YRC Inc., USF Holland Inc. and New Penn Motor Express Inc. (each an “Employer”) entered into a tentative labor agreement with the Teamsters National Freight Industry Negotiating Committee (“TNFINC”). The Employers are all subsidiaries of YRC Worldwide Inc. (the “Company”), and TNFINC is the committee that the International Brotherhood of Teamsters (the “Teamsters”) has designated to represent the Teamster employees of the Employers in negotiations regarding the tentative agreement. A copy of the tentative agreement is attached as Exhibit 10.1. The tentative agreement would extend the current expiration of the National Master Freight Agreement (“NMFA”), which currently governs labor terms and conditions for most of the Employers’ Teamster employees, from March 31, 2013 to March 31, 2015. The tentative agreement would provide further wage, benefit and work rule changes that are expected to generate an average of $350 million in annual savings through the end of the extended agreement, assuming projected levels of business, employment and costs during those periods.
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