Yellow Corp. is alleging that the International Brotherhood of Teamsters has breached their union contract and is now seeking $137 million in damages. As per the trucking company, the union has been blocking the implementation of a restructuring plan for eight months that is crucial to modernize Yellow’s business and compete with non-union carriers. The company has a pressing need to refinance $1.3 billion in debt from loans maturing next year.
Yellow Corp. claims that the union’s efforts to obstruct their restructuring plan constitute a breach of contract. Despite attempts to initiate talks and come up with a viable solution, the union has refused to meet with the company, prompting the lawsuit.
In a statement released by the management, they say, “For many months, we have made good faith efforts to meet with the IBT to propose a path forward that works for all parties, but they refuse even to meet, let alone engage in honest talks.”
On the other hand, there is no statement from the IBT’s spokesperson as of writing.