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Yellow | WARN Act Payment

EX396 said:
They knew more than 60 days prior that there was a cash flow problem and that the current path was unsustainable. What they didn't know 60 days out was how long they were going to make it. Too many "undetermined" in that equation. The tombstone just expedited the process.

Without that tombstone you may have just received a 60 day WARN Act notice, but I'm not confident it made that much difference. Maybe it went from 8 weeks out to 3 weeks out...

A forensic accounting could tell you what the forecast looked like at current business trends, with pre-tombstone and post-tombstone freight volumes.
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Still no matter they violated WARN ACT! PERIOD!!!
 
Marlin444 said:
The strike notice had 100 times the effect that the tombstone “theory” had.
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I wouldn't argue that. As it relates to the WARN act, is that not further evidence that although the bankruptcy was likely, there was no way that by the time it was imminent they could provide 60 days notice.
 
Real Teamster said:
I don't think so. The Board voted "retention bonuses" for Doheny, Hawkins, Harris and all the rest of the "think they're importants" in late May or very early June. The die was cast at that time.
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Board meeting minutes would go a long way to prove that as fact. I'm guessing, and am open to being proven wrong, that there was language such as "if deemed necessary" or "when deemed necessary". Meaning we aren't paying retention bonuses in July if we aren't filing BK until September...
 
dokman said:
Do you really think anyone at yellow ANYONE, ANYONE that was paid bonuses to stay had a damn thing to do with the value of the real estate or the value of the equipment? Yellow had way more assets than debt. I will say it again. YELLOW HAD A CASH FLOW PROBLEM THAT IS WHAT KILLED THEM.
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The value of the assets? No. The cost in liquidation of said assets? Absolutely. The NET proceeds at the end of all this will be higher than they would have been otherwise. That's good for everybody.
 
EX396 said:
The value of the assets? No. The cost in liquidation of said assets? Absolutely. The NET proceeds at the end of all this will be higher than they would have been otherwise. That's good for everybody.
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Agreed, an enhancement of the net proceeds is good for everybody. What would have been far better for everybody is if we had not been compelled to travel this path in the first place. That was avoidable but became a runaway freight train years ago with blunder after blunder after yet another colossal blunder perpetrated by the "glass house". Incredibly poor decisions, failure to effectively manage, and no "playbook" for when things went awry. Trouble is, the people in "high places" have the responsibility to knowledgeably and effectively create that playbook if they don't already have it in hand. That didn't happen!
As I've said many times to many people (including Jeff Rogers and Darren Hawkins right to their faces and James Welch via e-mail exchange) there needed to be embraced a culture of "everybody's a stakeholder here", and that simply didn't happen to anywhere near a significant enough degree in any sort of sufficiently timely manner. And here we are.
 
EX396 said:
The value of the assets? No. The cost in liquidation of said assets? Absolutely. The NET proceeds at the end of all this will be higher than they would have been otherwise. That's good for everybody.
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They could have hired anyone to liquidate the assets. They didn’t need to give bonuses. Like a TM said they don’t even know how to close the doors.
Make pickup’s, no don’t make pickup’s, no make pickups, tell your customers we may file bankruptcy, no retract that statement.
What a bunch of boneheaded decisions.
 
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useless said:
wasn't there a cash flow problem when Jr. ok'd the -15% way back then?
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Not so much a cash flow problem, but a problem paying the loans coming due. They needed to refinance but the banks insisted on seeing some cost cutting before they would make the loans.
 
EX396 said:
I wouldn't argue that. As it relates to the WARN act, is that not further evidence that although the bankruptcy was likely, there was no way that by the time it was imminent they could provide 60 days notice.
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I can tell you that when I was at Redstar and they pulled the same crap there and shut the company down that we were told the same stuff that you are preaching.. You know what?? After a legal battle and getting our own lawyers we got payment for the warn act and do you know who paid it?? Yellow paid it.. So im my opinion you are incorrect when you post that teamsters will not get the warn act money due to them..
 
How about taking proof/source from one of the 30,000 that were actually there every day and lived it, saw it with their own eyes instead of making it up so can pretend you know something about what happened
 
crazy said:
I can tell you that when I was at Redstar and they pulled the same crap there and shut the company down that we were told the same stuff that you are preaching.. You know what?? After a legal battle and getting our own lawyers we got payment for the warn act and do you know who paid it?? Yellow paid it.. So im my opinion you are incorrect when you post that teamsters will not get the warn act money due to them..
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Maybe, maybe not. Time will tell. I don't who knew what and when. That will come out in discovery.
 
Triplex said:
I wasn't personally but if you remember at the time of the original concessions the Union was allowed to have their financial people examine Yellow's financials. Any more questions I can answer for you? :smile new:
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And you trust or believed what Hoffa JR told you??
 
Triplex said:
I wasn't personally but if you remember at the time of the original concessions the Union was allowed to have their financial people examine Yellow's financials. Any more questions I can answer for you? :smile new:
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I remember that, but then found out from the-then Freight Director Tyson Johnson (now he's a serious intellectual if ever there was) that the Teamster accounting people couldn't even tell him (Tyson) what they knew. So......tell me how we benefitted.
 
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