A planned strike scheduled for Monday at YRC Freight and Holland, two companies under Yellow Corp., has been avoided. This happened after the Central States Health and Welfare Fund agreed on Sunday to extend healthcare benefits for the workers at these carriers.
The issue arose when YRC Freight and Holland failed to make a payment to the funds on July 15. As a consequence, the Central States Board of Trustees decided on July 17 to suspend healthcare benefits and pension accruals, starting from Sunday. In response to this action, the International Brotherhood of Teamsters (IBT) announced their readiness to initiate a strike as early as Monday, July 24, if the payment was not made.
However, Sunday night brought confirmation from the union that the extension of healthcare benefits for Teamsters and their families was sufficient reason to call off the impending strike on Monday.
In a related matter, Yellow’s request for an injunction to prevent its Teamsters member employees from initiating a work stoppage was denied on Friday by the U.S. District Court for the District of Kansas.
The agreement made by Central States grants Yellow 30 days to settle its outstanding bills, with the understanding that the company will complete the payment within the next two weeks, as stated by the IBT. CCJ attempted to contact Yellow on Sunday evening, but they did not respond.
“Our members at YRC Freight and Holland cannot work without health care, and the Teamsters worked tirelessly to ensure an immediate strike at Yellow could be averted,” said IBT General President Sean M. O’Brien. “These discussions were not easy, but Central States has made meaningful movement under pressure from the union. We are seeking a real resolution, but let this solution today serve as a profound reminder that our members can only endure so many sacrifices. Teamsters at Yellow simply work too hard and have already given so much.”
In June, Yellow made a request to postpone its contributions to the Health & Welfare and Pension funds for two months, with the intention of repaying the deferred amount along with interest immediately after refinancing. The company informed the Central States Funds that it would not make the health and pension contributions for June (due on July 15) and July (due on August 15) to maintain sufficient funds while seeking meetings with the union and securing additional financing.
As some of the time constraints have been eased, the Teamsters National Freight Industry Negotiating Committee is planning an in-person meeting with Yellow representatives on Sunday evening in Washington, D.C. The purpose of the meeting is to assess the company’s current state and review the existing contract.
The dispute between Yellow and the Teamsters revolves around the implementation of the carrier’s One Yellow strategy, aimed at enhancing efficiency, speed, choice, and value for customers. While Phase 1, which involved integrating the linehaul networks of YRC Freight and Reddaway in the Western region, was completed last year with union approval, Phases 2 and 3, focusing on aligning operations in other regions, are scheduled for this year.
However, the Teamsters have blocked the further rollout of the strategy, arguing that these changes violate their labor agreement with the company. Yellow, on the other hand, denies the charge and contends that the delay is putting the company’s financial stability at risk.
Yellow, which is ranked as the third largest less than truckload (LTL) carrier and the sixth largest transportation company in the United States, recently took legal action by filing a complaint in the U.S. District Court for the District of Kansas against the International Brotherhood of Teamsters (IBT) and its affiliated entities. The complaint alleges that the labor union violated a legally binding contract with Yellow, leading to damages exceeding $137 million. According to Yellow, the IBT unjustifiably hindered the company’s restructuring plan for over eight months. This plan aimed to modernize Yellow’s business operations, a step the company believes is crucial to compete effectively against non-union carriers that currently dominate the LTL transportation sector.
