The trucking company known as Yellow Corp. shut down on Sunday after 99 years, a move that has deeply affected tens of thousands of American workers.
The decision left 30,000 people across the nation jobless, KMBC reported Monday, noting operations stopped after the company’s dispute with a union.
“The shutdown comes after a federal judge denied Yellow’s attempt to block a unionized strike. The company had warned that a strike could cause it to plunge into bankruptcy,” the outlet said.
Yellow has been struggling financially and customers have been leaving in droves, the Associated Press (AP) reported Monday, adding non-union workers were laid off on Friday.
The Teamster’s Union said Monday it had received legal notice of the situation.
“Today’s news is unfortunate but not surprising. Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government,” Teamsters general president Sean O’Brien commented.
A sign placed outside a lot where Yellow trucks were parked informed customers and employees operations were halted Sunday:
After nearly 100 years of handling freight, trucking company Yellow Corp. ceases operations. Story: https://tinyurl.com/3b8pmmk2
Posted by KMBC 9 on Monday, July 31, 2023
It is possible Yellow may file for bankruptcy, the KMBC article said, adding, “In addition to the union disputes, a $700 million pandemic-era loan from the government and other bills have racked up over time for the company.”
Analysts predict the shutdown may mean higher delivery prices will trickle down to consumers as other companies grapple with the extra work coming their way, according to ABC News.
Yellow’s government loan came during the Chinese coronavirus pandemic when its role in the nation’s supply chain was deemed “essential to national security,” the outlet said.
The outlet also noted the trucking industry and civilian drivers are still struggling with high gas prices in President Joe Biden’s (D) America.
Yellow reportedly handled 49,000 daily shipments in 2022, but “That number was 15,000 daily shipments in its final week of handling freight,” the KMBC article stated.
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