Everyone's talking about a UPS strike.. (which is highly unlikely).. how about the pending Yellow strike?

I can see everyone’s freaking out about a potential UPS strike. For many reasons that I won’t go into here, it’s highly unlikely it will get to that point.

That being said, it’s much more likely that Yellow strikes (YRC, New Penn, Holland, Reddaway.)

I’d expect news on this front by the end of the weekend. Most sane people are not sending shipments out through Yellow’s subsidiaries right now… however, Amazon is still booking their Vendor Central pickups through them! (We had a few shipments picked up yesterday.) Ultimately, whether Yellow strikes or not, their days are numbered as they’re sliding into insolvency. I’d expect someone to swoop in and buy assets before the end of the year.

Thoughts?

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MAR-23-2023
The Teamsters union Thursday rejected Yellow’s proposal to consolidate its YRC Freight, New Penn and Holland linehaul network and terminal operations as part of the Overland Park, Kansas-based carrier’s efforts to create a “Super Regional Carrier.” (source: Teamsters reject Yellow’s consolidation proposal | Commercial Carrier Journal (ccjdigital.com))

[mod edit: personal insult removed] I believe that Yellow and the Teamsters are nearly out of cash and it is just a matter of time before bankruptcy. Nobody in the private sector is going to rescue Yellow because, the Teamsters contract is just too expensive. Regardless of UPS/Teamsters, domestic LTL cartage is going to be painful, later this year. If you are seasonal/Holiday dependent and rely on LTL, if you don’t have your goods ready for fulfillment in the next 90 days, you might miss out this year.

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Yellow is only 10% of LTL business. There might be a short hiccup for retail, but it’s not 25% of all shipping, like UPS.

Amazon gonna Ama. :woman_shrugging:

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I too expect a Yellow strike to result in bankruptcy filing. Whether Yellow continues to exist will probably come down to how the bankruptcy court treats the Teamster’s contract, and even if it throws it out the window (IMO unlikely) there is probably not going to be a Yellow for other reasons.

I cannot imagine either management or the Teamsters to be up to what it takes to deal with the external factors which make many of our truckers an endangered species.

Further discussion of those aspects of the problem are not within the rules of this forum/

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From the ‘for what it’s worth’ column, my wife and son have an actual brick and mortar store and they have had two UPS drivers tell them in the past week that it is VERY likely to happen and it will be a long one.

My guess is that the drivers are being told that by the Union Manglement so that the people getting packages will pressure UPS to do whatever it takes to settle.

Of course, the Union Staff will most likely continue to get paid while the drivers and other workers get a small ‘payment’ from the war chest they have built up for several years.

The front line is always cannon fodder and anything over a couple days strike they will take years (or NEVER) make enough back in raises to break even if it’s long enough.

REMINDER

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If an author has to six degrees to Kevin Bacon to connect how their business operations have to do with their opinion of unions or corporations that contract them, then Facebook or another social media site is the place to be.

Not here.

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For the record, I think the UPS strike WILL HAPPEN.

The key issue may be the two tiered labor system at UPS. Instituted in past bad economic times, newer workers are paid a fraction of what the older union workers are paid.

In all the unions which agreed to such terms this has been a long standing sore point, especially as profits have increased at UPS and in other companies with such agreements.

It affects the UAW which is beginning negotiations with US auto makers, and also with USPS.

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While I understand the need to remove some of the more (ahem) colorful phrases so as to keep things civil, it would be best to silently do so, as my imagination is far more robust than the actual removed text was likely to be. The net effect is to INCREASE the level, wittiness, sharp-pointedness, and eloquence of what in reality was likely to be far more mundane and pedestrian.

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Aha, so here the Teamsters were negotiating in advocacy for Yellow, so that parent company Central States would not terminate Yellow’s drivers’ healthcare today for Yellow failing to make its $50M payment into CS’s Health & Welfare fund on July 15.

The Teamsters got Yellow an extra 2-4 weeks from today, to make the payment.

Hopefully, Yellow will be able to do so and stay afloat.

No strike, no bankruptcy, no lapse in healthcare coverage, no jobs lost, no stoppage. :pray:

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YRC Inc. & USF Holland LLC FAQs

Earlier this week, the Central States Health and Pension Funds advised members and Local Unions that YRC Inc. and USF Holland LLC (collectively “Yellow”) notified the Funds that Yellow would not pay health and pension contributions for June 2023 (due July 15) and July 2023 (due August 15). Because of this contribution delinquency, Central States Funds previously advised members that Yellow’s participation in the Pension Fund was terminated, and TeamCare health coverage was suspended effective July 23, 2023.

Please note the following important update:

In order to provide the International Brotherhood of Teamsters (IBT) sufficient time to negotiate an agreement with Yellow, the Central States’ Board of Trustees have approved an extension of TeamCare health coverage for Yellow participants through August 26, 2023.
During this time, Yellow participants will not need to make self-payments to maintain coverage. Although the extension of TeamCare health coverage through August 26, 2023 doesn’t resolve the delinquency; the extension of coverage is being provided with the understanding that Yellow remits payment for the July contributions on or before August 21, 2023.

I plan on retiring from Yellow soon. Will the eligibility requirements for my pension change due to the delinquency and termination from the Pension Fund? Will I still be able to get a pension when I retire?
Yellow members will still be entitled to a pension benefit based on the previously implemented Distressed Employer Schedule under which Yellow participates in the Pension Fund. As of July 23, 2023, active members will stop earning additional pension benefit accruals on and after that date. If Yellow fully pays the pension contributions in the future, pension benefit accruals will be reinstated retroactive to July 23, 2023.

The story that Central States differs a bit from The Internation Brotherhoods…

“They will most likely go bankrupt or reduce their operations significantly, but there is sufficient capacity in the market to absorb the freight,” Dr. Chris Caplice, executive director at the MIT Center for Transportation & Logistics, told Sourcing Journal on Monday.

https://www.yahoo.com/lifestyle/yellow-avoids-teamsters-strike-bankruptcy-174849769.html

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But not because of any Teamsters actions or strike.

Simply because of their business issues that lead to the failure to pay the CS Health & Welfare fund in the first place.

Nothing to blame on evil unions, here. :stuck_out_tongue_winking_eye:

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The interest rates increasing has had an impact too as the acquisitions and legacy debt are getting costlier. They have been hurting for years now, being they had to get government loans and give up 30% stake back in 2020.

““We are pleased for Treasury to make this loan pursuant to the CARES Act,” said Secretary Steven T. Mnuchin. “This loan will enable a critical vendor to the Department of Defense to maintain significant employment while providing appropriate compensation to taxpayers.””

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Lets not make this a pro or anti union conversation. The company has been failing for a while, regardless of their negotiated labor contracts. The labor did not make Yellow, buy all the other companies in the last few years that are the current boat anchor even after selling all the real estate assets of those duplicating companies.

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Agree! Was simply responding to the implied fault being laid wrongly on an entity with whom another user has a longstanding personal dislike, to the exclusion of any facts that contradict such a prejudice.

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That conversation/rebuke does not have to take place here. Please flag or PM me for review. As noted by Shelf and several others, I have no problem deleting posts that are political opinion/theatre.
giphy

Those folks can enjoy their time over at Meta/Twitter/Threads etc.

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Welp :woman_shrugging:

https://www.cnn.com/2023/07/31/business/yellow-corp-closing/index.html

“Lowest prices in town!..Crunch those numbers again”

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Michael Scott I Declare Bankruptcy GIFs | Tenor

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It is conceivable that the Yellow Freight bankruptcy will help other carriers who are have been dealing with overcapacity, dropping prices and high fuel prices

You can probably expect higher prices on Amazon partnered LTL shipping.

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