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Teamsters avert strike threat at Yellow

By Nithya Bose in US business news, posted July 24, 2023

The Teamsters union has withdrawn its strike threat against financially troubled trucker Yellow, preventing the business from plunging into liquidation.

The union called off the walkout scheduled for Monday after a pension fund agreed to extend health benefits to unionized workers at Yellow and a sister company.

Yellow was also given another 30 days to make a missed payment to the fund.

The International Brotherhood of Teamsters reached the agreement on Sunday, July 23, in talks with the Central States Health and Welfare Fund.

Yellow, based in Nashville, Tennessee, is one of the largest trucking firms in the country and plays a significant role as a service provider to the Defense Department.

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But it has faced financial challenges, including deferring $50 million in payments to the Central States fund due to substantial debt and dwindling cash reserves.

On Friday, July 21, a federal judge in Kansas City, Missouri, denied Yellow's request to block the strike, stating a walkout could lead the 99-year-old company into Chapter 7 liquidation proceedings.

It has around 30,000 employees, including about 22,000 union members.

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