Will you support independent, non-partisan journalism?
Become a champion of local news and unlock additional benefits as a LebTown member, like exclusive members-only emails, access to comments, invitations to members-only events, and more.
Make an impact. Cancel anytime.
Already a member? Login here
Although the coronavirus pandemic has accelerated the growth of ecommerce, the systemwide impact of national shutdowns has left the trucking industry in dire straits.
That impact has been felt locally through New Penn, a “less-than-truckload” carrier with Lebanon roots that is now owned by YRC Worldwide. Although administrative jobs were moved out of the county last year, New Penn still has a major presence throughout the region.
Read More: New Penn moving administrative jobs out of Lebanon headquarters
YRC has taken extreme measures to stem the losses inflicted by COVID-19 business disruption. Most recently, it suspended insurance benefits indefinitely for YRC workers, as first reported by industry publication Land Line.
YRC confirmed this news in a statement, but noted that the company has worked with the Teamsters Union to ensure continued coverage for the time being.
“In light of the current pandemic led economic crisis, (YRC Worldwide) has taken a range of actions to streamline operations, reduce costs, and amend debt covenants to ensure that we and our employees continue to play a vital role in transporting goods for the U.S. government and many essential businesses,” said company spokesperson Mike Kelley in an email to LebTown.
“In keeping with our efforts to preserve liquidity, we have delayed some fund contributions, and are working closely with the Funds and the Teamsters Union to ensure that YRCW employees have uninterrupted access to healthcare benefits.”
However, as industry publication Freight Waves reports citing a Teamsters memo, the additional eight weeks of insurance coverage being offered will deplete layoff coverage allotments even for those who were not themselves laid off.
According to Freight Waves, the healthcare move is among a few the company has taken to stem its losses. Others include eliminating incentive compensation and raises for its officers, suspending its 401k-match, and institution layoffs and furloughs.
Nasdaq-listed YRCW is currently at $1.59/share, down from $2.58 on January 1.
Do you have news tip for the LebTown team? Let us know using the form below.
Give the gift of local journalism.
If you are thankful for what LebTown brings to the community, consider joining our cause as a member. Members get an inside look at our publishing schedule each week, plus invites to our members-only Facebook group and happy hours.
Sign up for an annual membership using the link below, and we’ll give you a free LebTown mug at the next happy hour.
Learn more and join now here.