Yellow Corporation Layoffs & Facing Closure

Yellow Corporation Layoffs & Facing Closure

Trucking company Yellow Corporation layoffs 150 employees. In a shocking turn of events, Yellow Corporation, the third-largest less-than-truckload company, has announced the permanent termination of its Canadian staff, citing financial chaos. The closure is scheduled for July 28, 2023, leaving employees in disarray as the company grapples with a complete shutdown.

The devastating news came as a surprise to laid-off employees, who received notifications through voice-only calls on Friday morning. Office employees, mostly nonunion workers, bore the brunt of the layoffs, with key executives also delivering the grim news to large portions of their teams.

What actions have Yellow Corporation’s executives taken in response to the financial challenges?

John Murphy, Teamsters National Freight Director, advised union employees to collect their belongings from offices and terminals in case Yellow Corporation shuts down in the coming days.

Despite efforts to secure financing solutions, the outlook for Yellow’s survival is increasingly bleak. The company is struggling to clear its system, leading to personnel layoffs and terminal closures nationwide. An internal call with senior vice president suggested that a bankruptcy filing is imminent, potentially happening on Monday.

As the termination date approaches, terminated employees were directed to receive crucial information about their severance pay, healthcare, and W-2s through an Oracle platform, as their access to company systems would be terminated.

What is the current state of Yellow Corporation’s operations, and how are employees and customers responding to the potential closure?

The layoffs even extended to teams involved in Yellow’s logistics arm, despite the company’s active efforts to sell it. The situation has sparked confusion and concern among employees and industry observers alike.

Yellow Corporation, a nearly century-old company, currently employs around 30,000 workers, with a significant portion represented by the Teamsters union. Months of conflict between Yellow and the union over key work rules have led to a dire financial situation, culminating in the potential bankruptcy filing.

The company’s Chief Commercial Officer, Jason Bergman, attributed the situation to the Teamsters’ refusal to negotiate, claiming it had catastrophic effects on the business, driving customers away to seek alternative freight carriers.

As Yellow Corporation teeters on the edge of collapse, questions linger about its future, leaving employees, customers, and the trucking industry in suspense.

Severance Pay for Yellow Corporation Employees in Canada: Know Your Rights

For Canadian employees working at Yellow Corporation, it’s crucial to be aware of the possibility of receiving severance pay if they are laid off or terminated.

Severance pay is a form of compensation provided to non-unionized workers in Canada when they are terminated without cause by their employer. Even if an employee is let go due to alleged misconduct, they may still be entitled to full severance pay if their employer fails to meet the necessary requirements for such a dismissal.

At Whitten & Lublin, we understand that facing a layoff or termination can be a challenging and distressing experience. That’s why it’s crucial for employees to have knowledge of their rights and seek legal advice when necessary. If you or someone you know has been affected by the recent layoffs, we urge you to reach out to us for a consultation either online or by phone at (416) 640-2667 today. Our experienced employment lawyers are here to help you understand your legal options and ensure you receive the rightful compensation you deserve.