Will Yellow Survive 2023?

Despite receiving a $700 million bailout from the CARES Act in 2020, Yellow’s financial position continues to be adversely affected. In a resolute move, the Teamsters union has opted not to provide another round of support, remaining steadfast in their decision. This highlights the insufficiency of the previous bailout funds in resolving the carrier’s financial struggles. The Teamsters’ stance indicates a deeper underlying issue that needs to be addressed. The relationship between carriers and unions within the freight shipping industry is complex and impacted by various factors. #FreightShipping

Some of these factors include:

1. Collective Bargaining: Disagreements or conflicts during collective bargaining negotiations can strain the relationship between the Teamsters and carriers.
2. Financial Stability: The financial health of a carrier can influence the union’s willingness to provide additional concessions
3. Safety and Work Conditions:  Disputes over safety standards or inadequate working conditions can strain relations.
4. Contract Disputes: Disagreements regarding contract interpretation, enforcement, or violations can lead to strikes, legal action, or damaged trust.
5. Organizational Changes: Restructuring within a carrier can impact labor relations.
6. Political and Regulatory Environment: Changes in labor laws, regulations, or government policies can influence the relationship between the union and carriers.

Navigating these factors requires effective communication, collaboration, and compromise between the Teamsters and carriers to maintain a healthy and productive relationship.

A word from Vin:

For three generations, the Carrano family handled LTL traffic as a family owned carrier, employees of larger carriers and most recently a #freightbroker.  There’s a long history of carriers coming and going into the marketplace, but for the good of shippers, carriers, and workers everywhere – MORE IS ALWAYS BETTER.  Competition makes us all better.  Everyone should be hoping Yellow and the IBTA can get it together and work this out.

Vin Carrano

President

Fenichey LLC