Teamsters Local 492
Teamsters Local 492
 

×
Register an Account
Forgot Login?
Yellow Bankruptcy Update 10/29/2024
Oct 31, 2024

YELLOW CORPORATION BANKRUPTCY UPDATE

10/29/2024 - Yellow Corporation and its operating companies (“Yellow”) filed for bankruptcy in the District of Delaware Bankruptcy Court on August 6, 2023. The International Union and TNFINC (the “Union”) have entered an appearance in the case on behalf of Local Teamster Unions whose members hold claims against Yellow’s operating companies—YRC Inc., USF Holland, LLC, New Penn Motor Express, LLC, and USF Reddaway, Inc. Claims filed by the Union include contract claims for vacation pay, sick pay, and other paid time, as well as grievance pay.

Yellow has made significant progress liquidating its assets over the past year. To date, Yellow has sold numerous properties, re-leased or otherwise monetized leased properties, and sold a majority of its trucks and trailers. Yellow paid off its secured lenders, such as the United States Treasury. As a result, Yellow’s only unpaid creditors remaining are unsecured creditors, meaning the creditors hold no lien rights against Yellow’s property. The claims by Yellow’s former employees, including Teamster-represented employees, as well as the WARN Act claims, are unsecured claims. Unsecured claims are paid out after secured claims, and the unsecured claims are paid out in accordance with the Bankruptcy Code’s priority rules, meaning that unsecured claims that have a higher priority under the law are paid before unsecured claims having a lower priority. Finally, by law, unsecured claims that are approved must be paid in full before equity shareholders are paid. Moving forward, Yellow still holds owned and leased properties and rolling stock that must be sold in order to complete the liquidation process.

For reasons stated within the IBT Memorandum, (Click Here to Read the Full Notice) it is unlikely that any payments from the estate will be disbursed to employees during the 2024 year. The Union is hopeful that disbursements from the estate to employees will proceed within the first or second quarter of 2025. The Union believes the coming three months will be critical for the continued progress of the Plan, the ongoing sales of remaining assets, and the conclusion of the litigation matters.

In most bankruptcy cases, employees are not guaranteed a 100% recovery. While the Union has filed proofs of claims with the maximum recovery of employees in mind, the Union cannot guarantee a 100% repayment to employees on 100% of employees’ potential claims. The sale process has succeeded in garnering a surplus beyond Yellow’s secured debt, the claims of unsecured creditors are greater than Yellow’s expected final estate value. A portion of employee claims based on unpaid wages, including vacation and sick pay, are considered priority claims. Priority claims are guaranteed repayment 100 cents/$1.00 only up to and not exceeding $15,150.00. Non-priority employee claims, or employee claims in excess of $15,150.00, will be paid on a prorated basis, depending upon the total estate value and the total unsecured claims remaining. It is likely that any repayment employees receive (based on unpaid wages, as well as WARN Act damages) will be taxed as wages, including applicable state and federal withholdings.

Click Here to Read the Full Notice, which includes updates on the following:

I. MEMBER WARN ACT CLAIMS

II. MULTI-EMPLOYER PENSION PLAN LITIGATION

III. PLAN PROCESS

IV. IMPORTANT CONTACT INFORMATION REMINDER
Members should keep their addresses updated with their applicable Local Teamster Union (Local 492). Estate disbursements will go directly to the individual employee, requiring either Yellow or the IBT to have the most recent accurate address on file of members.

Click Here For Previous Yellow Updates

Fraternally, 

Tracy McCarty,

Teamster LU492 Freight Business Agent, including ABF, T-Force and Yellow.  

Click Here to Download the Local 492 Mobile App to ensure you get official 492 notifications!


Paused
<< November 2024 >>
S M T W T F S
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
Teamsters Scholarship Fund 2025

The Teamsters Scholarship Fund applications for the 2025 scholarship will be available starting Friday, November 1, 2024, at Teamster.org/scholarships.

Yellow Bankruptcy Update 10/29/2024

YELLOW CORPORATION BANKRUPTCY UPDATE 10/29/2024 - Yellow Corporation and its operating companies (“Yellow”) filed for bankruptcy in the District of Delaware Bankruptcy Court on August 6, 2023.

Teamsters Local 492 Endorses Local NM Candidates & Kamala Harris In 2024 Election

Teamsters Local 492 Endorses Local NM 2024 Candidates. Teamsters Local 492 Endorses Kamala Harris In 2024 Election. Teamsters Joint Council #3 Endorses Kamala Harris In Upcoming Presidential Election.

General Membership Union Meeting Friday, November 15th at 5:30pm

General Membership Union Meeting Saturday, October 5th at 9:30am 10/4/2024- There is a General Membership Meeting scheduled for tomorrow, Saturday, October 5th at 9:30am, which will be held in the Teamsters Union Hall (downstairs) at 4269 Balloon Park Rd. NE, Albuquerque, NM 87109.

Teamsters Organize 50,000 New Members in Less Than Three Years

Record Number of Workers Join North America’s Strongest, Most Militant Labor Union   The International Brotherhood of Teamsters announced today the union has grown by an astounding 50,000 new members in the last two-and-a-half years, a direct result of key investments in strategic organizing under Teamsters General President Sean M.

Teamsters: No Endorsement For U.S. President

Teamsters: No Endorsement For U.S. President International Union Cites Strong Political Divides, Few Commitments from Candidates The General Executive Board of the International Brotherhood of Teamsters on Wednesday elected not to endorse any candidate for U.S. President.

New Mexico Teamsters Win at NMTDC 2024

New Mexico Teamsters Win at NMTDC 2024 On May 18, 2024, New Mexico Teamsters converged from all over the state to compete in the New Mexico Truck Driving Championship. Held at the Isleta Casino, the decades-old event encourages dedicated drivers, spread among 9 divisions, to test their skills among 98 fellow competitors for the title of State Champion in their division.

Teamsters Local 492 Wins Historic Grievance Against Sysco for Members

4/16/2024- It is with great pleasure that I can report to all our members, that Teamsters Local 492 has won a hard-fought grievance for our Sysco brothers and sisters! On April 03, 2020, a grievance was filed to enforce the forty-hour language in our contract.  This grievance was filed during the Walter Maestas administration, in the early stages of Covid-19.


-
Teamsters Local 492
4269 Balloon Park Road NE
Albuquerque, New Mexico 87109
  505-344-1925

Top of Page image
Powered By UnionActive - Copyright © 2024. All Rights Reserved.