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Originally Posted by jimmy g  They can't. Here's why (from my experience). Yellow buys XYZ Company. Whatever price they agreed to, they now assign from the Yellow Books to the newly bought company to pay back to the corporation. Say xyz company was debt free and profitable. Now, Yellow will mortgage the terminals of the newly bought company, borrow money against the equipment-- and guess what? Now it's the newly bought company that underperforms (for it must repay debt it didn't have.)
Yellow will next take Underperformance Charges against the brand name, saying they bought a bad company. And Yellow will redo their corp taxes several times until they have drained every last drop off the new now debt-ridden company. The only thing they used to do that now they cannot is ask for a wage consession. We at Preston "gave back" (I hate that term-- you cannot give back what you never had) an amount over the 6 years Yellow owned us , equal to the price they paid for us AND Saia. And then they kept Saia.
They've done this with Preston, Saia, Dugan, Holland, New Penn, and Bestway. It's the Yellow way. I'm surprised they didn't pull this one on Roadway; Big R's Head Honchos must be smarter than Billy Z.......
What YRCW apparently did Not plan on was a bad economy. Almost 2 Billion in debt drags when you can't fill all the trucks and you're experimenting with combining things and buying every new system under the sun... |
Kansas City Star reporting that YRCW took a 823 million non cash charge on a tax filing with the SEC today, reducing the value of ALL the brand names today. It said this automatically dropped 1.6 billion off the value of the company. One big happy family (all the brands devalued) does this mean they are sucking all the value from themselves? Oh yeah, this was on top of the 700 and something million dollar non cash charge they took earlier this year.
Spreading bs rumors about yellow closing 
NOW DRIVER YOU DON'T THINK THEY WOULD STOOP THAT LOW DO YOU? WHY WE ARE ALL ONE BIG HAPPY FAMILY OVER HERE AT FEDEX FREIGHT (NOT). I DON'T SEE THEM LURING DRIVERS AWAY FROM ANYONE AT THE MOMENT AS THEY ARE TO BUSY CANNING THE ONES THEY HAVE. THEY CLOSED A CUST CENTER AND TOLD THE DRIVERS THAT THERE WOULDN'T BE ANY ADDITIONAL RUNS OUT OF THE HUB BUT THEY COULD TFR ANYWHERE IN THE SYSTEM BUT WOULD HAVE TO GO TO THE BOTTOM OF THE SENOIRTY BOARD OR FIND ANOTHER JOB. THIS WAS TOLD TO ME BY ANOTHER DRIVER SO YOU CAN TAKE IT WITH A GRAIN OF SALT OR NOT. THEY TALK ABOUT TAKING CARE OF THEIR PEOPLE AND THE CUSTOMER WHICH IS A BUNCH OF CRAP. IT ALL COMES DOWN TO DELIVERING THE PURPLE PROMISE AT ANY COST AND TELLING EVERYONE THEY NEED TO BE SALESMEN/WOMEN FOR THE COMPANY TO ATTRACT NEW BUSINESS. THEY COULD KEEP MORE BUSINESS IF THEY WOULD QUIT JACKING THEIR RATES UP EVERYTIME YOU TURN AROUND. GRANTED THEY GIVE DISCOUNTS TO THE MAJORITY OF THE LARGER CUSTOMERS BUT THAT DOESN'T HELP THE LITTLE GUY. WHEN THE FUEL PRICES GO DOWN THEN YOU NEED TO ADJUST THE RATES ACCORDINGLY. ONE YEAR THEY JACKED IT UP AND BLAMED IT ON OUR HEALTH CARE GOING UP AND THAT WAS THE YEAR WE STARTED HAVING TO PAY MORE FOR OUR HEALTH CARE. I HAVE BEEN THERE OVER 15YRS AND WILL JUST HAVE TO TOUGH IT OUT UNTIL RETIREMENT IF THAT IS EVEN POSSIBLE IN THIS DAY AND AGE. THEY WANT THE BUSINESS ON THEIR TERMS AND NO BODY ELSES.
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