WASHINGTON — The Central States Pension Fund’s Board of Trustees voted on Monday, July 17, to suspend health care benefits and cease pension accruals for Yellow workers after two Yellow operating companies, Holland and Yellow Freight, failed to fulfill their financial obligations.
Teamsters are preparing for a possible strike as early as July 24, according to a news release.
Benefit suspensions will go into effect July 23 if the company fails to make the critical payment to the Central States Health and Welfare Fund and the Central States Pension Fund for June 2023.
“Yellow has failed its workers once again and continues to neglect its responsibilities,” said Teamsters General President Sean M. O’Brien. “This corporation’s gross mismanagement is another affront to the livelihoods and well-being of 22,000 Teamsters nationwide. Following years of worker givebacks, federal loans and other bailouts, this deadbeat company has only itself to blame for being in this embarrassing position.”
According to a news release, Yellow owed Central States $50 million on July 15, a payment it missed and must still make by July 23 to avoid a work stoppage and interruption in benefits for Teamster families.
“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,” said Teamsters General Secretary-Treasurer Fred Zuckerman. “The Teamsters are working with our local unions, and we will continue to regularly update members as this situation unfolds.”
In its own statement, Yellow officials said that the company “advised Central States Funds that it would defer payment of health and pension contributions for June (due July 15) and July (due August 15) to preserve liquidity as it worked to obtain meetings with the IBT [International Brotherhood of Teamsters] as well as secure additional financing.”
Yellow said it intends to repay the funds with interest immediately upon securing additional financing and has asked the funds to discuss acceptable terms.
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How embarrassing……Yellow should be ashamed of themselves. How about Yellow Corporate management make the sacrifice to keep those employees you value so much working!!!
Zequita, the western half of Yellow’s US territory has already made the change in operations AND did it successfully AND is providing the only profits to the company right now. It makes absolutely no sense that IBT is stopping the east from doing the exact same thing. Yellow offered significant raises to all members to get it through but O’Brien wouldn’t even allow a vote and didn’t even tell them. He’s going to close this company just like the other union shops he’s been getting paid to shut down. Funny how the rich play with our houses in their monopoly game. We’re all going to lose here.