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Yellow | WARN Act Payment

EX396 said:
July 31st. Re-read the article. The June bonuses were not retention bonuses.
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The July payments include a $1 million retention bonus to Yellow Chief Restructuring Officer Matthew Doheny, $1.08 million to Chief Operating Officer Darrel Harris and $625,000 to Chief Executive Officer Darren Hawkins, according to a company court filing.

Right from the article. Even quoted court papers.

NO FURTHER QUESTION YOUR HONOR.
 
dokman said:
The July payments include a $1 million retention bonus to Yellow Chief Restructuring Officer Matthew Doheny, $1.08 million to Chief Operating Officer Darrel Harris and $625,000 to Chief Executive Officer Darren Hawkins, according to a company court filing.

Right from the article. Even quoted court papers.

NO FURTHER QUESTION YOUR HONOR.
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Can Dokman explain to the court his understanding of the difference between the bonuses paid out in early July, and those retention bonuses paid out much later in July?
 
EX396 said:
Can Dokman explain to the court his understanding of the difference between the bonuses paid out in early July, and those retention bonuses paid out much later in July?
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Yes your honor.
It appears that the company knowingly violated any ethical and fiduciary considerations to their employees, vendors and lenders and determined to pay bonuses in June and following up with retention bonuses in July to further exacerbate their lack of fiduciary responsibility to the shareholders through deception and mismanagement of the company therefore rewarding themselves for their lack of competence to run a company. Rewarding themselves not once but twice.

The defense rest your honor.
 
Puff Driver said:
The teamsters union meme showing the Yellow Tombstone caused a mass exodus of customers from Yellow companies onto other LTL carriers.
That was not predictable until the fool put the Yellow Tombstone onto social media.
Many customers were watching the Yellow situation closely, they enjoyed the cheap pricing offered due to the low labor costs but feared for the future. Thus they watched Yellow with caution.
Make no mistake, SOB and the teamsters killed this company..
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Customer told me they didn’t want a company ripping their employees off hauling their freight.
 
EX396 said:
Can Dokman explain to the court his understanding of the difference between the bonuses paid out in early July, and those retention bonuses paid out much later in July?
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Ex, why were any bonuses paid out in early July or any other time this year or last year? Bonuses are for positive performance. There was nothing positive about the performance. Perhaps they were paid to mimic The Three Stooges??
 
TheCommish said:
Now that there is clearly enough money to pay off all the debt, do you think they will pay the ~$15k per employee as per the WARN Act? Yellow clearly thinks they are not liable. It will probably settle?

"Yellow had already taken preemptive moves to qualify the company for exceptions to the WARN Act. A letter from the company to employees on July 30 cited that the closure was a result of “unforeseeable business circumstances,” “faltering company,” and “liquidating fiduciary,” thus exempting itself from the WARN Act." - https://prospect.org/economy/2023-08-09-yellow-scapegoats-teamsters-apollo-led-bankruptcy/
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They violated the WARN ACT PERIOD!
 
Real Teamster said:
Ex, why were any bonuses paid out in early July or any other time this year or last year? Bonuses are for positive performance. There was nothing positive about the performance. Perhaps they were paid to mimic The Three Stooges??
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Don't know what the metrics were for the performance bonuses paid out in early July. Personally, I don't believe an unprofitable company should be paying any bonuses. But I believe strongly in a meritocracy, and a union LTL carrier is anything but a meritocracy, so there's that.
 
EX396 said:
They didn't know they were closing down 60 days before they filed. They were scrambling trying to save it until the last moments.
Once they knew that their closure was imminent they could not provide 60 days notice and continue to operate. They wouldn't have made it another 3 weeks.

Enticing key folks to stay on board during the winding down of operations and the liquidation of assets arguably will be the difference maker. Without them maybe unsecured creditors get 10cents on the dollar. With them you may just get that dollar.
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EX396 said:
If you are still owed 5 weeks, the way the asset sales are going you may just get most or all of that. Really depends on how long this entire process takes because all of the various legal fees accumulate fast!

Don't beat yourself up with woulda, coulda, shoulda. You got decades worth of decent wages and great healthcare coverage out of that ride to the finish.
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X396typical management
 
dokman said:
They were paid to “ stay” and help wind down operations. That would be they were paid to “stay” with the company. I believe that is the definition of retention.
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So, they should have all been fired and a new group with no operating knowledge or insight into the corporate finances.
 
EX396 said:
Don't know what the metrics were for the performance bonuses paid out in early July. Personally, I don't believe an unprofitable company should be paying any bonuses. But I believe strongly in a meritocracy, and a union LTL carrier is anything but a meritocracy, so there's that.
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See there is the entire problem, the metrics. They couldn’t ever figure out the metrics so let’s just pay some bonuses for not getting it right. What the heck a quarter back can have a bad season and he still gets his lavish contract. So why not Darrel and the boys?
 
dokman said:
See there is the entire problem, the metrics. They couldn’t ever figure out the metrics so let’s just pay some bonuses for not getting it right. What the heck a quarter back can have a bad season and he still gets his lavish contract. So why not Darrel and the boys?
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So nearly as I can tell, the "metrics" went something like: Line our fat pockets because we wanna, and to hell with everybody else! As someone pointed out, these executive money pits had contracts to fulfill. I doubt that there was a clause saying "if you tank the place, we'll pay you a bonus to mop up" But I guess anything is possible. They were paying Darren $6,000 a month in "commuting expenses" in 2021 because he didn't want to live in Kansas City anymore.
 
Real Teamster said:
So nearly as I can tell, the "metrics" went something like: Line our fat pockets because we wanna, and to hell with everybody else! As someone pointed out, these executive money pits had contracts to fulfill. I doubt that there was a clause saying "if you tank the place, we'll pay you a bonus to mop up"
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No Jr and Zollars got those at the front end. They were pre loaded IMO. Your fate was sealed.
 
ABF381 said:
Why do they need more money to stay? Don't most executives have a contract to honor?
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They do, and either side could have chosen to exercise their rights under the contracts' exit clauses. The execs who were offered and chose to stay on need to be incentivized. They know they will be out of a job when the dust settles and others entered the executive job market ahead of them.
 
EX396 said:
They do, and either side could have chosen to exercise their rights under the contracts' exit clauses. The execs who were offered and chose to stay on need to be incentivized. They know they will be out of a job when the dust settles and others entered the executive job market ahead of them.
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Ex, what about incentivizing the drivers who worked hard, the dock people who worked hard, the office people who worked hard, the mechanics who worked hard, the supervisors and dispatchers who worked hard? If it wasn't for us, there would be no company. Out of a job when the dust settles? We're out of a job now!
I have to say, the more we learn through the bankruptcy dockets, the more I am convinced that the executive corps couldn't type. What they labeled (to all of us) as the FRC was to them an ATM. We already know of senior executives who were "kicked to the curb" in the last two years and were awarded a YEAR severance pay. That is ridiculous!! We now know of "Director of Trucker Relations" people who were receiving a very nice salary (in low six figures) and a $35,000 "retention bonus" on top of that. Ridiculous! All the while, we can't get drivers, mechanics or dock workers because we don't pay enough. As for those management "bonuses", I think that what we now know is merely the tip of the iceberg. Multiply this out by the number of people in those roles, and that totals a hellavu lot of money! Money that should have been used to pay debt, buy equipment, incent front-line workers, etc. etc.
The company is bankrupt?? I say the executive suite has been morally bankrupt for a long time. They all got these huge payouts. Since I'm a "fellow trucker" (their phraseology) where is my payout that I so justly deserve? I'll be glad to settle for $1,080,000. That what Darrel Harris got; where's mine?
 
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Why aren’t MFN partners and the rest suing for the WARN act? As well as our pensions ? Aren’t they the true victim’s here.
 
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