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Yellow Corp. Sues Union for $137M Amid Financial Distress
Less-than-truckload carrier, Yellow Corp., has filed a $137 million lawsuit against the Teamsters union amid a severe financial crisis.
Yellow Corp. Files Lawsuit against Teamsters Union
Less-than-truckload carrier, Yellow Corp., is suing the International Brotherhood of Teamsters for $137 million for breach of contract. Yellow alleges that the union's interference has blocked proposed changes crucial for the company's survival and resulted in severe financial loss.
Yellow's Financial Crisis
Yellow is facing a deepening financial crisis, with the company stating it could run out of cash by mid-July. Its share price has fallen drastically, causing the company's market cap to plummet. Yellow believes it is necessary to modernize operations to survive, but the union has rejected its latest proposals.
Union Rejects Yellow's Proposals
The Teamsters union has refused Yellow's proposed changes, arguing they would require too many utility positions and compromise its members' wages and benefits. The union has affirmed its intention to honor the current contract, which expires next year.
Yellow Claims Union Interference
Yellow maintains that the union has no right to block the changes it needs to implement. The company asserts these changes are essential for reducing costs and enhancing competition. The company also accuses the union of breaching the collective bargaining agreement by refusing to agree to a required hearing on the proposed changes.
Yellow's Future in Jeopardy
With the company's future hanging in the balance, Yellow has sought assistance from the White House and Sen. Bernie Sanders, without success. It received a $700 million COVID-relief loan from the U.S. Treasury in 2020, but with debt repayments due in 2024, the financial situation remains precarious.