TP Freight Shutdown Leaves Workers Without Final Pay

Oregon-based TP Freight Lines suspended operations in early August after more than 100 years in business. The sudden closure left truck drivers and dockworkers without jobs, final paychecks, health coverage, and some retirement contributions.

Teamsters Joint Council 37 announced the shutdown in an Aug. 6 press release. The union represents the company’s drivers and dockworkers.

According to the union, TP Freight notified employees on Aug. 4 that it was suspending operations immediately. Workers were told not to return until further notice. The company then failed to make its scheduled payroll on Aug. 5.

The missed payroll covered at least two weeks of work that employees had already completed, the union said. Workers have begun filing unemployment claims. Meanwhile, the Teamsters are pursuing class-action grievances, wage claims, and other possible legal remedies.

TP Freight Workers Reported Locked Terminals

Problems at some TP Freight terminals appeared before the company formally announced the suspension.

Employees who arrived at the Warrenton terminal on Aug. 3 could not enter the building, according to the Teamsters Joint Council 37 press release. The union said the landlord had changed the locks and placed a lien on the property.

A similar situation occurred at the Eugene terminal on Aug. 4.

T.P. Freight’s website listed terminals in several Oregon communities. These included Portland, Eugene, Medford, Warrenton, Tillamook, Coos Bay, and Newport. Company provided less-than-truckload, expedited LTL, drayage, and dedicated truckload services.

The carrier served customers throughout the Pacific Northwest. It also offered nationwide coverage through transportation partners.

Calls to the company’s main telephone line went unanswered after the shutdown, according to FreightWaves. Other news organizations also reported that company representatives did not respond to requests for comment.

Final Paychecks and Benefits Remain in Question

The missed Aug. 5 payroll was not the only financial problem identified by the union.

Teamsters Joint Council 37 said TP Freight Company had fallen behind on employee health insurance premiums. As a result, workers had reportedly been without health coverage for more than a month before the closure.

TP Freight was also months behind on contributions to employee retirement accounts, according to the union. The announcement did not provide a total amount for the unpaid wages, insurance premiums, or retirement contributions.

The union said it is pursuing “multiple Class Action grievances,” wage theft claims, and other remedies available under state and federal law. A class-action grievance is handled through a union’s labor agreement and is not necessarily the same as a class-action lawsuit filed in court.

No court ruling has established that TP Freight or its owner violated wage laws. The claims described by the Teamsters remain allegations unless they are resolved through arbitration, a settlement, or court proceedings.

About 60 Workers Reportedly Affected

Approximately 60 employees were affected by the closure, according to reporting cited by Transport Dive. That figure includes drivers and other workers connected to the carrier’s Oregon operations.

The shutdown placed those employees in an uncertain position. In addition to losing their jobs, they may need to recover earned wages and determine what happened to their health and retirement benefits.

Truck drivers affected by a sudden carrier closure can also face questions involving equipment, freight, expense reimbursements, and employment records. The union’s release did not provide details about company trucks or whether any drivers were away from their home terminals when operations stopped.

The Teamsters said employees were filing for unemployment insurance while the union evaluated its legal options.

TP Freight Operated for More Than a Century

TP Freight traced its history to 1922. The company began by moving general freight between Tillamook and Portland, Oregon.

The carrier later developed a broader regional network covering the Oregon Coast, southern Washington, and the Interstate 5 corridor. Its long history also included a labor relationship with the Teamsters that lasted more than 100 years.

Ownership of the business changed in June 2025. The Teamsters identified Mohamed Hegab as the reported new owner. Oregon business records cited by Transport Dive listed Hegab as the company’s president.

A June 2025 message on TP Freight’s Facebook page referred to the sale of its Tillamook terminal to Werner’s. It also said the terminal’s LTL trucking operations were sold to Z-10/Team Shippers.

The Teamsters questioned the new ownership’s management of the company. However, the union’s claims about financial and operational decisions have not been independently decided in court.

Shutdown Could Also Affect Freight Customers

The effects may extend beyond TP Freight employees.

According to the union, the Oregon Liquor and Cannabis Commission was the carrier’s largest account. The agency oversees the sale and distribution of alcoholic beverages in Oregon.

Teamsters raised concerns about regulated alcohol shipments that might have been delayed or left at company facilities. The release did not identify any specific loads that were lost, stranded, or improperly handled.

No public statement from the commission was included in the union’s announcement. The status of freight remaining in TP Freight’s system was also unclear.

Union Pursues Claims Following TP Freight Closure

The TP Freight shutdown adds to a series of closures involving regional LTL carriers. Smaller operators have continued to face pressure from operating costs, weak freight conditions, and the expense of maintaining regional terminal networks.

However, the exact reasons for TP Freight’s financial problems have not been fully documented publicly. The company has not released a detailed statement explaining its suspension or whether operations could resume.

For now, affected workers are seeking unemployment benefits and attempting to recover unpaid compensation. The Teamsters said it plans to pursue every available remedy under labor agreements and applicable wage laws.

Whether those efforts lead to arbitration, a lawsuit, or a negotiated settlement remains uncertain. TP Freight’s operations remained suspended as of the latest reports.