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Layoffs expected with consolidation of Roadway Express, Yellow Transportation

Tuesday, December 30, 2008
(Updated 7:50 pm)

GREENSBORO - Roadway Express and Yellow Transportation in Kernersville expect 200 to 500 employees to be affected by layoffs and the closing of a trucking terminal in March, a company official said Tuesday.

Roadway Express has a distribution facility at 1255 N.C. 66 South in Kernersville, and Yellow Transportation has a facility next door.

The two companies, which merged in July 2003, are consolidating and will relocate some employees to Charlotte or other locations, a company spokeswoman said, although it was unclear Tuesday how many employees would lose their jobs.

"The change is a result of Yellow and Roadway integration to create a stronger and more efficient transportation network for YRC Worldwide," said Cecile Fradkin, a company spokeswoman said, reading from an internal memo on the matter.

"(The terminals are) redundant as a distribution center in the combined network. As a result, the operation will lose its distribution function, but will remain a significant employer in the region."

Fradkin could not say Tuesday how many of the more than 500 employees in the area would lose their jobs.

YRC Worldwide CEO Mike Smid has said about 210 employees could be impacted, she said.

However, official notices sent to the Town of Kernersville state that the companies' consolidation could impact 515 employees.

A notice regarding layoffs at the Roadway Express facility state that a grand total of 451 employees could be affected.

That figure includes of 408 unionized employees and 43 non-unionized employees, including dock workers, mechanics, drivers, switchboard operators and administrative positions.

A second notice referencing the closure of the Yellow Transportation facility at 1257 N.C. 66 South, states 64 employees will be affected by the closure. That figure includes 59 unionized employees and 5 non-unionized, including drivers and dock workers among other positions.

The notices state that because many of the employees are unionized "it is impossible to determine now which or how many union employees from this facility may ultimately experience employment loss."

Layoffs and the closing of the terminal are expected to begin March 1 and be completed in the following two weeks.

Bob Brown, a business agent for Greensboro-based Teamsters Local Union 391, said the union is in the process of setting up a meeting with YRC Worldwide to discuss the proposed changes, although a date for the meeting has not been set.

Brown said until that meeting occurs, he could not comment on the situation.

Kernersville Mayor Dawn Morgan said Tuesday she was saddened by the news, but the town's Board of Aldermen remains committed to economic growth, especially with new opportunities created by FedEx Ground and the new Kernersville Medical Center.

"(Roadway) said they are going to keep some facilities in Kernersville, but I'm saddened to lose their main presence here," Morgan said.

"This is very disappointing news, but there are a lot of positives for economic opportunities - and that will continue with other developments."

Contact Ryan Seals at 373-7077 or ryan.seals@news-record.com


 

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