Three ways labor unions contributed to Yellow trucking’s demise

Row of white semi truck trailers on a clear blue sky. Check my transportation lightbox for more trucks.fter 99 years in business, trucking giant Yellow Corp. shut down its operations on Sunday, and its 30,000 employees will lose their jobs.

Unions are best known for negotiating higher compensation and giving workers representation with management. But unions actually have a say in—and often contractual control over—all things worker-related, meaning they can effectively usurp a company’s management.A key reason Yellow was said to be closing its doors is that the union was refusing Yellow’s restructuring and modernization efforts.

Yellow’s attempt to reduce idle time by having workers perform other tasks was one example of an efficiency that the union prevented. of companies like Yellow to make changes that could have improved its efficiency, unions can drive companies out of business. And that hurts more than just the workers who lose their jobs. As a lower-cost carrier that provided service to major big-box retailers, such as Walmart and Home Depot, Yellow’s absence will almost certainly result in higher prices for consumers.

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