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.
FJB
So silicon valley banks get a bailout from Biden but the 5th largest Trucking company nothing more than crickets. Fjb
Thomas
Yellow Teamster employees had been taking pay cuts for at least 10 years already. What a slap in the face. Good luck to everyone who has lost their job.
Mike
The union had nothing with Yellow going under. This is all because of management and execs running into the ground. They were also bailed out with $700 million from the government during Covid. I’m sure execs took their cut before rank and file did.
Michael Gully
There is a lot of wrong to go around for the blame. All those wrongs never got it to a right
This disaster was started in 1996-1998 when the Board fired the remaining Powell family and truckers that built Yellow from 1952 to its success thru 1994.
Maury Myers and Bill Zollars came on the scene. Myers jumped in to buying Jevic and Action. Action was eventually merged into Saia
Yellow got upside down immediately. It sold Jevic to an investment group and spun Saia off to its own public company. Yellow has not owned Saia for over 20 years
Then Zollars goes and buys Roadway in 2003 for 1.1 billion dollars. That was bold. Then in 2005 he buys USF for 1.5 billion. My reaction in 2005 it would never live long enough to pay for it.
Zollars a self opportunist that knew nothing about trucking. His focus with all self benefiting Zollars. Every big purchase he got more money himself.
Forward to post 2020 current management very poor. After T J O’Connor and James Welch it really went to pot with new management
The One Yellow plan was never going to succeed. Consolidating Holland, New Penn and Reddaway into One Yellow was met with resistance by many customers. The regionals had better name recognition and support by customers than Yellow
It was a horrible idea.
In the end the battles with the Teamsters over integration of One Yellow accelerated its demise
Curbing the cost was done ass backwards
The regional carriers should have remained in place unchanged in name and operation
Yellow should have became the long haul large city to large city. Closed its small peddle terminals and interlined that freight in the major cities with the regionals.
New hires needed ar the regionals first offered those jobs to displaced Yellow people.
Instead of a smaller percent being laid off they sunk the whole ship
Hawkins and key people did a horrible job post Welch’s retirement
I just wonder what all was done self serving to benefit the senior management during this fall
One Yellow and it’s ending battle with the Teanster’s brought a 22 year mess to an end.
The blame reaches back to the Board firing the Powell family and the trucker management in approx 1996
Zollars did the most damage in 2003 and 2005.
One Yellow doing away with the regionals was the fatal blow
I feel bad for it’s people that had dedicated years with the individual carriers
Sadly the management that did the final blows will probably walk out with millions fir breaking it
I thought the millions they were making for a bleeding truck line was nuts
There wages should have revolved around improving it not breaking it
Unfortunately my forecast in 2005 while it lasted 18 years was what happened
It didn’t live long enough to pay fir 2.6 billion in debt.
Zollars startrd it’s end in 2005
Former RDWY / YFSY / YRC
Top heavy management that was too arrogant. How many “Senior” titles? How many Directors? Managers? Assistants? Region sales managers? Region operations managers? Division Sales? Division Operations? And the Vice President’s…The list goes on!
Combined with Teamster pricks that were lazy, rock heads ready to fight about stupid, little work rules that were a hold over from the 1970’s.
The market always wins!
Matt
Bet the CEO’s got their bonuses!Corporate greed. It’s amazing that when corporations fail the taxpayers bail them out socializing their losses but privatizing their profits.
Aaron K
Pretty Sad, I saw a Yellow Day Cab and trailer just parked in a lot, with no driver, he was’nt getting McDonalds either, The Union did this as well, not recognozing the cost’s of fuel and competition at cheaper rates, idiots
Wildman52003
It is really a shame that a company that is almost a 100 years old never figured out how to move freight. To watch the company go down in this matter is something that was terrible to see. I don’t blame the union as they have given back for way to long. I don’t blame the company for wanting a change that was beneficial in the survival of the company to be profitable. Time will tell how the ex employees will make out!