According to a Reuters news report, in addition to the match suspension, Con-way also dropped a provision in its defined benefit plan for benefit increases based on future employee compensation hikes.
Con-way said the measures, to be implemented early in the second quarter, should save between $100 million and $130 million in 2009, the news report said.
“With these market conditions, which we don’t expect to change in the near term, there is too much capacity chasing too little freight, so we have to manage accordingly,” CEO Doug Stotlar said in a statement, according to the report. “We’re taking prudent steps to control expense, protect our market share, and conserve capital.”
Stotlar announced he was taking a 10% pay cut and most employees would see a 5% salary decrease.