How much of a pay cut would you accept?

our company cut 20% of its office staff, then they built a new terminal, then put into effect a indefinete pay freeze for all personel with 1yr or more. we have not bought any new trks in almost 2 yrs. solo's went from a steady 3200 miles a week to 1800-2000 and teams will run 1 wk of 6500 then 4800 all the way down to 3000 or less then start the next month over. I know im looking becuase some of these companies want to cut wages, miles and all other things, but these exect's wont take a pay cut, and alot of the spending in the offices is ridiculous, we take the hit so they can keep flying that company jet and play golf. they call us stupid yet most of us now how to spend money wisely. sorry, ill stop, getting on a rant and dont need to. never been a big fan of company exect's.

 

Where's mine??????

 

It could be in Canton, MS.

Waiting on the Post Office to get back from their 4 day weekend....like that ##$# package I mailed last Monday, to Columbia, MS.

 

I believe you are misinformed. The ONLY cut I know of SNI has made, and it's been public knowledge for months now, was regarding the 401k contribution match. AND, someone mentioned office staff taking a cut: All office and shop staff to take a week off at differing times over the remainder of the year. If you're going to make SNI accusations, you should get your facts straight first. Yes, I will defend SNI because since in my dealings with them, they've been the straightest shooters I've seen in this business when it comes to telling it as it is.

Now, all that said, it could be that you know something I don't. I'm not saying I have all the info. If I'm mistaken, kindly point out where and tell me how you have said information.

 

I don't have a dog in the fight. But the first job I ever held, was a production based job. I worked my way into management rather quickly, and learned the ropes of reducing wages, without reducing the upfront numbers of a persons stated pay.

And SNI sure took that lesson seriously. It has its benefits, as well as its negatives.

While it may not have a direct impact on the overall payroll. It does have a direct impact on driver earnings.

Drivers are "production" based workers. Reducing the top speed, reduces the maximum amount a driver can earn per day/week/month/year.

It also helps spread what work is available, among other workers.

So to simply say that SNI has not reduced driver pay, is misleading and truthful at the same time.

They didn't reduce driver pay. They simply reduced the drivers ability to earn that pay in the same amount time.

This benefits the largest number of employees, and the company.

So there has been a reduction in driver pay. But no reduction in stated pay per mile, or overall driver payroll.

 

As always, your post is insightful and well thought. In SNI's case, they pay a mileage bonus. The mileage bonus, when achieved, according to my math and info, offsets the loss caused by speed reduction. What truly affects whether or not a person gets the bonus is more to do with idling time, out of route miles, and out of route fuel solutions.

I can see the non-match in the 401 as reduction to the "overall" picture since it does effectually reduce "total" compensation, but I can't see in the near-sight picture as the 401 money isn't a readily available source of income unless you're close to retirement. And if you are, kudos to you. I'd like to be so lucky, but for now, I've more dues to pay before I can hang up the work life.

My original post, if only to me, was more of a defending SNI thing than a technical thing. SNI takes a bad rap sometimes from folks who truly don't have an inside line on SNI. I know some folks have had less than an ideal situation with them, but I've not experienced that. I also know quite a few folks who left SNI for greener pastures only to return later and more than glad to be back.

 

Easy there fella.

Most carriers out there have instituted "many" cost cutting plans. I cited YRC and Schneider as examples of this. Was NOT an attempt to "bash" anyone.

The recession is going on 18 months according to some, so called, "experts". During that time many companies have folded up, filed bankruptcy, attempted to renegotiate salaries, parked trucks, culled driver pools, attempted to sell off assets, etc.

I believe in Schneider's case they have done the following;

Closed down their training schools.
Only accept drivers with verifiable experience (no students from what I have heard anyway)
Discontinued 401k Contributions.
Getting rid of poor performing drivers (cutting dead weight)
Idling trucks rather than fill them with drivers due to low freight volumes.
Cutting office staff
o/o program has been restricted to mileage pay only no more "choice plan" currently available for new entrants.
Reducing dead head whenever possible.

Of course you can substitute many different names and you would see similar cost cutting measures across the industry.

My carrier (decisions made by NEMF management) has frozen pay raises, canceled 401k contributions, laid off office workers, laid off drivers over the winter, stopped ordering many parts in advance, and even redesigned the "paid days off" reset dates.

Based on what I have read at multiple forums, seen and heard on radio programs, I suspect times are going to get much worse.

I was hoping that by opening a dialog between experienced drivers from different segments of this industry we would be able to compare notes and mentally prepare for harder times.

I think many drivers let emotions dictate their actions. Especially when something gets sprung on them out of the blue. I think Consolidated Freightways drivers probably were angry and in shock when their company simply closed its doors. No alarm from the CEO's to inform the drivers things were getting bad until it was too late. I suspect the drivers and workers would have been receptive to taking a "pay cut" rather than losing their job altogether had they been informed of the stakes beforehand.

Well, I am attempting to broach the subject BEFORE another driver does get laid off, loses benefits, or asked to take a pay cut. IMO it is better to keep working than to quit even if it is at a lower compensation rate.

I doubt unemployment will pay you enough to pay your bills. I KNOW it will not in MY case.

I doubt applying for a new job will give you the money you need to pay your bills (carriers are reducing their entry level pay even for experienced drivers). I doubt I would be able to get a dedicated route and be home 3 nights a week at a new carrier and still make over a grand per week with the seniority and benefits I currently enjoy.

Switching carriers because your current carrier decides to try to cut costs may find you low man on the totem pole at a new company, making less money, and having to learn a whole new system.

 

All very true.

Personally, I couldn't work for them. But they have their place in the market, just like Wal-Mart.

At the end of the day, all jobs are measured by your own personal level of satisfaction with that job. It doesn't matter what name is on the door.

 

Sorry. Didn't mean to come off "over the top" so to speak.

SNI did the above as have many companies. Choice is closed to new operators, but it remains open for operators running mileage currently. If a Choice operator leaves, a spot opens up and the waiting list rotates one spot. I run Choice, and I can tell you they couldn't run me off with a stick. It's a great program for me personally. I know other's who it didn't work out for so great, but that's a matter of personal needs as with any job. As for idling trucks, not so. SNI has parked a few to replace but is currently still hiring experienced drivers. To my knowledge, not one single driver has been laid off. The rest of it to me, just makes good business sense.

Things are tough all over at the moment. I don't know who you run for, but it sounds as if they, just as most are, are in survival mode. Some things just make good business sense.

Yep. I'd have to agree that working for less is better than not working at all.

 

I'd take pretty much whatever cut I had to to keep the company going. However, this is the first company that I have worked for where I would say that. So this company has built up a lot of good will with me and the national downturn is undeniable. Luckily (or through smart decisions and hard work) we are very busy right now so I don't see cuts happening in the near future. The question will be is this just a Memorial Day to Labor Day surge, or can we sustain these freight levels...

Before my current company, my rule of thumb was that if there was a pay cut to take it, keep working, but also look hard to find a new job.