99-Year-Old Yellow Trucking Company , Shuts Down.
The once-dominant trucking company stopped operations on July 30, CNN reports.
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All of its 30,000 workers will be laid off.
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The news comes just one week after the Teamsters union canceled a strike it had threatened against Yellow for not contributing to pension and health insurance plans.
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The union said it would give the company another month to make the payments, but last week, Yellow stopped picking up new freight and was only completing deliveries it already had.
The union was notified about the shutdown on July 31.
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.
, Sean O'Brien, Teamster president, via statement.
This is a sad day for workers and the American freight industry, Sean O'Brien, Teamster president, via statement.
CNN reports that Yellow's demise is also bad news for U.S. taxpayers.
That's because the federal government issued the company a $700 million loan in 2020 which "resulted in taxpayers holding 30% of its outstanding stock," CNN reports.
The company's most recent quarterly report indicates that it still owes the Treasury department over $700 million.
Yellow, Roadway and CF were once known as the trucking industry's "Big Three.".
Yellow, Roadway and CF were once known as the trucking industry's "Big Three.".
CF also went out of business in 2002.
