
Con-way Freight Executive Testifies on Employer
Support of National Guard and Reserves
David L. Miller Urges Government to Ease Strain of
Deployment on Businesses
ANN ARBOR, Mich. — May 31, 2007
— Con-way Freight–Central President David L. Miller does not mince words when
he talks about the importance of the National Guard and reserves to
Miller
made the remarks in testimony given recently at the U.S. Commission on the
National Guard and Reserves in
During
his testimony, Miller outlined best practices implemented by Con-way Freight
for assisting deployed employees and their families, encouraged other employers
to follow the company’s lead and endorsed changes the Commission could
recommend to Congress to help companies support their employee soldiers without
incurring as much financial impact.
Con-way
Freight, a less-than-truckload motor carrier and subsidiary of Con-way Inc.
(NYSE: CNW), currently employs 28 soldiers on active duty and more than 90
members of the Guard or reserves. Miller stressed Con-way’s commitment to
supporting employees called to active duty — highlighting that the company
currently goes above and beyond national legal and regulatory requirements to
financially support its soldiers and their families. Con-way Freight continues
full health benefits for the families, and pays them the differential between
what the employee would have earned working at Con-way and the amount of
military pay received.
“These
employees and their families are making a tremendous sacrifice,” said Miller.
“We are committed to supporting our deployed employees, their families and the
nation, and we encourage other employers to learn from our experience and to
adopt similar value systems. At the same time, we also ask that the Department
of Defense consider granting a longer window of time between notification and
reporting for active duty, to help us minimize disruptions to our workforce –
such as when we have to replace a facility manager who has been called up on
short notice. A wider reporting window will help businesses manage the
replacement of key employees with less impact on operations and customers.”
Miller
also called on the Commission to consider recommendations to Congress that
would provide for tax or other incentives to companies that provide full
financial support to its employees while on reserve duty. “There are costs
involved when reservists are deployed, both in hiring, training and paying
replacement staff, and the continuing support of that employee and the family
while that employee is on active duty,” Miller noted. “It would be appropriate
for Congress to consider some form of relief for those companies that
demonstrate this level of commitment.”
Miller
went on to detail Con-way’s spending to support its citizen soldiers and their
families upon deployment, including:
* More
than $1,100 (2006) in monthly premiums for each family’s health insurance
coverage
* More
than $4,100 in military differential pay, on average, per employee in 2006
*
Approximately $4,000 to train each replacement driver sales
representative and mechanic
*
$54,000-$100,000 to relocate each replacement employee required in an
alternate location
*
Significant overtime pay when required due to vacancies outstripping
available personnel
“If
the Department of Defense moves forward as rumored to rely more fully on the
Guard and reserves, the costs that the private sector would be expected to pick
up must be offset by tax credits,” Miller said. “This must be done to get the
support of private employers and provide the necessary support system for our
citizen soldiers.”
The
Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005
established the Commission, which is charged by Congress to conduct a
comprehensive examination of how the Guard and reserves are used in national
defense, including homeland defense, and to recommend any needed changes in
laws and policies governing the National Guard and reserves.
About
Con-way Freight
Con-way
Freight is the industry’s leading less-than-truckload (LTL) freight
transportation company, providing guaranteed, day-definite regional and
transcontinental service through a network of 440 service centers in the United
States, Canada, Mexico and Puerto Rico. Based in
Con-way
Freight is a subsidiary of Con-way Inc. (NYSE: CNW), a $4.2 billion freight
transportation and logistics services company and FORTUNE magazine’s “Most
Admired Company” in transportation and logistics for 2007. For more
information, visit www.con-way.com/freight.