A Tuesday letter from Teamsters leadership to local unions representing all of Yellow Corp.’s network said emergency negotiations that began on Sunday haven’t yielded an agreement. The union says its “bottom-line proposal” seeks the $11-per-hour wages and benefits hike previously offered by the company.
A July 12 letter from Yellow’s (NASDAQ: YELL) CEO to the Teamsters general president said the less-than-truckload carrier was willing to raise total compensation by $11 per hour over a five-year term if the union would acquiesce to its proposed change of operations. Yellow’s efforts to implement those changes, which it says are required for its survival, had been rejected by the union.
Yellow has also said that its lenders want to see full implementation of a company overhaul dubbed “One Yellow,” which includes the proposed operational changes, before restructuring its bloated debt load, $1.3 billion of which comes due next year. The carrier is in dire need of a financial reset and has said it will be out of cash at some point this month.
It recently missed required contribution payments to health, welfare and pension funds at Central States. The delinquency prompted a strike notice from affected Teamsters at YRC Freight and Holland, threatening a work stoppage on Monday. At the union’s behest, Central States granted the company a 30-day extension on the payment, agreeing to keep union members’ insurance coverage intact in the interim, thus averting a strike.
The Teamsters letter said the company previously informed the union it would miss payments to other funds as well.
Starting Sunday, Yellow and the Teamsters have met “nearly around the clock” to come up with a long-term solution that Yellow could show to lenders, which would allow the carrier “to obtain financing and restructure its debt,” according to the letter.
In the proceedings, the union asked for the $11-per-hour package. Yellow rejected and countered with “a proposal that was less than what it had told the Union and the members as recently as late as last week would be available.” The union rejected the counter and said the $11 increase is “its bottom line.”
“Yellow has not yet responded to the Union,” the letter said.
Company officials were not immediately available to provide their perspective of the negotiations.
The two parties stuck on the amount of the increase is odd given Yellow told Teamsters at the end of May that it wouldn’t be able to fund an increase as small as 60 cents per hour without approval from lenders. The Tuesday letter shows the two parties are haggling over a number that the company can’t pay without a capital infusion in order to get an agreement it hopes to sell to lenders.
All the while, the company is operating in a diminished capacity. Its customers have diverted freight and load boards have removed it as a carrier option. On Tuesday, an internal document showed it was “limiting pick-up operations in all terminals.”
“The Union stands ready to work with and assist Yellow in its effort to secure financing to avert a shutdown provided Yellow agrees to TNFINC’s [Teamsters National Freight Industry Negotiating Committee] proposal. While we await Yellow’s response, we ask that you remain the professionals you are famous for,” the union’s letter concluded.
Shares of YELL were off 24.3% Tuesday compared to the S&P 500, which was up 0.3%.
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Jim Hennings
Unfortunately, what workers often don’t realize is that the union is about the collective organism and not the individual. There is not room for the individual in union labor pools by its very foundation. Union workers must often suffer for the “good of all” even if a few individuals never find themselves on the side of the fence where “the good of all” is happening. Truth is many union peon slaves must be sacrificed for the few tried and true lucky ones who make it to a good retirement.
If the teamsters were really actually smart they would have kept the company going and negotiated a merger. Think about this- who will want to invest in stocks in a trucking company that could be killed by a union? It is a self-eating monster run by angry idiots. Argue for more, settle for what you can get and live another day. If you don’t like it, try construction where 100K+ jobs are abundant everywhere you turn.
Foster griggs
Welp as of 12pm 7/30/23 I received the call that yellow is no longer in business am at G79 that’s the garage in Piedmont SC
Jason
There’s a funny story about a guy who had a goose that laid golden eggs. One day he got smart and took a shortcut to get the eggs, he killed the goose. I think unions are a great idea but the leaders of the union should get no more compensation than an average wage at the business where their members work. And common sense should prevail in all matters (you shouldn’t kill the goose/company) with stupid negotiations. Now you understand why Amazon has its own drivers.
Murtuza k.
Yellow has closed its doors today july 28th. All management personal has been informed its their last day. This is not because of union but because of mis management and inn competency of our ceo to successfully integrate formal systems in the company that would work as glad hands. They may blame the union but again union was only doing what’s best for us employees and nothing more than it did for rest of the workers at other companies.
Jay cie
Teamsters bunch of hacks looking out for the big guy , admit it you Teamsters dipsh@&s you don’t care about the worker never have
Anonymous
This is a stratregic move for yellow…the union is blocking them from consolidating properties and reducing debt. If we get rid of the teamsters yellow will profit and all will be good. The teamsters are in bed with the lenders and are only looking out for their interests not the employees.
Dan
Wake up workers , it’s over. Get out now!!! Next step is rubber checks for you all but not for the top brass of yellow. Also the government ( past loans , taxes .etc.) will get their money first and the blue collar workers will get stiffed! Been there before ,ooooh remember p.i.e. ,,,, American freight , cf motor freight ,etc.,etc. GET OUT NOW !!!!!!
Robert
Why isn’t the workers having any say on this with what the union is asking for. I know a lot of workers are stressed out over this. He is playing with our future at Yellow. There are a lot of us almost able to retire from yellow. I cant see how anyone cant see this, If the company has to pay 11.00 more an hour and benefits the company wont survive. I heard management pays for there own insurance, so why cant everyone else or at least half. Unions don’s care about anyone except what comes back to them. They need to come up with a solution and get everyone back to work.