Yellow Trucking files for bankruptcy, will shut down

https://www.foxbusiness.com/economy/yellow-trucking-filed-bankruptcy-will-shut-down

well, just another example of unions forcing the shutdown of a company. Their assets will be sold off into the private sector and the union employees will be without a job just like Hostess had to do. Unions had their time in history. Now that we are competing with child labor countries we can’t have the same mentality in order to compete and these shutdowns prove it. We either need to stop trade with forced and child forms of labor or stop our obsession with unions.

 

That’s weird, why would they file for bankruptcy when they, like every other company, have infinite supply of money such that every single union demand is always reasonable no matter what?

The Union in this case is right as always: it’s yellows fault and the union clearly knew how to run yellow better than yellow did.

Maybe they can buy them out and show us how it’s done?

 

If they knew how to run them better then why was it the union that made their business unaffordable and destined for bankruptcy? They don’t have excess cash on hand, where did you get that info? I don’t even understand how they can pay back to 700 million borrowed being their market cap is 120 million right now.

This was a direct outcome of the union. The threatened strike caused them to lose customers and the union wouldn’t agree to needed cuts to save their jobs. Apparently unions would rather be unemployed.

 

I would think the larger question is how a $700 M bailout (Fox's words) from just 3 years ago didn't solve the problem??

 

Without knowing much (anything really, beyond what's in this thread, aside from my own personal experience with unions), they probably have way, way, WAY more pension benefits that they 'owe' than they can possibly pay for, that was known at the time they were agreed to, but the people who approved the deals knew they'd no longer be in the picture when the SHTF and it wouldn't be their problem. I have some friends on government pensions that I've advised to not assume it will be there for the rest of their lives, no matter what they were 'promised', because at the end of the day, math always wins.

I could be wrong, but it is a logical conclusion.

 

If you read articles that does seem to be the case. The union wouldn’t agree to needed cuts and the threatened strike caused them to lose customers. In the end it is literally because of the union.

 

brings back images of Wonder Bread. The union work rules were counter-productive. For example, bread was delivered by 1 truck and snacks by another. The union would not permit co-mingling despite it making good business sense.

 

gotta work on your sarcasm detector

 

Because throwing money at problems only makes them bigger. Just look at our government!

 

How do you know it was unions and not mismanagement? There is mention of "mounting debt". Where did it come from?

Also, the "child labor countries" cannot compete in domestic shipping for reasons that should be obvious even to you.

 

Is that what happened?

 

Yeah, that $1.5 billion debt on the books, declining revenue, and increasing costs outside the control of the company is the main reason why this trucking company shut down. It is not like there are other trucking companies out there, we have plenty and the economy, through capitalism, is getting rid of the "dead weight."

 

No, this was caused by unions and their demands.

 

Disappearing problem. Robots won't go on strike.

 

If it was simply a matter of debt, they could use bankruptcy to get back on their feet, but they are calling it quits for good.

 

One thing is for certain, the top end managers and CEOs of YRC were not hurting:

https://www.tdu.org/yrc_ceo_welch_gets_a_397_raise

It's easy to blame the teamsters, when the CEO could have led by example and taken a paycut for the team, but no.

 

US Corporate bankruptcies are at historic highs. Sounds like Bidenomics is falling apart. https://www.reuters.com/markets/us/us-corporate-bankruptcies-highest-level-since-2010-2023-05-09/

 

Yep, must be all Biden's fault:

https://www.freightwaves.com/news/yellows-demise-2-decades-in-the-making

Nevermind, that Trump bailed them out with $700 million, and they have a history of poor debt management.

 

Trump gave them enough money to stay afloat during the pandemic. Do you think that legislating companies out of business is good policy?

 

It’s sad that union demands were so excessive that even that couldn’t help them.

 

This is Biden's America.

 

"The union in this case is right as always."

Almost anytime you see an absolute statement like this, you know it has problems. No one is "Always Right."

 

We need to lower our standards because others have low standards?
Sounds like we need unions more than ever if thats how people think
Maybe we should bring back slavery and child labor also?

 

Child labor is back.. slavery will take a few more election cycles in the Confederacy

 

Are you serious here?

Have workers somehow become owned by failed businesses?