Con-way Sets Pay Cuts
Con-way Inc. said it has cut its top executive salaries by 10%, reduce all employees’ pay by 5% and will suspend matches to its 401(k) plan for employees.
The cost-cutting measures, set to take effect in the second quarter, are in addition to the approximately 2,500 layoffs, suspension of merit-based pay increases and other cuts implemented in the fourth quarter of last year, the Associated Press reported.
“These actions are designed to ensure we continue to maintain the strongest financial foundation possible during these unprecedented economic times,” Chief Executive Officer Douglas Stotlar said in a statement. He said the cuts will be reevaluated when the economy recovers.
Stotlar said tonnage at less-than-truckload Con-way Freight fell 12.5% year-over-year through February and it does not expect the market to change soon.
Con-way is ranked No. 6 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
