Staff Reports
Yellow, one of the nation’s largest trucking companies, has abruptly closed its doors, leaving employees in shock. With ongoing union worker negotiations, this news comes as a surprise to many. The 99-year-old corporation employed around 30,000 people, with 22,000 of them being active members of the Teamsters union.
According to the Wall Street Journal, Yellow permanently halted its operations. The Teamsters union spokesman didn’t hold back, blaming the company’s mismanagement and lack of responsibility. The union claims to have kept Yellow afloat for over a decade through concessions in wages, pensions, and work rules. But at the end of the day, it wasn’t their job to manage the company.
Trucking company Yellow shuts its doors amid Teamsters union stalemate https://t.co/usFWca54Gk
— Washington Examiner (@dcexaminer) July 31, 2023
Yellow’s closure comes after a series of corporate mergers that left the company heavily in debt and unsure of its future in the industry. Despite negotiating union concessions and receiving government aid, Yellow couldn’t keep up with delivering consistent service to customers and meeting investor expectations.
This closure has created a void in the trucking industry, as companies that previously relied on Yellow are now shifting their orders to other competitors. It’s a tough blow to the industry and to the employees who are now left jobless.
As of now, the U.S. Treasury holds a 30% ownership stake in Yellow’s stock. It’s a concerning situation, and it’s unclear how this will all play out. But one thing’s for sure, the trucking industry will feel the impact of Yellow’s sudden closure.
