Yellow Corp., Teamsters settle on WARN Act claims
Former Yellow Corp. workers will receive a reduced portion of their WARN Act claims, according to a Tuesday Teamsters memo. The post Yellow Corp., Teamsters settle on WARN Act claims appeared first on FreightWaves .
The Teamsters have reached a settlement with bankrupt Yellow Corp. over claims related to the company's closure in July 2023, according to a memo from a Teamsters director. The agreement includes $17.2 million in WARN Act claims, five days of damages for employees in New Jersey and $1.2 million in grievance claims. Additionally, $1.8 million is allocated for unused personal holidays.
Yellow terminated a total of 25,500 employees—3,500 nonunion and 22,000 union members—on July 28 and 30, 2023. The company filed for bankruptcy on August 6, 2023. The IBT reached a settlement in principle with the bankrupt estate, and no further objections are anticipated as Yellow’s largest shareholder withdrew its objection. Payments for PTO and sick leave claims will be distributed within months of the bankruptcy court's approval.
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