Transcript
Automated transcript · uncorrectedWhat is today is Mark Cashowitz and he’s a good friend and he runs a big New York trial firm Cashuwitz, Benson and Torres, and he’s known to be as one of the best in the country. Well, good morning, Mark Casherwarts.
How are you this morning.
I’m doing fine, John, Thanks for that introduction and thanks for having me.
And I saw you on Fox News a few days ago, and you represent the Yellow Trucking Company and everybody was shocked how this company went out of business, went bankrupt and thirty thousand people, the teamsters are been laid off.
And I was shocked at the teamsters and management couldn’t sit down and work out so thirty thousand of their members don’t go out of business or go lose their job.
Well, it’s a terrible story, John, But this is one of those situations, very very unique, I think. But this is one of those situations where the blame, unfortunately all falls on one side, and it falls on the side of the Teamsters union. And the reason that it falls on the side of the Teamsters union is that Yellow
had been engaged in a very well known, well publicized, well conceived plan to modernize its business and it needed to modernize its business because it was it consists of four operating companies that it had merged with over the years, and those operating companies had some inefficiencies between and amongst them.
In some instances they were competing for the same loads in the same customers. So in twenty nineteen, Yellow embarked on an initiative called One Yellow to modernize its business to bring everything under one tenth. And the first phase of that business was to do that modernization was out west in California, and the Union at that time in
twenty twenty twenty twenty one agreed to that agreed to some very very minor changes in seniority for some of its members and in some of the additional jobs that some of its members a very small percentage of them would have to do on the West coast, and Yellow succeeded in the first phase of its modernization effort and
it was working extremely well. Then what happened is union leadership changed and the new leadership just absolutely refused to negotiate with Yellow for the rest of the country for the change to implement these changes in the rest of the country. And One Yellow had been a concept that had been sold to all of the markets, to the lenders,
to the government, to everyone else. But the union refused for the last nine months to even sit down and discuss any of these changes, as a result of which Yellow wasn’t able to implement the changes, and ultimately it went out of business. But this is solely in the lap of teamsters. You mentioned thirty thousand employees. There were
thirty thousand employees of this company who were out of work. Twenty two thousand of them are Teamsters. And all of this was brought to the attention of the union nine months ago, and consistently over the last nine months, Yellow’s leadership had been making repeated and repeated requests of the union to sit down and negotiate. I mean, frankly, John,
they were practically begging the union to sit down and negotiate so that one Yellow could be finished, and the union just flat out refused to do it.
And Hark, let me ask you a question. Didn’t the members themselves try to talk to the union union leadership and say we don’t want to lose our jobs. I mean, I see nobody all across the country, nobody really the scratching the head don’t understand it. What did the members say.
It’s very difficult to understand. The management went out and to try to deal directly, you know, with with the members, to try to tell them what was happening and what was coming and why their their leadership was not serving them well and for whatever reason, whether whether the union leadership, well we know for a fact, we have evidence of
it that the union leadership was just was was just trying to quell any dissent whatsoever at the last minute, John, at the last minute, virtually the week, within a week before the company had to file, the union leadership came to the company, called them repeatedly over the course of a weekend, wanting to make a deal, saying, Hey, we’ve
got to make a deal. We’ve got to make a deal. And probably what happened then was that the membership had was up in arms because they realized what was about to happen. But by that time it was too late.
The business was the business was evaporating because the union had threatened to strike.
Wow. That is a real wow. I mean, this goes down in annals of Arthur Anderson being shut down in companies like that. I mean, it’s just mind boggling.
It is mind boggling, John, and we we brought on behalf of Yellow before the bankruptcy filing. About a month before the bankruptcy filing, we filed a complaint against the union for its breaches of its bargaining agreement in refusing to sit down and negotiate with the company. And in that in that complaint, which is it’s a very lengthy,
sixty page, very specific, very very full of facts complaint, and in that complaint we pointed out out that one hundred and forty million dollars had been lost by the company because of the union’s refusal to negotiate these uh, these modernization changes. And now now that the company’s actually gone out of business, we’re going to be seeking and
the complaint sets us forth, Uh, we’re going to be seeking one point five billion dollars in lost enterprise value of the of the company.
Oh that’s quite a bit. Now. One of your most famous clients, Mark, was Donald Trump, and he’s had his hands full lately, and it seems like, I mean, nobody can understand it that the current administration is going after their possible competition of in the in the presidential field and trying to tie up his hands so he can’t run.
What do you what do you say of what’s going on in Washington, what’s going on in the Department of Justice, what’s going on with ethics in general?
Yes, well, yes, President Trump does have his hands full with all of these cases that have been brought against him, and I just hope that that he, uh, you know, that he faces these cases head on, and that his lawyers do a great job for him. Look, but putting that aside, because that’s now, that’s all the cases brought
against him are now part of the legal process, and we’ll have to let you know that process work in each of those cases. But one of the things that we do see in Washington these days, which is very troubling, is a is sort of an unbalanced playing field when it comes to this administration in how it deals with
situations involving Republicans and then how it deals with situations involving Democrats. And I have to tell you, and we’re not involved in any of the cases against President Trump, nor are we involved in the investigation the so called investigation of Hunter Biden. But when you look at the evidence that seems to be coming out with respect to
the President’s son and you look at trails of money that have gone to members of the family, and when you look at who Hunter Biden is and what services he was supposed to have performed, you would think that there would be an extraordinarily robust investigation of all of those things by the Justice Department and the appointment. You
would think that what would be appropriate based on other things that have happened, that a special prosecutor, that a special counsel would be appointed to handle an independent investigation. And yet none of that, you know, none of that seems to have happened. It looks like the judge who was presiding over the sentencing for Hunter Biden was sufficiently
troubled by all of this that she refused to rubber stamp it, I think are the words that she used. So it is troubling to see an imbalance in how the Department of Justice is looking at issues these days.
And one would hope that one would hope that the Department of Justice would be as neutral and fair and arbiter of these kinds of things as exists, and it doesn’t seem to be the case right now.
Mark Pasterwards, I agree with you one hundred percent that we grew up in a period of time where it’s to be justice for all, and it seems to be a little bit misbalanced right now. But I wait and see and pray that everything in Washington comes back to normal someday within our lifetime. And Mark Cashuwarts, thank you
so much for your input, and thank you for everything you do, and God bless you, and God bless America. And look to catch up with you again soon someday.
John, thanks for having me. I really appreciate it. Great to talk with you.
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