Yellow Freight Closes, Leaving Thousands Jobless
In August, Yellow Freight, one of the largest trucking companies in the U.S. based in Nashville, declared bankruptcy, resulting in over 30,000 employees losing their jobs. The majority of these roles were union positions, which is uncommon in the trucking industry where most freight carriers operate as non-union entities.
Challenges for Former Drivers
Despite an increased demand for truck drivers, many former Yellow Freight employees are struggling to find new jobs. Tracy Cullen, a driver with nearly 40 years of experience at Yellow, noted that tensions had escalated between the company and the Teamsters union prior to the closure. The company had fallen behind on health benefit payments, prompting the union to threaten a strike.
Promises Unfulfilled
Cullen mentioned that just before the closure, the company claimed to have secured the necessary funds. However, the promised benefits never materialized before Yellow announced its shutdown, attributing the failure to the union’s actions. Yellow Freight has not responded to requests for interviews.
The Job Hunt Begins
As a result of the closure, Cullen and thousands of other drivers are now faced with the daunting task of job hunting. “Hey, start beating the street, knocking on doors, trying to get a job,” he said, highlighting the difficulty of finding union jobs in Tennessee, which has right-to-work laws that make unionization challenging.
Understanding Right-to-Work Laws
Right-to-work laws in Tennessee and 27 other states prevent mandatory union dues, potentially weakening unions’ bargaining power, according to Vanderbilt University unionization expert Dan Cornfield. This legal framework complicates collective action, as not all workers may honor a strike, diminishing the union’s effectiveness.
Market Conditions and Hiring Trends
While conditions are theoretically favorable for truck drivers to unionize due to the inability to fully automate the job and a current shortage of drivers, some former Yellow Freight employees have reported difficulties in securing new roles. Companies like Saia Freight express willingness to hire former Yellow drivers, but there are mixed responses in the market.
Personal Struggles and Success
Chris Dowdy, a former Yellow driver, mentioned he faced rejection from companies that indicated they preferred not to hire former union workers. After weeks without income and while his wife took on a second job, Dowdy eventually found a position with Kroger, a local union company. Despite his success, he noted that many of his former colleagues are still seeking employment.
