(paraphrases with a statement from the Teamsters Federation in paragraphs 1-2)
July 30 (Reuters) – The Teamsters family said on Sunday that the union has received notice that Yellow Corp. has ceased operations and filed for bankruptcy.
“Yellow has historically demonstrated that it cannot manage itself despite billions of dollars in worker benefits and hundreds of millions in bailout funding from the federal government,” Sean M. O’Brien, General President of Teamsters, said in a statement.
Earlier today, The Wall Street Journal reported on the trucking company’s closing of operations which cited notices sent to customers and employees. Last week, the Wall Street Journal also reported that the company had laid off a large number of workers.
Earlier this month, Yellow averted a threatened strike by 22,000 workers represented by Teamsters, saying the company would pay more than the $50 million it owes in worker benefits and pension benefits.
The company said Thursday that it is exploring opportunities to divest itself of third-party logistics company Yellow Logistics Inc, and is working with several interested parties.
Its customers include large retailers such as Walmart and Home Depot, manufacturers and Uber Freight, some of which have paused shipments of merchandise to the company for fear of losing those merchandise or being stranded in the event of the carrier’s bankruptcy.
In 2020, the government led by Donald Trump bailed out the company with a $700 million pandemic relief loan in exchange for a 30% stake.
Yellow did not immediately respond to a Reuters request for comment.
(Reporting by Yana Gore and Orphee Duggar in Bengaluru; Editing by Chris Reese and Stephen Coates)
