The International Brotherhood of Teamsters issued a strike notice that could be triggered as early as Monday, July 24, after Yellow infuriated union bosses by missing a pension payment.
“Yellow has failed its workers once again and continues to neglect its responsibilities,” Teamsters General President Sean M. O’Brien reportedly said. “This corporation’s gross mismanagement is another affront to the livelihoods and well-being of 22,000 Teamsters nationwide. Following years of worker givebacks, federal loans, and other bailouts, this deadbeat company has only itself to blame for being in this embarrassing position.”
Yellow officials have been asking the Teamsters for concessions in an effort to avoid falling into bankruptcy. The debt-strapped operation employs upwards of 32,000 people, including truck drivers and warehouse workers. With 22,000 rank-and-file union members prepared to walk off the job, Yellow indicated it has no intention of making at least two scheduled healthcare and pension benefits installments.
“The Company advised Central States Funds that it would defer payment of health and pension contributions for June (due July 15) and July (due August 15) to preserve liquidity as it worked to obtain meetings with the IBT [International Brotherhood of Teamsters] as well as secure additional financing,” according to a Yellow statement. “The company intends to repay the funds with interest immediately upon securing additional financing and has asked the funds to discuss acceptable terms.”
Central States Funds, which manages the healthcare and pension funds, indicated that without the more than $50 million, workers would promptly lose healthcare benefits. The cost of paying out of pocket has been estimated at nearly $500 per week.
“Yellow has a responsibility and obligation to workers. Our members should not suffer because of management’s incompetence and financial irresponsibility. This is a new low, even for a company as dysfunctional as Yellow,” Teamsters General Secretary-Treasurer Fred Zuckerman reportedly said.
The trucking outfit reportedly has $100 million in cash on hand and has been hemorrhaging losses in 2023, despite its competitors turning profits. Teamster bosses pointed to past concessions and stated that union members would not lower salary and benefits expectations or agree to job-reducing automation.
Losing shippers to more financially stable truck transportation outfits would exacerbate Yellow’s losses. Having already secured debt waivers, which include a pandemic loan reprieve to stay afloat, industry insiders say a strike could break the freight carrier.
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