Yellow employees in Copley, Richfield await fate of struggling trucking company

Hundreds of workers at trucking giant Yellow locations in Copley Township and Richfield Village could lose their jobs permanently as the Kansas-based company prepares for a possible bankruptcy filing as early as Monday.

Various media, including The Wall Street Journal and The Associated Press, reported Friday that the company's declining financial outlook and an ongoing battle with unions suggest that bankruptcy is inevitable.

On Friday, the co-chair of the Teamsters committee negotiating with the company sent a letter to members suggesting that the company would not survive.

"... We have no good news to report, and the likelihood that Yellow will survive is increasingly bleak," wrote John A. Murphy, co-chair of the negotiating committee. "Yellow continues to clear its system, and it appears to be laying off personnel and closing entire terminals across the country."

An ongoing fight between Yellow and unions

Yellow, formerly known as YRC Worldwide, has been engaged in a public battle with its union employees as the company deals with high debt and other financial difficulties.

Recently the cash-strapped company attempted to withhold payments to health and welfare benefits. It lost a decision related to that matter in a Kansas courtroom.

The company vowed to appeal, issuing a news release that warned of dire consequences.

"The court, recognizing a strike would likely kill the company, resulting in the loss of 30,000 jobs, cautioned the Union — that while it won today’s battle, it could very well lose the war," it said.

But Murphy, in his letter to members, said the Teamsters continue to work with Yellow to resolve the company's "financial mess."

Shutdown of Green facility in March foreshadowed later events

In March, the company closed its Holland location in Green, which employed 107 people. The Teamsters union estimates Yellow employs more than 600 people at its other Summit County facilities.

A Wall Street Journal article last week said Yellow has been losing customers as news of its problems spread. It is the nation's third-largest trucking company.

In a letter last week to non-union employees, Yellow said it would cease "normal operations" on Friday. FreightWaves, a freight market price reporting agency, reported that a Yellow senior vice president said in an online conference call Friday that a bankruptcy filing was expected Monday.

Location in Copley Township a concern for trustees

The automated phone system at the Copley YRC Freight location did not mention a closure and still provided an option Saturday to place orders. A person reached at the location said he could not discuss the situation at the site, but expected the company to make an announcement in coming days.

Copley Township trustee Bruce Koellner said Saturday he's keeping a close eye on developments at the Oh Avenue facility near Interstate 76, where about 320 people are employed. He said his father was a YRC employee and retired from the company.

Koellner said the company hasn't been in direct communication with trustees about the site's fate, but the township police chief has spoken with officials at the facility in the event of a strike. "Just to ensure or try to ensure that there was a peaceful protest or picketing as they are allowed to do," he said.

He said the location and its employees are an important part of the township.

"If that area becomes blighted or closed, that's an issue," he said.

Green closure hit employees hard, says former Holland worker

Dave Polacek, a Barberton Fire Department firefighter, said he worked part time for several years at the Green location and the announced closure was difficult for its employees.

"I spent nine seasons there in extreme heat and extreme cold," he said. "They are hardworking, dedicated individuals."

Polacek said he's communicated with some of the people he worked with in Green. Some of them are contemplating retirement rather than relocating or finding another position.

"They are destroyed," he said. "They took all this business personally. They took immense pride in that company, and it just went away."

In the notice of separation sent to employees, Yellow said the layoff notification last week did not violate federal requirements of a 60-day notice due to "unforeseeable business circumstances."

"The company expects all layoffs and location closures relating to the Shutdown to be permanent," the notice said.

According to Satish Jindel, president of transportation and logistics firm SJ Consulting, Yellow handled an average of 49,000 shipments per day in 2022. He estimated that number last week was down to between 10,000 and 15,000 daily shipments.

As of late March, Yellow had an outstanding debt of about $1.5 billion. Of that, $729.2 million was owed to the federal government. Yellow employs about 30,000 workers, about 22,000 of them unionized.

Murphy advised union employees to collect their belongings from all offices and terminals, in the event that Yellow shutters in the coming days and facilities are not accessible.

Associated Press reports contributed to this article.

Leave a message for Alan Ashworth at 330-996-3859 or email him at aashworth@gannett.com. Follow him on Twitter at @newsalanbeaconj.

This article originally appeared on Akron Beacon Journal: 600 Yellow workers in Summit County could lose jobs as bankruptcy looms