Consolidated Freightways Announces Unprecedented Company Ownership Plan for all Employees.MENLO PARK Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , Calif.--(BUSINESS WIRE)--July 7, 1997--Consolidated Freightways today announced that, as part of an unprecedented stock distribution plan throughout the entire company, every full-time employee will be granted shares of CF restricted common stock. The company wide restricted stock plan announced today will award, at no cost to the more than 21,500 regular, full-time employees, approximately one million shares of common stock. This grant represents about four-and-a-half percent of the outstanding shares of the company with a market value of approximately $15.5 million. Approximately two-thirds of those restricted shares are being awarded to employees covered by collective bargaining agreements The contractual agreement between an employer and a Labor Union that governs wages, hours, and working conditions for employees and which can be enforced against both the employer and the union for failure to comply with its terms. . W. Roger Curry, president and chief executive officer, commented, "We've said from the beginning of the new independent Consolidated Freightways Consolidated Freight was the 3rd biggest trucking company in the US. In the 1930s they started their own truck manufacturing operation, Freightliner, now part of DaimlerChrysler. that we're one team with a common set of goals. This award, which is unprecedented for a company our size, guarantees that all team members will profit in the same way as the rest of our shareholders, if we're successful." Approximately 95 percent of CF's contractual employees are members of the International Brotherhood of Teamsters Teamsters large, powerful union of U. S. truckers. [Am. Hist.: NCE, 2703] See : Labor . The remaining contractual employees being granted restricted stock are represented by the Office and Professional Employees International Union The Office and Professional Employees International Union (OPEIU) is a United States labor union representing more than 150,000 white-collar workers in the public and private sector in the United States. , the International Association of Machinists and the Chicago Truck Drivers Union. All full-time contractual employees in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada will be eligible to receive a total of 35 shares of common stock in three installments. Stock price performance and continued employment service until stock price goals are achieved are the criteria for receiving restricted stock. Consolidated Freightways became an independent, publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. in December 1996 as the result of the spin-off from its former parent company. At that time restricted stock was set aside to create employee ownership opportunities and a restricted stock award was announced for senior management. Today's announcement extends the ownership opportunity to all regular full-time contractual and non-contractual employees and uses the same vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: requirements as the restricted stock award made in December. "If we successfully meet our company goals and the goals of this program -- and I believe we will -- our employee team will collectively be the largest CF stockholder," Curry said. "CF's 68-year-old tradition and history instills tremendous pride in our people. Adding the pride of ownership creates a powerful future for our company." Consolidated Freightways is a transportation company primarily providing less-than-truckload (LTL LTL - Linear Temporal Logic ) and logistics services throughout the United States, Canada and Mexico using its system of 350 terminals and 22,000 employees. The company also provides international freight services between the U.S. and more than 70 countries. CONTACT: Consolidated Freightways Mike Brown, 415/326-1700 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion