The U.S. District Court for the District of Kansas ruled Friday against less-than-truckload carrier Yellow Corp.’s request for an injunction, which would have kept its Teamsters employees from engaging in a work stoppage.
In her decision, Senior Judge Julie Robinson denied a motion for a temporary restraining order and injunction.
The decision allows the union to carry through with a planned strike, which could begin as soon as Monday. The final straw prompting the strike was Yellow’s missed benefits contribution payment to Central States Funds last week, which will leave workers without health care coverage on Sunday.
The two parties have been embroiled in a bitter dispute over operational changes for the last nine months. The carrier has maintained that without the changes it wouldn’t survive while the union took the stance that it had given enough in the past in the form of wages, benefits and work rules concessions.
In its filing seeking an injunction, Yellow said it would likely file for bankruptcy if the court didn’t rule in its favor.
“Absent injunctive relief, Plaintiffs will suffer immediate, substantial, and irreparable harm from Defendants’ unlawful work stoppage, including being forced into a Chapter 7 liquidation bankruptcy proceeding.”
That filing may come before any work action taken by Teamsters next week.
Stay tuned to FreightWaves for continuing coverage.
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