Streaker,I dont believe Reddaway is losing 500K a week, yet I have heard management say so. We are losing money in certain areas of the company because management has the "Big Picture" concept and refuses to adapt to the current economy. As management will always tell you, (You just cant see the big picture) The truth is that comment is always said by suits who either never leave their computer models behind to learn how the trucking business works, or refuse to make the proper changes in areas where they are emotionally involved. For example I dont work in Fontana, yet I understand that it is the true center of the company. Fontana has a higher bill count than the entire states of Washington and Oregan combined. But where is our headquarters? V.P. big Bob Pebble (MisOperations) closes terminals based on personal grudges he has. Designs service areas to reward certain groups and punish others. We might be losing money under certain badly planned circumstances, however at my terminal every local driver brings in 2 to 3 thousand dollars in revenue a day. After you pay all the staff at under 25% of revenue there is still plenty of profit left. Not as much profit as last year when the bill count was higher, but we are still in the black. One last point to keep in mind, YRCW sets goals based on the fees they charge for each terminal, and judge your yard based on those goals, not on your actual O.R. ... BE SAFE
You have obviously educated yourself to understand the industry you work in. The one question I would ask is have you asked your TM to see your terminal P&L? I agree with your driver/revenue ratio but there is much more to the picture than wages. It is a complex cost to income spreadsheet that shows the entire picture. One thing you are right on is the fees each terminal pays to YRC. If you do get to see that P&L, have your TM show you the charges. It’s crazy. YRC took out a loan to buy USF and they collect each terminals money right off the top every month to make that enormous payment. What is left is what your terminal has to operate on and try to be profitable. It is almost impossible.
The terminals that are being shut down are because of overlapping service areas. When times are good the revenue covers up the unproductive issues in service area. When times are lean as they are now, you have to stretch each terminals service area and utilize manpower overtime to the brink. It becomes an enormous viscous circle. Your cutting as fast as you can to make up for lost revenue but by doing so you are cutting your own throat with bad service to your customers and working your drivers to death.
The only savior here is more revenue....that is the ONLY answer. And as I mentioned...Reddaway has not shown it can gain market share.
There are no personal grudges or rewards to certain terminals. There is only scrambling to get this thing under control and into the black.