Yellow Strike Averted, for Now

We talked about a potential strike incoming from Yellow workers that would have gone into effect by the time you read this, but the situation has changed. While a strike is still on the table, Yellow now has an additional month to mitigate it.

Details

The entire debacle started when the Yellow Corporation failed to make proper payments to health insurance and pension contributions, and as such their contracted provider, Central States, was going to cut those workers off from those benefits unless the worker paid for them out of his or her own pocket. Understandably, the International Brotherhood of Teamsters (IBT) was furious about this change of events, and threatened to go on strike. This move from Yellow’s IBT members would likely be a nail in the coffin for the corporation because it was already incapable of paying health care and pension benefits.

Instead of having Yellow’s workers go on strike, Central States’ Board of Trustees has now granted clemency for Yellow, offering health care, but not pension, services for Yellow’s workers for the time being so that those workers can keep their jobs. Central States is still fully expecting a payment of $50 million from Yellow for July’s contribution by August 21st, but news about June’s contribution is still up in the air.

If everything stays the same, Yellow continues to show financial inadequacy, and is unable to make proper payments, the coverage will terminate after August 26th. The whole ordeal will be back where it started, only one month further out.

Conclusion

This delay, even if it does not result in an agreement, is still a relief for the nation’s economy, considering how the United Parcel Service (UPS) is also going through some negotiations and threats of strike from the IBT as well. With this payment due date extension, 22,000 more truckers can continue to earn money for their families, as the company handles 55,000 shipments, most of them being full truckloads, every day. Perhaps Yellow could even absorb some of the demand for delivery of parcel units should UPS go on strike. We will have to wait and see.

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