Employment suggestions for previous Yellow Freight drivers

Indeed.com, got a lot going on there. I guess it’s area dependent.

 

A few suggestions for what Yellow drivers can do next:

Just slip out the back, Jack.
Make a new plan, Stan.
No need to be coy, Roy,
just listen to me...
Just hop on the bus, Gus,
don't need to discuss much.
Just drop off the key, Lee...

 

Part of mismanaging a company is allowing the cost of labor to be inflated by unions.

In the case of Yellow, their mismanagement was a trifecta of inflated labor cost, cheap freight rates, and excessive debt acquired through acquisitions.

 

Its not realistic at all, that's why we have seen some inquiries from them this week, but every one of them was only interested in home daily local positions. We literally had ONE local position nationwide to fill, and it was snatched up first thing Monday morning by a former USF driver with 18 years time put in with them.

 

Let's see, Yellow road drivers have only driven forward since their time there and didn't even have to hook their sets, so they may do well sitting in the unemployment line. That should be an easy transition I would think.

 

I read an article (link below) a few days ago that said Yellow was hauling only 7% of the freight in the LTL market. So the other LTL carriers may not need to hire that many drivers to cover the increase in their business.

99-year-old trucking company Yellow shuts down, putting 30,000 out of work | CNN Business

 

The financials tell a different story. Yellow's labor costs were not out of line compared to their competitors or the industry as a whole. For two contract cycles the union laid down. You can blame unions for a lot and I'll cheer you on, but in this case the union isn't to blame.

The only thing on their financial reports that was out of line was the interest payments. Historically low interest rates for a decade, but each year Yellow paid about 8-10% interest.

They had ten years to figure out how to run as separate entities or consolidate but management tried to fish and cut bait at the same time. I'll give them the bad timing of the acquisitions in 2008, but once they got sort of settled they tried to buy ABF. They still weren't showing a profit and they want to expand?

 

But how were their labor costs relative to their own revenue, and to other expense categories?

Comparing their labor costs to those of other carriers might be an apples to oranges comparison. Yellow's own ratios are what will tell the real story.