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Author Topic: YRC corp bailout???  (Read 1378 times)

R766ST

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YRC corp bailout???
« on: May 16, 2009, 02:56:29 AM »
 ???
« Last Edit: June 22, 2011, 11:45:41 AM by R766ST »

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YRC corp bailout???
« on: May 16, 2009, 02:56:29 AM »

Below 30

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Re: YRC corp bailout???
« Reply #1 on: May 16, 2009, 06:03:15 AM »
I just read about it because of you. Another case of bad management in volitile times. Why did they have to buy up so many companies and try to amalgamate everything so quick? We saw the almost impossible happen with big time companies in the last year and YRC is not immune to this either.
When skills ruled.

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snafu

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Re: YRC corp bailout???
« Reply #2 on: May 16, 2009, 07:16:20 AM »
Tell their union boys they have to accept large wage and pension concessions matching those of auto workers before any bailout talk is seriously considered.

Management has to take a 50% cut in salary and forgo any performance bonuses as well.

Even then I don't like the idea of government bailing out big business.

hwyhaulier

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Re: YRC corp bailout???
« Reply #3 on: May 16, 2009, 07:38:16 AM »
...Tell their union boys they have to accept large wage and pension concessions matching those of auto workers before any bailout talk is seriously considered...

snafu -

I'm dubious. So many panaceas in freight! So many just don't work.

There is an "economic model" problem, now painfully apparent. Any of these, heavy into bricks and mortar sites, carriers all carry the same burden.
Simply, there is a daily "nut" or "critical mass" that must be in play. If the volume numbers suffer declines, slides from profitability to loss occurs at
a much, much faster rate than the raw figures of declines in "bill count". It doesn't help much if the operators have outstanding debt on near everything
(tho this is not comment on any balance sheets I haven't personally seen).

The same kind of mathematical analysis may also be applied to particular "break bulk" stations in a given system, too. I've had past experience in the
hands on methodology, and in the dark B.D.C. (Before Desktop Computers) days.

The report out of YRC is shocking, and simply confirms things are rough out there. One wonders how immense, and possibly reckless, public spending
will help at all.....

..............................Vern..........................

snafu

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Re: YRC corp bailout???
« Reply #4 on: May 16, 2009, 08:01:48 AM »
Vern, I honestly don't think they should get any government bailout to begin with. But that snowball unfortunately started rolling with the banks, insurance companies, auto sector.

Personally, I loathe the volume based discounted rate carriers who practice that business model.

wbache

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Re: YRC corp bailout???
« Reply #5 on: May 16, 2009, 09:14:35 AM »
I saw on a Toronto news station this morning that its expected that YRC corp will seek a billion dollar bailout from the US government next week. Anybody else hear or read about this?

I put up a post on this yesterday on the LTL site and Jimmie has put up a link on it as well.

wbache

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Re: YRC corp bailout???
« Reply #6 on: May 16, 2009, 11:51:26 AM »
Sorry about that! I've been on the road the last couple of days and haven't been keeping up with the forum. I wasn't trying to take anybody's thunder, just saw it on the morning news and posted it right away. To be honest, I don't usually check the LTL thread.....my bad! Maybe Rob can move this thread?

no problem -  -the situation in Canada may be different that the U.S and everyone is entitled to share their veiws especially in what at best can be called troubled times.
Walt

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Re: YRC corp bailout???
« Reply #7 on: May 16, 2009, 09:06:45 PM »
What is strange to me is that when I checked Yellow's site a couple of weeks back, there were no employment positions available anywhere in Canada, yet in the States there was still quite a few positions open.

I don't think Canada is really doing that much better than the States right now when it comes to trucking/transportation.

hwyhaulier

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Re: YRC corp bailout???
« Reply #8 on: May 17, 2009, 03:06:22 AM »
snafu -

Long time, and quite marvelous competitor, (which I prefer to call) YELLOW FREIGHT perceives a possible shot at abating burdensome obligations
under various retirement plans? I can't speak for its Board, of course. I'll guess they see a possible shot of getting help, and remaining gentlemen in
the process...

...Personally, I loathe the volume based discounted rate carriers who practice that business model...   

Amen! Old time, seasoned freight pricing guys can explain everything that is wrong with the rate making methods you decry. We have all seen so
much nonsense since deregulation of now near three decades back. It didn't work then. It doesn't work now. It did do a good job of wrecking an
enormous number of jobs, all paying fair wages for a fair day's work, and disrupting lives of countless families...

The widely recognized Cass Bank of St. Louis, known for its many decades work in freight, has studies demonstrating no net benefits to shippers in
experienced distribution and transport costs! So, why did we do this?

........................Vern.....................

wbache

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Re: YRC corp bailout???
« Reply #9 on: May 17, 2009, 03:57:43 AM »
One of the reasons advanced for bailing out various enterprises is they are too big to fail and that the resulting fallout would spread not only to stock and bond holders but depositors and insurance policy holders. As a stakeholder in many of these business by way of an IRA/pension beneficiary and an insurance policy with many years of built up cash value I suppose the selfish atitude should be that we need help from the government. What we should be thinking of and the politicans don't want us to see is the tax burden that we eventually will bear to pay for it all  plus the fact that we are passing most of it onto yet unborn generations. As has been pointed out by Vern deregulation has been a failure whether you are a owner shipper or employee.  As far as YRC is concerned we can look at the late great CF and see that if they fold tomorrow it will be like throwing a  rock in a lake. there will be some ripples but in a short time the only thing we will see is their rolling stock rolling down the road with the name painted over or sand blasted off. And for those who like to blame it on one particular political party  --deregulation was signed by Jimmie Carter who thought that those who made 25000.00 a year were rich.  The new guy has raised that to 250000.

end of rant

hwyhaulier

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Re: YRC corp bailout???
« Reply #10 on: May 17, 2009, 04:11:26 AM »
wbache -

Amen! And, Thank You!

BTW. You oughta' love this one. Guy up the street, nice enough younger manager. Resume has ten years in at WMT of Arkansas. Let me run this one by everyone.
In its management training seminars and exercises, it cites example of CFWY as a good idea gone sour. In its material, WMT stresses the point the line became lost
in the wilderness, after it departed from the Teachings of the True Word, as Received by Founder, Leland James. I always though so! WMT preaches t!

.............................Vern....................

Below 30

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Re: YRC corp bailout???
« Reply #11 on: May 17, 2009, 09:02:36 AM »
Too big to fail is the ignorance that we have been taught for too long now. Natural forest fires happen because the trees are too old but won't fall down on their own to let new life grow. So Nature forces the trees to the ground via lightning and fire. The point is that these big companies have been greedy and running illegal for years and now it's caught up to them. They have to burn to the ground now, because the same management that ruined these companies, are the same ones that will get bonuses from us the tax payer from a bail out.

They call it a bail out, but it's just a hail mary. The fear of mass layoffs is what fuels the stupid idea that you can put lots of money into a failed organization and it will magically be profitable. All these companies must fall and then the competition will rise to take the place, become bigger and hire those that were laid off. GM and Chrysler failed to make cars that people wanted and billions of dollars won't make people abandon the much better imports. Water into a broken glass will never fill up, it's time to get a new glass.
When skills ruled.

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RedStapler

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Re: YRC corp bailout???
« Reply #12 on: May 17, 2009, 09:59:11 AM »
Politicians will almost always throw large sums of money at failing industries that employ lots of voters.

The fallout from deregulation has been a race to the bottom of rates, margins and driver pay. In segments like truckload van and reefer the race to the bottom was over within five years.   

Any fool with $10k can buy a old tractor and pull cheap freight at his marginal cost until a breakdown or debts catch up with him.  Many of the large truckload  carriers earn more today from operating their overpriced CDL mills, getting free team drivers and calling it "training" and  signing the ignorant up for the "Lease-Purchase" sharecropping scam.

It has taken longer for LTL but the end result is the same. Lowball operators who are willing to use their employees as ammunition in a price war have slowly but steadily eroded margins and pay. 

« Last Edit: May 17, 2009, 06:51:35 PM by RedStapler »

Steve_WI

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Re: YRC corp bailout???
« Reply #13 on: May 17, 2009, 10:09:10 AM »
GM and Chrysler failed to make cars that people wanted and billions of dollars won't make people abandon the much better imports.

Actually they did for many years, up until recently.  Its was called pickups and SUV's.  It was there big money makers.  Even the imports got into the game.  As one example, who woulda thought gas prices would have risen to the levels of $2, $3, $4, and $5 dollars in such a short period of time?  Far to short for ANY manufacturer no matter what industry it maybe to change their practices.  And really as a manufacturer, do you write it off as a mere hiccup?  I sure would have when it first started.  After all it takes alot of money and time to build a new product line.  Its too bad we didnt see at the time what we know now.  And in regards to saving Detroit, the effects trickle down enormously.  When you think of all the associated industries and service providers, it is a national concern and in my opinion national security.

Bailouts are a very touchy subject.  There are always gonna be pros and cons. My .02.



Dec. 23, 2008 The end of an era at GM Janesville.

wbache

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Re: YRC corp bailout???
« Reply #14 on: May 17, 2009, 12:11:18 PM »
Quote
Bailouts are a very touchy subject.  There are always gonna be pros and cons. My .02.

One's opinion is usually flavored by whether you are the payor or payee

as to the auto industry the environmental movement has been trying to accomplish what we see in the industry now and 5.00 a gallon gas did what most of their other promotions did not. Now that the government has gotten a big say in how the industry goes forward they are promoting the manufacture of a product that many people do not want to buy at least not at a price differential of thousands of dollars. that is why you see rebates either b y the manufacturer or the government for alternative fueled  or powered cars. This is not to say that there should not be a movement towards conserving energy but trying to do it as quickly as has been proposed is not the cheapest or most practical way. Unfortunately when politicians make the decisions interest groups and campaign contributions enter the equasion.

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Re: YRC corp bailout???
« Reply #14 on: May 17, 2009, 12:11:18 PM »

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