With U.S.-based trucking company Yellow Corporation ready to file for bankruptcy at any moment now, one industry expert had a dismal reaction to the unsolved negotiations.
“It’s a travesty,” FreightWaves founder and CEO Craig Fuller said on “Mornings with Maria” Tuesday. “I think the Teamsters have a lot of responsibility, particularly Sean O’Brien who was focused on UPS’ negotiation, [and] didn’t seem to be concerned about Yellen’s precarious position.”
After struggling with financial woes for more than a decade, Yellow Corp. reportedly ceased operations worldwide and laid off around 30,000 employees over the weekend – a telltale sign the company may soon file for bankruptcy.
The Teamsters Union, America’s largest for the trucking industry, claimed in an announcement early Monday it was given legal notice that Yellow would indeed be filing for bankruptcy.
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“Certainly the Teamsters have some responsibility, particularly at the end, for sort of dragging on the negotiations and putting Yellow in a really precarious position,” Fuller reacted. “But Yellow, this story, this situation, is really a decade-plus in the making.”
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Fuller explained how Yellow had previous bailouts on “multiple occasions,” calling Yellow a “cockroach that sort of lived on.”
“It received a $700 million loan from the U.S. Treasury back in COVID, and that made sense, we’re trying to protect jobs. Now we’re looking at a situation where those jobs are not going to be replaced. Teamsters’ jobs are not coming back.” the shipping logistics expert pointed out.
“The Teamsters got a pension bailout of $36 billion from Biden in January, that really protected the pensions,” he added. “So there’s a lot of Teamsters that have talked about losing their pension – the reality is that pension [is] safe, but those jobs are not.”
Yellow’s CEO previously told FOX Business that they filed a more than $137 million lawsuit against the International Brotherhood of Teamsters in late June, alleging the Teamsters breached their contract by blocking the company’s efforts to restructure and modernize its business.
Fuller argued that the ultimate bankruptcy came from a combination of Yellow being strapped for cash and Teamsters’ lack of policy flexibility.
“And the question is, where do these jobs end up? We have 30,000 jobs. It’s one of the largest, not just trucking bankruptcies in history, but just in terms of companies shutting down, in terms of employee count, 30,000 people are losing their jobs,” the expert explained. “And the Teamsters failed to come to the table and failed to negotiate, and didn’t seem to be concerned about Yellow’s precarious position right now.”
Yellow Corporation did not immediately respond to Fox News Digital’s request for comment.
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FOX Business’ Breck Dumas contributed to this report.