Yellow Corporation, formerly known as YRC Worldwide Inc., is on the brink of liquidation after a significant decline in revenue and crippling debt. Enter Jack Cooper Transport, a privately owned auto transport company with ties to major auto industry players, who are waging a long-shot effort to rescue the struggling trucking giant. With the support of the International Brotherhood of Teamsters and some U.S. senators, the effort has caught the interest of the Biden administration. In this blog post, we’ll look at the details of this rescue bid and its potential impact on the trucking industry.
Jack Cooper Transport, one of the largest privately owned auto transport companies in the US, has been increasing its efforts to rescue Yellow Corp from bankruptcy. The company is focused on salvaging thousands of union jobs and keeping the freight giant in operation. The transport company, which carries automobiles for America’s biggest automakers, including General Motors, Ford, and Stellantis, has been in talks with multiple stakeholders since December of 2020.
The International Brotherhood of Teamsters, which represents Yellow Corp workers, is supporting Jack Cooper Transport’s bid to save the struggling trucking company. The union has been pushing lawmakers and the Biden administration to provide aid to Yellow Corp, citing the importance of maintaining a viable transportation sector to keep the American economy moving.
The rescue bid by Jack Cooper Transport comes at a time when the trucking industry is dealing with significant labor shortages. Trucking companies are struggling to find workers for various positions, ranging from drivers to mechanics. The job security that comes with the 30,000 union jobs at Yellow Corp could be a boon to the industry, especially in the current labor landscape.
If Jack Cooper Transport’s efforts to save Yellow Corp are successful, it would be a massive win for the Biden administration as well. The rescue of one of America’s top transportation companies would undoubtedly create positive press coverage, which could boost the administration’s efforts to rebuild and revitalize the US economy.