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
Sammie l Collins
We as Teamster have taken pay cuts over the past 15 years trying to save this company. I worked for Roadway until we was purchased by yellow that’s when all the money problems started .We took a15% pay for about 8 years trying to save this company, so before you try to blame the union we did our part management fell by giving themselves bonuses and not adjusting to the future .when you have management that don’t know how to run a company this is the result we as Teamster gave millions back to this company its not our fault I just wished the result was different .the guys will get their pension because it has been secured thru centralstates retirement fund. Praying for you guys I am retired but I left a lot of good coworkers 🙏
Richard
I here you we at Holland told management the same thing and no one would listen to the people that see the customer on a daily basis it is a shame that management won’t listen
Ted Dean
Darren Hawkin, I sure hope that you go to jail the most unprofessional person in the company, all you people who currently work for this sh*t hole just watch what he is going to do to you guys! They took away my pay check for some BS claiming they had over credited my vacation credits going back three years on their part , I asked the union to take it up with labor relations? Why the hell can they go back over one year is unfair, they didn’t even give me a heads up about it. FedUp Driver.
Diana Kilmury
The Yellow debacle is the predictable consequence when once thriving logistics companies are controlled by Wall St. vultures who contribute nothing, rarely understand the LTL Freight logistics business or the trucking industry and instead are interested in only one thing: grinding every last dollar in returns to shareholders and generating obscene and undeserved amounts of executive compensation.
Vital components of the supply chain that affects EVERY business and the economy ought not to be just one more game token on a Monopoly board.
Neil Grueninger
About time the union is standing up against yellow. Was a Holland driver. It went down hill since yrc bought us. Yellow can kiss my rear.
There ceo makes to much and wants the drivers to keep bleeding.
Shut it down!!
Craig
Good I’m glad. Hope they file chapter 7. It’s been a dieing company for years. Nothing but lies from yellow. Teamsters employees gave enough over the years. They took a stand.
Pete
This is on yellow not the IBT , anyone saying differently doesn’t know what they are talking about!
David Gaddis
I agree with Tim, none of this would be happening if Zollars hadn’t purchased Roadway. It was basically duplicate authority that was a waste of assets.