Conway Truckload; A Very Low Paying Job

Con-way issued its 10-Q on 3rd Quarter (July-August-September) and didn't mention that some of its terminals voted union. Here's Double Yellow's thread: http://www.thetruckersreport.com/tr...65601-con-way-q3-results-truckload-miles.html

Con-way's a billion dollar company. Net income last quarter alone $45.6 million dollars. Says it will spend $60 million on annual pay increases in 2015, double what it has in the past. They're using more owner operators in truckload and company driver miles in truckload are down almost 5%. Having trouble keeping/recruiting company drivers. Wonder why?

Heartland/Gordon has announced detention pay after 1 hour wait in hopes of stealing drivers from the likes of Swift and Con-way, who also announced pay increases earlier.

Adds up at the end of the year, I suppose. Con-way's sitting on $457-million in cash and cash equivalents, so I wouldn't shed a tear for them.

Stock (CNW) was down Feb-Mar this year, climbed pretty steady until mid-September when it went into a slide. Came back up some, then back into a slide. Street view of Con-way is 'bear-ish'.

Con-way can AFFORD to pay more, would help the economy (drivers and their families will spend that much needed $$ fast), help trucking as an industry and might just buoy up that stock as driver turnover drops.

Could start with detention after 1 hour...

 

You should try checking out some of the big non-profits OTR outfits out there. I'm sure Joe can name a few.

 

And so the trend away from employees and toward no-benefit, no-expense "contractors" continues ...

 

If you think you have an angle like this then why not just buy stock in Conway since apparently the shareholders are keeping all of the money for themselves.

 

The shareholders aren't getting the money; their investment is being looted by management. Con-way isn't telling investors about the union troubles. All the institutional investors know because 3rd party news feeds broke the story (in mid September, causing the stock slide, but conveniently just after ceo Douglss Stotlar called his options and dumped more than $25,000,000 worth of stock -- 9 times his normal annual conversion). Somebody -or lots of somebodies- was on the other side of that transaction and has taken a 20% loss...

Who doesn't know about the labor troubles? Individual investors. Folks too busy with their every day lives to follow the market gyrations & who get the company's pulse from the quarterly & annual reports and investor relations press releases. This includes a lot of Con-Way employees since CNW is the only individual stock they can purchase in their retirmement plan (the rest of the choices are managed funds -- an investment class that statistically underperform the market after fees are deducted).

 

I guess you think teamster bosses (or their surrogates) don't own trucking stocks in their portfolios and that they would never ever short a trucking company stock prior to initiating a labor action. Right?

 

CEO's are ousted all the time. Yet crooked union bosses are shielded from corruption probes at the behest of friendly administrations. They remain just as rich and you still pay for it one way or another.