Mellow Yellow

The trucking company Yellow avoids a strike, but a UPS strike is threatened.

July 24, 2023

The trucking company Yellow evaded a strike from 22,000 unionized workers on Monday with the help of negotiations with the Central Health and Welfare fund, which manages the truck drivers benefits with the company.

Last week threats of a strike loomed as Yellow had missed its health and benefits payments in the face of financial uncertainty. According to The Wall Street Journal, Yellow, one of the largest LDL (less-than truckload) operators in the country, was hoping to delay $50 million in payments to maintain its liquidity while it attempts to restructure and refinance loans that are set to be paid next year.

“Company executives appealed to the International Brotherhood of Teamsters for help slashing expenses as cash dwindles. It has successfully won such concessions in the past, but this time was rebuffed by new Teamsters General President Sean O'Brien,” Reuters reported.

Despite claiming a walkout would initiate Chapter 7 liquidation proceedings, Yellow’s request for an order blocking the strike was denied by a federal judge in Kansas City, Missouri, on Friday, as reported by the Journal.

NACS Daily covered the impending strike last week. Read more here.

In other delivery news, a UPS strike could be imminent. The Teamsters represent more than half of the UPS workforce. The current contract expires at the end of this month. “We’re sending a message … all 340,000 of our members are united and ready to fight,” O’Brien told The AP at a practice picket Friday in Atlanta, where UPS is based.