Yellow Trucking Corp sues Teamsters Union.

Yellow Corporation Files $137 Million Lawsuit Against International Brotherhood of Teamsters

The nation’s fifth largest transportation company, Yellow Corporation, has filed a $137 million lawsuit against the International Brotherhood of Teamsters, alleging a breach of contract.

The trucking company, based in Nashville, Tennessee, filed the complaint against the U.S. District Court for the District of Kansas earlier this week, accusing the union of violating a contract and causing millions in damages.

“The breaches, orchestrated by Sean O’Brien, IBT’s recently elected General President, have unjustifiably blocked restructuring efforts essential to plaintiffs’ survival and success and have already caused plaintiffs over $137 million in damages,” the complaint charges.

The complaint further warns that if these breaches are not immediately resolved, they could lead to the liquidation of the company and severe harm to the United States supply chain and economy.

Management at Yellow stated in a press release, “For many months, we have made good faith efforts to meet with the IBT to propose a path forward that works for all parties, but they refuse even to meet, let alone engage in honest talks.”

The heart of the complaint revolves around the union’s alleged obstruction of Yellow’s modernization efforts, which the company believes are crucial for its survival. The press release emphasizes that without these reforms, Yellow is unlikely to survive, resulting in the loss of 30,000 jobs, including 22,000 union jobs, and severe damage to shareholders, including the federal government.

Yellow specifically accuses Sean O’Brien, IBT General President, of orchestrating these breaches and preventing Yellow from meeting with IBT leadership.

“Today, our 30,000 jobs, mostly union jobs, are in serious jeopardy because the leadership at the International Brotherhood of Teamsters refuses to come to the table to discuss the future of our employees,” Yellow CEO Darren Hawkins said in a video posted to Twitter.

After repeated attempts to work with the International Brotherhood of Teamsters — attempts rebuffed at every turn — to come to an agreement on Yellow’s ongoing modernization, we have made the difficult decision to take legal action. pic.twitter.com/Gly6iY9ZVi

— Yellow (@Yellow_Trucking) June 27, 2023

“We’re working to compete in a way that aligns with the union, but their leadership still refuses to meet,” Hawkins added.

Meanwhile, the International Brotherhood of Teamsters responded to the lawsuit, describing it as “baseless.” Teamsters General President Sean O’Brien claimed that “Yellow Corp.’s claims of breach of contract by the Teamsters are unfounded and without merit.”

“Yellow blew through a $700 million bailout from the federal government, and now it wants workers to foot the bill,” O’Brien alleged.

The International Brotherhood of Teamsters is also preparing to initiate a strike against the United Parcel Service (UPS) if the company and the union do not reach an agreement by July 31st. A strike could severely disrupt supply chain operations, leading to product shortages and price increases.

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