A long-standing trucking company in America is on the verge of collapse, putting 30,000 jobs in jeopardy, according to reports.

A long-standing trucking company in America is on the verge of collapse, putting 30,000 jobs in jeopardy, according to reports.

Yellow Corporation

Yellow Corporation Faces Imminent Shutdown, Leaving 30,000 Unemployed

After nearly a century in the trucking industry, Yellow Corporation, a titan that has served retail giants like Walmart and Home Depot, is on the verge of shutting down. The Wall Street Journal reports that the company is preparing to file for bankruptcy, a move that would result in the loss of 30,000 jobs. This dire situation comes after the company laid off hundreds of nonunion employees last Friday.

To address the financial difficulties faced by Yellow Corporation, the Trump administration approved a $700 million loan to the company under the CARES Act in 2020. However, this decision attracted scrutiny, with objections raised by the Defense Department. Now, it seems that even with this significant loan, the company may not be able to avoid collapse.

The potential closure of Yellow Corporation will have a profound impact, leaving 22,000 Teamsters – a union representing truck drivers and logistics workers – without work. The Teamsters have played a critical role in supporting the company for over a decade, making significant wage, pension, and work-rule concessions. However, they believe it is not their responsibility to manage Yellow Corporation.

In a memo sent to union members, the Teamsters expressed bleak prospects for the survival of the company. Customers have been defecting to competitors, further exacerbating Yellow Corporation’s financial woes. Talks of selling parts of the business are underway, reflecting the desperate measures being considered to salvage the situation.

This potential shutdown of Yellow Corporation adds yet another chapter to the challenging history of the trucking industry. Today, truckers earn only half of what their counterparts made in 1980, with the average income dwindling to around $110,000 per year. This decline can be attributed in part to the Motor Carrier Act passed in 1980, which deregulated the industry, allowing trucking companies to set their own rates.

As the deadline for comment approached, Yellow Corporation representatives did not respond to Insider’s request for a statement. The uncertainty surrounding the company’s future continues to loom, leaving thousands of workers anxiously waiting to learn their fate.

Yellow Corporation’s potential shutdown highlights the significant challenges faced by the trucking industry and the need for continued support to ensure its stability. As this industry evolves, stakeholders must explore innovative solutions to overcome the obstacles and maintain a thriving workforce.