The century-old trucking giant company, Yellow Corporation, is on the brink of a significant closure after over a century in business. According to the Wall Street Journal, reports indicate that the corporation is only days away from declaring bankruptcy.
A startling 30,000 more workers are now in danger of losing their jobs as a result of the situation’s escalation, which led to the Friday layoff of hundreds of nonunion workers.
Yellow Corporation’s Financial Troubles
For large stores like Walmart and Home Depot, Yellow Corporation has been a crucial service provider, meeting their transportation and logistical requirements. However, the company’s financial issues have made it questionable if it would even survive.
The Nashville-based company’s issues are not new; in 2020, the Trump government gave them a hefty $700 million CARES Act loan.
This choice, however, was criticized, and the Defense Department objected to it. The financial problems seem to have remained despite the inflow of cash and are now putting the business in danger of going out of business.
Approximately 22,000 Teamsters, who have contributed to keeping the business running for more than ten years, risk losing their jobs if Yellow Corporation fails in the next crisis.
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Teamsters’ Efforts to Keep Yellow Corporation Afloat
Over the years, in order to keep the business solvent, the union members have made considerable concessions, such as pay reductions, pension modifications, and work-rule revisions.
However, Yellow Corporation is ultimately responsible for handling the business’s financial difficulties. The Teamsters projected a dim view for the company’s viability in a message to union members.
Additionally, it seems that clients are switching to other businesses, further complicating the situation for Yellow Corporation.
There are continuing discussions to maybe sell some of the company, but the conclusion is still up in the air. Notably, truckers’ average salary has significantly decreased and is now just half of what it was in 1980.
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