Yellow Corporation Announces That the International Brotherhood of Teamsters Breach of the Collective Bargaining Agreement Caused Yellow’s Inability to Make Its Monthly Contribution to Central States Funds
Yellow Corporation faces potential strike from International Brotherhood of Teamsters over failure to make pension and health fund contributions. Yellow requested deferral of payments, but was denied by Central States. Teamsters' leadership blamed Yellow, but Yellow claims it is the union's refusal to negotiate modernization efforts that has caused financial strain. Yellow has offered wage increases and is open to negotiations.
Positive
Yellow Corporation faces potential strike from International Brotherhood of Teamsters over failure to make pension and health fund contributions. Yellow has requested deferral of payments for two months, July and August, with interest. Yellow has offered a significant wage increase that aligns with its union competitors. Yellow remains ready, willing, and able to hold serious negotiations with the Teamsters.
Negative
Potential strike from Teamsters could negatively impact Yellow Corporation's operations and financial stability. The company's liquidity crisis and need for cash-conservation measures, including benefit funding deferral, may further strain its financial position.
07/19/2023 - 07:28 PM
NASHVILLE, Tenn., July 19, 2023 (GLOBE NEWSWIRE) -- Yellow Corporation announces that the leadership at the International Brotherhood of Teamsters (IBT) has publicly claimed that the union may lawfully strike Yellow Corporation (NASDAQ: YELL) over its failure to make its July contribution to Central States pension and health and welfare funds, but a strike would be anything but lawful, as it would violate the parties’ collective bargaining agreement. The Union’s breaches of the collective bargaining agreement, which are detailed in the complaint Yellow filed in its District of Kansas lawsuit against the Teamsters, are the direct cause of Yellow’s inability to make contributions to the funds. (June 27 complaint and press release can be found below in PDF format.)
In June, Yellow wrote to the funds, requesting a short-term deferral of its obligation to pay contributions for two months, July and August, with interest. This request is not without precedent. Regrettably, the Board of Trustees of Central States refused Yellow’s request, despite the funds’ healthy reserves.
Even more regrettably, Teamsters General President Sean O’Brien has blamed Yellow for failing its workers, but it is the Teamsters’ leadership who has failed the 22,000 Teamsters employed by Yellow as well as the 8,000 non-union employees who may soon become the Teamsters’ collateral damage. For many months, Teamsters’ leadership has steadfastly refused to negotiate the company’s long-planned and necessary modernization effort that would enable Yellow, a 100-year-old company, to streamline and strengthen its operations to compete against non-union carriers.
To keep up with the times and customers’ needs, the Company must implement its well-publicized business modernization plan known as “One Yellow,” yet Teamsters’ leadership has rejected all proposed changes of operations and all proposed interim agreements, freezing the company’s business plan for nine months. This has cost Yellow in excess of $137M in Adjusted EBITDA and has prevented critical refinancing for the Company.
Ever since Teamsters’ leadership made its request that Yellow open its contract early, Yellow has tried to meet to negotiate a contract that would provide wage increases for its Teamster employees. In fact, just last week, Yellow made yet another proposal to the Teamsters, offering a significant wage increase that aligns with its union competitors. Commencement of meaningful negotiations with the Teamsters would set the stage for Yellow to reengage in comprehensive refinancing efforts with its lenders while clearing a path to advance One Yellow. All stakeholders- lenders, shareholders, employees, and customers need to see progress.
In short, Teamsters’ leadership’s obstruction of One Yellow directly caused Yellow’s liquidity crisis and Yellow’s need to implement cash-conservation measures, including its benefit funding deferral request.
For nine months, Yellow has been ready, willing, and able to meet with the Teamsters at any time and at any place to discuss the future of its union and non-union employees and to work through the implementation of One Yellow. Even today, the Company remains ready, willing, and able to hold serious negotiations.
About Yellow Corporation
Yellow operates one of the largest, most comprehensive logistics and less-than-truckload (LTL) networks in North America, providing customers with regional, national, and international shipping services throughout. Backed by a team of nearly 30,000 transportation professionals, Yellow’s flexible supply chain solutions and best-in-class expertise ensure the safe, timely delivery of industrial, commercial, and retail goods for customers of all sizes. Yellow’s principal office is in Nashville, Tenn., and is the holding company for a portfolio of LTL brands including Holland, New Penn, Reddaway and YRC Freight, as well as the logistics company Yellow Logistics
To learn more about Yellow and our services, visit myyellow.com
PDFs accompanying this announcement are available at
http://ml.globenewswire.com/Resource/Download/792c4f25-9d58-4602-9383-3ac34bee3d05
http://ml.globenewswire.com/Resource/Download/c4b541e7-95cf-4fc5-b4e1-295017274a90
What is the International Brotherhood of Teamsters?
The International Brotherhood of Teamsters is a labor union representing workers in various industries, including transportation.
Why is Yellow Corporation facing a potential strike?
Yellow Corporation failed to make its July contribution to Central States pension and health and welfare funds, leading the Teamsters to consider a strike.
Has Yellow Corporation tried to negotiate with the Teamsters?
Yes, Yellow Corporation has made multiple attempts to negotiate with the Teamsters, including offering a significant wage increase.
What is Yellow Corporation's modernization plan?
Yellow Corporation's modernization plan, known as 'One Yellow,' aims to streamline and strengthen its operations to compete against non-union carriers.
How has the Teamsters' leadership responded to Yellow Corporation's proposals?
The Teamsters' leadership has rejected all proposed changes of operations and interim agreements, hindering Yellow Corporation's business plan and causing financial strain.
