Less-than-truckload carrier Yellow Corp. issued a statement Tuesday evening saying it would defer its required contributions for June and July as planned, potentially resulting in a strike by some of its Teamsters workforce.
Central States Funds, which manages health and welfare and pension funds for Teamsters at Yellow (NASDAQ: YELL) operating companies YRC Freight and Holland, issued a delinquency notice to plan participants Monday evening. The notice showed the carriers’ participation in the pension plan would be terminated Sunday and health care claims incurred after Saturday would not be paid.
The letter said the company withheld the June payment and was planning to withhold the July payment. Central States estimated payments for the two periods to be more than $50 million.
A separate letter from the Teamsters on Monday advised the impacted local unions to demand payment by Friday or risk a work stoppage on or after Monday. The protocol is part of the parties’ collective bargaining agreement, which requires the union to give the employer 72 hours’ notice of a strike authorization.
“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.
Yellow said the two months of deferrals would equal “approximately $50 million dollars” and reiterated that it had only deferred one of the two payments thus far.
“The company intends to repay the funds with interest immediately upon securing additional financing and has asked the funds to discuss acceptable terms,” Yellow’s statement read.
A recent filing with the Securities and Exchange Commission showed Yellow had in excess of $100 million in cash and cash equivalents as of June 30.
Plan participants have the option to pay for health insurance out of pocket, Central States advised. The health coverage costs $471.86 per week through July 29, increasing to $507.08 per week through July 2024, the notice stated. Payments must be received by Aug. 23.
Roughly half of Yellow’s Teamster employees are covered by Central States.
Asked about the likelihood of a work stoppage if the payment isn’t made, Yellow declined further comment.
Yellow and the Teamsters remain at odds over proposed operational changes, which the carrier maintains are required for its survival.
Editor’s note: This story was updated on July 19 to reflect that the Teamsters have filed a strike notice. Teamsters issue strike notice at Yellow
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billy z
Well all you haters out there! Figure the health,Welfare 25% pension contribution,and the total compenation is probobly about 42-43 dollars an hour.How much do you pay for your bennies out of your pocket?What’ your deductables on doctor’ Medical services? the union insurance is unbeatablle so go talk your BS Tall the other hater’s.
Just want to work and retire
@Yellow Driver- that’s how all the LTLs operate now, even yellow companies. Times change and operations change. Y’all are gonna make us lose our jobs and go to a different carrier that does the same thing. Just stupidity. Losing 27 years of service because a few idiots can’t get on board with a change in operations. Ignorant!
I don’t know about the mgmt in other regions but where I’m at our TOM is a good guy and he also took a pay cut to keep us open in 2009. They been cutting mgmt jobs and VP jobs every week we get a new regional boss. There’s mistakes for sure but those mistakes are at the very top not the guys in our shops.
Why didn’t O’Brien tell us about the raise we were offered? He’s getting paid to gut the Union shops! Which politicians are lining his pockets??
Booger
When YT got rid of Brian Campbell I knew it was a matter of time
Bob W
The Yellow Parasite is like a homeless guy you might see on the street corner holding a cardboard sign that reads…. “WILL CONTINUE TO FUNCTION AS A REAL TRUCKING COMPANY AS LONG AS BANKS AND THE FED LOANS US SOME MONEY.”
Then after he gets what he wants he walks around the corner and hops in his expensive SUV Limo, heads back to the airport to board his private jet back to the YELLOW PARASITE DEN.
This company sucks the life out of everything it touches. Those that loan to them have to wait longer to get their money back or never get it back.
The employees under them that gave back billions over 10 years never get anything, just more cuts.
Just check out their filthy terminals and the filthy office dock and bathroom conditions, it’s like a third world trucking company that doesn’t care about anyone except the Corporate Level.
So cut off our healthcare that my wife’s life depends on and we’ll strike so YELLOW can close the doors and blame the Teamsters and everyone else for their corruption and irresponsible management of earnings and finances.
Time to find a more stable company that shows mutual trust and a bonding teamwork type attitude from the top down.
A company that doesn’t care about its employees isn’t worth working for.
B
Just close the doors and be done. Plenty of driving jobs out there for you drivers. Yellow shouldve gone out of business years ago.
HOLLAND DRIVER
save yellow freight Tforce
YRC Freight Worker
Darren Hawkins gets 1.27 million dollars a year to run this company into the ground. Will he lose his health insurance during all of this? Where is the accountability for upper management? I’m ready to do whatever it takes to keep my job, and I know many coworkers that feel the same way. Yellow also wants 29% purchased transportation. Nobody is bringing this up. The ignorant outsiders keep trying to paint us as lazy and spoiled, meanwhile most of those folks just sit on their asses and move money around all day. This country is running on fumes and vultures.
dave
They pay their employees crap anyways.. let em close the doors. Only helps every other ltl company thanks