What's new

Yellow | Yellow asks Biden to help bring Teamsters ‘to the table’

Freightmaster1

Freightmaster1

TB Legend
Credits
613

Yellow asks Biden to help bring Teamsters ‘to the table’​

rKqIs9PO4emzfUXjAN_PHx45xEtW5-gUpCwZRfQo-xJdHBqP_2HQ_wPBY3COSCRkYqVN7THKIAUcQpOKA1PUz4A-TH1iuhxJgoHMkxjUMjkKmkoTV2MqtUMFD0ItPmt4cv78y650WiCzr9mpsz37uJ8bZDle2_RGGHqvvX2IFhTTKAw-A4dXZqkJO07gWw=s0-d-e1-ft

Yellow formally asked the US president for direct action leading to talks with the International Brotherhood of Teamster on the LTL provider’s restructuring plans. Photo credit: ESB Professional / Shutterstock.com.
William B. Cassidy, Senior Editor | Jun 30, 2023, 11:53 AM EDT





Yellow is appealing directly to President Joe Biden to intervene in its conflict with the Teamsters union, asking him in a letter Thursday for help in what it termed an “intractable” dispute.
“Knowing of your strong commitment to union jobs, we are formally requesting your assistance in getting Yellow and the Teamsters to the table,” the less-than-truckload (LTL) trucking company said to Biden in its letter, a copy of which was obtained by the Journal of Commerce.
Although Yellow’s letter doesn’t recommend a specific course of action, it raises hope for the type of direct executive action Biden took last year to avoid a nationwide railroad strike. The White House and the Teamsters did not respond to requests for comment on the letter.
The company and union are at an impasse over a proposed restructuring that would blend the networks of regional carriers Holland and New Penn with national carrier YRC Freight, creating “One Yellow.” The restructuring is needed to secure refinancing of $1.3 billion in long-term debt, Yellow said.
Yellow has said it could run out of cash by mid-July, putting 22,000 Teamster jobs at stake.
(continued)
 
The company had already asked the administration for help arranging a meeting with the Teamsters, but the union rebuffed the White House, according to a lawsuit filed by Yellow Tuesday. The company also said it was rebuffed by Sen. Bernie Sanders (I-Vt.).


“In recent weeks, we have worked closely with the White House, the Department of Labor and the Federal Mediation and Conciliation Service to resolve this matter, save jobs and prevent an already fragile supply chain from breaking,” Yellow said in its letter to Biden. “Despite support from your administration, these efforts have proven unsuccessful at getting both sides to the table to discuss a way forward.


“We have been very clear … that we stand ready to negotiate any time and any place,” the company added.


Yellow noted that it has trained more than 3,000 commercial truck drivers through its partnership with the Labor Department.


The company also pointed out that US taxpayers hold 30% of Yellow’s stock, thanks to a deal that gave the company a $700 million US Treasury loan from COVID-19 relief funds in 2020, saving it from bankruptcy. “That equity would be wiped out, should the company go out of business,” Yellow said.
(continued)
 
The company also questioned whether its 22,000 union workers would be able to find new jobs in an LTL sector dominated by non-union carriers. The three major unionized LTL trucking providers — Yellow, TForce Freight and ABF Freight — accounted for about $12.2 billion in annual revenue last year, about 20% of total US LTL revenue, according to data from research firm SJ Consulting Group.
Yellow, TForce and ABF are the third-, sixth- and seventh-largest LTL carriers by revenue, respectively, according to SJ Consulting Group data. The largest two LTL carriers are non-union companies, FedEx Freight and Old Dominion Freight Line.
“The notion that another union job” is waiting for Yellow employees “is simply not credible,” the company said.
Contact William B. Cassidy at [email protected] and follow him on Twitter: @willbcassidy.
 
I work for Yellow.
If you have to go to government to ask for money, it's over.
Have the dignity to just say "I tried".
I don't hate Darren. It is what it is. Let's move on.
 
They're not asking for money.
They're asking the government to bring OBrien to the table.
Say they're ready to negotiate any time. It says it up there.
 
You must log in or register to reply here.
Top