Utility Employee Change of Operations. May Yellow Transportation, Inc.

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1 Utility Employee Change of Operations May 2008 Yellow Transportation, Inc. Printed

2 GENERAL OPERATING STATEMENT In February 2005, Yellow Transportation, in cooperation with the International Brotherhood of Teamsters, implemented its first Premium Service Change of Operations. With the success of that specific Change of Operations, which encompassed but a small portion of Yellow Transportation s Market Area, Yellow Transportation has established itself as a viable and serious competitor for business in the same day, next day, two day and three day markets. This initial proposed Utility Employee Change of Operations, which is part and parcel to the simultaneous filing of Yellow Transportations Velocity Improvement Change of Operations, will allow Yellow Transportation to continue its program of significantly reducing transit times on behalf of our customers. However, we are well behind our primary competitors in that regard and cannot afford to delay. Within the scope of these Changes of Operations, over 15,000 service lanes will be positively impacted with reduced service times. Yellow Transportation is committed to re-engineering its city pickup and delivery operation, as well as speeding up the outbound processing of our customers shipments to meet the outbound cut times required of the same day, next day, two day and three day markets. Without an approved Change of Operations, the business Yellow presently handles as well as future business opportunities in all of its service lanes will be seriously jeopardized and subsequently lost to both Union and non union competition. In today s environment, Yellow Transportation is faced with the increasing growth of non-union carriers, freight consolidators and other unionized carriers who have established service schedules in all markets that place Yellow Transportation in a non competitive position. This Change of Operations will be primarily comprised of the following segments: Yellow Transportation will place Utility Employees, which will operate, as outlined, in Article 3 Section 7 of the National Master Freight Agreement in ninety eight (98) facilities. Yellow Transportation proposes, in this specific Change of Operation to have those Utility Employees described above, run schedules primarily to its Velocity Sort Centers as described below. The new centers will be established and described within the Velocity Improvement Change of Operations which Yellow Transportation has simultaneously submitted in conjunction with this Utility Employee Change of Operations. Yellow will expand its present operations at the original three (3) velocity sort centers established in Coldwater, Michigan Cincinnati, Ohio and Richfield, Ohio. Yellow will establish nine (9) new velocity sort centers as follows: Charlotte, North Carolina Harrisburg, Pennsylvania 2

3 Maybrook, New York Memphis, Tennessee Nashville, Tennessee Richmond, Virginia San Antonio, Texas Shreveport, Louisiana St. Louis, Missouri At startup, over 10,000 daily shipments, or approximately 25% of our customers shipments will be impacted with a service improvement of at least one (1) day. This Change of Operations will have a net gain of 296 Utility Employee positions. Yellow Transportation will continue its current operation per past Changes of Operations and decisions, agreements in place between Local Unions and the Company, except for the changes as specifically addressed in this document and the transcripts of this hearing. All employees accepting transfer under this Change of Operations will work primarily under the provisions of Article 3 Section 7 and the National Master Freight Agreement, in addition to the applicable Supplemental Agreements and conditions in effect at the terminal/domicile to which they transfer. No past practices will follow employees to their new locations. The routes defined in this Change of Operations describe the primary movement of traffic. Primary does not mean exclusively. All dispatches will be in compliance with Article 3 Section 7 of the National Master Freight Agreement. Nothing in this Change of Operations is meant to alter or change the terms and conditions of the National Master Freight Agreement or any supplemental agreements under which the company operates. 3

4 BIDDING This Utility Employee Change of Operations will create two hundred ninety six (296) new local cartage positions. As this Utility Employee Change of Operations must be implemented simultaneously and is part and parcel to Yellow Transportation s Velocity Improvement Change of Operations which will have an effect on both road driver positions and local cartage positions, the Company will comply with the seniority application decision of the Committee however, would put forward the following job opportunity proposal for the National Utility Employee Review Committee and Multi Region Change of Operations Committee s consideration: Over the Road employees who are negatively impacted by a loss of their runs at their present domicile with the creation of a Utility Employee position, will be allowed the opportunity to bid into that position at their domicile on a one time basis. If an Over the Road employee does not wish to bid a Utility position at his present domicile and is still seeking a job opportunity, that employee will be allowed to sign up to bid in a pool bid for jobs created in both this Utility Employee Change of Operations and any openings which he may be qualified for in the proposed Velocity Improvement Change of Operations. The Company would respectfully recommend that any pool bid, be offered in conjunction with any pool bid decision rendered in its proposed Velocity Improvement Change of Operations. If accepted, the above would be accomplished on a terminal by terminal basis and when complete, the process for a pool bid for all open positions could then take place. When approved, the Company will utilize a telephone bid procedure in conjunction with the decision on this specific Change of Operation and Yellow Transportation s Velocity Improvement Change of Operation, utilizing master seniority lists at losing domiciles. The sign-up sheets will be posted at losing domiciles for seven (7) days and the telephone bid will take place as agreed upon at the Change of Operations hearing. Yellow Transportation would propose a cutoff date for any new hire of April 1, Those attaining seniority after this date shall not be eligible to participate in the bid. Yellow Transportation would further propose that April 1, 2008 be utilized as a date to determine active status (layoff vs. active). The company seeks to implement the Utility Employee Change of Operations no sooner than Sunday, May 25, Moving expenses in this Service Enhancement Change of Operations will be handled in accordance with the provisions contained in Article 8, Section 6 of the National Master Freight Agreement. 4

5 However, Yellow Transportation proposes to give the option to employees who transfer under the provisions of this change, an opportunity to elect to receive a lump sum of $3,150.00, less tax liability, in lieu of temporary living expenses. Should this option be accepted by the Committee, we ask that those employees accepting re-domicile under the provisions of Article 8 Section 6c, Moving Expenses, notify the company at the time of the telephone bid, as to their choice of the lump sum or the traditional payment for lodging. In today s economic environment and excess industry capacity, the Company s opportunity to grow revenue diminishes every day. It is essential that this Utility Employee Change of Operations be approved by the National Utility Employee Review Committee at the hearing on May 12 th, 2008 and implemented as proposed, which is no sooner than Sunday, May 25, 2008 to avoid the consequences of lost revenue and jobs. 5

6 EASTERN REGION LOCAL UNIONS Teamsters Local Main St. Boston, Massachusetts Teamsters Local Stoneridge Drive Suite 207 Waynesboro, Virginia Teamsters Local Sardis Road Asheville, North Carolina Teamsters Local 71 Post Office Box N. Tryon St. Charlotte, North Carolina Teamsters Local Southampton Road Philadelphia, Pennsylvania Teamsters Local 110 Post Office Box Ebony Road Ebensburg, Pennsylvania Teamster Local Southwest Cutoff Suite 201 Worcester, Massachusetts Teamsters Local Melrose Avenue, NW Roanoke, Virginia Teamsters Local N. Main Avenue Scranton, Pennsylvania Teamsters Local Butler Street P.O. Box Pittsburgh, Pennsylvania Teamsters Local Brightridge Ave. East Providence, Rhode Island Teamsters Local rd Street Albany, New York Teamsters Local 317 Post Office Box Spencer Street Syracuse, New York Teamsters Local E. New Churchmans Road New Castle, Delaware Teamsters Local Englewood Avenue Buffalo, New York Teamsters Local 391 Post Office Box Sandy Ridge Road Colfax, NC Teamsters Local Angus Drive Raleigh, North Carolina Teamsters Local East 11 Street Erie, Pennsylvania Teamsters Local 404 Post Office Box Progress Ave. Springfield, Massachusetts Teamsters Local State Street Cayce, South Carolina Teamsters Local 597 Post Office Box 227 Quarry Hill Road South Barre, Vermont Teamsters Local Ames Place N.E. Washington, D.C Teamsters Local Rahway Avenue Union, New Jersey Teamsters Local Britton Drive Bloomfield, Connecticut

7 Eastern Region Local Unions - Continued Teamsters Local Howard Avenue Binghamton, New York Teamsters Local Front Street Hempstead, New York Teamsters Local Beaver Street P.O. Box 258 Milton, Pennsylvania Teamsters Local North Duke Street Lancaster, Pennsylvania Teamsters Local Hamilton Street Allentown, Pennsylvania Teamsters Local Jefferson Street Harrisburg, Pennsylvania Teamsters Local Bartee Street Norfolk, Virginia, Teamsters Local Remington Drive Hagerstown, Maryland

8 CENTRAL REGION LOCAL UNIONS Teamsters Local S. Hawley St. Toledo, Ohio Teamsters Local 50 P.O. Box 140 Belleville, Illinois Teamsters Local Taylor Boulevard Louisville, Kentucky Teamster Local Shelby Street Indianapolis, Indiana Teamsters Local South 8 th Street Terre Haute, Indiana Teamster Local Walnut Evansville, Indiana Teamsters Local Blue Sky Parkway Lexington, Kentucky Teamster Local Elizabeth Avenue St. Louis, Missouri Teamster Local Woodson Road Woodson Terrace, Missouri Teamster Local West Dunklin Jefferson City, Missouri Teamster Local St. Johns Road Lima, Ohio Teamsters Local 957 P.O. Box Dayton, Ohio Teamster Local East Division Street Springfield, Missouri Teamster Local Hickory Decatur, Illinois Teamsters Local East Edison Rd South Bend, Indiana Teamsters Local Teamsters Road Youngstown, Ohio Teamsters Local Eastern Ave. S.E. Grand Rapids, Michigan Teamsters Local East Rich Street Columbus, Ohio Teamster Local Weldon Parkway Maryland Heights, Missouri Teamsters Local North Allen Road Peoria, Illinois

9 SOUTHERN REGION LOCAL UNIONS Teamsters Local 5 Teamsters Local Dallas Drive 4303 North Sam Houston Parkway East Baton Rouge, Louisiana Houston, Texas Teamsters Local 217 Hamilton Hills Shopping Center Jackson, Tennessee Teamsters Local Cornelia Street Muscle Shoals, Alabama Teamsters Local Montclair Ave. Knoxville, Tennessee Teamsters Local Lakewood Ave S.W. Atlanta, Georgia Teamsters Local 568 P.O. Box 7805 Shreveport, Louisiana Teamsters Local 612 P.O.Box Birmingham, Alabama Teamsters Local Roughrider San Antonio, Texas Teamsters Local Jonelle Street Dallas, Texas Teamsters Local 878 P.O. Box Little Rock, Arkansas Teamsters Local Valley Street Jackson, Mississippi

10 EASTERN REGION SERVICE CENTERS Utility Employees PROPOSED OPERATION As a result of this Utility Employee Change of Operations described within, the Service Centers indicated below will establish Utility employees for the purposes of expediting freight to and from the new Velocity Sort Centers as indicated, in addition to any other duties as assigned in compliance with Article 3 Section 7 of the National Master Freight Agreement. Domicile New Utility Employees Charlotte Harrisburg Maybrook Richmond Cleveland/Richfield End of Lines Albany, NY 4 X Allentown, PA 3 X X Altoona, PA 1 X Ashville, NC 1 X Baltimore, MD 4 X X Binghamton, NY 2 X X Buffalo, NY 3 X Camden, NJ 3 X X Charleston, SC 2 X Columbia, SC 4 X Erie, PA 2 X Florence, SC 2 X Greenville, SC 4 X Hagerstown, MD 6 X X Harrisburg, PA 12 X High Point, NC 4 X X Keene, NH 1 X Lakewood, NJ 2 X X Lancaster, PA 4 X Manassas, VA 2 X X 10

11 Domicile New Utility Employees Charlotte Harrisburg Maybrook Richmond Cleveland/Richfield End of Lines Maybrook, NY 9 X Middletown, CT 3 X Norfolk, VA 4 X North Reading, MA 2 X Philadelphia, PA 5 X X Pittsburgh, PA 7 X X Providence, RI 6 X Raleigh, NC 5 X X Roanoke, VA 2 X X Rutland, VT 1 X Salisbury, MD 1 X Scranton, PA 2 X Springfield, MA 3 X Staunton, VA 3 X X Sunbury, PA 2 X X Syracuse, NY 3 X Washington, DC 2 X X Wilmington, DE 3 X X Wilmington, NC 1 X Wilson, NC 4 X X Worcester, MA 4 X Wytheville, VA 1 X Total Utility Employees

12 CENTRAL REGION SERVICE CENTERS Utility Employees PROPOSED OPERATION As a result of this Utility Employee Change of Operations described within, the Service Centers indicated below will establish Utility employees for the purposes of expediting freight to and from the new Velocity Sort Centers as indicated, in addition to any other duties as assigned in compliance with Article 3 Section 7 of the National Master Freight Agreement. Domicile New Utility Employees Coldwater Charlotte Cincinnati Memphis Nashville Cleveland/Richfield St. Louis Bowling Green, KY 1 X Columbia, MO 5 X X Columbus, OH 10 X X Dayton, OH 3 X Decatur, IL 1 X Evansville, IN 2 X X Grand Rapids, MI 2 X Indianapolis, IN 2 X Lexington, KY 2 X X Lima, OH 1 X Louisville, KY 13 X X Paducah, KY 7 X X X Peoria, IL 1 X Poplar Bluff, MO 2 X X Quincy, IL 1 X Rolla, MO 1 X Salem, IL 1 X South Bend, IN 1 X Springfield, MO 4 X Terre Haute, IN 3 X 12

13 Domicile New Utility Employees Coldwater Charlotte Cincinnati Memphis Nashville Cleveland/Richfield St. Louis Toledo, OH 1 X Warren, OH 1 X West Plains, MO 2 X X Total Utility Employees 67 13

14 SOUTHERN REGION SERVICE CENTERS Utility Employees PROPOSED OPERATION As a result of this Utility Employee Change of Operations described within, the Service Centers indicated below will establish Utility employees for the purposes of expediting freight to and from the new Velocity Sort Centers as indicated, in addition to any other duties as assigned in compliance with Article 3 Section 7 of the National Master Freight Agreement. Domicile New Utility Employees Charlotte Memphis Nashville San Antonio Shreveport Alexandria, LA 1 X Athens, GA 2 X Augusta, GA 2 X Austin, TX 2 X Baton Rouge, LA 2 X Beaumont, TX 2 X Birmingham, AL 4 X Chattanooga, TN 5 X Columbus, MS 1 X Cookeville, TN 1 X Corpus Christi, TX 1 X Dallas, TX 3 X Del Rio, TX 1 X El Dorado, AR 1 X Garland, TX 4 X Greenville, MS 1 X Grenada, MS 1 X Houston, TX 3 X Huntsville, AL 4 X X Jackson, MS 3 X Jackson, TN 3 X X Johnson City, TN 1 X Knoxville, TN 1 X Lafayette, LA 2 X Laredo, TX 3 X Little Rock, AR 18 X X 14

15 Domicile New Utility Employees Charlotte Memphis Nashville San Antonio Shreveport Monroe, LA 3 X Shelbyville, TN 1 X Texarkana, AR 8 X Tupelo, MS 1 X Tyler, TX 3 X Victoria, TX 1 X Waco, TX 1 X Total Utility Employees 90 15

16 Overall Utility Employee - Gaining Positions Gaining Locations Gaining Locations Albany, NY 4 Lancaster, PA 4 Alexandria, LA 1 Laredo, TX 3 Allentown, PA 3 Lexington, KY 2 Altoona, PA 1 Lima, OH 1 Asheville, NC 1 Little Rock, AR 18 Athens, GA 2 Louisville, KY 13 Augusta, GA 2 Manassas, VA 2 Austin, TX 2 Maybrook, NY 9 Baltimore, MD 4 Middleton, CT 3 Baton Rouge, LA 2 Monroe, LA 3 Beaumont, TX 2 Norfolk, VA 4 Binghamton, NY 2 North Reading, MA 2 Birmingham, AL 4 Paducah, KY 7 Bowling Green, KY 1 Peoria, IL 1 Buffalo, NY 3 Philadelphia, PA 5 Camden, NJ 3 Pittsburgh, PA 7 Charleston, SC 2 Poplar Bluff, MO 2 Chattanooga, TN 5 Providence, RI 6 Columbia, MO 5 Quincy, IL 1 Columbia, SC 4 Raleigh, NC 5 Columbus, MS 1 Roanoke, VA 2 Columbus, OH 10 Rolla, MO 1 Cookeville, TN 1 Rutland, VT 1 Corpus Christi, TX 1 Salem, IL 1 Dallas, TX 3 Salisbury, MD 1 Dayton, OH 3 Scranton, PA 2 Decatur, IL 1 Shelbyville, TN 1 Del Rio, TX 1 South Bend, IN 1 El Dorado, AR 1 Springfield, MA 3 Erie, PA 2 Springfield, MO 4 Evansville, IN 2 Staunton, VA 3 Florence, SC 2 Sunbury, PA 2 Garland, TX 4 Syracuse, NY 3 Grand Rapids, MI 2 Terre Haute, IN 3 Greenville, MS 1 Texarkana, AR 8 16

17 Greenville, SC 4 Toledo, OH 1 Grenada, MS 1 Tupelo, MS 1 Hagerstown, MD 6 Tyler, TX 3 Harrisburg, PA 12 Victoria, TX 1 High Point, NC 4 Waco, TX 1 Houston, TX 3 Warren, OH 1 Huntsville, AL 4 Washington, DC 2 Indianapolis, IN 2 West Plains, MO 2 Jackson, MS 3 Wilmington, DE 3 Jackson, TN 3 Wilmington, NC 1 Johnson City, TN 1 Wilson, NC 4 Keene, NH 1 Worcester, MA 4 Knoxville, TN 1 Wytheville, VA 1 Lafayette, LA 2 Lakewood, NJ 2 Total Gains

18 Velocity Hub Network Coldwater Richfield Harrisburg Maybrook St. Louis Cincinnati Richmond Memphis Nashville Charlotte Shreveport San Antonio 1 18

19 Saginaw Port Huron Grand Rapids Detroit Coldwater Toledo South Bend Ft. Wayne Utility 19

20 Lima Dayton Columbus Zanesville Indianapolis Cincinnati Louisville Lexington Utility 20

21 Buffalo Erie Toledo Richfield Warren Lima Mansfield Canton Pittsburgh Columbus Zanesville Parkersburg Utility 21

22 Roanoke Wytheville Johnson City High Point Raleigh Wilson Asheville Charlotte Greenville Wilmington Florence Athens Columbia Augusta Charleston Utility 22

23 Binghamton Scranton Carlstadt Pine Brook Sunbury Allentown Queens Elizabeth Edison Pittsburgh Altoona Harrisburg Lancaster Wilmington Lakewood Philadelphia Camden Hagerstown Baltimore Washington Salisbury Manassas Staunton Utility Harrisburg Domicile 23

24 Rutland Keene North Reading Syracuse Albany Springfield Worcester Providence Binghamton Sunbury Allentown Middletown Maybrook Mt. Vernon Pine Brook East Islip Long Island Elizabeth Carlstadt Queens Edison Lakewood Philadelphia Utility Camden Wilmington Maybrook Domicile 24

25 Paducah West Plains Poplar Bluff Jackson Memphis Huntsville Little Rock Tupelo Greenville Grenada Columbus Utility Jackson 25

26 Evansville Louisville Lexington Paducah Bowling Green Nashville Cookeville Knoxville Jackson Shelbyville Chattanooga Huntsville Utility Birmingham 26

27 Hagerstown Baltimore Manassas Washington Staunton Richmond Roanoke Norfolk High Point Raleigh Wilson Utility 27

28 Waco Austin Del Rio San Antonio Houston Victoria Laredo Corpus Christi Utility 28

29 Little Rock Texarkana Garland Dallas Tyler Shreveport El Dorado Monroe Alexandria Baton Rouge Utility Beaumont Lafayette 29

30 Peoria Quincy Decatur Terre Haute Columbia St. Louis Salem Rolla Evansville Springfield West Plains Poplar Bluff Paducah Utility 30

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