Less-than-truckload carrier Yellow Corp. has notified the Teamsters that it will make modifications to the second phase of its network consolidation, according to a memo from a union official to the rank and file.
A Monday statement from Teamsters National Freight Director John Murphy to local unions says Yellow is withdrawing two previously filed change of operations requests in efforts to “significantly modify” the terms. The changes will be fast-tracked as the carrier intends to “refile them in the very near future.”
In a notification to Murphy, Yellow said its trucker relations reps met with 99 of the impacted local unions to gain feedback and address concerns. As part of a new proposal, Yellow (NASDAQ: YELL) will “significantly reduce the number of utility employees,” modify dispatch rules and expand driver opportunities to minimize pool bids. Local unions representing multiple locations will also be able to merge employee lists for seniority purposes.
The original plan announced Oct. 19 called for the creation of nearly 1,000 utility driver positions to support operations at new velocity distribution centers.
“The company is committed to listening to the [union’s] thoughts and concerns in order to design and implement the changes of operations that will best enable us, collectively, to meet these important objectives,” the letter to Murphy said.
Yellow has already executed the first phase of the overhaul, which included the restructuring of 89 YRC Freight and Reddaway facilities in the West. The second phase includes 200 sites operated by Holland, New Penn and YRC Freight located in the central, eastern and southern parts of the U.S. The goal is to merge all of the different operating companies onto the same technology platform and eliminate overlapping capacity throughout the network.
Management from Yellow stated in the past that the entirety of the changes will result in the closure of 28 terminals, or 6% of doors.
“Time is of the essence,” Yellow noted in the letter. “The softening LTL market is already putting tremendous pressure on the company’s business — as you know, volumes have already decreased dramatically.”
Yellow reported Friday that daily tonnage declined 25% year over year in November, following a 24% decline in October.
The letter from Yellow said it will be “seeking to streamline and expedite the process of scheduling the revised change for hearing and, if approved, implementation.” Its trucker relations reps will meet with local union officials to discuss the proposed changes. The company is eyeing an early 2023 hearing date.
Murphy advised local unions to “actively engage with the company,” noting that “nothing is written in stone at this time, and local unions are free to fully discuss all concerns with the company.”
“We see this as a positive,” a Yellow spokesperson told FreightWaves. “We listened to the locals and our employees and, based on the feedback we received, we are making adjustments that will better serve all parties. We expect the revised change to be sent out next week.”
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