Could Yellow Corp. workers finally get paid?

Former Yellow Corp. employees could yet person outgo for unused abrogation and accrued sick leave, astir 3 years aft the less-than-truckload bearer ceased operations. However, immoderate hurdles stay to beryllium cleared, according to a Wednesday memo from the Teamsters to Yellow’s section unions.

A national bankruptcy tribunal successful Delaware approved a last liquidation program successful November, calling for the proceeds from the merchantability of Yellow’s assets to beryllium placed successful a liquidating trust. The modulation is present expected to hap successful June oregon July. (Employee claims were classified arsenic precedence by the program and are required to beryllium paid.)

However, the parties inactive haven’t reached a colony connected the worth of the claims. Also, Yellow’s largest shareholder, hedge money MFN Partners, appealed a pension withdrawal liability settlement, but the memo said the last bankruptcy program tin inactive determination forward.

“Throughout 2025 and 2026 the Teamsters person engaged with Yellow successful colony negotiations related to the Union’s contract-based claims against Yellow,” the memo said. “These claims see accrued and unused paid-time-off arsenic good arsenic idiosyncratic and radical grievances. While important advancement has been made connected agreeing to the amounts of these claims that should beryllium allowed, determination are a fewer disagreements connected valuation that inactive indispensable beryllium resolved.”

The liquidating trustee volition beryllium liable for resolving remaining claims and making distributions to creditors, including erstwhile employees. The memo noted that the bankruptcy tribunal volition request to o.k. immoderate settlements reached betwixt the Teamsters and the trustee. It besides said different creditors of Yellow’s property tin entity to immoderate colony reached oregon entreaty immoderate colony the tribunal approves.

Funds managing Yellow’s healthcare and pension plans person entered abstracted claims for unpaid contributions.

An April operating study for Yellow’s property showed a $601 cardinal currency balance.

Last year, the tribunal denied WARN Act claims against Yellow, alleging the institution failed to supply capable announcement up of wide layoffs. However, the Teamsters appealed the determination and are awaiting the result of the appeal.

“The Teamsters volition effort to settee with the Liquidating Trustee immoderate remaining declaration claims arsenic good arsenic the WARN claims,” the memo said.

The memo told erstwhile employees to support their addresses updated with their section unions. The trustee is expected to administer aboriginal payments via nonstop deposit oregon by message for members who person since closed their slope accounts.

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