This Monday the American trucking giant, Yellow Corp announced the closure of its operations, after almost 100 years in operation and in the midst of a confrontation with the Teamsters union.
One of the largest freight forwarding companies in the United States plans to file for bankruptcy, the Teamsters Union said in a statement. In this regard, the general president of the Teamsters, Sean M. O’Brien pointed out that “Yellow has historically shown that it could not manage itself despite billions of dollars in concessions to workers and hundreds of millions in bailout funds from the federal government,” he said
In the statement, O’Brien noted that “this is a sad day for workers and the American cargo industry,” he said while mentioning that customers and employers have already been notified .
The company was racking up debt
Earlier this month, the company had prevented at least 22,000 workers represented by the Teamsters from going on strike, with the reason that the company had to pay the benefits it owed to the workers, including accumulated pensions, which totaled $50 million dollars.
Although the company had received a $700 million government loan during the pandemic, as part of a relief program, this was not enough for its recovery. For that reason, on Thursday of last week, the company said it was exploring opportunities to sell to third parties.
When it received the loan, the company was already facing charges, including fraud for billing shipments from the Although the army settled the lawsuit, it had to pay approximately $7 million dollars to the Department of Defense.
Yellow was known for being one of the largest freight forwarders in the United States, with a payroll of approximately 30,000 workers across the country, according to the company daily handling more than 49,000 shipments per day in its latest report on the 2022, but in subsequent years it reduced shipments to 15,000 shipments per day.