One of America’s largest trucking companies has stopped operations and is expected to file bankruptcy, leaving the country in what experts are calling a delivery crisis.
Yellow Corp., a century-old company servicing the less-than-truckload market, will lay off all 30,000 of its workers.
The trucking company, whose 17.5 million annual shipments make it the third-largest in the U.S., had an outstanding debt of about $1.5 billion as of March, despite receiving a $700 million loan from the federal government in 2020. The company has been in an ongoing battle with the Teamsters union, which represents 22,000 drivers and dock workers, over unpaid pension and health insurance contributions.
In a statement, Teamsters General President, Sean M. O’Brien said the union was committed to protecting its members from the fallout and finding them other union jobs in the freight industry.
“Today’s news is unfortunate but not surprising,” said O’Brien.
“Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government. This is a sad day for workers and the American freight industry.”
Yellow company leaders, however, disagree, issuing a statement in mid-July that put the blame on the Teamsters and accused it of failing its workers.
“For many months, Teamsters’ leadership has steadfastly refused to negotiate the company’s long-planned and necessary modernisation effort that would enable Yellow, a 100-year-old company, to streamline and strengthen its operations to compete against non-union carriers,” the company said in a statement.
Yellow Corp. has 12,000 trucks and more than 300 terminals nationwide, with customers that include retail giants Walmart, Costco and Home Depot.
In other news, SAF-Holland opened a new centre in Cincinnati.