The Teamsters Union announced on Monday that it received legal notice that the trucking company Yellow Corp. has filed for bankruptcy and stop operations.

Yellow had been in intense negotiations with the Teamsters over new contracts leading to finger-pointing on both sides.

"Today's news is unfortunate but not surprising," Teamsters General President Sean M. O'Brien said in a statement. "Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government. This is a sad day for workers and the American freight industry."

On July 21, Yellow said it planned to continue its breach of contract case against the Teamsters seeking to recover more than $1.5 billion "in lost enterprise value" caused by the union despite a loss in U.S. district court in Kansas.

Yellow said at the time that the Teamsters' public claims that it may strike against the company over its failure to make its July contribution to the Central States pension and health and welfare funds violated its collective bargaining agreement.

Yellow had not put out an official statement about ceasing operations as of Monday morning.

The Teamsters said the union is putting infrastructure in place to help affected members get assistance.

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