Chances of a possible Yellow strike increase, Teamsters say

The prospects of a strike for Nashville-based Yellow Corporation, the third-largest United States less-than-truckload (LTL) carrier, with about 8% of the national market continue to gain traction, according to the International Brotherhood of Teamsters (IBT).

Citing how the Central States Board of Trustees this week voted to suspend health care benefits and cease pension accruals for Yellow workers, after two Yellow operating companies, Holland and Yellow Freight, failed to fulfill their financial obligations, with the Teamsters preparing for a possible strike as early as July 24, it said. The Teamsters added that benefit suspensions will go into effect July 23 if the company fails to make the critical payment to the Central States Health and Welfare Fund and the Central States Pension Fund for June 2023.

And it also noted that Yellow owed Central States $50 million on July 15, a payment it missed and must still make by July 23 to avoid a work stoppage and interruption in benefits for Teamster families.

“Yellow has failed its workers once again and continues to neglect its responsibilities,” said Teamsters General President Sean M. O’Brien in a statement. “This corporation’s gross mismanagement is another affront to the livelihoods and well-being of 22,000 Teamsters nationwide. Following years of worker givebacks, federal loans, and other bailouts, this deadbeat company has only itself to blame for being in this embarrassing position.”

As previously reported by LM, late last month Yellow filed a lawsuit for more than $137 million against the International Brotherhood of Teamsters (IBT), due to what Yellow called a breach of the Teamsters’ biding contract with Yellow.

The lawsuit, which was filed in the U.S. District Court for the District of Kansas, maintains that the Teamsters breached its binding union contract with Yellow. And Yellow officials said that the Teamsters have, for more than eight months, been “unjustifiably blocking” Yellow’s restructuring plan, which the company has stated is needed to modernize its business, in order to compete against non-union carriers that it said “dominate the LTL business.”

“These modernization efforts, known as One Yellow, are essential to the Company’s survival,” the company said. “Without these crucial reforms, which are standard practice in the industry today, Yellow likely will not survive, 30,000 jobs will be lost, including 22,000 union jobs, and its shareholders, including the federal government, which owns 30.1% of Yellow stock, will be severely damaged. Yellow remains a critical part of the domestic supply chain with hundreds of thousands of customers—large and small— relying on the Company to deliver freight coast-to-coast. Driving Yellow out of business will badly damage the supply chain, lessen competition and raise the price of shipped goods in the LTL market and feed inflation.”

What’s more, Yellow said that despite efforts to meet with the Teamsters to work on a path forward, the Teamsters have continually refused to meet. And the company also said in its lawsuit that IBT General President Sean O’Brien is responsible for the Teamsters not meeting with Yellow, adding that IBT previously supported Yellow’s restructuring efforts through its One Yellow plan, for several years, and also signed off on the first of its three phases before taking steps to block it.

Earlier this month, Yellow called on the White House, asking for presidential assistance in helping solve what it calls an “ongoing, intractable labor dispute” with the International Brotherhood of Teamsters (IBT) union over a new contract that doesn’t expire until the end of next March.

In a letter to President Joe Biden signed by Yellow CEO Darren Hawkins and Yellow Board Chairman Matt Doheny, the 100-year-old company says it has “worked closely” with the White House, Department of Labor and the Federal Mediation and Conciliation Service to resolve this matter, save jobs and “prevent an already fragile supply chain from breaking.”

“Despite support from your Administration, these efforts have proven unsuccessful at getting both sides to the table to discuss a way forward,” Yellow’s letter says.

Yellow says that for eight months, the IBT has refused to meet with Yellow to discuss the company’s long planned modernization effort known as “One Yellow.”

“In April, the IBT suggested that we open our contract early and our Board of Directors agreed, yet the IBT still will not meet to negotiate a contract that includes pay raises for workers,” Yellow’s letter says. “IBT leadership says they’re too busy with UPS, something that doesn’t sit well with our 30,000 employees who are concerned about their livelihoods.

“As a result of union intransigence, Yellow’s business plan has been frozen,” the company says. “The company has lost market share and has been unable to secure additional lending for day-to-day business operations.”

The Teamsters deny what it calls “baseless allegations” made by Yellow in its “frivolous” lawsuit.

“Yellow Corp.’s claims of breach of contract by the Teamsters are unfounded and without merit,” Teamsters’ O’Brien said.