Yellow Corp. avoids Teamsters strike
Yellow Corp. has escaped a strike from the Teamsters after receiving an extension to make missed benefit payments.
On Sunday, July 23, the International Brotherhood of Teamsters announced that a potential strike with Yellow employees had been averted. The Teamsters had threatened to strike on Monday, July 24, if the company had not rectified delinquent health and welfare and pension contributions.
According to a news release, the Central States Health and Welfare Fund agreed to extend health care benefits for Yellow employees working under YRC Freight and Holland. Had the extension not been granted, benefit suspensions would have gone into effect Sunday, July 23.
Yellow failed to make contractually obligated benefit payments of $50 million to Central States on July 15. The new agreement gives the company 30 days to make those payments. According to the Teamsters, the company is expected to make those payments within the next two weeks.
“Our members at YRC Freight and Holland cannot work without health care, and the Teamsters worked tirelessly to ensure an immediate strike at Yellow could be averted,” Teamsters General President Sean M. O’Brien said in a statement. “These discussions were not easy, but Central States has made meaningful movement under pressure from the union. We are seeking a real resolution, but let this solution today serve as a profound reminder that our members can only endure so many sacrifices. Teamsters at Yellow simply work too hard and have already given so much.”
However, Yellow contends it is the Teamsters’ fault for the delinquent benefit and pension payment.
The company argues that the union’s rejection of proposed changes under the One Yellow business modernization plan led to the missed payment.
“In short, Teamsters’ leadership’s obstruction of One Yellow directly caused Yellow’s liquidity crisis and Yellow’s need to implement cash-conservation measures, including its benefit funding deferral request,” Yellow said in a news release.
On Friday, July 21, the U.S. District Court for the District of Kansas ruled against Yellow, denying the company’s request for an injunction to stop the Teamsters from striking over the delinquent benefit contributions. At the time, O’Brien threatened to strike if the problem was not resolved.
“Yellow thought they could scheme the system, but the law was on the side of workers. Teamsters have emerged victorious,” O’Brien said in a statement. “The company has two more days to fulfill its obligations or we will strike. Teamsters at Yellow are furious and ready to act. They are done with the mistreatment and mismanagement.”
Yellow issued the following statement regarding the court ruling:
“The court, recognizing a strike would likely kill the company, resulting in the loss of 30,000 jobs, cautioned the union – that while it won today’s battle, it could very well lose the war.
The company will continue to pursue its breach of contract case where it seeks to recover more than $1.5 billion in lost enterprise value caused by the International Brotherhood of Teamsters.”
In a Facebook post on Saturday, July 22, the Teamsters doubled down on its threat to strike.
“Yellow Corp. has 24 hours left to prevent a work stoppage,” the Teamsters state in the Facebook post. “Management is running scared. Cowardly (Yellow) CEO Darren ‘Do Nothing’ Hawkins has been desperately trying to shift blame and place the burden of his own failures on rank-and-filers.”
Yellow could not be immediately reached for comment. LL
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