
