Yellow Corporation Announces That the International Brotherhood of Teamsters Breach of the Collective Bargaining Agreement Caused Yellow’s Inability to Make Its Monthly Contribution to Central States Funds
NASHVILLE, Tenn., July 19, 2023 (GLOBE NEWSWIRE) -- Yellow Corporation announces that the leadership at the International Brotherhood of Teamsters (IBT) has publicly claimed that the union may lawfully strike Yellow Corporation (NASDAQ: YELL) over its failure to make its July contribution to Central States pension and health and welfare funds, but a strike would be anything but lawful, as it would violate the parties’ collective bargaining agreement. The Union’s breaches of the collective bargaining agreement, which are detailed in the complaint Yellow filed in its District of Kansas lawsuit against the Teamsters, are the direct cause of Yellow’s inability to make contributions to the funds. (June 27 complaint and press release can be found below in PDF format.)
In June, Yellow wrote to the funds, requesting a short-term deferral of its obligation to pay contributions for two months, July and August, with interest. This request is not without precedent. Regrettably, the Board of Trustees of Central States refused Yellow’s request, despite the funds’ healthy reserves.
Even more regrettably, Teamsters General President Sean O’Brien has blamed Yellow for failing its workers, but it is the Teamsters’ leadership who has failed the 22,000 Teamsters employed by Yellow as well as the 8,000 non-union employees who may soon become the Teamsters’ collateral damage. For many months, Teamsters’ leadership has steadfastly refused to negotiate the company’s long-planned and necessary modernization effort that would enable Yellow, a 100-year-old company, to streamline and strengthen its operations to compete against non-union carriers.
To keep up with the times and customers’ needs, the Company must implement its well-publicized business modernization plan known as “One Yellow,” yet Teamsters’ leadership has rejected all proposed changes of operations and all proposed interim agreements, freezing the company’s business plan for nine months. This has cost Yellow in excess of $137M in Adjusted EBITDA and has prevented critical refinancing for the Company.
Ever since Teamsters’ leadership made its request that Yellow open its contract early, Yellow has tried to meet to negotiate a contract that would provide wage increases for its Teamster employees. In fact, just last week, Yellow made yet another proposal to the Teamsters, offering a significant wage increase that aligns with its union competitors. Commencement of meaningful negotiations with the Teamsters would set the stage for Yellow to reengage in comprehensive refinancing efforts with its lenders while clearing a path to advance One Yellow. All stakeholders- lenders, shareholders, employees, and customers need to see progress.
In short, Teamsters’ leadership’s obstruction of One Yellow directly caused Yellow’s liquidity crisis and Yellow’s need to implement cash-conservation measures, including its benefit funding deferral request.
For nine months, Yellow has been ready, willing, and able to meet with the Teamsters at any time and at any place to discuss the future of its union and non-union employees and to work through the implementation of One Yellow. Even today, the Company remains ready, willing, and able to hold serious negotiations.
*About Yellow Corporation*
Yellow operates one of the largest, most comprehensive logistics and less-than-truckload (LTL) networks in North America, providing customers with regional, national, and international shipping services throughout. Backed by a team of nearly 30,000 transportation professionals, Yellow’s flexible supply chain solutions and best-in-class expertise ensure the safe, timely delivery of industrial, commercial, and retail goods for customers of all sizes. Yellow’s principal office is in Nashville, Tenn., and is the holding company for a portfolio of LTL brands including Holland, New Penn, Reddaway and YRC Freight, as well as the logistics company Yellow Logistics.
To learn more about Yellow and our services, visit myyellow.com.
Media Contacts: Mike Kelley 913-696-6121 mike.kelley@myyellow.com Heather Nauert heather.nauert@myyellow.com
Investor Contact: Tony Carreño 913-696-6108 investor@myyellow.com
PDFs accompanying this announcement are available at
http://ml.globenewswire.com/Resource/Download/792c4f25-9d58-4602-9383-3ac34bee3d05
http://ml.globenewswire.com/Resource/Download/c4b541e7-95cf-4fc5-b4e1-295017274a90