Yellow bankruptcy overview:
- Who: Yellow Corporation is filing for bankruptcy and ceasing operations, the Teamsters union says.
- Why: Yellow struggled to manage itself, leading to bankruptcy, the Teamsters say.
- Where: The announcement comes after meetings in Washington, D.C., over the state of the company.
Yellow Corp. is shutting down and will file for bankruptcy, the Teamsters union was informed.
The announcement comes a week after the company was able to come to an agreement with the Teamsters to avoid a strike. Yellow sent the Teamsters with legal notice of the decision.
“Today’s news is unfortunate but not surprising. Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government. This is a sad day for workers and the American freight industry,” said Teamsters General President Sean M. O’Brien.
The strike was avoided after the Central States Health and Welfare Fund agreed earlier this month to extend health care benefits for workers at Yellow operating companies YRC Freight and Holland.
A strike was planned for July 24 had the shipping companies failed to make contractually obligated benefit payments of $50 million to Central States on July 15. The agreement by Central States at the urging of the Teamsters gave Yellow 30 days to pay its bills with the understanding the company would do it within two weeks, according to the Teamsters.
“Our members at YRC Freight and Holland cannot work without health care, and the Teamsters worked tirelessly to ensure an immediate strike at Yellow could be averted,” O’Brien said when the strike was averted. “These discussions were not easy, but Central States has made meaningful movement under pressure from the union. We are seeking a real resolution, but let this solution today serve as a profound reminder that our members can only endure so many sacrifices. Teamsters at Yellow simply work too hard and have already given so much.”
Teamsters are working to find new jobs for the impacted Yellow employees, union says
The Teamsters say that they are now working on putting infrastructure in place to help the impacted members get assistance and find good jobs in the freight industry and others. The Teamsters said they are hoping to ensure members are protected and notified with all the latest information.
Have you seen a Yellow shipping truck lately? Let us know in the comments.
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2 thoughts onYellow shuts down, to file for bankruptcy, Teamsters say
So as far as i can tell im a former YRC/Yellow since there have been no layoff from showing last day of employment which is critical now for ive been unemployed dince july 29th with unemployment i filed yet there cannot be a decision until they receive my exact wages which includes severance pay and last day worked. Now with the severence pay typically 2 weeks (80) hours has not been paid and a funny thing is my lart 2 pay stubs dont show my accumulated vaccination hours and the last stub didnt even show the vacation bracket at all , now concerned with 401k again YRC nerds to send these forms last day of work to release my retirement funds which i desperately need right now with no income.
Haven’t seen any Yellow trucks on the road. I worked for New Penn in Pa. Non-union emoloyee. They are shut down.