Werner Enterprises: Survival of the Greatest or Corporate CockroachWith General Motors on the ropes, it seems that the great U.S. companies of yesterday are becoming burned-out shells today. The economic climate is unstable. Yet, in all this turmoil, one company has weathered the financial storm: Werner Enterprises. Some may think Werner Enterprises is handling the storm better because the are lean and competitive. If corporate survival is the only indicator that a company is “great,” survival is a poor one.
How Werner Enterprises operates:1.Student drivers – the cheapest labor available.
2. Werner Enterprises is NOT a “diversified,” international company. Werner Enterprises has painted a mirage;
freight forwarding has not delivered the profits Werner Enterprises has promised. Owners of Werner stock should REALLY research this because Werner Enterprises has pulled the alfalfa over plenty of corneas with this “Chinese freight forwarding scheme.” Werner Enterprises was and always will be a bottom feeder. The Werner Company Store makes more money than Werner in China selling rotten soy beans in a Shanghai street market.
3. As long as the Federal Government continues a blind eye towards Werner's highway "safety" (or lack of), Werner Enterprises will continue to be “successful.” A fleet of student drivers, with high turnover, doesn't bode well for highway safety advocates.
Werner's #1 Nightmare: The Union.Consequences of UnionizationWhile non-union jobs have increased since the 1970s, driver's pay and highway safety has decreased. The Teamsters have little interest in unionizing Werner Enterprises, but the UAW is a strong possibility.
A strong union would benefit Werner drivers in five ways.
1. A solid, legitimate training/apprenticeship program.
2. A decrease in the 300% employee turnover. Increased employee retention. Yes, there still would be turnover, but not that high.
3. Increased pay for drivers based on seniority and NOT favoritism.
4.Better healthcare and retirement. An end to the: “I got hurt on the job and Werner fired me.”
5.Increased safety.
In some ways Werner Enterprises would benefit by becoming unionized. However, what is good for the drivers is poison for Werner executive management.
Action-ReactionWerner executive management CANNOT work under a union model, unless C.L. and all his cronies were asked to pack-up and leave—using their corn husk suitcases. Werner Enterprises gives orders, it doesn't take them. Unionization has the strong possibility of forcing Werner Enterprises into bankruptcy.
In good or bad times, Werner Enterprises is able to generate a profit. This is accomplished solely by using cheap labor. Werner Enterprises has no problems finding drivers. Werner Enterprises—
like McDonald's (see Fast Food Trucking)—is a service industry. Werner Enterprises manufactures nothing and has little intellectual property. There is nothing unique about Werner Enterprises. J.B. Hunt or Rick's Trucking could make the same deliveries. Contrasted, a McDonald's hamburger is unique compared to a Burger King hamburger or a Mel's Diner burger.
Werner's Longevity CultBefore drinking the cherry Kool-Aid, understand how Werner operates. If you decide to worship a graven image of C.L. Werner—by placing his idol on a lofty, black marble alter in a musty, candle lite room--also include cockroaches. Cockroaches have been around since the Carboniferous period and are more worthy of your hymns.
---WernerScrews 10-4