TO: Yellow (YRC Freight, Holland, New Penn, and Reddaway) Local Unions
FROM: John A. Murphy, Teamsters National Freight Director
DATE: October 13, 2022
RE: Yellow Proposed Change of Operations in the Central, East, and Southern Regions

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Today, the Teamster Regional Freight Coordinators and I met with Yellow at IBT Headquarters. Yellow is preparing to send a proposed Change of Operations to nearly every Local Union in the Central, Eastern, and Southern Regions and then meet with each Local to discuss the proposed Change of Operations in accordance with the Yellow NMFA. We have seen a preliminary draft of the proposed Change of Operations and it is very large and complex.

Please be advised that neither TNFINC nor the IBT endorse the proposed Change of Operations as it is currently written. We are continuing to review whether the Company’s stated goals in the proposed Change of Operations are realistic and attainable, particularly given the size and scope of the proposed Change of Operations. What is clear, however, is that the Company could certainly benefit from more coordination among its operating units and improvements in freight flow management.

As you are aware, the Company implemented a significant Change of Operations in the Western Region a few weeks ago between and among YRC Freight and Reddaway. Although that Change of Operations was itself very large in scope, the Change of Operations currently being proposed is far larger. We are carefully reviewing the Western Region YRC Freight/Reddaway rollout to see if any lessons can be learned that in turn can be applied to the Company’s current proposed Change of Operations.

The new proposed Change of Operations seeks, among other things, to merge several YRC Freight, Holland and New Penn operations, eliminate and convert nearly 1000 road jobs into Utility Employee positions, realign zip codes, eliminate numerous “primaries,” create more “meet and turns” out of what currently are “laydowns”, and restructure its dispatch and linehaul network. Each Local Union involved in the proposed Change of Operations will be uniquely impacted.

Consequently, each Local Union should carefully review the proposed Change of Operations and assess its impact on the members. In this regard, each Local Union should review and discuss with the Company issues such as the applicable work rules, guarantees, effects on earnings, bidding, seniority, protections against contractors and overall staffing. Each Local Union should actively engage with the Company in this regard. Nothing is written in stone at this time and the Local Unions are free to fully discuss all concerns with the Company. In the recently implemented Western Region Change of Operations, the Company made numerous accommodations, enhancements and creative agreements with the involved Local Unions in order to minimize the adverse impact of that Change of Operations on the affected members.

If you have questions or need assistance, please reach out to your Teamster Regional Freight Coordinator and/or the National Freight Division. We will do everything we can to assist in order to protect the members to the fullest extent possible as well as secure improvements for them wherever possible.

As of the present time, there is no date for a Change of Operations hearing before the National Change of Operations Committee. We anticipate that the discussions between the Company and affected Local Unions will take some time. If you are ultimately unable to resolve your issues with the Company, please send a memo to the Freight Division detailing the issues in dispute.

JAM/ae
cc: Regional Freight Coordinators