Kuncishock News – Yellow Corp. has taken a significant step by filing for Chapter 11 bankruptcy protection, a move attributed to the actions of the Teamsters union.
The company revealed its decision on Sunday, accompanied by explanations for its financial struggles.
With operations winding down, Yellow Corp. has secured a debtor-in-possession financing facility.
This arrangement is designed to ensure the company has the necessary funds to navigate its bankruptcy proceedings smoothly.
Expressing his disappointment, Yellow’s CEO, Darren Hawkins, stated, “After nearly a century of operations, Yellow’s closure is a source of profound disappointment. In an era where prolonged employment with a single company is rare, many of our employees dedicated decades of service to Yellow, offering countless Americans stable, well-paying jobs and rewarding careers.”
The workforce at Yellow Corp. comprised approximately 30,000 individuals, with a significant portion—around 22,000—being affiliated with the Teamsters union.
Hawkins went on to address the specifics of their struggle with the International Brotherhood of Teamsters (IBT).
He expressed deep concern over the challenges the company faced during nine months of union-related disputes, characterizing the ordeal as a period marked by unyielding stances, coercive tactics, and strategies designed to harm Yellow Corp.
Hawkins stressed the fundamental right of a company to manage its operations, lamenting the obstacles that the IBT’s leadership created for Yellow Corp.’s business plan.
Despite genuine efforts to collaborate and find common ground, the union’s actions effectively contributed to driving the company towards bankruptcy.
As Yellow Corp. embarks on this bankruptcy journey, the company’s leadership hopes to shed light on the difficulties they encountered in working with the Teamsters union.
By sharing their experience, Yellow Corp. aims to underscore the potential ramifications of such disputes on both workers and employers.
The company’s filing for Chapter 11 bankruptcy serves as a reminder of the complex interplay between management and labor unions within the business landscape.
Source : trucknews.com
