FBI Outsources Trucking Operations
September 1, 2009
Furniture Brands International (NYSE: FBN) is revamping its freight distribution program and consolidating with Montana-based Watkins Shepard Trucking to try to be more efficient with shipping.
The announcement will impact the private fleets and drivers for Broyhill Furniture Inds. and Henredon Furniture, and the change will take effect the end of October.
Under the plan, Furniture Brands will discontinue its prepaid freight program with outside carriers Oct. 31, and fleet operations based in North Carolina have been outsourced effective Oct. 30. The change will result in permanent layoffs of about 65 employees of the Broyhill Transport Co. and will include drivers and office staff.
The new dedicated fleet operation with Watkins Shepard Trucking will begin Nov. 2. Watkins Shepard, headquartered in Missoula, Mont., will handle all of FBI's prepaid shipments originating from North Carolina through its terminal in Conover, N.C.
Watkins Shepard has a number of job openings available that FBI employees would be eligible for if they meet the hiring criteria. Officials from Watkins Shepard worked with FBI to offer open houses in Conover last week for those interested in being considered for employment by the company.
"Those employees will no longer be employed by Broyhill," said Davy Whittington, FBI Director of Logistics. "They may be interviewed and considered by Watkins Shepard. They will need to meet DOT requirements, go through a background check and drug testing to be offered a position, but there are no guarantees (of employment)."
Whittington also said the number of loads being hauled by Watkins Shepard employees each week is more than double that being transported by the company's current fleet in North Carolina. Whittington also said the pay package and benefits offered by Watkins Shepard are comparable to what Furniture Brands employees are receiving.
Ray Kuntz, chairman and CEO of Watkins Shepard, said the company has a number of jobs available for dock workers, billing clerks and drivers as well as owner/operators.
"We came up with a solution that we thought would be good for Furniture Brands and better for customers," Kuntz said. "We're trying to make sure we employ as many Furniture Brands drivers and employees as possible so there's not a great displacement of jobs. Furniture Brands' focus was on taking care of employees and customers while remaining competitive in the marketplace."
John Hastings, vice president of communications for St. Louis, Mo.-based Furniture Brands, said the move should allow for more efficient handling of the company's freight.
The announcement will impact the private fleets and drivers for Broyhill Furniture Inds. and Henredon Furniture, and the change will take effect the end of October.
Under the plan, Furniture Brands will discontinue its prepaid freight program with outside carriers Oct. 31, and fleet operations based in North Carolina have been outsourced effective Oct. 30. The change will result in permanent layoffs of about 65 employees of the Broyhill Transport Co. and will include drivers and office staff.
The new dedicated fleet operation with Watkins Shepard Trucking will begin Nov. 2. Watkins Shepard, headquartered in Missoula, Mont., will handle all of FBI's prepaid shipments originating from North Carolina through its terminal in Conover, N.C.
Watkins Shepard has a number of job openings available that FBI employees would be eligible for if they meet the hiring criteria. Officials from Watkins Shepard worked with FBI to offer open houses in Conover last week for those interested in being considered for employment by the company.
"Those employees will no longer be employed by Broyhill," said Davy Whittington, FBI Director of Logistics. "They may be interviewed and considered by Watkins Shepard. They will need to meet DOT requirements, go through a background check and drug testing to be offered a position, but there are no guarantees (of employment)."
Whittington also said the number of loads being hauled by Watkins Shepard employees each week is more than double that being transported by the company's current fleet in North Carolina. Whittington also said the pay package and benefits offered by Watkins Shepard are comparable to what Furniture Brands employees are receiving.
Ray Kuntz, chairman and CEO of Watkins Shepard, said the company has a number of jobs available for dock workers, billing clerks and drivers as well as owner/operators.
"We came up with a solution that we thought would be good for Furniture Brands and better for customers," Kuntz said. "We're trying to make sure we employ as many Furniture Brands drivers and employees as possible so there's not a great displacement of jobs. Furniture Brands' focus was on taking care of employees and customers while remaining competitive in the marketplace."
John Hastings, vice president of communications for St. Louis, Mo.-based Furniture Brands, said the move should allow for more efficient handling of the company's freight.
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