Canadian employees told not to report to work as Yellow files for bankruptcy

The Teamsters Union in the United States was served legal notice that Trucking firm Yellow is ceasing operations and filing for bankruptcy.

The company, which was a major player in less-than-truckload freight, announced July 31st that it would be filing for bankruptcy and cease operations on both sides of the border.

“Today’s news is unfortunate but not surprising. Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government. This is a sad day for workers and the American freight industry,” said Teamsters General President Sean M. O’Brien.

In Canada, Unifor Local 4209 members were told to simply not report for work as Yellow filed for Chapter 11 bankruptcy. Yellow is the parent company of YRC Freight Canada.

“The bankruptcy process is an escape hatch for CEOs, but no such relief exists for workers who are cut loose with no notice and often zero support,” said Lana Payne, Unifor National President. “We expect fair treatment and clear communication to the hard-working members of Local 4209 as the company winds down. My thoughts are with the workers and their families who carry the weight of the uncertainty during the bankruptcy process.”

“The news is devastating for our members,” said Don Lajoie, President of Local 4209. “While the bankruptcy process focuses on moving numbers around a page, we have to remember the human impact. There are hundreds of families who are left with very little information right now. The Local and National union are working to keep them informed as the process continues.”