Posted on 07/29/2023 10:28:05 AM PDT by DFG
US trucking firm Yellow has laid off a large number of workers as the company copes with a cash crunch, and is reportedly weighing options including an imminent bankruptcy filing.
The trucking giant on Friday told employees that it is 'shutting down regular operations' and laying off non-union employees 'at all of its locations' according to a memo seen by DailyMail.com.
The layoffs could immediately impact up to 8,000 members of the company's sales force, business operations and technology departments -- and if the company fails, another 22,000 unionized drivers and freight handlers could face unemployment.
Yellow is saddled with some $1.5 billion in debt as of late March, including $729.2 million owed to the federal government for a controversial pandemic-era loan the Treasury Department extended on national security grounds in 2020.
Earlier this 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.
Footage shared on TikTok shows one Yellow worker angrily shouting after learning his health care benefits and pension payments had ceased.
(Excerpt) Read more at dailymail.co.uk ...
I don’t get it. Online ordering should be a boon to delivery companies. Think UPS, Amazon. Save gas.
Footage shared on TikTok shows one Yellow worker angrily shouting after learning his health care benefits and pension payments had ceased.
A Golden Goose comes to mind. They never learn.
I wonder if this has anything to do with all the Amazon delivery trucks I have seen lately?
“Yellow is saddled with some $1.5 billion in debt as of late March, including $729.2 million owed to the federal government for a controversial pandemic-era loan the Treasury Department extended on national security grounds in 2020.”
In other words, Yellow ripped the taxpayer off for $729 million.
Go union, go broke. Nonunion is the wave of the future.
Unions probably contributed to its problems.
I’ve been trying to figure this out too.
Seems like it was just poorly managed for decades.
yellow doesn’t really do retail delivery stuff. it’s LTL (less than a truck load) dock to dock type deliveries.
I had them deliver an engine once. I paid extra to have an ETA call made (so the site would be there, and someone could unload it).. No call was made, a pissed off driver called, screamed at me and said “I’m pushing this f***ing thing off the back of my truck!” he did, damaged the parking lot, and destroyed the engine. The site got it all on security cameras.
Yellow ended up paying for EVERYTHING. that was the last time I used them.
wish that applied to government. They just take more of our money to pay the union bill.
They have their own fleets, so companies like Yellow are shut out of a lot of that work.
All of this is happening while the US continues to import 3rd worlders who are allowed to get their CDLs, who then can and do undercut the amount paid to owner/operators. So Mr 3rd Worlder, with his brand new CDL, who lives in a house with 19 relatives, can take loads that barely pay anything because he doesn’t have to meet a mortgage payment or anything else, because all he does is chip in a few bucks at the end of the month.
BidenDepression 2023
Maybe Spring, 2024
And there’s a lot more to the “trucker shortage” than is being told.
Yes, there is a shortage of truckers in some areas. Just like there is a shortage of cops, fireman, EMTs, carpenters, plumbers, electricians, etc etc. Younger folks don’t want those jobs anymore. They’d rather be on TikTok or some other social media site, making videos and influencing.
But, there is a bit more. Starting out in any of these LTL type companies isn’t easy. You go to work, get some type of normal hours and a rhythm and then on day 4, they make you wait around all day for a chance to make a run. Problem is, you’ve been up for 10-12 hours waiting on a run and then they ask you to make a run that is going to take you 10 hours. Completely violating all sorts of DOT rules, but one has to pay the bills so they can’t turn anything down. Pretty soon, they start dealing with some serious turnover and there isn’t anyone backfilling positions, continuing to pay into the pension and keep it solvent, as the older guys retire.
This doesn’t seem to be getting too much publicity. Have a Democrat in office and they can’t shine any light on a union shop, that more than likely supported Biden, just like they did their best to protect Soetero and the workers at Delphi.
At the time of the acqusition, Yellow was actually smaller than Roadway. I seem to remember that the merged YRC was constantly in the business/economy news from 2008 onward -- mainly in stories about financial troubles, pending bankruptcy, etc. I believe Yellow and Roadway were two of the last trucking companies staffed by the Teamsters (UPS is another). That may have played a major role in all the business decisions the company made since the early 2000s.
Rising interest rates are a killer with large variable debt
That's why you hardly see any sleeper cabs pulling these trailers for Yellow, YRC, UPS, etc.
My Brother worked for them until this week.
No one will respond with anything meaningful to your post.
Everything remotely attached to union is evil in peoples’ minds here.
“There’s a storm on the horizon.”
It’s really just a matter of time before a serious economic downturn.
And I’d be really curious to know if they recently hired anyone that had a background that wasn’t normal for them. IE...some MBA-type that came from Wall St or something that weaseled their way in and completely destroyed the company from the inside with the typical, Wall St, suck the company dry by any means necessary, run away with all the money and f**k the workers.
That Yellow worker needs to understand who's managing his health care and pension benefits (hint: typically the Union or a Union designated pension management firm.)
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