99-Year-Old Trucking Company Yellow Shuts Down, Putting 30,000 Out of Work
Yellow Corp., a longstanding trucking company with a 99-year history, has made a sudden decision to halt all operations, resulting in the layoff of its entire workforce, totalling 30,000 employees.
The company has been embroiled in a tense dispute with the Teamsters union, which represents around 22,000 drivers and dock workers employed by Yellow Corp. Just a week ago, the union averted a potential strike by cancelling its threat, prompted by the company’s failure to contribute to the workers’ pension and health insurance plans. To give Yellow Corp. a chance to make the required payments, the union granted them an additional month.
However, during the course of last week, the situation took a turn for the worse. Yellow Corp. ceased picking up freight from its customers and restricted deliveries solely to the freight already within its system, as reported by both the union and industry consultant Satish Jindel.
Though the union decided against a strike, it was unable to reach a new contract agreement with Yellow Corp., as stated in a memo sent to local unions by the Teamsters’ negotiating committee. The union was then notified of the company’s shutdown.
Teamsters President Sean O’Brien expressed regret over the news, stating that Yellow Corp. has struggled with its management despite receiving substantial worker concessions and federal government bailout funding.
Despite attempts to gather comments, Yellow Corp. officials remained unresponsive to multiple requests throughout Sunday and Monday.
Although the company is headquartered in Nashville, Tennessee, it operates nationwide, with over 300 terminals and a widespread employee base. Industry experts believe that Yellow Corp.’s downfall was primarily due to an overwhelming amount of debt, which surpassed the cost of the union contract, ultimately leading to its demise.
