Economy Yellow Freight Trucking Company Goes Bankrupt After Receiving 700 Million in 2020

[nostradumbass]

Socialism for the rich
Bootstraps for the rest

Indeed, and the results are always the same when the rug gets pulled and it turns out they promised more than exists. As the kids say, the problem with socialism is you eventually run out of other people's money.

When you get a bail out loan, does it not come with oversight from the Govt or do they just giving u money and let you keep running your company into the ground?

One issue I have is that they also mishandle 70millions dollars of the employee’s pension fund and the owners won’t pay anything to them. Who is responsible for that, the owner and now they walk away free. Might be legal and all that but that’s wrong. 30k people should be able to get something other than unemployment. Some of those guys are too old to start over.

Yes, there is, so they have to sell their assets to repay their debts. $70 million/month is a ludicrous amount to be on the hook for. It would be nice if they could take the $750 million they're repaying the government and instead use that for almost a year of pension payments to the employees, or the teamsters could chip in with their pile of money, but doesn't look like that's going to happen. The government want their money back, the teamsters aren't giving up their half a billion in assets or massive salaries because they only negotiate with other people's money and a "fuck you, pay me policy".

The good news for the truckers is that it really isn't too old to start over like it would be in some industries.

Teamsters Local Salary for President
Avg. Base Salary (USD)
$722,446 /year
What is the average salary for a President at Teamsters Local in the United States?
Based on our data, it appears that the optimal compensation range for a President at Teamsters Local is between $549,646 and $921,280, with an average salary of $722,446. Salaries can vary widely depending on the region, the department and many other important factors such as the employee’s level of education, certifications and additional skills.

 

[tastaylvr]

How is there only 70 million in pension funds for 30k employees?

does the US have a pension fund for every employee? How does it work?

In aus every company pays 12% on top of their pay that is managed by the employees own fund so they wouldn’t lose it if the company goes belly up

how does it work in America??

 

[Sinister]

When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it. - Frédéric Bastiat

 

[The XL]

The rich always get handouts. Is normal. I don't understand what you people don't get, our government does not answer to the people, they're there to redistribute wealth and power to the people who pay them off. Lol at so called democracy

 

[ShadowRun]

Bidenomics is working !

 

[ColemanwastheGOAT]

How is there only 70 million in pension funds for 30k employees?

does the US have a pension fund for every employee? How does it work?

In aus every company pays 12% on top of their pay that is managed by the employees own fund so they wouldn’t lose it if the company goes belly up

how does it work in America??

That's per month.

 

[ColemanwastheGOAT]

The more i read this, the less I see how you could be mad at the company.

It seems like the blame lies squarely on the Union and on the general financial downturn that we always experience when a Democrat gets in office.

 

[panamaican]

My understanding is that they spent part of that $700 million on pension obligations. Plus the Teamsters openly stated that they had no obligation to help the company stay afloat.

Okay then when the company ceases to exist, I have to blame the union for this outcome as much as I blame bad management. It's a cut your nose to spite your face situation. And while the union employees might be fine, they took their position at the expense of the non-union employees.

 

[Mark Hunts FIST]

“Yellow Teamster Member Pensions are safe, they are part of a large multi employer Teamster Pension Fund, Central States pension fund. The company did not make June or July payments to the pension, but all previous pension accruals will be received by members at retirement.”

 

[emefer]

How is there only 70 million in pension funds for 30k employees?

does the US have a pension fund for every employee? How does it work?

In aus every company pays 12% on top of their pay that is managed by the employees own fund so they wouldn’t lose it if the company goes belly up

how does it work in America??

It doesn’t.

https://protectpensions.org/2016/08/04/happened-private-sector-pensions/

 

[Smokes]

“Yellow Teamster Member Pensions are safe, they are part of a large multi employer Teamster Pension Fund, Central States pension fund. The company did not make June or July payments to the pension, but all previous pension accruals will be received by members at retirement.”

That is some good news for those guys.

 

[Sinister]

Lol@"Biden/Democrat fault"

"That includes what it owes to the federal government in order to pay back a $700 million loan it received in 2020 when it was known as YRC Worldwide. The loan issued by former President Donald Trump's administration was part of a relief program as the COVID-19 pandemic crippled the U.S. economy and many businesses along with it.

A congressional probe recently concluded that the Treasury and Defense departments “made missteps” in the decision and noted that Yellow’s “precarious financial position at the time of the loan, and continued struggles, expose taxpayers to a significant risk of loss.”

So almost half the Company's debt came from a $700m loan it didnt even qualify for authorized by the previous administration. The other $800m of debt looks mostly to be from the parent company buying other companies that didn't do anything for them.

"Yellow’s current finances and prospect of bankruptcy “is probably two decades in the making,” Chan said, pointing to poor management and strategic decisions dating back to the early 2000s. “At this point, after each party has bailed them out so many times, there is a limited appetite to do that anymore.”

Yeah this totally seems like the Union's fault.

 

[evergreenrider]

Tough times ahead. My company mainly services YRC/Yellow up north. Luckily we got fed ex, but they aint been doing too hot lately either.

 

[Poatan Power]

When you get a bail out loan, does it not come with oversight from the Govt or do they just giving u money and let you keep running your company into the ground?

That's assuming the company isn't doomed to begin with and assuming the govt wouldn't run it into the ground with their oversight.

 

[LangfordBarrow]

Precisely. If they sell all their shit and pay back the loan, what's the issue?

You're allowed to shut your business down if you want.

Aren't they also supposed to manage their worker's pension fund? Is that money just going into a CEO's bank account?

 

[Osculater]

Lol@"Biden/Democrat fault"

"That includes what it owes to the federal government in order to pay back a $700 million loan it received in 2020 when it was known as YRC Worldwide. The loan issued by former President Donald Trump's administration was part of a relief program as the COVID-19 pandemic crippled the U.S. economy and many businesses along with it.

A congressional probe recently concluded that the Treasury and Defense departments “made missteps” in the decision and noted that Yellow’s “precarious financial position at the time of the loan, and continued struggles, expose taxpayers to a significant risk of loss.”

So almost half the Company's debt came from a $700m loan it didnt even qualify for authorized by the previous administration. The other $800m of debt looks mostly to be from the parent company buying other companies that didn't do anything for them.

"Yellow’s current finances and prospect of bankruptcy “is probably two decades in the making,” Chan said, pointing to poor management and strategic decisions dating back to the early 2000s. “At this point, after each party has bailed them out so many times, there is a limited appetite to do that anymore.”

Yeah this totally seems like the Union's fault.

 

[IDGETKTFO]

Precisely. If they sell all their shit and pay back the loan, what's the issue?

You're allowed to shut your business down if you want.

This. I was thinking the same. As long as they have to pay back the loan, i don't see an issue. Sure it sucks people are out of jobs, but if the company is going under those people are still going to be out of a job regardless. Any smart business owner is going to sell while they can still come out with some money. What should they do, wait till they cant even get the 700 million they were loaned? TS is an idiot. Can't even spell bail.

 

[ColemanwastheGOAT]

This. I was thinking the same. As long as they have to pay back the loan, i don't see an issue. Sure it sucks people are out of jobs, but if the company is going under those people are still going to be out of a job regardless. Any smart business owner is going to sell while they can still come out with some money. What should they do, wait till they cant even get the 700 million they were loaned? TS is an idiot. Can't even spell bail.

It seems people expect the owners who took all the risk and invested all the capital to die broke and penniless if their business has to shut down.

Just pure jealousy and spite tbh.

 

[chardog]

When you get a bail out loan, does it not come with oversight from the Govt or do they just giving u money and let you keep running your company into the ground?

If you have micromanagement, good chance you are doomed. Government doesn’t run companies, that’s why they contract with them. They are paying back, so it could be worse, or are you saying that they shouldn’t and simply go out of business and fulfill the existing pensions?

either way a messed up situation.

 

[tastaylvr]

That's per month.

So did they lose their pension or not? or are they expecting them to pay it moving forward when the company is dead?