March 6, 2023 – a video was released by Freightworks, LLC (FW). In
this emotional narrative titled, “Final Announcement”, Joyce Siqueira, VP of Operations begins, “Last Tuesday, the world changed for me. I lay awake virtually all that night praying, trying to think if there was just one more thing we could do…. At that same time, trying to find the words for this announcement which has been written with many tears.”
Joyce gave an account of the recent adverse events (labeling
February as typically “our toughest month”); which caused the company to decide, “We are just not going to be able to pull through this one…”
After much agony, a business decision was made to close the
company.
Joyce acknowledged a lesson Josh taught her “over these years”- He
realized that the company supported “over 200 families. Our obligation was to run a viable and sustainable company that they could depend on…”
Joyce explained current market conditions and certain core (unnamed) customers demanding significant rate reductions along with volume reductions. Adding to the narrative were other events (not explained) which made it impossible to see a path forward. She said the best course for all concerned- was an “orderly closing.” She listed certain promises for existing drivers and requests to help make sure the equipment is left in a safe place. This video ended with a fade to black as Joyce finished.
I admit, when I first viewed it, I was a little emotional. I knew several of the folks working with Josh from years ago. The prospect of immediate unemployment was a lot to consider.
My thoughts went back to my days inside Word of Faith Fellowship
(WOFF) and my time working for Josh which ended in 2008. In 2010, Josh and his family filed for bankruptcy with Two Mile Properties, LLC (TMP) – citing the downturn in the markets as the cause. TMP was not as large as FW. But the TMP final closing events were startling, like those announced in the recent video, I am sure.
For the last several years, I have been aware of the swings up and down of the freight market. This has been through my work with credit unions and my personal relationships with truck drivers. So, the message of the video was not a total shock. However, the speed of the closure was abrupt. I remembered the recent announcement of the LOVE’S truck stop deal in Rutherford County that gave the impression of nothing but parties and profits ahead. Add this to the fleet upgrade that was trumpeted in the local news.
What had gone wrong? Was FW caught in a poor cash position to
weather this downturn as was TMP in 2010? We may never know.
To learn more, let’s review the podcast – “Life by the Mile” Eps
100 posted Oct 5, 2022 – “A Freight Company Keeping Promises” a production of FW with host, Butch Maltby. (Search for it wherever you get your podcasts)
The spotlighted opening clip features Josh saying, “When we make a
commitment, we want to fulfill it. We don’t mind being held to that commitment, if we fall short in any way- I want that pointed out…it is critical to what we do to make sure we deliver on the commitments we make.”
Not long into the podcast, Josh says, “We believe this is what God
has called us to do- our mission. … part of our outreach to others.” This podcast is a long commercial for FW and the glowing/growing future.
The following are different outtakes and quotes:
“At this point, we have over 225 associates throughout the United
States including teams in the Philippians, Columbia, South America and Brazil.”
At the annual picnic held September 17, 2022, they gave away FW
themed merchandise in support of National Truck Driver Appreciation week-
Of the new trucks on order, FW has 37 new trucks on the road (Oct
2022) – 38 more on the road with new logo in next 60 days.
Josh: We have a total 126 seated trucks- out of 135-140 total-
expect to increase to closer to 150 within 6 months.
In 2023- 50 new trucks will be delivered throughout the year. -Plan
to relaunch the chemical liquid tank fleet
Driver’s compensation including raises- for 2023- Starting April 2023- 401k: a bigger company match. -Planned upgrade to onboard computers.
In support of his opening proclamation Josh touted a feedback
channel- including an option to make anonymous comments. Each comment is reviewed by senior management to address issues. – FW has an industry leading driver satisfaction score. Josh went on to extol the performance marks that FW has earned from different customers.
How could the future of FW look so bright and positive in October
and so dark in February? Is it possible that signs of a market breakdown began before February 28th? It is true that closures in the freight space have been increasing since last year. (link-dated 12/31/2022) The questioning process of analyzing postmortem the previous layoffs/closures may have given FW insight into the trends at the end of 2022 and first 60 days of 2023. Possibly weak market segments could have been identified and changes made.
On March 23, 2023, in the US District Court for the Western
District of North Carolina in Asheville, Martin Oshea (former employee of FW) filed a class action complaint and demand for jury trial against Freightworks, LLC and all the different FW, LLC companies. (Case #1:23cv00084) The complaint outlines non-compliance of Freightworks, LLC ahead of their sudden shutdown saying they reportedly failed to comply with the Worker Adjustment and Retraining Notification -W.A.R.N. Act.
In short, because the FW closure affected at least 50 folks, FW should have notified the chief elected official in local government, the NC Department of Commerce, and all 200+ employees 60 days before closing their doors. This allows for planning, outplacement, benefit continuance options and other provisions in agreement with Joyce’s call for an “orderly shutdown.”
It looks like this is just what Josh asked for in the podcast. “… if
we fall short in any way- I want that pointed out…it is critical to what we do to make sure we deliver on the commitments we make.”
It is unclear what penalties Josh and FW face. Could Josh and Joyce backtrack and call this a “layoff”? How would that look? After several
weeks of uncertainty, the FW management and employees face more questions than answers. Let’s not forget that when the paycheck stops, the bills continue. Many former employees are facing financial uncertainty and emotional hardship. Is the employee feedback/comment service open, now? Josh- were you under authority in closing FW, LLC?
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(Copyright © 1954, 1958, 1962, 1964, 1965, 1987 by The Lockman Foundation ) This is post number 683.