Harold J. Daggett incentivizes economic failure by supporting anti-optimization endorsements while Yellow Corp. Files Bankruptcy Post Government Bailout
Did you know that US Taxpayers own 30% of the stocks for this company? You own stock due to the $700 million dollar government bailout in 2020. What now after Yellow has gone bankrupt even after a massive government bailout?
Teamsters leadership "was able to halt our business plan, literally driving our company out of business," Yellow CEO Darren Hawkins said in a statement late Sunday. —Reuters 8/7/23
But is this true? Is it the Teamsters fault or gross mis-management? Or both? These funds were given while the company was under investigation for defrauding the government. So, US tax payers paid Yellow's settlement fine with our own tax money.
"The company had received that loan during the pandemic, despite the fact that at the time it was facing charges of defrauding the government by over-billing on shipments of items for the US military. The company eventually settled the dispute without admitting wrongdoing but was forced to pay a $6.85 million fine." —CNN
And now three years later with bankruptcy inevitable, it appears not much was done to reverse a dire financial situation, except to willing and carelessly taking on more debt.
If the $700 million infusion, or even a portion of the bailout funds were utilized for load optimization, it's very possible that 30,000 employees of Yellow Corp would still be employed, and not only that, but thriving. What are your thoughts?
State of the Supply Chain Optimization Podcast with Thomas A Moore, T|WO Thomas A. Moore, CEO and Founder of AutoO2 shares weekly news highlights from the supply chain industry and invites you to subscribe to our channel to get notifications for our latest post.
https://www.cnn.com/2023/07/31/business/yellow-corp-closing
https://www.reuters.com/business/autos-transportation/us-trucking-firm-yellow-files-bankruptcy-after-loading-up-debt-2023-08-07/
#teamsters #govt #bailouts
Tom Moore is a visionary entrepreneur with a track record of establishing and growing thriving supply chain software companies. With a wealth of experience partnering with industry giants like Procter & Gamble, Unilever, Nestle, and Kimberly-Clark, Tom has been instrumental in developing cutting-edge solutions for warehousing, truck loading, and network optimization. Among his notable contributions are groundbreaking software systems such as AutoScheduler, AutoO2, and LevelLoad. Furthermore, Tom’s hands-on experience in manufacturing, warehousing, and trucking operations has provided him with invaluable insights into the intricacies of these industries. His multifaceted background uniquely positions him as a leader who understands the challenges and opportunities within the supply chain ecosystem.