Yellow Corporation is a less-than-truckload (LTL) carrier that has been in business for over 100 years. However, the company has been struggling financially in recent years. In 2022, Yellow lost $100 million, and it is currently facing a lawsuit from the Teamsters union, which represents many of its employees.
The Teamsters union has been demanding higher wages and better working conditions for its members. The union has also refused to allow Yellow to use outside transportation capacity. This has put Yellow in a difficult position, as it is unable to meet the demands of its customers without using outside capacity.
In March 2023, Yellow CEO Darren Hawkins warned that the company could go bankrupt within 30 days if it did not reach a deal with the Teamsters. The union has so far been unwilling to compromise, and the situation between the two parties remains unresolved.
The financial troubles and labor disputes at Yellow Corporation are a major concern for the LTL industry. If Yellow does go bankrupt, it would be a major blow to the industry. The company is one of the largest LTL carriers in the United States, and it employs over 20,000 people.
The situation at Yellow Corporation is a reminder of the challenges facing the LTL industry. The industry is highly competitive, and carriers are facing rising costs for fuel, labor, and equipment. As a result, many carriers are struggling to make a profit.
The future of Yellow Corporation is uncertain. If the company does go bankrupt, it would be a major blow to the LTL industry. However, if Yellow is able to reach a deal with the Teamsters, it could be a turning point for the company. The company could emerge from the negotiations stronger and more competitive.
Only time will tell what the future holds for Yellow Corporation. However, one thing is for sure: the company is facing some significant challenges.
Update: Yellow Corporation Files Lawsuit Against Teamsters
On June 27, 2023, Yellow Corporation filed a lawsuit against the International Brotherhood of Teamsters (IBT). The lawsuit alleges that the IBT is blocking Yellow’s efforts to modernize its operations, which the company says are necessary to remain competitive.
The lawsuit claims that the IBT is violating a 2019 labor agreement by refusing to allow Yellow to use outside transportation capacity. Yellow Corporation also claims that the IBT is engaging in “bad faith bargaining” by refusing to negotiate in good faith with Yellow.
Yellow is seeking damages of $137 million in the lawsuit. The company says that the IBT’s actions are costing it money and threatening its future.
“We do not take this action lightly, but the Union’s leadership has left us with no choice,” said Yellow Corporation management. “For many months, we have made good faith efforts to meet with the IBT to propose a path forward that works for all parties, but they refuse even to meet, let alone engage in honest talks. We have communicated with all stakeholders in Washington, D.C., including the Biden Administration, to apprise it of the imminent loss of tens of thousands of jobs, the significant anti-competitive effects on the American economy and the devastating impact to the supply chain, and to seek their assistance in persuading the IBT to negotiate a mutually acceptable agreement. We are fighting for the livelihood of our 30,000 employees who are good hard-working people. We will do all we can to save these American jobs and to protect our shareholders, including the American taxpayer.”
The IBT has not yet responded to the lawsuit.
The lawsuit is the latest development in a long-running dispute between Yellow and the IBT. The two parties have been at odds over wages, working conditions, and the use of outside transportation capacity for several years.
The dispute has led to multiple strikes and work stoppages, and it has put Yellow’s financial future in jeopardy.
It remains to be seen how the lawsuit will be resolved. However, it is clear that the dispute between Yellow and the IBT is far from over.
