New Penn Motor Express, the Northeast regional U.S. unit of less-than-truckload (LTL) carrier YRC Worldwide Inc. (NASDAQ: YRCW), has notified the Teamsters union that it plans to add utility employee positions for “improved service and growth.”
The proposed “change of operations” would add 86 utility employees traveling within a 175-mile proximity of “three newly established regional velocity centers” in Newburgh, New York, and Scranton and Camp Hill, Pennsylvania, New Penn stated in the notice on Friday.
The YRC unit said the facilities handle approximately 1,600 daily shipments. The proposed change of operations would affect approximately 1,000 daily shipments.
The change is expected to eliminate approximately 50 layover trips, which would allow more employees to return home nightly. The 86 positions would originate from 12 terminals within the new regional velocity centers, New Penn stated. It does not reduce the number of local cartage employees at these centers, it said. The change would not alter any terminal’s assigned pickup and delivery area, according to New Penn.
The National Master Freight Agreement between organized labor and company management allows a company to implement a change of operations. Management is required to meet with the union to discuss the proposal and allow union representatives to provide input. However, the union cannot prevent the company from implementing the changes.
New Penn has requested a hearing date of Feb. 25, with implementation no sooner than March 22.
The addition of labor continues a change of course for New Penn. Last February, it filed a change of operations to close and consolidate facilities. However, it withdrew the proposal following the abrupt February 2019 closure of Northeast LTL carrier New England Motor Freight Inc. (NEMF), which created unexpected new opportunities for New Penn.
FreightWaves obtained a copy of the change of operations notification on Truckingboards.com. YRC did not respond to a request for comment.