Yellow Teamsters May Go on Strike
We wrote about UPS workers with the International Brotherhood of Teamsters (IBT), but there is another potential strike looming that, while not having as much reverberating effect on the economy as a UPS strike would entail, is certainly something too large to be ignored. Yellow Employees represented by IBT, approximately 22,000 in total, may go on strike come July 24th.
Details
The pending strike and its negotiations are a lot more nuanced than what has transpired between IBT and UPS. Whereas that deal can be boiled down to workers wanting more benefits and owners being hesitant to provide them, what is happening with Yellow involves the fact that the company cannot provide benefits promised.
Yellow has failed to make proper payments to the Central States Pension Fund, and as such that board voted to suspend health care and pension accruals for Yellow’s workers. Understandably the employees at Yellow are not happy with this, and as such the IBT members have voted to go on strike.
“Yellow has failed its workers once again and continues to neglect its responsibilities,” said Teamsters General President Sean M. O’Brien. “This corporation’s gross mismanagement is another affront to the livelihoods and well-being of 22,000 Teamsters nationwide. Following years of worker givebacks, federal loans, and other bailouts, this deadbeat company has only itself to blame for being in this embarrassing position.”
Yellow handles 55,000 shipments every day, compared to UPS’ 20 million parcels, but these shipments are far heavier than any individual parcel UPS handles. While the United Parcel Service does handel more weight by freight, what Yellow handles is still significant, and if both of these companies see a strike in the same time frame, it will be a double stomach punch to the economy.
Conclusion
If Yellow, UPS, or both companies go on strike, other delivery and logistical companies will no doubt try their best to absorb the demand, especially if a lowered supply means better money per mile. However, there may be some companies that would rather just wait out the strike than pay extra for delivery privileges during tumultuous times, and as such consumers have a harder time getting some of the goods that Yellow or UPS ships. We will just have to wait and see what happens!
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