'We were lied to': bankruptcy leaves truckers stranded as holidays near

[Ohiogal]

Andrea Smith has a daughter who turns eight on 20 December, five days before Christmas. Now the trucker’s birthday and Christmas plans have been thrown into disarray by the largest trucking firm bankruptcy in history.

“I’m not sure what’s going to happen or if I’ll get to be home if I’m able to find another job quickly. I’m crushed,” said Smith, a truck operator for Celadon, hours after the giant trucking firm declared it was going out of business.

Smith is one of about 4,000 truck drivers across the US who were notified on Monday that their employer was ceasing operations after filing for chapter 11 bankruptcy protection. The filing makes it the largest bankruptcy in trucking history.

The logistics carrier, based in Indianapolis, Indiana, reported annual revenues more than $1bn as recently as 2015. But a federal fraud investigation, huge debts and the “enormous challenges” in the industry, according to the chief executive, Paul Svindland, have forced the trucking company off the road.

"Many of the truck drivers were left stranded in the midst of making deliveries, as they await receiving bus tickets from the company to return home, now jobless and left without benefits two weeks before Christmas. Their fuel cards were shut off, and many were reported left without any directions on where or how to turn in their rigs."

https://www.theguardian.com/business/2019/dec/10/celadon-bankruptcy-truckers-stranded

[Mike 03]

1. From the article:

The impact on workers is severe. Scott Riley of Anderson, Indiana, just started working for Celadon in August, and his health insurance coverage began 1 November. His $200-a-week health insurance plan left him with a $23 copay for the $1,400-a-month medication he needs to treat his diabetes. His wife’s $450-a-month medication was completely covered. Now, Riley and his wife, Jennifer, are left with no health insurance coverage, and unsure how they are going to afford their medication.

“I don’t know if I have enough medication to make it through for 90 days,” said Riley. “Rumor has it we will get our final paycheck Friday. They owe me over $1,000, I don’t know if I’m going to get it or not. Honestly it’s just going to be cross your fingers and hope.”

Last night on the XM/Sirius channel Road Dog some former employees called in. They said Celadon was a great company to work for until it fell under new management at some point. Some of the callers left the company when it seemed to be going downhill. Many truckers who called in were volunteering to help Celadon drivers any way they can.

[Indykatie]

4. Thank Goodness for Obamacare.

[dalton99a]

2. The company executives are criminals. But this is a telling sign for the economy

But Celadon’s collapse also comes at a difficult moment for the industry. Thousands of truckers have lost their job in 2019 as the freight market stalled and “spot” prices for shipping – those bought on the open market rather than as part of a contract – fell.

A slowdown in a variety of markets, including housing and autos, and the impact of the US’s ongoing trade wars have also contributed to the drop.

About 795 companies shutdown in the first three quarters of 2019, according to transportation industry data firm Broughton Capital, three times the total number of trucker failures for the same period in 2018.

[mwooldri]

3. Many of Celadon's competitors have been reaching out.

Offering bus tickets home, recruiting... Drivers with the company I work for have asked if we can give rides to stranded Celadon drivers.

As for Celadon's failure - this can be pointed directly at mismanagement and fraud at the company for the reason for its downfall. I feel for the drivers and their families but if a lot of them are willing to do over the road and willing to maybe shift the kind of stuff they haul then I'm certain come new years many of them will be driving again. There's big turnover in the trucking industry...