Con-way Cuts Wages, Benefits

Con-way is trimming wages, salaries and benefits across its entire employee base to save costs during the deepening recession.

The cuts, expected to save the company between $100 million and $130 million in 2009, include a 10 percent salary reduction for Con-way President and CEO Douglas W. Stotlar and other senior executives, along with a 5 percent wage and salary reduction for all other executives and employees at Con-way Freight and Con-way Inc. The company is also suspending certain 401(k) contributions including the company match.

Stotlar said soft demand for freight transportation caused tonnage to decline 12.5 percent year to date through February compared with the same period a year ago.

“With these market conditions, which we don’t expect to change in the near term, there is too much capacity chasing too little freight, so we have to manage accordingly,” Stotlar said. “We’re taking prudent steps to control expense, protect our market share, and conserve capital.”

Con-way expects the cost-cutting measures to be complete early in the second quarter. The reductions are in addition to 2,500 layoffs and merit-based pay increase suspensions made in the fourth quarter of 2008.