Yellow Corp. has permanently laid off its workforce at all locations as part of its shutdown, the company said in a July 30 letter to the International Brotherhood of Teamsters.
All employees have been notified of the date of their termination, according to the letter, filed by the carrier as a Worker Adjustment and Retraining Notification (WARN) Act notice with the Illinois Department of Commerce & Economic Opportunity.
Yellow was unable to provide earlier notice of the Sunday shutdown, its letter said, because it qualifies under the “unforeseeable business circumstances,” “faltering company” and “liquidating fiduciary” exceptions set forth in the WARN Act.
“The Company expects all layoffs and location closures relating to the Shut Down to be permanent,” Yellow’s letter said. “The Company had hoped to complete one or more transactions and secure funds and business to prevent the closing of these locations but was unable to do so.”
The company explored the sale of its 3PL, Yellow Logistics, and said it was in touch with potential buyers last week.
But the third-largest LTL carrier is headed for liquidation, its letter to the union said. The union announced Sunday it had been notified a bankruptcy was imminent.
The shutdown and layoffs applied to Yellow and its operating affiliates, the letter said, listing those as YRC, USF Holland, New Penn Motor Express and USF Reddaway.
The letter to the Teamsters said 22,000 employees will be terminated. It didn’t specify whether those were union or non-union positions, but that’s the number of Teamsters members at the carrier.
Yellow employed another 8,000 non-union workers, who the company previously warned would be “collateral damage” of the union’s fight with the carrier if it went under.
A non-union employee told Transport Dive their team was among several non-union teams also let go during a conference call on Friday, July 28. The laid-off employee requested not to be named because they are now looking for a new job.
Employees have been notified they may be eligible to receive unemployment insurance benefits or other assistance with finding new work from their state or local labor departments, Yellow said.
Recognizing the catastrophic effect of the job losses, the American Trucking Associations created a job seeker database for workers who have lost their jobs in Yellow’s collapse.
“Yellow’s closure is a substantial blow to America’s economy and the company’s 30,000 hardworking employees and their families in all 50 states,” ATA President and CEO Chris Spear said in a statement Tuesday.
The nation’s first LTL carrier, Yellow has been an integral part of the U.S. supply chain since its founding nearly a century ago, Spear said.
“Our message to former Yellow employees is that we want them to remain a part of the industry that they have done so much to build and strengthen,” he said.
