Shortly after less-than-truckload carrier Yellow Corp. said Tuesday it would go through with plans to defer required contributions to funds managed by Central States Funds, the International Brotherhood of Teamsters issued a strike notice.
The notice said a work stoppage could occur as soon as Monday.
“Yellow has failed its workers once again and continues to neglect its responsibilities,” said Sean O’Brien, Teamsters general president. “Following years of worker givebacks, federal loans, and other bailouts, this deadbeat company has only itself to blame for being in this embarrassing position.”
On Monday, Central States issued a delinquency notice to plan participants working at Yellow (NASDAQ: YELL) operating companies YRC Freight and Holland. The letter said the companies had deferred health and welfare and pension contributions due this past Saturday and would do the same for payments due August 15.
“The Company advised Central States Funds that it would defer payment of health and pension contributions for June (due July 15) and July (due August 15) to preserve liquidity as it worked to obtain meetings with the IBT [International Brotherhood of Teamsters] as well as secure additional financing,” a Tuesday evening statement from Yellow read.
The combined payments total $50 million for the two-month period.
A recent filing with the Securities and Exchange Commission showed Yellow had in excess of $100 million in cash as of June 30.
Yellow has said it will repay the amounts with interest in the future.
If unpaid, the carriers’ participation in the pension plan would be terminated on Sunday and health care claims incurred by employees after Saturday would not be paid.
Employees have the option to pay for health care out of pocket. In a separate notification, Central States said the cost is $471.86 per week through July 29. The amount increases to $507.08 per week after that. Payments must be received by August 23.
Yellow and the Teamsters have been unable to reach an agreement on operational changes that the carrier says are necessary for it to remain in business.
The Teamsters statement said the company has until Sunday to make the payment.
“Yellow has a responsibility and obligation to workers. Our members should not suffer because of management’s incompetence and financial irresponsibility,” said Fred Zuckerman, Teamsters general secretary-treasurer. “The Teamsters are working with our local unions, and we will continue to regularly update members as this situation unfolds.”
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Glen
Again Yellow lies! If they didn’t pay June’s and trying to defer July and August, the last time I went to school 1+1+1=3 not 2.
Ron
So the health care premiums alone are $2K per month (about $12 per hour)? How much is the pension per hour?
That’s hardly a level playing field compared to non-union carriers.
Too bad that well paying jobs with great benefits disappearing.
Not Moderated by People
Comments aren’t deleted. It’s an automated moderation system that deletes any comment that contains swear words. A person isn’t sitting there reading everything and deciding who gets to post and who doesn’t. It’s 2023. No wonder you idiots are about to lose your jobs. PS-politicians who are against unions are conservative republicans, who are also the owners and CEOs of all union companies. They don’t want you to have union jobs because you get paid more than non-union jobs. O’Brien is getting paid by lobbyists to break every union in the IBT and he’s going to retire sitting on your pensions.
Dan G
The western half of Yellow’s US territory has already made the change in operations AND did it successfully AND is providing the only profits to the company right now. It makes absolutely no sense that IBT is stopping the east from doing the exact same thing. Yellow offered significant raises to all members to get it through but O’Brien wouldn’t even allow a vote and didn’t even tell them. He’s going to close this company just like the other union shops he’s been getting paid to shut down. Funny how the rich play with our houses in their monopoly game. We’re all going to lose here.
Bad driver
How about a great idea freightwaves. Stop deleting and moderating pro-union anti-biggovernment comments. Let’s see if you post this.
Zoomer
Anybody who thinks the union is at fault for something like this has ultimately decided to lick the boots of the greed that ruins companies like this. With all these financial problems Yellow has, and with all the concessions Teamsters has given over the years, why did they still have money to provide bonuses to top-heavy management, lavish in-person meetings, AND afford lawyers to sue Teamsters? Truly sickening how deep in the sand people will put their heads to defend corporate greed.
Jason
Any non-socialist should willingly to fore go a taxpayer funded pension, principals!
Richie Sullivan
Vincent…..I don’t know what local you are affiliated with but mine were awarded monies,guaranteed under the American Rescue Plan,signed by President Biden,assuring funds will be guaranteed gor the next 26 years…..check your local to see if they filed gor this.