After 99 years, the trucking firm known as Yellow Corp. closed down this week, having a significant impact on hundreds of thousands of American workers.
According to KMBC’s report this week, this decision resulted in 30,000 employees losing their jobs nationwide since activities were halted as a result of the company’s labor dispute.
“The unionized strike-blocking attempt by Yellow was rejected by a federal judge, which led to the closure. The business had issued a warning that a strike may send it into bankruptcy,” the source reported.
The Associated Press (AP) said that Yellow has been having financial problems and that customers have been fleeing in large numbers. It also stated that non-union employees had been laid off this week.
The Teamster’s Union declared that it had been informed legally of the circumstances.
“The news of today is distressing, but it is not unexpected. Despite receiving hundreds of millions of bailout money that came from the U.S. government and billions through worker concessions, Yellow has historically shown that it was not able to manage itself,” according to Teamsters global president Sean O’Brien.
Customers and staff were alerted via a sign posted outside a lot where Yellow trucks were parked that operations had been suspended this week:
The KMBC story stated that it is conceivable that Yellow would declare bankruptcy, adding that “in addition to these union disputes, a $700 million pandemic-era loan that is from the federal government as well as other bills have piled up over the years for the company.”
According to ABC News, analysts believe the closure would result in increased delivery charges as other businesses struggle to handle the additional workload.
When the Chinese coronavirus epidemic hit, Yellow’s involvement in the country’s supply chain was considered “essential to national security,” according to the outlet. At that time, the company received a government loan.
Additionally, the publication reported that under President Biden’s (D) America, the trucking business and regular truckers continue to struggle with high gas costs.
According to reports, Yellow handled 49,000 shipments per day in 2022, however, “That figure was 15,000 daily shipments in their final week of handling freight,” according to the KMBC article.
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