Merx Global Inc., a trucking company based in Elk Grove Village, Illinois, recently informed a majority of its company drivers that it could no longer sustain part of its fleet operations, resulting in significant layoffs due to current market conditions. This decision came to light when several former drivers reported being routed to the company’s yard after delivering loads in the Chicago area, where they received termination letters on October 11.
In the termination letters, Merx Global cited its decision to sell outdated fleet equipment and not replace it with new vehicles as part of the rationale for the layoffs. “Based on these current conditions, we can no longer support part of the fleet operations,” the letter stated.
The Federal Motor Carrier Safety Administration’s SAFER website lists Merx Global as having 246 drivers and 244 power units. However, some former drivers expressed uncertainty about the actual number of company drivers affected, as the figures may include both company drivers and owner-operators.
A source indicated that Merx retained about 20 company drivers, primarily based in Illinois and Indiana, to handle regional routes. FreightWaves attempted to contact Christian Peneff, president of Merx Global, for additional comments but did not receive a response.
One former driver, who transported hazardous materials for the company, described her shock at the abrupt nature of the layoffs. They found us loads to the Chicago area and then quietly routed us to the terminal, she said, sharing her experience of arriving at the yard to find many colleagues discarding personal items from their trucks. Despite the unexpected termination, she received her final paycheck, including accrued paid time off.
The termination letter assured affected drivers that Merx would assist in arranging travel to help them return home, offering to subsidize travel costs. However, it was noted that owner-operators leasing with Merx were not impacted by these layoffs.
Earlier in the year, Merx Global had already reduced pay for company drivers from 70 cents per mile to 60 cents, promising to reinstate the higher rate once freight conditions improved. Unfortunately, that improvement did not materialize, leading to the discontent of drivers who had remained with the company during this challenging period.
One former driver, now transitioning to a new trucking company, reflected positively on their experience with Merx before the layoffs, stating, “I made money, and they kept me moving while I was there.”
For any tips or further insights regarding this situation, you can contact Clarissa Hawes at FreightWaves.
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