The Register Citizen (Torrington, CT)
Company returns dip in 2nd quarter
GREENWICH — Transportationandlogistics giant XPO Logistics, which faces major scrutiny of its workplace conditions, reported Friday declining returns for the past quarter.
Secondquarter revenues dropped about 3 percent year over year, to $4.24 billion. Profits fell to $122 million, from $138 million a year ago. In February, the company had disclosed a $600 million hit, worth twothirds of its transactions with a client that is widely believed to be Amazon.
Despite the decreases, company executives said they were still optimistic.
“We’re implementing innovations in North American (longterm logistics) to drive the next leg of profit improvement,” XPO CEO and Chairman Bradley Jacobs said in a statement. “Our workforce productivity tools are returning positive results in 18 pilot service centers ahead of the national rollout to all 290 LTL centers this year. In addition, we’re developing an entire suite of proprietary tools that utilize machine learning for dynamic pricing, route optimization of pickup and delivery, linehaul efficiency and yard management.”
Amid its efforts to boost its returns, XPO faces labor unrest.
In late May, about a dozen employees went on strike at its North Haven warehouse, which serves militaryhelicopter manufacturer Sikorsky.
The International Brotherhood of Teamsters supported the protest. The Teamsters figure among the most vocal critics of XPO’s treatment of its personnel and have organized several hundred of the company’s U.S. employees, including the North Haven contingent.
In 2017, however, a majority of the North Haven employees petitioned the company to remove Teamsters as its representative, according to XPO. The company said it granted the request.
Teamsters responded that it was “determined to represent all workers at the North Haven facility.”
Today, none of the North Haven group are Teamsters members because they do not have a unionbrokered contract.
Across several other XPO locations in the U.S., a total of about 400 employees have voted to join Teamsters. Negotiations for those workers are ongoing, according to XPO.
In total, XPO employs about 50,000 in the U.S.
Related to the union’s criticism, allegations of pregnancy discrimination and sexual harassment at a warehouse in Memphis, Tenn. prompted Congressional investigations late last year.
While the Teamsters assail the company, XPO officials have cited a number of new measures that they have said would improve worker conditions.
Last December, the company announced a new policy for the care and support of pregnant workers that includes paid family leave, pregnancy and postpartum benefits, and flexible working arrangements.
Two months later, XPO announced a program for U.S. employees and their families that would give them mobileapp access to a network of more than 1,400 health practitioners.