Less-than-truckload carrier Yellow Corp. has notified the Teamsters that it will make modifications to the second phase of its network consolidation, according to a memo from a union official to the rank and file.
A Monday statement from Teamsters National Freight Director John Murphy to local unions says Yellow is withdrawing two previously filed change of operations requests in efforts to “significantly modify” the terms. The changes will be fast-tracked as the carrier intends to “refile them in the very near future.”
In a notification to Murphy, Yellow said its trucker relations reps met with 99 of the impacted local unions to gain feedback and address concerns. As part of a new proposal, Yellow (NASDAQ: YELL) will “significantly reduce the number of utility employees,” modify dispatch rules and expand driver opportunities to minimize pool bids. Local unions representing multiple locations will also be able to merge employee lists for seniority purposes.
The original plan announced Oct. 19 called for the creation of nearly 1,000 utility driver positions to support operations at new velocity distribution centers.
“The company is committed to listening to the [union’s] thoughts and concerns in order to design and implement the changes of operations that will best enable us, collectively, to meet these important objectives,” the letter to Murphy said.
Yellow has already executed the first phase of the overhaul, which included the restructuring of 89 YRC Freight and Reddaway facilities in the West. The second phase includes 200 sites operated by Holland, New Penn and YRC Freight located in the central, eastern and southern parts of the U.S. The goal is to merge all of the different operating companies onto the same technology platform and eliminate overlapping capacity throughout the network.
Management from Yellow stated in the past that the entirety of the changes will result in the closure of 28 terminals, or 6% of doors.
“Time is of the essence,” Yellow noted in the letter. “The softening LTL market is already putting tremendous pressure on the company’s business — as you know, volumes have already decreased dramatically.”
Yellow reported Friday that daily tonnage declined 25% year over year in November, following a 24% decline in October.
The letter from Yellow said it will be “seeking to streamline and expedite the process of scheduling the revised change for hearing and, if approved, implementation.” Its trucker relations reps will meet with local union officials to discuss the proposed changes. The company is eyeing an early 2023 hearing date.
Murphy advised local unions to “actively engage with the company,” noting that “nothing is written in stone at this time, and local unions are free to fully discuss all concerns with the company.”
“We see this as a positive,” a Yellow spokesperson told FreightWaves. “We listened to the locals and our employees and, based on the feedback we received, we are making adjustments that will better serve all parties. We expect the revised change to be sent out next week.”
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Yellow Slacker
This story was about the change being delayed.
Focusing on this let’s agree It’s always a positive spin from Yellow no matter what. . Of course they think that admitting failures is not a good strategy. When the first part of velocity change became untenable due to the drivers in the west pushing back against utility by not offering more cooperation it must have been real bad for these guys to buckle to the labor like this. Utility drivers dragging feet as not to have time to assist with dock work is typical but at the same time most drivers are not near as capable performing dock work as someone who does so as their normal job function.
G ANDERSON
Does anyone really think YRC( or whatever they are this week ) will pay back government loan ? It comes due in an election year !
Ghost driver
I have worked for yellow for 6 years, I have never seen so much non transparency in a company, the upers only care about themselves, unorganized and unrealistic goals, this company will never make it, the only way it will make it is to get rid of all terminal managers and get new blood, same for corporate.
Freight Zippy
This carrier has been a cancer on the industry for over a decade. Surviving off of bank charity and government welfare they have poisoned the pricing and reputation of the LTL Industry.
Ever since Goldman Sachs swapped $2 Billion in secured Bonds for $2 Billion in YRC Common Stock it has been downhill. Goldman Sachs investment went from $2 Billion to almost nothing in a matter of a few months.
Why would they do that????
The industry would be much better off without this company alive…
Charles Sowell
Thank God for Yellow Transit. I was able to work my way through college in the 60s. No student loans at all. Worked at the Dallas terminal then located on Irving Blvd. I handled the first set of “pups” that arrived in Dallas. I worked part time as roadside hostler and earned $3.03 an hour, it was great. Thanks Yellow Transit!
Deron Newman
30 yrs in this company and I watch the daily deterioration of day to day operations. Its very sad to see! It appears that the goal of this company is to sell off all of its assets so that when its time to close up shop they can just walk away with nothing left for their creditors. It sure seems like that is where this is heading. We lost alot of good freight people over the years and that is definitely a reflection of the current state of this company!
Leonardo Garza
I’ve been working for 33years first 22 years for roadway the rest of the years for Yrc and now yellow it’s about time the give us back when they cut our pension we have given them more when they took our 15%