Trucking company Yellow shuts its doors amid Teamsters union stalemate

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One of the nation's largest trucking companies has announced its abrupt closure, coming as an apparent shock to employees amid ongoing union worker negotiations.

Yellow, a 99-year-old corporation employing about 30,000 people, halted operations permanently, according to a report by the Wall Street Journal on Sunday. Of those workers, 22,000 are currently active members of Teamsters.“Teamsters have kept this company afloat for more than a decade through billions of dollars in wage, pension and work-rule concessions,” a Teamsters union spokesman said.

Yellow, prior to its closure, ran about 12,000 trucks moving freight across the U.S. for its large-scale clients, such as Walmart and Home Depot, as well as smaller businesses. The company faced downfalls, however, despite successfully negotiating union concessions and a government bailout, due to issues stemming from delivering consistency among customers and padding investors' profit margins.Yellow's closure leaves a major void in the trucking industry, with some of its former customers having already begun to shift their orders from the nearly-century-old company to its rivals.

As it stands, the U.S. Treasury claims ownership of 30% of Yellow's stock shares, rounding to $.71 as of the close of market on Friday.

 

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