Trucking news and briefs for Wednesday, Sept. 18, 2024:
Court rules Yellow must pay pensions
A Delaware bankruptcy court judge has ruled that Yellow Corp. will have to pay at least a portion of $6.5 billion in pension liabilities.
In the case, 11 multiemployer pension plans argued that COVID relief funds Yellow paid to the plans should not be included in the consideration of what Yellow owes to the plans as a result of its bankruptcy.
Judge Craig Goldblatt rejected arguments from Yellow that the $41.1 billion it paid to the plans, with funding from the Pension Benefit Guaranty Corporation (PBGC) established by the American Rescue Plan Act of 2021, should be used in calculating the plans’ “unfunded vested benefits” and thus for determining (and potentially reducing or eliminating) Yellow’s withdrawal liability.
[Related: Court okays sale of 130 Yellow terminals]
Goldblatt said the PBGC “issued two regulations designed to ensure that a plan’s receipt of special financial assistance would not operate to let a withdrawing employer off the hook for withdrawal liability it would have otherwise owed.” Yellow argued that the two regulations exceed the PBGC’s authority and are contrary to law, but that argument was rejected.
The court agreed with Yellow that the effect of the company’s default on its obligations “is simply to accelerate what would otherwise be a 20-year payment schedule to pay their withdrawal liability,” which is calculated by determining a cap on the employer’s annual payments obligation. That obligation will never exceed 20 times that annual payment, per federal statute.
Goldblatt thus issued a partial summary judgement in favor of both the pension plans and Yellow. The amount which Yellow will be required to pay to the pension plans will be determined at a later date.
[Related: Yellow's $137M lawsuit against Teamsters dismissed]
New Jersey cargo theft ring busted
New Jersey State Police have charged four individuals with numerous charges in relation to an organized cargo theft ring.
For the past two months, the New Jersey State Police Troop “D” Criminal Investigations Office has been leading “Operation Beef Bandit,” targeting an organized criminal crew responsible for a series of nine burglaries at service areas along the New Jersey Turnpike.
These incidents involved break-ins to parked and often occupied tractor-trailers, with the suspects stealing high-value goods such as meat, alcohol, and seafood. The crew has been connected to similar thefts over the past three years across the tri-state area, amassing millions of dollars in stolen merchandise during that time, NJSP said.
Those charged in the case were: Shaun Coleman, 23; Salahudin Reddy, 37; Hanif Tucker, 31; and Rashan Clark-Reddy, 26, all of Philadelphia, with numerous charges
At approximately 1:25 a.m. on Sept. 13, NJSP personnel observed two suspect vehicles enter the Molly Pitcher Service Area on the New Jersey Turnpike. Four suspects were seen working in coordination to burglarize a parked occupied tractor-trailer, stealing boxes containing meat.
Troopers quickly moved in on the suspects, immediately taking Tucker into custody. Coleman, the second suspect, attempted to flee on foot but was apprehended shortly after. The remaining two suspects, Reddy and Clark-Reddy, attempted to flee in a stolen vehicle, intentionally ramming an occupied unmarked police car to evade capture. During a brief pursuit and subsequent apprehension, two marked troop cars were also damaged.
Three troopers sustained minor injuries during the arrests, with one trooper requiring treatment at an area hospital before being released.
Charges against the suspects include receiving stolen property, conspiracy to commit cargo theft, possession of burglary tools, criminal mischief and more.
All suspects have been lodged in Middlesex County Jail pending a bail detention hearing. The investigation is ongoing. Anyone with information regarding these cargo thefts or similar cargo thefts is asked to contact the New Jersey State Police Troop “D” Moorestown Station Detective Bureau at (732) 522-4295, extension 3226. Anonymous tips are welcome.
[Related: ATRI asks carriers to weigh in on cargo theft]
Shell launches fourth ‘Giving Pump’ campaign
Celebrating its fourth year, Equilon Enterprises LLC dba Shell Oil Products US is bringing back The Giving Pump, benefiting nonprofits across the nation.
Participating Shell locations will have a designated Giving Pump, where a portion of sales from the pump go to a local charity.Shell
The Giving Pump will be specially marked with colorful signage at participating stations to inspire consumers to fuel up and support a range of nonprofits, including children's hospitals, schools and after-school programs, food pantries, youth leadership programs and more. The designated pump varies by location, so some Shell locations may designate a diesel pump, while others a gas pump.
Starting at 2,900 locations in 2021, the number of Shell stations participating in the two-month initiative has grown to more than 7,500 across the US. To find a station near you, visit shell.us/givingpump.
"The Giving Pump is an easy and impactful way for customers to give back through the simple act of filling up their vehicles, and we look forward to highlighting the many organizations whose mission is to aid children and families in their communities," said Barbara Stoyko, Senior Vice President, Mobility Americas at Shell. "Each year, it has been uplifting to see the commitment from customers and stations to support nonprofits that have a positive effect on the lives they serve. Please consider choosing the 'purple pump' to pay it forward during your next fuel stop."
This year, The Giving Pump is supporting 552 local and national charities across the U.S., including St. Jude Children's Research Hospital, Boys & Girls Clubs, Prader-Willi Syndrome Association USA, The Brooke Healey Foundation and more. The Giving Pumps were used 7.3 million times during the two-month campaign last August and September.
