Yellow Corp., a 99-year-old trucking company, has ceased operations and is filing for bankruptcy. The Teamsters Union was served legal notice of the events, and they remain committed to ensuring members are protected and notified with the latest information.
In a recent quote, Teamsters General President Sean M. O’Brien said, “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.”
According to Reuters, Yellow blamed the union for blocking restructuring efforts that would have helped the company refinance $1.3 billion of debt, which needed to be repaid by 2024. This debt included a $700 million pandemic relief loan.
The Associated Press is reporting that former Yellow customers and shippers will have to pay higher prices to use competitors since Yellow often offered the cheapest prices. Since Yellow was one of the Unites States’ largest handlers, this news puts 30,000 jobs at risk.
The bankruptcy announcement comes just a week after union workers threatened to strike because the company was not contributing to its pension and health insurance plans. The company had one month to make the required payments.