A strike set to take place Monday at YRC Freight and Holland – two Yellow Corp. (CCJ Top 250, No. 6) operating companies – has been averted after Central States Health and Welfare Fund agreed Sunday to extend health care benefits for workers at the carriers.
YRC Freight and Holland failed to make a payment to the funds on July 15, and the Central States Board of Trustees voted July 17 to suspend health care benefits and cease pension accruals effective Sunday. In response, the International Brotherhood of Teamsters (IBT) said they would prepare for a possible strike as early as Monday, July 24, if payment was not made. The union confirmed Sunday night the extension of health care benefits for Teamsters and their families was enough to call off Monday's pending strike.
The U.S. District Court for the District of Kansas denied on Friday Yellow's request for an injunction that would have blocked its Teamsters member employees from kicking off a work stoppage.
The agreement by Central States gives Yellow 30 days to pay its bills with the understanding the company will do so within the next two weeks, according to a statement from IBT. CCJ reached out to Yellow Sunday evening but they did not reply.
"Our members at YRC Freight and Holland cannot work without health care, and the Teamsters worked tirelessly to ensure an immediate strike at Yellow could be averted,” said IBT General President Sean M. O’Brien. “These discussions were not easy, but Central States has made meaningful movement under pressure from the union. We are seeking a real resolution, but let this solution today serve as a profound reminder that our members can only endure so many sacrifices. Teamsters at Yellow simply work too hard and have already given so much.”
[Related: Yellow shouldn't have received $700M COVID bailout, Congressional report says]
In June, Yellow requested a two month contribution deferral from the Health & Welfare and Pension funds to be repaid with interest immediately upon a refinancing. Yellow had advised Central States Funds that it would defer payment of health and pension contributions for June (due July 15) and July (due August 15) to preserve liquidity as it worked to obtain meetings with the union as well as secure additional financing.
