How worried should I be about Yellow now?

Think it’s time to get concerned. The potential bankruptcy and the general demise are now making national news headlines. Think they are going down slowly. If they can get a bankruptcy court to give them a reasonable chance to get a reorganization done, they will be much smaller than they have been. Probably have to sell off assets to make it happen.

 

You'll be fine. Of the 9100 driver affected. Some of the oldest will take early retirement. Some, likely those most fed up or with the least experience. Will move to other fields outside trucking. Some will move to other aspects oftrucking, lime milk or, d2dicated hazmat, mail hauling, OTR...there's a dozen options. The remaing drivers, about 70%, will fold into other LTL carriers. Depending on their market areas.

 

I understand that Yellow will be making a bankruptcy filing this coming week. I have read that they are burning through 10 million a day. The company is deeply in debt with a 700 million loan coming due soon. What happens next will depend on the creditors. The problem as I was told is several of Yellow's primary customers have left. The best way to describe this dynamic is something bleeding in the water draws sharks. I read an article in the WSJ that Yellow's volume was down 80% these past few days.

I know some people that work for Yellow. I hate that this crap has happened. In all honesty, if I was just starting out I would avoid Yellow until this crap shakes out. At this point, I am not 100% positive Yellow will survive!

 

Companies have been closing down forever. Union Companies especially since the early 80’s after deregulation. The whole process has come full circle. Yellow is one of the last few still hanging on. ABF is about the only one left. The freight will get covered by someone else. They’ll need Drivers to cover it. Still plenty jobs available for everyone.

 

Does UPS fall in that category? Teamsters got what they wanted.

 

And they did at ABF and TFI.

 

Yellow is no more as of 12:00 noon today.
They will probably be filling bankruptcy on Monday, if not this evening.

Several stories out now. Do a search, you’ll find them.

 

UPS is in their own category. Someday they will be the only transportation company represented by the Teamsters. The Teamsters own survival has been their priority for quite a while. It’s too bad. I’ve always supported the Teamsters. My Dad was a Teamster. I’ve been a member for 35 years. Detroit Locals 336 and 299. Only 3 years seniority. Lol. Never had an opportunity to get a Union job when I needed one. Last time I went to the Union Hall in 1994 they had one outdated posting for casuals at Yellow. That was during the last strike. They had put everyone back to work, except Roadway, Yellow, CF, and Holland. Those four hired a negotiation’s Firm from Texas. The plan was to put pressure on the 4 to settle ASAP. Meanwhile other LTLs were picking up their freight. I was working at a company that was trying to organize at the time. We went on strike a few days earlier. I had just closed on a house, and quit my job. Had no idea they had sent others back to work. The Treasury Secretary saw me staring at the board, holding my 2 yr old. Telling my wife it doesn’t look good. He asked “Need a job kid”? I said yes Sir. Go to Central, tell ——- I sent you. I mispronounced his name, and he got mad. Hollered it back to me. Lol. I guess I was supposed to know who he was. Worked for ——- at Central for a year till they recycled me. They called me back a couple times. The new contract let them work casuals forever without hiring them. I wasn’t going to play that game. Today I still know ——- from Central. He Owns his own company and will hire me anytime. Hindsight’s 20 20. Wish I’d went to work for ABF. Who knew they would survive? The writing was on the wall. The chances of getting a full pension didn’t look good. Buying a Truck and Leasing onto a Carrier seemed to be the best alternative.

 

This doesn't have anything to do with millions of truck drivers who traditionally got this kind of job so that they don't get micromanaged—rejecting working under the watchful eye of a camera nanny in this day and age. It's really that truck drivers that have been working on a job that extensively involves being away from home for almost a century, don't like not being at home. That's the real reason why it's hard to find drivers, you see. Always be logical when you explain these things.

 

Teamsters didn't kill yellow. Their management did by purchasing companies that were weak. They have 2 billion in debt. Iirc. Not a lot of companies make it 99 years, anyway.