Tuesday, August 8, 2023

Yellow freight declares bankruptcy, in the latest assault on workers’ jobs

 Analysis conducted last year reveal that 71 percent of tech workers in Silicon Valley are foreign-born, while the tech industry in the San Francisco, Oakland, and Hayward area is made up of 50 percent foreign-born tech workers.

Despite his Wall Street, big business, Big Tech, and billionaire donations, Biden has attempted to portray himself as a small-town fighter from Scranton, Pennsylvania

By failures of border security, a lack of the enforcement of our immigration laws from within  the interior of the United States and huge numbers of visas for high tech workers, the lives and livelihoods of Americans and their children, are being stolen by America’s corrupt political elite who are doing the bidding of those who provide them with huge “Campaign Contributions” (Orwellian euphemism for bribes) pursue legislation that is diametrically opposed to the best interests of America and Americans.

                                                       MICHAEL CUTLER

NLRB Complaint: Google and Accenture Violated Labor Laws by Laying Off Contractors Who Voted to Unionize

Yellow workers dealing with lost hours, no severance pay after freight company shuttered operations and declared bankruptcy

Are you affected by the Yellow bankruptcy, or do you work at another freight carrier? Tell us your story by filling out the form below. All submissions will be kept anonymous.

Yellow Corp. trailers at a YRC Freight facility on July 28, 2023, in Richfield, Ohio. [AP Photo/Sue Ogrocki]

Following Monday’s bankruptcy announcement by freight trucking company Yellow, resulting in the loss of 30,000 jobs, the World Socialist Web Site spoke with several workers from the company’s dock and warehouse in Columbus, Ohio. Out of concern for the workers’ ability to be hired at another company, we have changed their names for this story.

David is a warehouse worker, who had been working on the dock loading and unloading trucks for less than a year. Last month, David spoke with the WSWS about the horrendous conditions in the warehouse and the disrespectful way management treated workers.

Joe, a truck driver with over 20 years experience, has been driving for Yellow Freight for a little over five years. He estimates that there are about 70 drivers working out of the Columbus facility, including 50 line haul drivers like himself, 10 city drivers and 10 drivers that work in the yard.

Workers at the Columbus warehouse and hub were not informed that they are being laid off or terminated. In fact, more than one week since the company shuttered operations they have yet to be contacted by the company on their status. Workers only found out that they were out of a job on Sunday, July 30th when they arrived at the warehouse and found the gates padlocked shut.

Another worker at the Columbus hub wrote into the WSWS to say: “I worked for Yellow for seven years in Columbus, Ohio. This whole thing is ridiculous because they never gave us a phone call or anything. We all went to work to see the gates locked. Management from the top down are cowards. If they were to reopen I would never go back to work there.”

“I just started receiving text messages,” said David, who wasn’t scheduled to work that day. “People are so mad that they weren’t told, they were just thrown on the street. We didn’t get severance pay. People are owed vacation pay. We are out with nothing.”

Joe, the line haul driver, works nights. “I didn’t get notified, I drove by the gate, and it was barricaded. All we have is our last paycheck. There are a lot of people with kids here and they depend on this job; not just for pay, but for their insurance too. A lot of my friends are having a very hard time. Many people live paycheck to paycheck to keep up with bills.”

Joe explained that they fired the person who does the payroll before she had finished entering the payroll. “They called our payroll lady Angela and fired her on the spot. She hadn’t finished the payroll, I know one driver that lost 15 hours. There are also guys who had five or six weeks vacation that they’ve lost.

David added, “People have lost their vacation time, their personal time. They are not getting paid for what they are owed. People lost their medical insurance. People lost everything.”

Without an official notice of layoff, workers have not been able to file for unemployment. Joe reported that he tried to call, but “I wasn’t able to get through. So many people are trying to file.”

“This is why people need severance pay,” he repeated.

David pointed out that management received severance pay, but not the workers. “I spoke with a supervisor, and he told me he received severance pay, but we didn’t. He didn’t like the situation.

“I’d like to know why they haven’t paid their employees severance pay. They paid the supervisors but not the employees, which is very unfair. We did the hard work, not the supervisors. The executives don’t know how to operate a forklift. They are not the ones doing the work. We are.”

David also felt that both the company and the union knew this was coming and didn’t tell the employees. “They should have given us a 60-day notice, they knew they were going to do this. They should have given people notice.”

Referring to the fact that the Teamsters called off a strike last month, claiming it had reached a deal to give the company time to pay into its pensions, he said: “They were just using people to clear the docks. But they knew they were going to shut down and people should have been notified.

“Management knew this was coming. They all took their vacation. I knew this was coming and I tried to warn people, but the union kept telling them that everything was going to be alright. The union knew what was going to happen. But they didn’t care, they got their money too.

“With all the money the union collected, they should have been fighting for us. They kept this all hush-hush.

“They were telling us to keep working but it’s all a big hoax. Yellow just wanted to clear the docks. It was a big hoax to use the little bit of people that were still coming in to clear their docks. I’m not happy with the union, but this is not going to hurt them, they have plenty of money.”

Joe too felt that the Teamsters betrayed them.

“I’ve never seen anything like this,” Joe said. “I’ve never worked for a company that treats their people like this. The union is just as much of the problem as the company. Unless you’re in that little clique, you’ll lose out.

“The company will throw you under the bus and the union will throw you under the bus. The union is a joke. They take our money but they don’t do anything for us. We lost insurance, our paycheck and they’ve done nothing.”

Both David and Joe are hopeful that they will find other work, but are worried about their co-workers being able to find work.

“Other companies don’t want to hire us because we worked at Yellow,” Joe said. “I already had two interviews with another company. I was supposed to have a third interview. But somebody told them I have been driving for Yellow and now they won’t answer my phone calls.

“I’ve been driving for 20 years with a clean safety record. I would be somebody they would want to hire, so if they’re not it’s only because I had worked for Yellow. I have a perfect driving record, if they are not hiring me people are going to have a hard time finding a job.

David too has already been looking for work. David went to several other companies throughout the Columbus area looking for work.

“I went to PittOhio (a privately owned transportation company based in Pittsburgh) and they said half the people from Yellow have come over looking for work. Their pay is okay, but they don’t have the overtime option that you had with Yellow. This is very hard on people that they have to start over.

“I think it’s very unfair. The workers are getting the short end of the stick while the big wigs sit back and get rich.”

Are you affected by the Yellow bankruptcy, or do you work at another freight carrier? Tell us your story by filling out the form below. All submissions will be kept anonymous.

Yellow freight declares bankruptcy, in the latest assault on workers’ jobs

A sign for Yellow Corp. trucking company stands outside its facility on July 31, 2023, in Nashville, Tenn. [AP Photo/George Walker IV]

Two weeks after shuttering operations, freight company Yellow officially filed for bankruptcy on Monday.

The closure of Yellow and the elimination of 30,000 jobs is a massive assault on the working class by Wall Street, escalating a wave of layoffs this year. This is the latest in the continuing jobs bloodbath by the corporate oligarchy, which has eliminated hundreds of thousands of jobs.

In the tech industry alone, nearly 225,000 jobs have been slashed so far. In January, Amazon announced that it would cut 18,000 jobs from its office staff followed by another 9,000 in March. Microsoft added to the carnage with 10,000 layoffs. Meta (the parent company of Facebook) announced another 10,000, and Google’s parent company Alphabet announced 12,000 job cuts. Dozens of other companies in the tech sector cut large portions of their staff.

The bankruptcy of Yellow is the largest single layoff this year and the largest for industrial workers since 2009, when General Motors laid off 47,000 workers. The bankruptcy filing all but finalizes the firing of 22,000 members of the Teamsters, who had not all been officially laid off by the company when it closed operations. Several workers reported that they had not received any communication from the company, and that without confirmation of their job status they were unable to file for unemployment or find employment elsewhere until the bankruptcy declaration.

Yellow’s collapse will not just affect those workers laid off. Thousands of truckers, warehouse workers, and office staff have just been dumped into the job market. One Yellow worker from Atlanta said dozens of workers showed up to interview for a position at a competitor who was offering 50 percent less than advertised. When workers said it wasn’t enough to live on, they were told if they didn’t take it someone else would.

This is the deliberate purpose of the bankruptcy. Trillions of dollars have been pumped into financial markets to prop up the capitalist economy during the pandemic, and the government regularly spends billions of dollars a week to fund its proxy war in Ukraine. This money is to be extracted from the working class through ever greater levels of exploitation.

The centerpiece of the Biden administration’s domestic policy has been to suppress wage growth through the raising of interest rates, aimed at triggering a surge in unemployment to use as a weapon against the working class. The official policy of the Federal Reserve has been to “get wages down,” in the words of Fed Chairman Jerome Powell, who lamented last year that “employers are having difficulties filling job openings, and wages are rising at the fastest pace in many years.”

The pandemic had the effect of tightening the labor market and has triggered a massive and growing resurgence of the class struggle, with workers demanding wages that not only match inflation but that recoup the losses from decades of concessions.

In response, Wall Street is demanding a stronger hand in the exploitation of the working class. At workplaces around the country Wall Street will demand similar attacks on the working class, targeting wages, working hours, benefits and working conditions.

Roughly 150,000 auto workers have their contracts expire next month at the Big Three auto companies (General Motors, Ford, and Stellantis—formerly Chrysler). Management will be demanding concessions as the industry turns to electric vehicle production that requires up to 40 percent less labor than gas-powered cars.

United States Postal Service rural letter carriers have seen their pay slashed by up to $20,000 a year under its new payment scheme. Postmaster General Louis DeJoy intends to eliminate roughly 50,000 jobs at the USPS through his “Delivering for America” restructuring program.

Meanwhile, workers at UPS are rebelling against the sellout contract negotiated by the Teamsters that fails to meet their demands.

In a public statement, Yellow management blamed the Teamsters for “literally driving our company out of business.” The exact opposite is the case. The union bureaucracy, working closely with the White House, has played a critical role in suppressing strikes and enforcing substandard contracts.

At Yellow, the Teamsters used the faltering company as a convenient foil for militant posturing. O’Brien made several public comments declaring that the Teamsters would no longer give concessions to Yellow after giving “billions of dollars” to the company in previous contracts.

But after the company refused to make payments to workers’ benefit plans, the Teamsters called off a strike at the last minute, claiming it had reached a deal to allow the company to make up its missed payment. In reality, this bought time for the company to wind up its operations and prepare for bankruptcy. When Yellow finally announced bankruptcy, General President Sean O’Brien issued a complacent statement calling it “unfortunate.”

The inaction of the Teamsters to intervene and defend the jobs of 22,000 members was a conscious decision. Any strike action by Yellow workers would have emboldened UPS workers, who are currently voting on the sellout contract. The Teamsters have instead allowed 22,000 union and 8,000 nonunion jobs to be sacrificed in order to maintain “labor peace.”

The Teamsters barely communicated with their own members at Yellow. One Yellow truck driver described going to the union office to ask about his job. A union official responded, “Job, what job? Yellow is closed, they just haven’t filled out the paperwork yet.”

Yellow’s collapse will be a feeding frenzy for the vultures of Wall Street. Yellow had over $2.25 billion in assets in December. Billions of dollars in equipment and real estate will be picked for scraps by its creditors, chief among them Apollo Global Management.

Apollo is a major private equity firm with nearly $600 billion in managed assets. It gave Yellow a $500 million loan in 2019, organized for the United States government to give Yellow a $700 million bailout in 2023, and is the leading creditor in Yellow’s debtor-in-possession bankruptcy, which will give the firm first choice when Yellow’s assets are sold.

Yellow’s $1.6 billion in debt is considerable, but its two main investors, Apollo and the US government, have trillions of dollars in resources. Apollo manages assets totaling nearly $600 billion, and the United States spends over 500 times Yellow’s debt on the military each year.

The jobs bloodbath at Yellow is a warning to the working class and a demonstration of the necessity for an independent class strategy to fight against this assault on jobs. Workers are in a fight not just against individual greedy employees, but against the financial oligarchy and the capitalist system itself, with the corrupt union bureaucracy acting as their loyal enforcers.

This counteroffensive must be fought through the construction of rank-and-file committees independent of the union apparatus and the capitalist political parties. These committees, which have been established at UPS, the auto industry and other critical industries, are part of the International Workers Alliance of Rank-and-File Committees, which is fighting to build a unified international movement of the working class against the giant global corporations which exploit workers in every country.

The bankruptcy of Yellow is also a demonstration that private ownership of the economy is incompatible with the preservation of jobs and decent working conditions. The wealth of the financial oligarchs and corporate executives must be expropriated and the trucking industry reorganized as a public enterprise, run by the working class for the fulfillment of social need, not private profit.

https://www.youtube.com/watch?v=KLQ7FdFEr7k


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RFK Jr.'s full press conference on border policy and documentary.



STILL WALL STREET, BIG BANKSTERS, MEXICO AND RED CHINA WANT JOE REELECTED!


Bidenomics: Small Business Outlook Remains Dismal For 19th Straight Month

US President Joe Biden speaks to members of the media before boarding Marine One on the South Lawn of the White House in Washington, DC, US, on Friday, March 31, 2023. Biden is traveling to Rolling Fork, Mississippi, to tour storm damage and meet with those affected by the deadly …
Ting Shen/Bloomberg via Getty Images

The Biden White House has been struggling to get the American public to buy into its positive spin on the economy, which it has dubbed Bidenomics. On Tuesday, a survey of small businesses indicated why that is such a hard sell.

Small business owners have a “dismal” outlook about sales growth and business conditions, said Bill Dunkelberg, the chief economist at the National Federation of Independent Business. The NFIB’s small business optimism index came in at 91.9 for July, up 0.9 points from the prior month but well below the index’s 49-year average of 98.

This was the 19th consecutive month below the average reading.

The share of owners expecting better business conditions over the next six months rose 10 points from June—but it remains historically very negative at a net -30 percent.

Twenty-one percent of owners reported that inflation was their single most important problem in operating their business, down three points from June but still a historically high reading.

The net percent of owners raising average selling prices dropped to a net 25 percent, the lowest since January 2021 but still high by historical measures. Fourteen percent said their average selling prices were lower and 40 percent said they were high. The NFIB said price hikes were most common in finance, retail, wholesale, and construction. A net 27 percent said they are planning on hiking prices in the future.

The NFIB survey is an important window on the economy, as small businesses are often a bellwether for changes in conditions and account for nearly half of private-sector jobs.

“With small business owners’ views about future sales growth and business conditions dismal, owners want to hire and make money now from solid consumer spending,” said Dunkelberg. “Inflation has eased slightly on Main Street, but difficulty hiring remains a top business concern.”

Forty-two percent of owners said they had job openings that were hard to fill, unchanged from June but remaining historically very high.


 
 

(Chip Somodevilla/Getty Images)

(Data: Federal Reserve Economic Data [FRED], St. Louis Fed; Chart: Jeffrey A. Tucker)

(Data: Federal Reserve Economic Data [FRED], St. Louis Fed; Chart: Jeffrey A. Tucker)