Many things posted here are wrong. What you need to know is Reddaway IS losing money. Here are the facts:
1. Reddaway is losing $500,000 per week on average for the last month and 1/2
2. Once ALL Reddaway employees take the 15% cut, it will save the company $350,000 per week. All meaning everyone...union and non union.
So, as you can see the savings does not cover the nut of the loss.
That is problem #1. And here is problem #2
Home Depot has made up 30% of the total revenue that Reddaway has enjoyed. Now that HD is building their DC's.....50% of that 30% is going away. Personally I believe that number is higher but will never know.
That is problem #2 and here is problem #3
Reddaway is a fantastic company...its people from the top to bottom are outstanding. However, they absolutely suck at marketing. And within here lies the problem
In this economy, you must be the FIRST to do something in the market that separates you from the competition. This is how you gain market share....you do something first, gain market share and the competition has to scramble to react. FedEx, Conway and UPS are always first and Reddaway scrambles to react. Reddaway never has been and never will be a company who does something first. In marketing, they are followers not leaders.
So, that is their biggest problem.
In order to reduce the weekly loses to zero, they must bring on new business to replace the HD that is going away. With the economy as it is, they can no longer expect that their current customers can give them more freight because there is no more to give.
New business is their only hope and history tells us they are not equipped to gain market share.
Reddaway is in trouble.
I believe and hope Reddaway survives. It indeed is a great company that has had the life choked out of it by YRCW. Whether by chapter 11 or by being sold by YRCW, Reddaway will come out of this I hope. The question remains, how much damage will be done between now and then?
Union or non union....it makes zero difference. You have no more or less security in this current situation. You guys can argue this until you blue in the face but believe me....it make no difference. You are all in the same boat together paddling to survive. Get along, put your differences aside and do your job as best you can. It is going to take everyone, top to bottom, union/non union, management and clerical to be focused here in order to survive. And even then...it may not be enough.