Less-than-truckload carrier Yellow Corp. ceased all operations at 12 p.m. Sunday, according to a notice on the gates at its terminals.
Separate internal documents showed the procedures for closing the facilities as well as “talking points” to be used when informing union employees not to show up for their shifts. The documents indicated the company plans to issue a public statement Monday updating “the state of the company and the operation.”
On Friday, Yellow (NASDAQ: YELL) laid off most of its nonunion employees in areas like customer service, information technology and sales. The company stopped making pickups earlier in the week and has been delivering the remaining freight in its network ahead of what appears to be a permanent closure.
After months of negotiations with its Teamsters workforce, the carrier has been unable to reach terms over proposed operational changes it has said were required for its survival. In a breach of contract lawsuit filed last month regarding the matter, the company said it could be out of cash as soon as mid-July.
Most are expecting Yellow to announce it will file for bankruptcy Monday.
Representatives from Yellow had not commented by the time of this publication.
Donna S
Another question, If Yellow if worth nothing and broke, why is the MFN Partners buying millions of Yellow stock????? According to the SEC, they have bought millions of shares of stock over the last week.
Donna S
To Anonymous, Its clear that you know nothing about this situation. YRC, Yellow or whatever you want to call it, has had YEARS to pull itself out of this situation if it really wanted too. Teamsters, drivers, investors, government have ALL stepped in and given this company support. Every time the teamsters and drivers give up pay and benefits, the CEO’s and upper management give themselves raises. 5 years ago or longer, the board should have stepped in and fired all upper management and put in people that knew how to run a trucking company. But no, no one but the upper management was getting paid. Not the investors, not the shareholders. Everybody gave up something but YRC/Yellow management. They didn’t care a thing about the employees that worked for them.
Craig
Stop blaming union. We gave enough. The top of yellow were getting millions bounce and they didn’t seem to care.
Craig
Thank you Zolkar and Hawkens. Because of your mismanaged you put 30,000 out of work.
Scott
Worked there for 5 days as a new supervisor. Put in my resignation to previous employer weeks before. No indication at any point that the company was failing financially. Would never, ever work for any of their subsidiary companies. Terrible business practices and horribly mismanaged.
Anonymous
For how poorly this company operated for years, there’s frankly blame for all sides to varying degrees (Non-Union AND Union). The indisputable fact that still remains is that there are now 30,000+ people with ZERO income and ZERO benefits. With the union’s desire to play brinksmanship with new more “militant” leaders, YRC’s destiny was effectively “set in stone” and especially so when larger customers and larger 3PL’s began to pull business away (my company did so about 2.5 weeks ago at the first “sniff” of a potential issue for obvious reasons).
Call me crazy, but if I can keep my job at the same salary level (and 100% free healthcare) versus being out of a job with no immediate prospects to replace it, I think that I would have asked that Union leadership consider “punting” this year, agreeing to allow “One Yellow” to proceed and then “re-group” somewhere down the road when YRC was, hopefully, “more stable.”
Seems to me that the Union “outkicked their coverage” on this one………….
mike pupillo
i here swift is hiring
Former YFS
Hindsight, as they say, is 20/20, and that is the case here. For me, this debacle started with the RDWY “merger”……it’s been a never ending stream of bad news since. RIP YFS…..I had some good years there in the 80’s and 90’s……feel bad for those that had their entire livelihoods wrapped up in this tragedy.