As reported last week, the less-than-truckload carrier Yellow Corp., which was teetering on dissolution, ceased operations at noon Sunday, according to a notice on the gates at its terminals, and the company is expected to file for bankruptcy as early as today.
As first reported on Monday by FreightWavs — a price reporting and data firm focused on the global freight market —internal documents showed the procedures for closing the facilities and “talking points” to inform union employees not to show up for their shifts. The documents indicated the company plans to issue a public statement Monday updating “the state of the company and the operation.”
On July 28, Yellow laid off most of its nonunion employees in company operations, including customer service, information technology and sales. The company stopped making pickups earlier in the week and has been delivering the remaining freight in its network ahead of what appeared to be a permanent closure.
After months of negotiations with its Teamsters workforce, the carrier could not reach terms over proposed operational changes it has said were required for its survival.
In a breach of contract lawsuit filed last month regarding the matter, the company said it could be illiquid by mid-July. Judging by this morning’s news, those predictions were prescient.
The International Brotherhood of Teamsters said late Sunday that it had been notified that Yellow Corp. had ceased operations and would file for bankruptcy.
“Today’s news is unfortunate but not surprising,” Sean O’Brien, Teamsters general president, said in a statement. “Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government. This is a sad day for workers and the American freight industry.”
The company maintained that the Teamsters’ refusal to approve the change of operations would eventually lead to its closure. Most industry watchers expect Yellow to announce its bankruptcy filing on Mon., July 31.
The bankruptcy leaves 30,000 Yellow employees, including 22,000 Teamsters, without jobs.