Yellow Corp. surprised the industry by officially filing for bankruptcy on Sunday, with the International Brotherhood of Teamsters union being held responsible. The company and its subsidiaries are currently operating under the jurisdiction of the Bankruptcy Court while managing their businesses and properties as “debtors-in-possession.”
Aug. 7 (UPI) — One of America’s leading trucking and logistics companies, Yellow Corp., fell victim to bankruptcy largely because of the actions of the International Brotherhood of Teamsters union, according to a statement released by the company on Sunday.
With profound disappointment, Yellow’s CEO Darren Hawkins announced the end of the company after almost a century in business. Hawkins placed blame on the Teamsters, claiming their resistance to modernization and refusal to improve customer service ultimately led to Yellow’s demise.
“For nine months, we faced insurmountable challenges from the union, including bullying tactics and deliberate attempts to destroy our operations,” said Hawkins. “A company has the right to manage its own affairs, but the IBT leadership was able to obstruct our plans, effectively forcing us out of business despite our best efforts to cooperate.”
Yellow noted that it was met with hostility when it attempted to initiate contract negotiations ahead of schedule. Instead of engaging in productive discussions, the company faced months of public ridicule from the Teamsters, including a distasteful social media post depicting a tombstone with Yellow’s name and the years 1924-2023. Yellow described this aggressive campaign as an orchestrated effort to push the company towards failure.
Just a week ago, the Teamsters received a legal notice from Yellow, informing them of the company’s decision to cease operations despite the ongoing negotiations for a new labor contract. The Teamsters accused Yellow of mismanagement, stating that the trucking company repeatedly relied on worker concessions to stay afloat.
“Despite billions of dollars in worker concessions and significant bailout funding from the federal government, Yellow has demonstrated its inability to effectively manage itself,” remarked Teamsters General President Sean O’Brien. “This is a tragic day for workers and the freight industry in America.”
