Teamsters Union vs Yellow trucking and UPS

[searcher]

Struggling Yellow Corp has moved closer to a strike, following reports that it failed to make contributions to pension, welfare and health insurance benefits for its employees last month, and will do so again this month.

According to the Teamsters union, this opens the door to a strike as early as 24 July, a stoppage that could seal the fate of the LTL carrier.

Missed pension and benefit payments pushes Yellow toward 'fatal' strike - The Loadstar

Struggling Yellow Corp moved closer to a strike after reports that the company had failed to make contributions for pension and benefits.

theloadstar.com

 

[pmbug]

Shortly after less-than-truckload carrier Yellow Corp. said Tuesday it would go through with plans to defer required contributions to funds managed by Central States Funds, the International Brotherhood of Teamsters issued a strike notice.

The notice said a work stoppage could occur as soon as Monday.
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Yellow and the Teamsters have been unable to reach an agreement on operational changes that the carrier says are necessary for it to remain in business.

The Teamsters statement said the company has until Sunday to make the payment.
...

Teamsters issue strike notice at Yellow

Teamsters issued a strike notice at Yellow shortly after the carrier said it would defer two months of required benefits contributions.

www.freightwaves.com

 

[searcher]

UPS, Teamsters reach tentative contract

A tentative contract between UPS and the Teamsters doubles wage increases for part-time workers over the current pact.

www.freightwaves.com

 

[Goldhedge]

Exec At Trucking Giant Yellow Tells Staff Company Will File Bankruptcy On Monday | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[nickndfl]

They are getting eaten up by diesel prices and insurance. Get diesel back to $2.75/gal and inflation will top out while profits increase. It will also keep marginal companies in the black.

 

[Casey Jones]

Also they're probably led by financiers, who have money-manipulation and fraud as primary objectives.

Honest corporate leadership doesn't seem to exist, now. Yellow probably planned this to goad the Teamsters into a strike, so they could blame bankruptcy on them.

Probably a Soros or Buffet company will buy the assets for pennies on the dollar, and hire illegal-alien scabs as new drivers.

 

[nickndfl]

Yellow is filing for bankruptcy. What a shame.

 

[pmbug]

Yellow Corp.’s Chapter 11 filing has thrust a $700 million federal loan the company received during the Covid-19 pandemic into the spotlight.

On Sunday the beleaguered Nashville, Tenn.,-based trucking company announced its bankruptcy filing, which it blamed on the Teamsters union. On Monday, in a statement posted on the Teamsters website, the union accused Yellow of squandering a $700 million bailout.

Yellow told MarketWatch that the use of the CARES Act loan proceeds was carefully prescribed by the Treasury and Yellow followed all guidelines.

As part of the bailout deal, the government took an almost 30% stake in YRC Worldwide, as Yellow was formerly known, making the U.S. Department of Treasury the company’s second-largest shareholder.
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More:

As Yellow files for chapter 11, $700 million pandemic bailout is in the spotlight

The $700 million federal loan made to Yellow in 2020 has sparked criticism.

www.marketwatch.com

 

[Casey Jones]

There's a lesson to be learned here, although it probably won't be.

Our current economic Elites...who are mostly Crony Financiers...cannot run businesses. They cannot build them and they cannot sustain them.

They're moneychangers and asset-strippers. This has a 70-year history in modern business, starting with the looting of Studebaker Corporation by Packard management (who were new arrivals to THAT company) through to the destruction of the Beatrice Foods conglomerate, the various companies that Chainsaw Al Dunlop looted...and on to today's time, when there is ONLY ONE WAY LEFT to make money. Crony connections; government contracts, stock pumping, asset stripping, and, finally, liquidation.

The Teamsters were probably militant here. But, even when goaded, they didn't strike. What they wanted was the Status Quo.

And I don't think that's unreasonable, to continue the pay they had had all along, for the hard work which was the basis of the company. The game-players in the front office, with their reorganizations, leveraged mergers (about six) and their bonuses.

So one more organization disappears. This is actually more onerous - it's not a product, it's a SERVICE. A service cannot be outsourced; and we're a world that's desperately short of needed services.

 

[Voodoo]

The Unions did all they could to take down Yellow. They were a very well paid job all along. UPS is the same way. Those guys make very good money for what they do. These managements simply said enough and will look to reorganize.

Is most of Wall St corrupt and will they take down good companies, sure. But this is on everyone involved.

 

[nickndfl]

The Yellow drivers will be picked up by other companies and the fleet will be sold off.

 

[Cigarlover]

More:

As Yellow files for chapter 11, $700 million pandemic bailout is in the spotlight

The $700 million federal loan made to Yellow in 2020 has sparked criticism.

www.marketwatch.com

Reminds me of Solyndra. A billion dollar loan and 1 year later bankrupt. Of course we never got any of the details on that one since the FBI went in and "secured" all the files. More than likely just another scheme where money is stolen from tax payers and put through these fake corporations and back into the pockets of the politicians and their families.
That was under Obama and now this one is ...well, is also under Obama.

 

[Voodoo]

Reminds me of Solyndra. A billion dollar loan and 1 year later bankrupt. Of course we never got any of the details on that one since the FBI went in and "secured" all the files. More than likely just another scheme where money is stolen from tax payers and put through these fake corporations and back into the pockets of the politicians and their families.
That was under Obama and now this one is ...well, is also under Obama.

Many, MANY companies are raking in "pandemic" bribes. Even now, many employees are being kept on payrolls simple because the government is Paying them directly via the Employee Retention Credits.

COVID-19-Related Employee Retention Credits: Overview | Internal Revenue Service

Get an overview of the COVID-19-related employee retention tax credits.

www.irs.gov

 

[Casey Jones]

The Unions did all they could to take down Yellow. They were a very well paid job all along. UPS is the same way. Those guys make very good money for what they do. These managements simply said enough and will look to reorganize.

Is most of Wall St corrupt and will they take down good companies, sure. But this is on everyone involved.

In this age of food costs doubling, the arrogant management - which spent googobs of borrowed money buying USF and a couple of other, smaller competitors; and which helped themselves to the COVID Free-Money trough...they demanded UNION GIVEBACKS.

I'm not even a big union guy, and my answer would have been: EFF YOU. And eff you twice. And, before I forget, EFF YOU AGAIN.

I've been through that moneychanger M&A madness. When I worked for Conrail, its two competitors, run both by moneychangers - Norfolk-Southern and CSX Transportation - bought them out. Overpaying by at least a factor of two - they were competing against each other to buy control, and then decided to cut their baby in half.

And of course, neither half of the baby was much use. I was on the CSX side, and we went from an operation with plenty of resources, to one in permanent fiscal emergency, and always looking for ways to screw the guy on the ground. They would rather bribe union officials than actually pay for actual work done - I figure I put in about a total of TWO WEEKS worth of free-work done. It was the complete opposite to working for Conrail, where they made things happen by waving money around. CSX was betting that the men would just suck it up and take it - that we had no options.

I put up with six years of it, and then walked. And the Yellow drivers were probably just as ready to walk.

 

[pmbug]

Executives, attorneys, creditors, and many others invested in the wind-down of Yellow Corp. will gather Sept. 15 for a key hearing in U.S. Bankruptcy Court in Delaware that should answer several questions about how the shuttered carrier’s case and auctions of substantial assets will proceed in the coming weeks.

The hearing could add clarity to some important questions in Yellow’s filing and perhaps reveal bidders who haven’t yet gone public with their interest in what remains of the almost 100-year-old company.
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What are the chances equity holders, including the U.S. government, see some proceeds?

The answer to this question is quite dependent on how the legal questions above are resolved, which is why Singer said he would be surprised if MFN and the federal government—which owns 30% of Yellow’s shares via the deal for the CARES Act loan—recover something from their stock holdings.

First in line to be paid back with auction proceeds are secured creditors, mainly Citadel as owner of about $485 million of debt and the federal government in its role as CARES Act lender. In all, Yellow’s balance sheet as of June 30 showed nearly $1.5 billion in long-term debt—conveniently the amount Old Dominion has bid for the company’s real estate.

Unsecured creditors will be next and will be led by the Teamsters and the Pension Benefit Guaranty Corp. They will essentially be paid with proceeds from truck and trailer sales. Equity investors will be paid much later if there’s money left over once unsecured creditors—they also include municipalities, railways, suppliers, and dozens of other entities—as well as Citadel and MFN, this time in their roles as debtor-in-possession financiers, are repaid.
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More:

https://www.fleetowner.com/news/art...s-ahead-of-decisive-yellow-bankruptcy-hearing

 

[searcher]

Pension Funds, Creditors Vie Over Proceeds From Yellow Bankruptcy​

Collapsed trucker Yellow is facing perhaps its last major reckoning with its long list of creditors, and hundreds of millions of dollars are at stake.

A bankruptcy court judge is due to decide in the coming weeks whether the bulk of the failed business’s remaining assets, largely from the proceeds of the sale of properties and equipment, should go to pay off pension plans that claim they collectively are owed billions of dollars.

That could leave hundreds of unsecured creditors, ranging from one of the country’s biggest railroads to a slew of mom-and-pop businesses left in the lurch when Yellow abruptly shut down, getting just pennies on the dollar on their claims.

Yellow says in court filings that if the judge rules against the pension funds, it could result in “the truly rare circumstance” of creditors being paid in full. The funds say they are owed hefty compensation because Yellow withdrew early from its obligations.

More:

MSN

 

[Goldhedge]

My money is on the unsecured creditors getting paid....

 

[Casey Jones]

The law, turned on its head.

When we had objective law, UNsecured creditors were LAST in line. That went into the toilet with Carmageddon, back in 2009...where the unions got possession of GM, not the secured creditors; and where (politically-connected) FIAT s.p.a, a FOREIGN business (but partially owned by the government of Italy) was given possession of Chrysler LLC, AHEAD of SECURED BONDHOLDERS.

Major institutional bondholders' attorneys were threatened. Small-investor bondholders were told to shove off.

Since then, we now live under Rule of Whim; and it's the whim of the Majik Negroid, and his puppetmasters and stooges, that matter.

Unions count, but union PENSION funds do not. Because the Little People exist for the benefit of the State and its Power Elites.