Teamsters Back Proposal to Acquire Yellow Properties for a New LTL Company

Will a proposed new LTL trucking company, Next Century, be able to acquire some of Yellow’s properties and operate as a union carrier? It may be a long-shot, but Teamster locals have voted in favor of the effort.

Photo: Mark Collins, Flickr Creative Commons

The owners of Jack Cooper, a Teamster-organized carhaul carrier, first proposed last October to use the Yellow footprint for a new carrier. They continue to pursue it, and now have Teamster support, after the officers of the affected Teamster locals voted 113-6 to approve the effort.

Next Century’s proposal provides for offering jobs to former Yellow Teamsters, granting card-check for union recognition, and a contract that would match ABF Freight’s wages, fringes and health and welfare. Pensions would at least match Yellow’s.

Next Century’s ambitious plan aims to recover 65% of Yellow’s business and put over 10,000 Teamsters to work, within six to nine months after closing the deal.

The deal faces strong opposition in court from Yellow and the legal counsel to the Creditors Committee.

Some Creditors may be open to it. If this deal actually goes through, the IBT would settle WARN Act claims outside of bankruptcy court by accepting stock and debt from the new company. Yellow Teamsters who choose not to work for Next Century or don’t get recalled would be owed the WARN Act money as debt from the new company.

Some 16,000 Teamsters are estimated to be possibly eligible for WARN Act payments of $187 million.

The deal would not affect the claims of members to accrued vacation, sick days, vacation, grievance money owed, and other paid-time owed.

If the Next Century deal does not go through, there would be no change in the legal status of the IBT claims on behalf of Yellow Teamsters to all money owed.