Yellow Corporation Files $137+ Million Lawsuit Against International Brotherhood of Teamsters, Alleging Breach of Contract in Blocking Efforts to Modernize Century-Old Company

Union Leadership’s “Militant Approach” Risks Tens of Thousands of Jobs and Taxpayers’ Investment in Company

NASHVILLE, Tenn., June 27, 2023 (GLOBE NEWSWIRE) -- Yellow Corporation (NASDAQ: YELL), the nation’s third largest less than truckload (LTL) carrier and fifth largest transportation company, has filed a complaint in the U.S. District Court for the District of Kansas against the International Brotherhood of Teamsters (IBT) and certain of its affiliates.

The complaint alleges that the defendants breached their binding union contract with Yellow causing more than $137 million in damages by unjustifiably blocking, for over eight months, Yellow’s restructuring plan to modernize its business, which is necessary to compete against non-union carriers that dominate the LTL business today. These modernization efforts, known as One Yellow, are essential to the Company’s survival. Without these crucial reforms, which are standard practice in the industry today, Yellow likely will not survive, 30,000 jobs will be lost, including 22,000 union jobs, and its shareholders, including the federal government, which owns 30.1% of Yellow stock, will be severely damaged. Yellow remains a critical part of the domestic supply chain with hundreds of thousands of customers -- large and small -- relying on the Company to deliver freight coast-to-coast. Driving Yellow out of business will badly damage the supply chain, lessen competition and raise the price of shipped goods in the LTL market and feed inflation.

“We do not take this action lightly, but the Union’s leadership has left us with no choice,” said Yellow Corporation management. “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. We have communicated with all stakeholders in Washington, D.C., including the Biden Administration, to apprise it of the imminent loss of tens of thousands of jobs, the significant anti-competitive effects on the American economy and the devastating impact to the supply chain, and to seek their assistance in persuading the IBT to negotiate a mutually acceptable agreement. We are fighting for the livelihood of our 30,000 employees who are good hard-working people. We will do all we can to save these American jobs and to protect our shareholders, including the American taxpayer.”