Utility Employee

Change of Operations

May2008

Yellow Transportation, Inc.

Printed 4-9-08

GENERAL OPERATING STATEMENT

In February 2005, Yellow Transportation, in cooperation with the International Brotherhood of Teamsters, implemented its first Premium Service Change of Operations.

With the success of that specific Change of Operations, which encompassed but asmallportion of Yellow Transportation’s Market Area, Yellow Transportation has established itself as a viable and serious competitor for business in the same day, next day, two day and three day markets.

This initial proposed Utility EmployeeChange of Operations,which is part and parcel to the simultaneous filing of Yellow Transportations Velocity Improvement Change of Operations,will allow Yellow Transportation to continue its program of significantly reducing transit times on behalf of our customers. However, we are well behind our primary competitors in that regard and cannot afford to delay.

Within the scope of these Changes of Operations, over 15,000 service lanes will be positively impacted with reduced service times. Yellow Transportation is committed to re-engineering its city pickup and delivery operation, as well as speeding up the outbound processing of our customers shipments to meet the outbound cut times required of the same day, next day, two day and three day markets.

Without an approved Change of Operations, the business Yellow presently handles as well as future business opportunities in all of its service lanes will be seriously jeopardized and subsequently lost to both Union and non union competition.

In today’s environment, Yellow Transportation is faced with the increasing growth of non-union carriers, freight consolidators and other unionized carriers who have established service schedules in all markets that place Yellow Transportation in a non competitive position.

This Change of Operations will be primarily comprised of the following segments:

  • Yellow Transportation will place “Utility Employees”, which will operate, as outlined, in Article 3 Section 7 of the National Master Freight Agreement in ninety eight (98)facilities.
  • Yellow Transportation proposes, in this specific Change of Operation to have those “Utility Employees” described above, run schedules primarily to its Velocity Sort Centers as described below. The new centers will be established and described within the Velocity Improvement Change of Operations which Yellow Transportation has simultaneously submitted in conjunction with this Utility Employee Change of Operations.
  • Yellow will expand its present operations at the original three (3) velocity sort centers established in 2005. Coldwater, Michigan – Cincinnati, Ohio and Richfield, Ohio.
  • Yellow will establish nine (9) new velocity sort centers as follows:
  • Charlotte, North Carolina
  • Harrisburg, Pennsylvania
  • Maybrook, New York
  • Memphis, Tennessee
  • Nashville, Tennessee
  • Richmond, Virginia
  • San Antonio, Texas
  • Shreveport, Louisiana
  • St. Louis, Missouri
  • At startup, over 10,000 daily shipments, or approximately 25% of our customers shipments will be impacted with a service improvement of at least one (1) day.
  • This Change of Operations will have a net gain of 296 Utility Employee positions.

Yellow Transportation will continue its current operation per past Changes of Operations and decisions, agreements in place between Local Unions and the Company, except for the changes as specifically addressed in this document and the transcripts of this hearing.

All employees accepting transfer under this Change of Operations will work primarily under the provisions of Article 3 Section 7 and the National Master Freight Agreement, in addition to the applicable Supplemental Agreements and conditions in effect at the terminal/domicile to which they transfer. No past practices will follow employees to their new locations.

The routes defined in this Change of Operations describe the primary movement of traffic. Primary does not mean exclusively. All dispatches will be in compliance with Article 3 Section 7 of the National Master Freight Agreement.

Nothing in this Change of Operations is meant to alter or change the terms and conditions of the National Master Freight Agreement or any supplemental agreements under which the company operates.

BIDDING

This Utility Employee Change of Operations will create two hundred ninety six(296) new local cartage positions.

As this Utility Employee Change of Operations must be implemented simultaneously and is part and parcel to Yellow Transportation’s Velocity Improvement Change of Operations which will have an effect on both road driver positions and local cartage positions, the Company will comply with the seniority application decision of the Committee however, would put forward the following job opportunity proposal for the National Utility Employee Review Committee and Multi Region Change of Operations Committee’s consideration:

  • Over the Road employees who are negatively impacted by a loss of their runs at their present domicile with the creation of a Utility Employee position, will be allowed the opportunity to bid into that position at their domicile on a one time basis.
  • If an Over the Road employee does not wish to bid a Utility position at his present domicile and is still seeking a job opportunity, that employee will be allowedto sign up to bid in a pool bid for jobs created in both this Utility Employee Change of Operations and any openings which he may be qualified for in the proposed Velocity Improvement Change of Operations.
  • The Company would respectfully recommend that any pool bid, be offered in conjunction with any pool bid decision rendered in its proposed Velocity Improvement Change of Operations.
  • If accepted, the above would be accomplished on a terminal by terminal basis and when complete, the process for a pool bid for all open positions could then take place.

When approved, the Company will utilize a telephone bid procedure in conjunction with the decision on this specific Change of Operation and Yellow Transportation’s Velocity Improvement Change of Operation, utilizing master seniority lists at losing domiciles. The sign-up sheets will be posted at losing domiciles for seven (7) daysand the telephone bid will take place as agreed upon at the Change of Operations hearing.

Yellow Transportation would propose a cutoff date for any new hire of April 1, 2008. Those attaining seniority after this date shall not be eligible to participate in the bid.

Yellow Transportation would further propose that April 1, 2008 be utilized as a date to determine active status (layoff vs. active).

The company seeks to implement the Utility Employee Change of Operations no sooner than Sunday, May 25, 2008.

Moving expenses in this Service Enhancement Change of Operations will be handled in accordance with the provisions contained in Article 8, Section 6 of the National Master Freight Agreement.

However, Yellow Transportation proposes to give the option to employees who transfer under the provisions of this change, an opportunity to elect to receive a lump sum of $3,150.00, less tax liability, in lieu of temporary living expenses.

Should this option be accepted by the Committee, we ask that those employees accepting re-domicile under the provisions of Article 8 Section 6c, Moving Expenses, notify the company at the time of the telephone bid, as to their choice of the lump sum or the traditional payment for lodging.

In today’s economic environment and excess industry capacity, the Company’s opportunity to grow revenue diminishes every day. It is essential that this Utility Employee Change of Operations be approved by the National Utility Employee Review Committee at the hearingon May 12th, 2008 and implemented as proposed, which is no sooner than Sunday, May 25, 2008 to avoid the consequences of lost revenue and jobs.

EASTERN REGION LOCAL UNIONS

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Teamsters Local 25

544 Main St.

Boston, Massachusetts02129-1113

Teamsters Local 29

29 Stoneridge Drive Suite 207

Waynesboro, Virginia22980

Teamsters Local 61

45 Sardis Road

Asheville, North Carolina28806

Teamsters Local 71

Post Office Box 560248

5000 N. Tryon St.

Charlotte, North Carolina28213

Teamsters Local 107

2845 Southampton Road

Philadelphia, Pennsylvania19154

Teamsters Local 110

Post Office Box 180

153 Ebony Road

Ebensburg, Pennsylvania15931

Teamster Local 170

330 Southwest Cutoff Suite 201

Worcester, Massachusetts01607-0634

Teamsters Local 171

2015 Melrose Avenue, NW

Roanoke, Virginia24017

Teamsters Local 229

3104 N. Main Avenue

Scranton, Pennsylvania18508-1434

Teamsters Local 249

4701 Butler Street

P.O. Box 40128

Pittsburgh, Pennsylvania15201-0128

Teamsters Local 251

121 Brightridge Ave.

East Providence, Rhode Island02914

Teamsters Local 294

890 3rd Street

Albany, New York12206

Teamsters Local 317

Post Office Box 11037

566 Spencer Street

Syracuse, New York13204

Teamsters Local 326

451 E. New Churchmans Road

New Castle, Delaware19720

Teamsters Local 375

656 Englewood Avenue

Buffalo, New York14223-2432

Teamsters Local 391

Post Office Box 35405

3100 Sandy Ridge Road

Colfax, NC27235

Teamsters Local 391

6317 Angus Drive

Raleigh, North Carolina27617

Teamsters Local 397

1344 East 11 Street

Erie, Pennsylvania16503

Teamsters Local 404

Post Office Box 1370

115 Progress Ave.

Springfield, Massachusetts01101

Teamsters Local 509

1213 State Street

Cayce, South Carolina29033

Teamsters Local 597

Post Office Box 227

Quarry Hill Road

South Barre, Vermont15670-0277

Teamsters Local 639

3100 Ames Place N.E.

Washington, D.C.20018

Teamsters Local 641

714 Rahway Avenue

Union, New Jersey07083

Teamsters Local 671

22 Britton Drive

Bloomfield, Connecticut06002

Eastern Region Local Unions - Continued

Teamsters Local 693

41 Howard Avenue

Binghamton, New York13904

Teamsters Local 707

14 Front Street

Hempstead, New York11550

Teamsters Local 764

450 Beaver Street

P.O. Box 258

Milton, Pennsylvania17847

Teamsters Local 771

1025 North Duke Street

Lancaster, Pennsylvania17602

Teamsters Local 773

1345 Hamilton Street

Allentown, Pennsylvania18102-4387

Teamsters Local 776

2552 Jefferson Street

Harrisburg, Pennsylvania17110

Teamsters Local 822

5718 Bartee Street

Norfolk, Virginia, 23502

Teamsters Local 992

10312 Remington Drive

Hagerstown, Maryland21740

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CENTRAL REGION LOCAL UNIONS

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Teamsters Local 20

435 S. Hawley St.

Toledo, Ohio43609

Teamsters Local 50

P.O. Box 140

Belleville, Illinois62222

Teamsters Local 89

3813 Taylor Boulevard

Louisville, Kentucky40215

Teamster Local 135

1233 Shelby Street

Indianapolis, Indiana46203

Teamsters Local 135

125 South 8th Street

Terre Haute, Indiana47802

Teamster Local 215

825 Walnut

Evansville, Indiana47706

Teamster Local 245

1850 East Division Street

Springfield, Missouri65803

Teamster Local 279

2210 Hickory

Decatur, Illinois62526

Teamsters Local 364

2405 East Edison Rd

South Bend, Indiana46615

Teamsters Local 377

1223 Teamsters Road

Youngstown, Ohio44502-1348

Teamsters Local 406

3315 Eastern Ave. S.E.

Grand Rapids, Michigan49508

Teamsters Local 413

555 East Rich Street

Columbus, Ohio43215

Teamster Local 600

161 Weldon Parkway

Maryland Heights, Missouri63043

Teamsters Local 627

7101 North Allen Road

Peoria, Illinois61614

Teamsters Local 651

100 Blue Sky Parkway

Lexington, Kentucky40509-9418

Teamster Local 682

5730 Elizabeth Avenue

St. Louis, Missouri63110-2802

Teamster Local 688

4349 Woodson Road

Woodson Terrace, Missouri63134-3718

Teamster Local 833

230 West Dunklin

Jefferson City, Missouri65101

Teamster Local 908

800 St. Johns Road

Lima, Ohio45804

Teamsters Local 957

P.O. Box 13357

Dayton, Ohio45413-035

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SOUTHERN REGION LOCAL UNIONS

Teamsters Local 5 Teamsters Local 988

1772 Dallas Drive 4303 North Sam Houston Parkway East

Baton Rouge, Louisiana70806 Houston, Texas 77032

Teamsters Local 217

HamiltonHillsShopping Center

Jackson, Tennessee38305

Teamsters Local 402

1050 Cornelia Street

Muscle Shoals, Alabama 35661

Teamsters Local 519

2306 Montclair Ave.

Knoxville, Tennessee39717

Teamsters Local 528

2540 Lakewood Ave S.W.

Atlanta, Georgia 30315

Teamsters Local 568

P.O. Box 7805

Shreveport, Louisiana71137

Teamsters Local 612

P.O.Box 190008

Birmingham, Alabama35219

Teamsters Local 657

8214 Roughrider

San Antonio, Texas78239

Teamsters Local 745

107 Jonelle Street

Dallas, Texas75217

Teamsters Local 878

P.O. Box 190070

Little Rock, Arkansas72219

Teamsters Local 891

2560 Valley Street

Jackson, Mississippi39204

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EASTERN REGION SERVICE CENTERS

Utility Employees

PROPOSED OPERATION

  • As a result of this Utility Employee Change of Operations described within, the Service Centers indicated below will establish Utility employees for the purposes of expediting freight to and from the new Velocity Sort Centers as indicated, in addition to any other duties as assigned in compliance with Article 3 Section 7 of the National Master Freight Agreement.

Domicile / New Utility Employees / Charlotte / Harrisburg / Maybrook / Richmond / Cleveland/Richfield / End of Lines
Albany, NY / 4 / X
Allentown, PA / 3 / X / X
Altoona, PA / 1 / X
Ashville, NC / 1 / X
Baltimore, MD / 4 / X / X
Binghamton, NY / 2 / X / X
Buffalo, NY / 3 / X
Camden, NJ / 3 / X / X
Charleston, SC / 2 / X
Columbia, SC / 4 / X
Erie, PA / 2 / X
Florence, SC / 2 / X
Greenville, SC / 4 / X
Hagerstown, MD / 6 / X / X
Harrisburg, PA / 12 / X
High Point, NC / 4 / X / X
Keene, NH / 1 / X
Lakewood, NJ / 2 / X / X
Lancaster, PA / 4 / X
Manassas, VA / 2 / X / X
Domicile / New Utility Employees / Charlotte / Harrisburg / Maybrook / Richmond / Cleveland/Richfield / End of Lines
Maybrook, NY / 9 / X
Middletown, CT / 3 / X
Norfolk, VA / 4 / X
North Reading, MA / 2 / X
Philadelphia, PA / 5 / X / X
Pittsburgh, PA / 7 / X / X
Providence, RI / 6 / X
Raleigh, NC / 5 / X / X
Roanoke, VA / 2 / X / X
Rutland, VT / 1 / X
Salisbury, MD / 1 / X
Scranton, PA / 2 / X
Springfield, MA / 3 / X
Staunton, VA / 3 / X / X
Sunbury, PA / 2 / X / X
Syracuse, NY / 3 / X
Washington, DC / 2 / X / X
Wilmington, DE / 3 / X / X
Wilmington, NC / 1 / X
Wilson, NC / 4 / X / X
Worcester, MA / 4 / X
Wytheville, VA / 1 / X
Total Utility Employees / 139

CENTRAL REGION SERVICE CENTERS

Utility Employees

PROPOSED OPERATION

  • As a result of this Utility Employee Change of Operations described within, the Service Centers indicated below will establish Utility employees for the purposes of expediting freight to and from the new Velocity Sort Centers as indicated, in addition to any other duties as assigned in compliance with Article 3 Section 7 of the National Master Freight Agreement.

Domicile / New Utility Employees / Coldwater / Charlotte / Cincinnati / Memphis / Nashville / Cleveland/Richfield / St. Louis
Bowling Green, KY / 1 / X
Columbia, MO / 5 / X / X
Columbus, OH / 10 / X / X
Dayton, OH / 3 / X
Decatur, IL / 1 / X
Evansville, IN / 2 / X / X
Grand Rapids, MI / 2 / X
Indianapolis, IN / 2 / X
Lexington, KY / 2 / X / X
Lima, OH / 1 / X
Louisville, KY / 13 / X / X
Paducah, KY / 7 / X / X / X
Peoria, IL / 1 / X
Poplar Bluff, MO / 2 / X / X
Quincy, IL / 1 / X
Rolla, MO / 1 / X
Salem, IL / 1 / X
South Bend, IN / 1 / X
Springfield, MO / 4 / X
Terre Haute, IN / 3 / X
Domicile / New Utility Employees / Coldwater / Charlotte / Cincinnati / Memphis / Nashville / Cleveland/Richfield / St. Louis
Toledo, OH / 1 / X
Warren, OH / 1 / X
West Plains, MO / 2 / X / X
Total Utility Employees / 67

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SOUTHERN REGION SERVICE CENTERS

Utility Employees

PROPOSED OPERATION

  • As a result of this Utility Employee Change of Operations described within, the Service Centers indicated below will establish Utility employees for the purposes of expediting freight to and from the new Velocity Sort Centers as indicated, in addition to any other duties as assigned in compliance with Article 3 Section 7 of the National Master Freight Agreement.

Domicile / New Utility Employees / Charlotte / Memphis / Nashville / San Antonio / Shreveport
Alexandria, LA / 1 / X
Athens, GA / 2 / X
Augusta, GA / 2 / X
Austin, TX / 2 / X
Baton Rouge, LA / 2 / X
Beaumont, TX / 2 / X
Birmingham, AL / 4 / X
Chattanooga, TN / 5 / X
Columbus, MS / 1 / X
Cookeville, TN / 1 / X
Corpus Christi, TX / 1 / X
Dallas, TX / 3 / X
Del Rio, TX / 1 / X
El Dorado, AR / 1 / X
Garland, TX / 4 / X
Greenville, MS / 1 / X
Grenada, MS / 1 / X
Houston, TX / 3 / X
Huntsville, AL / 4 / X / X
Jackson, MS / 3 / X
Jackson, TN / 3 / X / X
Johnson City, TN / 1 / X
Knoxville, TN / 1 / X
Lafayette, LA / 2 / X
Laredo, TX / 3 / X
Little Rock, AR / 18 / X / X
Domicile / New Utility Employees / Charlotte / Memphis / Nashville / San Antonio / Shreveport
Monroe, LA / 3 / X
Shelbyville, TN / 1 / X
Texarkana, AR / 8 / X
Tupelo, MS / 1 / X
Tyler, TX / 3 / X
Victoria, TX / 1 / X
Waco, TX / 1 / X
Total Utility Employees / 90

Overall Utility Employee - Gaining Positions

Gaining Locations / Gaining Locations
Albany, NY / 4 / Lancaster, PA / 4
Alexandria, LA / 1 / Laredo, TX / 3
Allentown, PA / 3 / Lexington, KY / 2
Altoona, PA / 1 / Lima, OH / 1
Asheville, NC / 1 / Little Rock, AR / 18
Athens, GA / 2 / Louisville, KY / 13
Augusta, GA / 2 / Manassas, VA / 2
Austin, TX / 2 / Maybrook, NY / 9
Baltimore, MD / 4 / Middleton, CT / 3
Baton Rouge, LA / 2 / Monroe, LA / 3
Beaumont, TX / 2 / Norfolk, VA / 4
Binghamton, NY / 2 / North Reading, MA / 2
Birmingham, AL / 4 / Paducah, KY / 7
Bowling Green, KY / 1 / Peoria, IL / 1
Buffalo, NY / 3 / Philadelphia, PA / 5
Camden, NJ / 3 / Pittsburgh, PA / 7
Charleston, SC / 2 / Poplar Bluff, MO / 2
Chattanooga, TN / 5 / Providence, RI / 6
Columbia, MO / 5 / Quincy, IL / 1
Columbia, SC / 4 / Raleigh, NC / 5
Columbus, MS / 1 / Roanoke, VA / 2
Columbus, OH / 10 / Rolla, MO / 1
Cookeville, TN / 1 / Rutland, VT / 1
Corpus Christi, TX / 1 / Salem, IL / 1
Dallas, TX / 3 / Salisbury, MD / 1
Dayton, OH / 3 / Scranton, PA / 2
Decatur, IL / 1 / Shelbyville, TN / 1
Del Rio, TX / 1 / South Bend, IN / 1
El Dorado, AR / 1 / Springfield, MA / 3
Erie, PA / 2 / Springfield, MO / 4
Evansville, IN / 2 / Staunton, VA / 3
Florence, SC / 2 / Sunbury, PA / 2
Garland, TX / 4 / Syracuse, NY / 3
Grand Rapids, MI / 2 / Terre Haute, IN / 3
Greenville, MS / 1 / Texarkana, AR / 8
Greenville, SC / 4 / Toledo, OH / 1
Grenada, MS / 1 / Tupelo, MS / 1
Hagerstown, MD / 6 / Tyler, TX / 3
Harrisburg, PA / 12 / Victoria, TX / 1
High Point, NC / 4 / Waco, TX / 1
Houston, TX / 3 / Warren, OH / 1
Huntsville, AL / 4 / Washington, DC / 2
Indianapolis, IN / 2 / West Plains, MO / 2
Jackson, MS / 3 / Wilmington, DE / 3
Jackson, TN / 3 / Wilmington, NC / 1
Johnson City, TN / 1 / Wilson, NC / 4
Keene, NH / 1 / Worcester, MA / 4
Knoxville, TN / 1 / Wytheville, VA / 1
Lafayette, LA / 2
Lakewood, NJ / 2
Total Gains / 296

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