Tuesday, December 29, 2009

US Freight News - Arrow Trucking And YRC Worldwide Woes Continue

Drivers Left Floundering by Tulsa Firm Whilst Result of Kansas Debt Appeal Awaited
Shipping News Feature

US - The highway crash that is the Arrow Trucking collapse has not got any better for employees of the company over the Christmas period. For quite a few of the 1400 or so drivers who now have no employment the demise of the company meant losing their home as well as their only source of income. At the moment the company is not officially in bankruptcy and that means both drivers and freight customers who cannot locate their goods, remain in limbo, awaiting further developments.

Daimler have given out their main customer service number (1-877-294-9679) as a contact point for both staff and customers seeking cargo and the Facebook page (details in our previous article) set up by the Owner Operator Independent Drivers Association, is still valid although it seems all of the drivers who intend to hand rigs back before heading home are likely to have done so. Daimler are thought to have taken in 700 or so from displaced drivers.

Meetings are being held for disgruntled staff including Oklahoma where many of the Tulsa based firms drivers emanate from. There will be two sessions today (Tuesday 29th December) at 9am and 1 pm in the Central Technology Center, Sapulpa (off Highway 44 South West of Tulsa).

Those employees of Arrow who cannot reach the meetings and are owed money or who have cheques which have bounced should claim immediately at their nearest workforce centre although it is unlikely they will be reimbursed very soon, if at all. If the company is officially declared to be in bankruptcy then all aid has to be suspended whilst the lengthy process runs its course. Any employees wishing to claim must either do so in person or by mail using the correct forms.

It is thought that at least one law suit will be filed shortly for breach of the Federal Worker Adjustment and Retraining Notification Act (WARN) in which a company must issue 60 days notice to its workforce or pay 60 days severance in lieu of notice. The situation Arrow find themselves in can be compared to that of the USF Red Star which closed in 2004 leaving around 2000 employees high and dry. USF was a subsidiary of Yellow Roadway who forked out a reported $7 million and were later to become YRC in 2009.

The deadline on the equity swap for creditors offer made by YRC Worldwide expired at midnight and we await news of the result. It appears the LTL (Less than Trailer Load) trucking giant must this time come up with around $20 million to settle loan interest, and the sands of time are running out for the troubled carrier who have repeatedly extended the deadline for investors to partake in the debt for equity swap the company is aiming for.

We shall publish any updated news as it becomes available on both of the companies as we receive it.