Before 1969, City Car, White Top, Checker, Yellow and Badger were the major cab companies in Madison. Small family owned enterprises, several had been operating since the 1920's. After 1969, there was a series of sales, splits and name changes. In 1972, City Car went out of business. Several individuals obtained single permits for one driver operations.
During the summer of 1973, a union organizing drive began at Yellow Cab, Madison's largest permit holder. By November, Yellow employees had voted to be represented by Teamsters Local 695. For five months they bargained for a contract. They were finally successful after a three and a half hour strike in April, 1974
In February, 1975, the Union began negotiations for the second contract. It was soon apparent to the negotiators that management wanted to break the Union. The employees went on strike in April, 1975. On July 1, Yellow went out of business. Many of Yellow's ex-employees went to Checker Cab, which purchased Yellow's equipment and captured Yellow's market share. But Checker's equipment was generally substandard, and it remained that way despite the large increase in revenue. Employee morale was low. Workers had few benefits or rights, and little control of their workplace.
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