YRC suspends health benefits for employees
May 22, 2020
Truckers for YRC Worldwide are finding themselves stuck between a rock and a hard place after the freight giant has suspended insurance benefits indefinitely.
Land Line has obtained documents sent to YRC workers informing them of suspended insurance. According to documents sent by insurance company TeamCare, YRC is delinquent in paying health contributions for work performed during March. Even worse, the freight company is unable to pay contributions for work performed during April and May as well.
According to a TeamCare letter sent to employees, the insurer has had “extensive discussions” with YRC to reach a resolution. Unfortunately, an “acceptable repayment proposal” has not been made.
Although health benefits were provided during the failed negotiations, that will soon come to an end. Effective May 10, health benefits for YRC employees are suspended. Essentially, any health claims incurred after May 9 will not be paid. The suspension will end as soon as YRC resolves the delinquency.
However, there will be some minor relief. TeamCare offers layoff coverage.
Workers who are laid off receive continued coverage up to eight weeks. TeamCare is extending that coverage to active YRC employees during the suspension.
As a result, eligible claims incurred after May 10 up to eight weeks may be paid despite the suspension.
“In light of the current pandemic led economic crisis, YRCW 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,” YRCW told Land Line in a statement. “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.”
On May 8, YRCW sent out a letter to employees informing them of impending changes.
“As you know, the impact of COVID-19 on many of our customers has resulted in noticeable declines in the volume of freight we are handling each day,” the letter states. “Some of our customers – like many businesses across the country – also are delayed in making payments to us. This means that we in turn are delayed in making some of our regular payments, including to the Central States Health Fund and other health funds to which we contribute.”
The letter goes on to state that YRC had been working with the Teamsters to avoid interruption in coverage.
On May 9, the Teamsters Freight Division issued a memo to all local unions with members in TeamCare. That memo explains the layoff coverage.
“Meanwhile, it is hoped that over the next eight weeks, YRC’s business and financial situation will improve and that the company can cure the delinquency and return to normal status,” the memo states. “In fact, we have seen volumes improve over the past two weeks, and some laid-off employees have been recalled to active status.”
YRC Worldwide owns YRC Freight, Holland, New Penn, Reddaway and HNRY Logistics. According to the Federal Motor Carrier Safety Administration’s database, YRC Freight has more than 9,000 drivers. Holland has more than 5,500 drivers.