Shockwaves in Oregon as Major Companies’ Sudden Closures Result in Devastating Job Losses
On Sunday, July 30, Yellow Corp, founded in 1924 and one of the largest trucking companies in the nation, advised it would enter bankruptcy and was ceasing operations immediately.
This has led to the biggest mass layoff in the United States since 2020, and Oregon will be heavily impacted.
Bankruptcy
Yellow received $700 million in pandemic-era loans from the federal government under the Trump administration but has been in financial trouble for several years. The loan was due to be paid back in September 2024.
The news of Yellow’s demise was confirmed by the Teamsters Union, who advised they had been served a legal notice advising of the news.
“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,” Teamsters General President Sean M. O’Brien
Oregon Job Losses
While the exact number of job losses in Oregon has yet to be disclosed, the estimates are that hundreds of people in Oregon will lose their jobs.
“Yellow was comprisedis of a variety of different regional carriers. One of those regional carriers was Reddaway which was the longest, most continuously run company in Oregon. They had hundreds of trucks and drivers so that, in combination with YRC and Yellow, I’m not quite sure how many individuals were affected by that, but there were hundreds.” Jana Jarvis, president and CEO of the Oregon Trucking Association
The impact will be felt across Oregon. About one in every 16 jobs in Oregon is in the trucking industry, and 76.9% of communities in Oregon rely exclusively on trucks to move and receive goods.
“Virtually, everything is on a truck at some point in time. In Oregon, we’re known as a manufacturing state. 88 percent of manufactured goods are carried on truck. Three quarters of the nation’s freight is moved by truck. “Jana Jarvis, president and CEO of the Oregon Trucking Association
Under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide a 60-day notice before laying off 50 or more people at a single site, but due to the sudden closure, this did not occur.
“The Company was not able to provide earlier notice of the Shut Down as it qualifies under the “unforeseeable business circumstances,” “faltering company,” and “liquidating fiduciary” expectations set forth in the WARN Act. The Company expects all layoffs and location closures relating to the Shut Down to be permanent. The Company had hoped to complete one or more transactions and secure funds and business to prevent the closing of these locations but was unable to do so. These circumstances were not reasonably foreseeable at the time notice would have otherwise been required and notice is further excused because the business is being liquidated.”
I will update this developing story as more information comes to hand.
Your thoughts
Are you concerned about these job losses? Do you believe it will significantly impact the trucking and transportation industry? Do you fear the United States could be heading toward a recession?
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