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YELLOW FREIGHT SYSTEM JOINS MULTI-EMPLOYER BARGAINING UNIT

 OVERLAND PARK, Kan., June 25 /PRNewswire/ -- Citing the need to achieve significant change in industry labor agreements, Yellow Freight System today announced their re-association with Trucking Management Inc. (TMI), a multi-employer bargaining group representing the trucking industry in labor contract negotiations, principally with the International Brotherhood of Teamsters (IBT). The announcement was made by Reid Armstrong, president of Yellow Freight System, the nation's largest less-than-truckload carrier with approximately 27,500 employees.
 In making the announcement, Armstrong said that the decision to reaffiliate with TMI after a 5-year absence was driven by dramatic change in the trucking industry in recent years: "Over the past decade, dramatically changing shipper demands and new competitive forces have redefined the trucking role in the transportation industry. Today, shipper efforts to streamline manufacturing, consolidate distribution and manage inventories more cost-effectively all share a common dependence on reducing transportation costs. Cost-efficient non-union competitors and new services are carving major inroads in traditional trucking markets. Without greater flexibility, faster transit times and lower costs, unionized trucking company performance in both the service and financial arenas will erode as shippers switch to non-union carriers and alternative modes of transportation.
 "Yellow, like all traditional unionized carriers, shares the need for flexibility in providing services and for the faster transit times shippers demand. If we, as unionized carriers, can't deliver those services, shippers will turn to non-union carriers and to other transportation modes for their services. It's already happening, and if it's permitted to continue, both traditional carriers and the union will suffer.
 "We're hopeful that, by acknowledging the joint challenges we face, TMI and the IBT will create mutual solutions that enable us to meet shipper demands. It is through effectively serving shipper requirements that we've been able to provide a measure of security for our employees."
 Yellow Freight's decision to withdraw from TMI in 1988 was predicated largely on its commitment to creating unionized regional carrier operations that could compete head-to-head with non-union carriers, said Armstrong. Bargaining independently during the last round of IBT negotiations in 1991, Yellow Freight secured a rider that enabled it to negotiate separate provisions for regional operations with the IBT. Referring to subsequent negotiations, Armstrong said, "Unfortunately, we were unable to reach an agreement with the IBT."
 Yellow Freight System employs approximately 27,500 in nearly 600 locations throughout North America. Yellow Freight System is a wholly-owned subsidiary of Yellow Corporation (NASDAQ-NMS: YELL) which owns companies specializing in transportation, logistics, and information technologies and recently acquired Preston Corporation and its carrier subsidiaries, Preston Trucking, Smalley Transportation and Saia Motor Freight.
 -0- 6/25/93
 /CONTACT: Doug Ballou of Yellow Freight System, Inc., 913-345-3000/
 (YELL)


CO: Yellow Freight System; Trucking Management Inc.; Yellow Corporation ST: Kansas IN: TRN SU:

MC -- DV006 -- 5826 06/25/93 15:03 EDT
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Publication:PR Newswire
Date:Jun 25, 1993
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