While speculation throughout the industry rises over Yellow Corp.’s ultimate fate and some question which shippers and intermediaries have already stopped working with the company, one outfit has made it public that it won’t be placing loads with the less-than-truckload carrier.
On Wednesday, a representative with transportation management provider Uber Freight (NYSE: UBER) confirmed to FreightWaves it has made the decision to temporarily stop tendering freight to the company.
“To mitigate the impact on our customers and their logistics, we’re temporarily suspending tenders where Uber Freight holds the contract with Yellow and rapidly diverting capacity across our network to maintain the flow of goods,” the spokesperson stated. “We are continuing to monitor the situation and will make adjustments as needed.”
The Teamsters union announced Tuesday that workers at operating companies YRC Freight and Holland could strike as soon as Monday if the carrier doesn’t catch up on contribution payments to health and pension plans managed by Central State Funds.
In a delinquency notice to plan participants, Central States’ board of trustees said Monday the carrier had withheld a required payment on Saturday and that it planned to withhold the Aug. 15 payment as well. The group said payments for both months total $50 million.
In June, Yellow made a request to Central States to defer payments, apparently to no avail.
A Tuesday evening statement from Yellow said the company had advised Central States it would defer payments for June and July “to preserve liquidity as it worked to obtain meetings with the [Teamsters] as well as secure additional financing.
“The company intends to repay the funds with interest immediately upon securing additional financing and has asked the funds to discuss acceptable terms.”
Yellow and the Teamsters have been unable to agree to terms on a second phase of operational changes, which the carrier maintains are required for its survival.
A representative from Yellow was not immediately available for comment.
More FreightWaves articles by Todd Maiden
- Teamsters issue strike notice at Yellow
- J.B. Hunt still working through bottom of cycle
- Yellow says it’s not paying even as potential strike looms
Jeremy
Clearly the “CEO” and his lackys are just embesseling money and using Yellow and it’s employees as a personal credit card with no intention of paying the bill. I have been with them for a short while. I was at my local yesterday looking to move on. I have no interest in going down with the ship.
Marie
Yellow is overtly top heavy. The first and only place to cut wasted money is in the corporate structure. Think of this as building a house. You build big and and keep building ,but keep chiseling away at the foundation . The workers who actually generate the revenue. If you did this with a house. The structure would collapse .
That’s what is happening with Yellow .
The salaried employees and especially the corporate yahoos are major grifters and suck the money right out and produce nothing but mayhem. Only 2 or 3 months ago these people all got big bonuses. They treat the hourly union workers like their fun money piggy bank. And constantly being overt in write ups. We used to pull in 400 bills a night.3 supervisors. Now 34 bills 4 supervisors (hiring right now for #4 replacement) and a attila the hun of a terminal manager who started abusing us when we became union. If you complain the reply from a few supervisors ,district managers is “Well…you wanted to be union”.they all make huge salaries and do little more than antagonize and mess w people and their ability to earn a meager living. Needless head games. Plus they monitor conversations in the truck cabs. That’s just wrong. Eavesdropping on drivers is vile. Cull the top stop the abuse. Yellows abuse and grifting is why we won’t vote to negotiate with them. Let it burn! No one Yellow. Yellow is a ZERO.
Booger
Stunning Steve 👍🏼
Edward Miller
My 6 years 2 months and 14 days involved with the Teamsters and Roadway ( now YELL ) were the worst years of my life. I got nothing out of it except a hard heart and a really bad attitude. So, I resigned and ran away. This relief was phenomenal.
It was so pleasant not having those 2 organizations dragging me down. Once discarded, my upward mobility began quickly.
Under no circumstances could I recommend associating with either of these parties. The greed has consumed their mentalities. It’s impossible to be successful with the mindsets I encountered. Sharing is not part of their vocabularies.
If after receiving over 1.2 billion in loans and not making the changes needed; can you reasonably expect more proceeds from the Treasury? Maybe if we go hat in hand to stoop to begging for more loans then maybe we can loot a little longer?
Personally, I just won’t beg. I’ll go hungry before I go cup in hand into the street.
Steve
Your publication must be in cahoots with these other vulture LTL companies who want to see Yellow go belly up, and they definitely don’t need any help, you have been over the top negative during this whole time they have been in trouble
Craig
Hope they do strick. See I said it befor lies and more lies. Hawkins never said june wasn’t paid. Cash in all vacation time. Let it close. It’s a bad company
Howard Priestley
I’m a 25 year Linehaul Driver from Holland out of Cincinnati, Ohio. Ask Dawkins for 14 years the members have given the company 15 percent of there wages, members lost there pension,the company pays 31 percent into the pension now. Where did SEVEN HUNDRED MILLION DOLLARS GO. These are the questions that Hawkins and the board need to explain to the public.
Danny Clark
I worked for yellow/yrc for 17 years and in those years they paid out millions and millions of dollars in bonuses,sponsored a car in nascar for a year no telling what the price tag of that was yet they couldn’t pay into the pension fund. We took a 10 percent pay cut and lost a week’s vacation. Company employees gave up nothing. Should have let them go under the first time instead of giving zollars a fifteen million dollar bonus to save the company. Which was another sign of how the company has been miss managed for years.