The U.S. District Court for the District of Kansas ruled Friday against less-than-truckload carrier Yellow Corp.’s request for an injunction, which would have kept its Teamsters employees from engaging in a work stoppage.
In her decision, Senior Judge Julie Robinson denied a motion for a temporary restraining order and injunction.
The decision allows the union to carry through with a planned strike, which could begin as soon as Monday. The final straw prompting the strike was Yellow’s missed benefits contribution payment to Central States Funds last week, which will leave workers without health insurance on Sunday.
The two parties have been embroiled in a bitter dispute over operational changes for the last nine months. The carrier has maintained that without the changes it wouldn’t survive while the union took the stance that it had given enough in the past in the form of wages, benefits and work rules concessions.
“The company has two more days to fulfill its obligations or we will strike,” Teamsters General President Sean O’Brien said following the decision. “Teamsters at Yellow are furious and ready to act. They are done with the mistreatment and mismanagement.”
In its filing seeking an injunction, Yellow said it would likely file for bankruptcy if the court didn’t rule in its favor.
“Absent injunctive relief, Plaintiffs will suffer immediate, substantial, and irreparable harm from Defendants’ unlawful work stoppage, including being forced into a Chapter 7 liquidation bankruptcy proceeding.”
In a news release late Friday, Yellow said it would appeal the court’s decision and continue to pursue its breach of contract lawsuit against the Teamsters.
“The court, recognizing a strike would likely kill the company, resulting in the loss of 30,000 jobs, cautioned the Union — that while it won today’s battle, it could very well lose the war,” the statement said.
More FreightWaves articles by Todd Maiden
- Yellow’s fate likely in hands of Kansas district court
- Knight-Swift reels in 2023 outlook after poor Q2
- Pam Transportation sees earnings fall 60% in Q2
K
This is for all the union members that profited from Yellow which IS ALL OF YOU. You cry that Yellow did you wrong well YOU have committed the ultimate sin to all of us non union employees, we gave more than you ever did and you know what we where Ok with doing do it for our families. But all you care about is your own gains. YOU not management have TAKEN AWAY our ability to support our loved one. It appears that you would rather destroy 10 of thousands of lives to make a buck then to be thankful for what you have aka a job why can’t you just quit and work somewhere else do the rest of us a favor and allow us to keep food on the table but then that is what the union does takes your dues and allows someone to make decisions for you but they still get paid while your on the unemployment line good luck with that.
Wyatt
Yellow was failing back in 2020. Luckily, spending half a million lobbying a friendly administration can secure you a $700 million loan and keep executives in the lifestyle they’re accustomed to for a few more years. Now the money’s gone and, surprise, the business model is still failing. The fat lady was singing before there was any talk of a strike; it’s merely symbolic. Other companies do just fine with Teamster employees…and those drivers make a heck of a lot more than Yellow was paying theirs.
Mark W
There won’t be no strike yellow will be packing up and selling its equity.
Jim
It seems the Teamsters aren’t done ruining businesses and causing havoc.. good for me personally because I employ 0 people but will reap the benefits of all these shippers looking to move their LTL a different way … thanks Teamsters! I suppose smarter and leaner trucking companies will pick up the business. The Judge was appointed by GW Bush — one of the smartest presidents of course not including our current king – Joe Biden.
Dan Wood
My bother has worked for Holland Motor Freight for years. Holland Motor was ran very well until YRC bought them and ran them into the ground. It is so sad for him to watch what YRC did to a great company do to such poor management at YRC.
Jimmy Castelli
It would be impossible to quantify the number of operational mistakes that are made on a daily basis… for years! I am a 28 year Holland driver that wants nothing more than for us to succeed- to think that the Teamsters are responsible for this mess means that you have paid no attention at all to the past 10 years. The mismanagement of this company almost had to be done intentionally
Ken Samuels
Yellow Management does not know how to run a trucking company! They are always one step from bankruptcy They can go through money like a Drunk sailor
Buddy
Thoughts and prayers to the workers and their families.. I hope for their sake something gets worked out, but the light at the end of tunnel is looking very dim for Yellow employees.