Freight firm fires 15,000 workers

Published 6:30 am Tuesday, September 3, 2002

SEATTLE – Layoffs at Consolidated Freightways were “a slap in the face” for hundreds who showed up for work on Labor Day only to find the offices locked after the company decided to shut down U.S. operations, a union spokesman said.

“That’s like telling your wife you’re getting divorced on Valentine’s Day,” said Carlos N. Ramos, a spokesman for Teamsters Local 776 in Harrisburg, Pa.

The company said it would stop U.S. operations immediately. Operations of the company’s CF AirFreight and Canadian Freightways Ltd. subsidiaries were not affected.

In a recorded telephone message, Chief Executive John Brincko told workers at the trucking company not to show up today.

“Thank you for dialing in on this holiday weekend. I hope you and your family are enjoying the time together,” said Brincko, who was named chief executive three months ago. “I have some extremely urgent and sad news to share with you today. … Your employment ends immediately.”

About 15,500 employees would be affected, the company said, with more than 80 percent receiving termination notices immediately. The remaining supervisory and management positions will be phased out quickly.

The 73-year-old company said it planned to file for Chapter 11 bankruptcy protection today.

The Vancouver, Wash.-based company lost $36.5 million on $463 million in revenue in the first quarter of this year. It lost $104.3 million last year and $7.6 million in 2000.

Its stock had tumbled in the past two weeks, after it announced it might lose its listing on the Nasdaq stock market.

In letters being mailed to workers, the company said it simply didn’t have enough money to continue operations.

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