Insider Swift Document

WiseOne · Apr 9, 2009

This document was sent to me anonymously:

Swift Team,

As we close out the first quarter, we wanted to provide you with an update on our first Wildly Important Goal (WIG). As discussed at the Annual Meeting in February, our first WIG is to improve our financial health by improving our EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), or simply Earnings. To do this we have identified 3 supporting WIGs: reduce costs, improve asset utilization and increase revenue. Many of you have embraced these concepts and have developed your own WIGS to support our Companys goals. This is very exciting to watch, and we are seeing results from your efforts. We, as a leadership team, see the power and excitement when the water makes it to the end of the row and the whole organization is working together to achieve a common goal.

Although our results for the first quarter are not yet finalized, the preliminary numbers show mixed results. Our cost control efforts have been outstanding and are definitely contributing to our financial health. We appreciate all the effort placed on establishing the budgets, scrutinizing expenses and questioning the status quo. Unfortunately, the economy continues to struggle and with that our volumes continue to be soft. This softness is also putting pressure on the rates we receive from customers. Due to these factors, our revenue growth objectives are behind plan as is our asset utilization. As such, we have started to remove additional trucks from the fleet. This will allow us to better utilize our remaining assets and enable our drivers to achieve more miles.

Current economic forecasts indicate a recovery will begin in the fourth quarter. Trucking, as a leading indicator, should begin to pick up in the third quarter. With this in mind, we are expecting our volumes to strengthen in the second half of the year. To combat the softness in the first half, we do need to take some additional cost actions, which we anticipate to be temporary. First, we will be eliminating a few driver bonuses. The mentor bonus, productivity and team bonuses will be discontinued as of April 1 st . In addition, we will also be reducing pay for mileage-based company drivers by $0.01 cent per mile for loads dispatched on or after April 27, 2009. Many of our competitors have already announced similar reductions on a permanent basis. This trend was highlighted in the February 23, 2009 issue of Transport Topics. We are implementing these changes for a 3-month period and will readdress both the bonuses and the pay reduction in a few months.

As many of our competitors, customers and other Fortune 500 companies have already announced, we will be requiring all non-drivers to take one week of unpaid absence in the second quarter between April 27 and June 30, 2009 for all employees except for those who work in Missouri. Those who work in Missouri will be required to take their week between May 11, 2009 and June 30, 2009. Please note that the later dates are for those who work in Missouri. If you live in Missouri but work in another state , your time period begins April 27th. The one week of unpaid time off needs to be based on your standard work schedule. For example, if your standard work schedule is four days a week for 12 hours a day, you will need to take off 4 days for 12 hours.

To record the unpaid time off, managers must submit a request in the PAF system for "Time Off Unpaid Company Mandated". This new code will be established in the coming days. Non-exempt/hourly employees must take the unpaid time off in full-day increments based on their normal work schedules as explained above . These days may be spread throughout the time period with manager approval. Keep in mind that the no overtime policy is still in effect, therefore time off should be planned carefully to meet job/department demands. Time off for exempt/salaried employees must be taken in one-week increments based on their standard work week . For example, if your standard work week is Monday through Friday, you must take off Monday through Friday. If you have an alternative work week (e.g. four 10 hour days) you must take off for the weekly equivalent. Employees cannot use earned paid vacation or sick time during their time off nor can employees be paid for a holiday during your selected week off (including a floating holiday). Please note that if you choose to take your time off during the week of Memorial Day, you will not be paid for the holiday. Finally, we want to point out that given the timing of our standard payroll cycles, those employees on a bi-weekly pay cycle will receive three paychecks in April instead of the usual two. We encourage you to take this into consideration when planning for your monthly household expenses during the second quarter .

For regulatory reasons, employees cannot perform any aspect of their job during their time off without pay. This includes, but is not limited to, checking or answering voicemails, reviewing or sending e-mails, doing work from home, or any other company-related business . Violation of this instruction may result in discipline, and any violations of this instruction must be immediately reported to Human Resources. Your continued employment at the Company will be considered consent to your unpaid time off, and does not alter the status of your at-will employment. Please work with your employees/managers to coordinate the time away to ensure proper coverage in your departments.

Another step many other companies have taken to curtail costs in this environment is to eliminate the company match on 401K contributions. In 2008, our 3% match on 401K contributions was fully accrued and will be paid into your accounts in the third quarter. In 2009, the plan was modified to provide management the option of making the matching contribution on behalf of the Company. You will be receiving the amended plan documents soon. If the Company is able to meet its goals for the year, the 401K match will be accrued in 2009 and distributed in 2010 as usual. If our goals are not met, management has the option not to fund the match. The status of the match will be reviewed each year but is expected to be paid as usual if our goals are met. This idea was brought forth by several employees in our organization suggesting that this will help Swift achieve our WIG. This is a great example of the selfless dedication our co-workers employ toward the success of Swift! We appreciate this and the many other examples we have witnessed over the past few months.

With regard to our 401K plan, you will soon see some information announcing a change in our 401K record keeper. This is an exciting change since our new provider will be able to provide additional, seamless services in one easy call. More information on this change will be forthcoming.

Although these are very difficult decisions to make, these actions will enable us to reduce our salaries and wages without a further reduction in our non-driver workforce. We believe these are appropriate measures given our expectations that the economy will begin to improve in the second half of the year. We also hope that by the end of the year we will be able to repay these reductions through bonuses. If we make our annual financial goals we will pay full bonuses. If we exceed our financial goals, we will pay more than full bonuses. Together we can make a difference - lets work to exceed our goals!

We have many other positive activities occurring across Swift. In February, the ports of Los Angeles and Long Beach began their clean air initiative which is enabling us to ramp up our new Clean Fleet business. We have won new business with existing customers and are growing with new customers. This new business is helping to partially offset the impact of the downturn and is enabling us to be well positioned for the future once freight demand returns.

We appreciate your continued support and dedication to Swift during these difficult economic times. These actions to take additional costs out of the organization are temporary in nature as we expect our business to improve in short order. The expected improvements are based on a positive change in the economy, but more importantly, they are based on our aligned efforts to collectively meet our Company goals. The teamwork, initiative, and hard work we have seen throughout the organization are impressive. We greatly appreciate all you do for Swift and together we will make Swift Best in Class in everything we do!

Sincerely,
Jerry Moyes

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jess-juju · Apr 9, 2009

Very interesting Newsletter!

The Challenger · Apr 9, 2009

To me this sounds like phasing out older and cutting drivers who are unproductive. Nothing new with this economy.

KH

mike1983 · Apr 9, 2009

So I literally just got off the phone with a Swift recruiter. She said I was approved and would be starting orientation in two weeks in Fontana, CA. While I already have my CDL, I still will be going through their training program because I dont have any experience. But from this newsletter it seems Swift is planning on cutting drivers. Why would they be hiring me if they plan on cutting drivers? The only thing I can think of is the fact that I live in the Los Angeles area and the newsletter states they are looking at new business out of the LA ports. Any thoughts?

Big Toddzilla · Apr 9, 2009

Because you are cheaper. It happens all the time.

washingtonian · Apr 9, 2009

I would say the same thing, because you being a newbie. (mike1983)Swift saves alot of money on drivers bye paying less per mile. Those that have been with swift for a while that do not have a sqeaky clean driving record(refering to myself) and good performance record get canned. And then will not show you your Performance record,Which is why I ordered a copy of my DAC report .

bubba mark · Apr 9, 2009

mike1983 said: ↑

So I literally just got off the phone with a Swift recruiter. She said I was approved and would be starting orientation in two weeks in Fontana, CA. While I already have my CDL, I still will be going through their training program because I don't have any experience. But from this newsletter it seems Swift is planning on cutting drivers. Why would they be hiring me if they plan on cutting drivers? The only thing I can think of is the fact that I live in the Los Angeles area and the newsletter states they are looking at new business out of the LA ports. Any thoughts?
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They still need drivers. They really don't need to lay anyone off. So many drivers quit every day. Actually more probably quit than they wanted to get rid of. So they will always need new drivers. Plus they can pay you a lot less to haul freight.

mike1983 · Apr 10, 2009

Thanks for all your thoughts. I feel a whole lot better now about their offer actually being legit. One other question, when you guys first started out, how did you deal wih being put in a tgruck for 2 months a stranger? I mean, I did it with England for 6 weeks and I gotta tell you, the times my trainer was asleep and it was just me and the road I LOVED IT! I thought, man I get paid for this! But I hated sharing a bed, knowing the bathroom habits of another man, listening to him do things in the sleeper knowing that I would be sleeping in that bed that night. I posted on another forum and the guys pretty much said I just need to get thicker skin. I get that, and I will put on more of a game face with my swift mentor. But if you have any ideas as to how not to let things get to you so much a partner, that would be great.

Thanks,
Mike

Winchester Magnum · Apr 10, 2009

Swift Best in Class
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I wonder if they ran the numbers on cost savings in lettering, by no longer putting "best in class" on their trailers..

LMAO

Palazon · Apr 10, 2009

Yup... Pay cut time. I'm at the 11 month mark. I do believe its time to send out some resume's......

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