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Yellow loses attempt to stop strike

Company says in plea to judge it will be forced to file for bankruptcy

A strike could begin as soon as Monday. (Photo: Jim Allen/FreightWaves)

The U.S. District Court for the District of Kansas ruled Friday against less-than-truckload carrier Yellow Corp.’s request for an injunction, which would have kept its Teamsters employees from engaging in a work stoppage.

In her decision, Senior Judge Julie Robinson denied a motion for a temporary restraining order and injunction.

The decision allows the union to carry through with a planned strike, which could begin as soon as Monday. The final straw prompting the strike was Yellow’s missed benefits contribution payment to Central States Funds last week, which will leave workers without health insurance on Sunday.

The two parties have been embroiled in a bitter dispute over operational changes for the last nine months. The carrier has maintained that without the changes it wouldn’t survive while the union took the stance that it had given enough in the past in the form of wages, benefits and work rules concessions.


“The company has two more days to fulfill its obligations or we will strike,” Teamsters General President Sean O’Brien said following the decision. “Teamsters at Yellow are furious and ready to act. They are done with the mistreatment and mismanagement.”

In its filing seeking an injunction, Yellow said it would likely file for bankruptcy if the court didn’t rule in its favor.

“Absent injunctive relief, Plaintiffs will suffer immediate, substantial, and irreparable harm from Defendants’ unlawful work stoppage, including being forced into a Chapter 7 liquidation bankruptcy proceeding.”

In a news release late Friday, Yellow said it would appeal the court’s decision and continue to pursue its breach of contract lawsuit against the Teamsters.


“The court, recognizing a strike would likely kill the company, resulting in the loss of 30,000 jobs, cautioned the Union — that while it won today’s battle, it could very well lose the war,” the statement said.

More FreightWaves articles by Todd Maiden

52 Comments

  1. Mark

    All you UNION bashers could have got a non union job elsewhere before you came to yellow, reddaway, Holland and NewPenn, I guess you would rather work for nothing, this should help you make your choice, leave it to us that will stand with the Teamsters

  2. KG

    I worked for Roadway years ago. I was there the day the Yellow dog bought us…REX was doomed. I saw REX leaders eliminated, replaced by Yellow infants until the management of the company was nearly all Yellow or newbies. Forbes wrote an article on REX’S high quality management training and leadership quality. I guess those fools at Yellow didn’t/can’t read.

    Yellow went on to buy other BETTER companies, enforcing their shoddy business practices and hacking away good leaders to replace them with unscrupulous ones.

    I got out from YRC on my own terms, but I mourn the death of so many good companies like Roadway Express, Holland, New Penn, and others by the demolition squad at Yellow. I have many friends, both union and management, not to mention retirees who may have reduced pensions. These fine people are the losers when Yellow goes down.

  3. Blaze

    This has all been orchestrated by Yellow and the Teamsters. They’ve been in bed with each other for years. Hoffa gave them everything they wanted for years. And if you think O’Brien cares if 30,00 people lose their jobs you are a special kind of stupid. I guarantee he’s going to get something out of it if Yellow shuts down

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.