Jan 01, 2009 (Chattanooga Times/Free Press - McClatchy-Tribune via COMTEX) U.S. Xpress Enterprises will cut the pay of 1,700 employees and shorten the workweek for hourly workers.
While employees are not happy to see their paychecks shrink, some say they feel lucky to have work in the tough economic environment.
"I don't think anyone is happy, but given the options it beats being out of work," said Mike Kelly, who works in customer service at U.S. Xpress.
In late November, officials at the Chattanooga-based trucking company cut the pay of high-level employees by between 5 and 7 percent. On Wednesday, those cuts were increased for company management and extended to all nondriving employees, said Greg Thompson, a spokesman for U.S. Xpress.
Low-level employees will lose 5 percent from their paycheck, vice presidents will lose 7 percent and executive management will lose 10 percent, Mr. Thompson said.
Hourly employees will see their work hours reduced from 40 to 36 hours per week, said Mr. Thompson. There will not be a cut to the pay per mile that truck drivers receive, he said.
"We appreciate the fact that these steps will require our employees to do some further belt-tightening with their personal budgets," said Mr. Thompson. "However, this is a challenging time, and U.S. Xpress takes great pride that we have been able to minimize our staff reductions as thousands are losing jobs across the country."
Jeff Wardeberg, chief operating officer of U.S. Xpress, said the company hopes to save between $220,000 to $250,000 per month on these cost-saving measures.
Officials plan to lift the pay cut in six months -- or sooner if the economy rebounds, he said.
More than 7,000 trucking companies have gone out of business in the last few years, and Mr. Wardeberg wants to keep staff sizes as they are to avoid having to rehire and train staff in healthier economic times.
"We monitor the economic conditions and what we have seen is a continued slowdown, and we are concerned that unless we do something proactive now we might have to take more dramatic measures down the road," said Mr. Wardeberg. "I would rather ask for a pay reduction today than have to eliminate people in this environment."
With a pay cut, Mr. Kelly said he will likely have to trim $150 a month from his family budget.
"That eliminates eating out," he said.
But small sacrifices beat being out of work, he said. Mr. Kelly came to work at U.S. Xpress three months ago after leaving a local company that was reorganizing and looking for a job for six months.
"Any job in this environment is better than no job," he said.
To see more of the Chattanooga Times/Free Press, or to subscribe to the newspaper, go to Chattanooga Times Free Press | Home Page. Copyright (c) 2009, Chattanooga Times/Free Press, Tenn. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
While employees are not happy to see their paychecks shrink, some say they feel lucky to have work in the tough economic environment.
"I don't think anyone is happy, but given the options it beats being out of work," said Mike Kelly, who works in customer service at U.S. Xpress.
In late November, officials at the Chattanooga-based trucking company cut the pay of high-level employees by between 5 and 7 percent. On Wednesday, those cuts were increased for company management and extended to all nondriving employees, said Greg Thompson, a spokesman for U.S. Xpress.
Low-level employees will lose 5 percent from their paycheck, vice presidents will lose 7 percent and executive management will lose 10 percent, Mr. Thompson said.
Hourly employees will see their work hours reduced from 40 to 36 hours per week, said Mr. Thompson. There will not be a cut to the pay per mile that truck drivers receive, he said.
"We appreciate the fact that these steps will require our employees to do some further belt-tightening with their personal budgets," said Mr. Thompson. "However, this is a challenging time, and U.S. Xpress takes great pride that we have been able to minimize our staff reductions as thousands are losing jobs across the country."
Jeff Wardeberg, chief operating officer of U.S. Xpress, said the company hopes to save between $220,000 to $250,000 per month on these cost-saving measures.
Officials plan to lift the pay cut in six months -- or sooner if the economy rebounds, he said.
More than 7,000 trucking companies have gone out of business in the last few years, and Mr. Wardeberg wants to keep staff sizes as they are to avoid having to rehire and train staff in healthier economic times.
"We monitor the economic conditions and what we have seen is a continued slowdown, and we are concerned that unless we do something proactive now we might have to take more dramatic measures down the road," said Mr. Wardeberg. "I would rather ask for a pay reduction today than have to eliminate people in this environment."
With a pay cut, Mr. Kelly said he will likely have to trim $150 a month from his family budget.
"That eliminates eating out," he said.
But small sacrifices beat being out of work, he said. Mr. Kelly came to work at U.S. Xpress three months ago after leaving a local company that was reorganizing and looking for a job for six months.
"Any job in this environment is better than no job," he said.
To see more of the Chattanooga Times/Free Press, or to subscribe to the newspaper, go to Chattanooga Times Free Press | Home Page. Copyright (c) 2009, Chattanooga Times/Free Press, Tenn. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
