Posted on 07/31/2023 1:25:24 AM PDT by Libloather
Trucking giant Yellow collapsed on Sunday, ceasing operations immediately and leaving some 30,000 workers without jobs.
The closure is the biggest in terms of jobs and revenue in the U.S. trucking industry, according to The Wall Street Journal - which first reported its shutdown.
The company, which received $700 million in federal COVID relief funds in 2020, is preparing to file for bankruptcy and is in talks to sell off all or parts of the business.
The nearly 100-year-old firm is known for its competitive pricing and has more than 12,000 trucks shipping freight across the US for brands including Walmart and Home Depot.
But in recent years it has struggled under the weight of debt and had a highly contentious relationship with the Teamsters union: on Sunday, each side blamed the other.
Hundreds of non-union Yellow employees were laid off Friday from the Nashville, Tennessee, company, and about 22,000 Teamster members were told their jobs hung in the balance.
On Sunday morning, the company sent out notices to customers and employees saying it was ceasing all operations at midday.
Since 2021, the struggling brand has implemented a cost-cutting plan that executives hoped would put the business back on track.
The company's circumstances have become all the more dire as shipping demand across the freight sector declined substantially this year.
Last week, Yellow, which had $5.2 billion in revenue last year, narrowly avoided a driver strike by Teamster union members after failing to make a $50 million payment for employee benefits. The company had a 30-day period to catch up on pension and benefits payments.
The Teamsters blamed the executives for poor management.
'Teamsters have kept this company afloat for more than a decade through billions of dollars in wage, pension and work-rule concessions,' a union spokesman said.
(Excerpt) Read more at dailymail.co.uk ...
>> The Teamsters blamed the executives for poor management.
Did they ever consider the Rats’ attack on the transportation industry?
I don’t GAF about private unions. If they desire to self-terminate, may they enjoy the consequences.
Well, Biden can now claim he’s one step closer to making the American trucking industry carbon fuels free.
I suspect fuel costs and lack of goods to be shipped may be a factor.
Industry shake out to follow.
Exactly
Looking ahead, will the trucking industry be government-owned? If so, welcome to socialism/communism.
Why do I find that statement to be evil? The Teamsters negotiated themselves out of a career at this point. Unions don’t actually care about their members. I’ve seen it time and time again.
Job 4:8
Even as I have seen, they that plow iniquity, and sow wickedness, reap the same
In Charlestown, Mass. the Teamster HQ, for years there was a huge display of little trucks of many different names, all having been represented by those rats. (Their mascot is a rat.) Everyone of those companies was put out of business by this destructive Union.
The company had enormous debt from its major acquisitions over the last 20 years. It’s an interesting story because the company was in a difficult position where it was forced to consolidate with other similar carriers just to stay competitive, but ultimately couldn’t generate the revenues needed to pay off the debt from the acquisitions.
“The Teamsters blamed the executives for poor management.”
If the union leaders can do a better job running a trucking business they should borrow money to buy the assets of the bankrupt company for cents on the dollar and start a new company. Show the trucking industry how to do it right.
Biden is such an anti American ,anti business POS. The most corrupt President ever! When are the American people going to realize ,just how horrible the Democrats are? The in your face corruption is unbelievable.
Was the carrot of being able to keep the $700M too great to resist?
Would be interesting to review how it was spent.
I was there as a forklift driver because I was in a terrible place in life and just needed to work somewhere.
I was glad to be working but that place was terrible. These was a manager on the dock that was a huge jerk. His nickname was Sweets.
The dockworkers all wore their union shirts and it was very obvious that they had no pride in Yellow Freight.
Being a temp I was way out of place. The management hated everyone and the union didn't welcome me at all. I was there about two months and almost no one ever spoke to me.
12,000 less trucks on the road, good for the environment. /s
If as is normal, all of Yellow’s assets are sold to the highest bidder, there are going to be a lot of recent vintage used tractors on the market. 12,000 more or less. Lots of opportunities right now for the young man or woman wanting to become owner/operators.
Take a loan, pay it back, right?
There are dozens - literally dozens - of giant warehouses built within 100 miles of my home in the last 5-6 years. Sitting empty, but I see lights, security features, etc.
I am convinced we are being set up for a massive nationalization.
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