International Brotherhood of Teamsters' (IBT) pending strike at Yellow Corporation (CCJ Top 250, No. 6) would violate the parties’ collective bargaining agreement, and the IBT itself shoulders some blame for Yellow's precarious financial condition, the carrier claimed in a statement Wednesday night
Yellow failed to make a payment to the Central States Health and Welfare Fund and the Central States Pension Fund due July 15, and the Central States Board of Trustees voted Monday to suspend health care benefits and cease pension accruals effective Sunday. In response, Teamsters said they would prepare for a possible strike as early as Monday, July 24.
"This is a sad day. After billions of dollars in concessions and work rule flexibilities our members have given these companies over the last 13 years, for them to miss these payments is shameful and an insult to the thousands of Teamster families who have sacrificed so much for so long to keep these companies alive," said Teamsters National Freight Director John A. Murphy.
Yellow in June requested a short-term deferral of its obligation to pay contributions to the funds for two months; July and August, with interest. The Board, however, declined the request. IBT has claimed the missed payment and pending suspension of benefits are grounds for a strike, "but a strike would be anything but lawful," Yellow claimed. "The union’s breaches of the collective bargaining agreement, which are detailed in the complaint Yellow filed in its District of Kansas lawsuit against the Teamsters, are the direct cause of Yellow’s inability to make contributions to the funds."
IBT has not been thinly veiled in sharing its opinions of Yellow and its senior leadership.
Teamsters General President Sean O’Brien has blamed Yellow for failing its workers, citing "gross mismanagement" of a "deadbeat company."
"Yellow has a responsibility and obligation to workers. Our members should not suffer because of management’s incompetence and financial irresponsibility. This is a new low, even for a company as dysfunctional as Yellow,” added Teamsters General Secretary-Treasurer Fred Zuckerman.
