Saia Inc. announced Thursday, April 2, that it is cutting the compensation of its managers, employees and directors in response to deteriorating freight volumes and yields. Saia’s LTL tonnage per day was down more than 7 percent in the first quarter compared to the same 2008 period, and total tonnage was down more than 9 percent. Total revenue per day was about 16 percent lower in the first quarter than in the first quarter of 2008.
Saia is cutting the salaries of its leadership team by 10 percent and reducing wages of its hourly, linehaul and salaried employees in operations, maintenance and administration by 5 percent. In addition, the company is reducing annual retainer and meeting fees paid to nonemployee members of the board of directors by 10 percent. The cuts will save about $18 million a year, Saia says.
The company previously had suspended the 401(k) match, effective Feb. 1, 2009, saving about $6 million a year.