Yellow UPS Teamsters Update as of July 3, 2023

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After months of being told that the contract negotiations between UPS and the Teamsters were going smoothly, it appears that the “Kumbaya moments” have officially come to an end. Both parties said they were making progress and came to agreement on 55 non-economic matters. Now comes the important stuff!

After an initial round of negotiations, the Teamsters pulled away from the negotiating table and demanded that UPS present its “final and best offer” by June 30 - that would be last Friday for those without a calendar.

On Friday, UPS submitted a revised proposal. The Teamsters said that while UPS had made progress in agreeing to their demands, there is still a gap between what the Teamsters are seeking and what UPS is currently proposing. They've issued a new ultimatum that UPS now has until this Wednesday, July 5, to submit its “best and final” offer.

[Update on Yellow]

We have received several requests for a brief update on the Teamsters negotiations with Yellow. The One Yellow initiative has been facing resistance from the Teamsters. Based on the channel checks in our network, here is what the Teamsters refuse to accept: The only way Yellow can survive and flourish is by eliminating the redundancy in its network, selling terminals they don’t need and adopting work rules that allow it to effectively compete with non-union carriers.

Yellow recently issued a lawsuit to address their alleged loss of $137 million. They’ve also recently claimed that they could run out of money by August if they’re not able to move forward with their plans.

The situation is very challenging but Yellow is no stranger to adversity. So while it’s reasonable to have concern for any carrier in this situation, we think analysts are overlooking some important aspects, such as Yellow’s past resiliency, the value of their current holdings and the importance of their “super regional” network.

Видео Yellow UPS Teamsters Update as of July 3, 2023 канала TranzAct Technologies