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The Teamsters union retracts a strike threat at trucker Yellow, preventing potential liquidation.
The Teamsters union has withdrawn the threat of a strike at Yellow, averting a potential company liquidation. After a pension fund agreed to continue to extend health benefits to unionized workers and give Yellow an additional 30 days to make a missed payment, the union pulled back. This decision follows a federal judge's denial of Yellow's request to block the strike.
Yellow, one of the largest trucking companies in the U.S., is grappling with a heavy debt burden and falling cash reserves. A strike could have sent the 99-year-old company into Chapter 7 liquidation proceedings, affecting its 30,000 employees, including 22,000 union members.
Source: WSJ
Even if the Teamsters and Yellow come to an agreement, the damage this past week has done to them is irreparable.
— Steve from 🌎 (@SteveT313) July 24, 2023
Nobody is going to put freight into Yellow's network until they are certain it will come out with a clean delivery. We aren't putting a single pallet in. https://t.co/GCy3gHerVJ
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