KLLM Transport Services LLC announced it will decrease driver pay for most its drivers beginning in October 2009.
Jim Richards, chief executive officer, said, “Weak freight demand combined with downward rate pressure has made this difficult action necessary, as we are all beginning to realize that an economic recovery may not happen soon.”
Most drivers will be taking a 2-cent-per-mile reduction. To show his support for this tough, but necessary action, Richards has taken a personal pay cut of 20% to ensure that KLLM drivers—the “backbone of our company”—know that they have his full support.
These actions were still necessary despite other initiatives KLLM took earlier in 2009, such as suspending the company’s 401(k) match, increasing medical premiums, eliminating non-driving positions, as well as reducing pay for all non-driving employees.
According to Richards, “We had hoped after we took the earlier actions that conditions would improve, and we could forego having to take a driver pay decrease. Given the poor economic outlook at hand, these measures are being taken proactively to ensure that KLLM remains healthy and can continue to support the needs of our customers in the future.”
