Yellow Freight closure thread

That was the line management gave in 2009 and 2011. Teamsters bent over. Restructuring happened, and in 2016 they showed their first annual profit in 8 years. In 2017 they lost $10 million, in 2018 they had a $20 million profit and then lost $100 million in 2019. Overall 2017 was a solid year for transportation stocks while 2018 was a banner year. 2019 was a bloodbath and all signs were pointing towards recession, so having a net loss wouldn't surprise or concern me, but losing 5 times what they made the previous year is a HUGE red flag.

In 2020 YRC "had to" get the government to give them $700 million dollars for a 1/3 equity stake. There should have been no need for emergency funding at all, let alone of that magnitude, and certainly not by the government. "We just need some breathing room to restructure and streamline" they said.

YRC took a mortal wound in 2008 and has never recovered. They could have, but upper management lurched from bad idea to bad idea and are trying to blame the Teamsters

 

And you have to remember that much of that "profit" was due to the sale of real estate.

 

The main issue was their debt - both amount and structure. ABF has 1/2 the revenue, but 1/100 of the interest payments. UPS has 10 times the revenue, but only 3 times the interest. Yellow basically found themselves in the same position as the typical L/O.

 

You say that, but one would wonder why that after the fiasco of 2008 why they didn't think of One Yellow then. If so, then all this wouldn't even happened. But YRC corporate executives left their thinking caps and common sense at home. Teamsters shouldn't be punished for Yellow's stupidity back then. And companies that keep needing to get bailed out by the union and the government simply shouldn't be allowed to exist anymore. That's not how business works. Sean O'Brien realized this and, well, here we are.

 

Same here - you would think 30,000 jobs would be worthy of a mention.

I didn't think they would ever actually shut the doors.

 

I was going to mention that. As hard nosed as Sean O'Brian has shown himself to be, he helped UPS and ABF employees get pretty good contracts. A former Reddaway coworker who jumped ship to ABF says he's very happy with his new contract.

O'Brian doesn't seem content with landing middle-of-the-road contracts. He's fighting for every microscopic inch, and in his eyes if you're not able to give your employees nothing but the best, then you shouldn't be in business. Especially considering Yellow's track record of incompetence, corporate bonuses and employee cuts over the past 15 years, he basically told Yellow to kick rocks for employees to find something better.

 

Well I've read some news stories that the economy and jobs are doing just fine so yeah nothing to see here, right?

 

YRC has been a dumpster fire for nearly two decades. Dollar Bill Zollars was the beginning of the end for Yellow
Hoffa Jr is complicit as well. Surprised the old man didn’t come back from the dead to whack Jr for all the givebacks he gave Yellow

 

Can’t be all over news.
The economy just jumped back a giant leap.
“Just how do you think that, Judge?” you ask.
30,000 people are now without jobs, husbands, wives, brothers, sisters.
Those who have houses, vehicles, living expenses.
Credit card bills.
So on so forth, jobless.