A View from Here

Bill's Sisson's weekly Trade Only blog

CEO eases gas prices for employees

A CEO in St. Louis was so pumped up about the exorbitant prices at the gas stations; he wanted to do something to help his employees get to and from work.

He’s providing gas subsidies. Yes, he’s giving gas allowances to his employees who are eligible to participate in the program. He told me he did not want to lose his employees who could no longer afford to drive to work.

“Somebody’s got to do something,” Doug Adams, the owner of EFC International, told Soundings Trade Only.

Way to go, Doug.

EFC International says it is going to subsidize fuel expenses for all its employees. EFC is a provider of specialty metal, plastic and electrical component parts to the OEM and distribution market places.

The company will pay gas mileage reimbursement for the number of days worked in a month. The mileage is based on actual miles from the employee’s home to the office.

EFC will take the employee’s monthly total miles driven to work; divide by 20 miles per gallon and multiply by the average gas price from the office in which the employee works. A base price of $2.50 per gallon will be applied; then subtracted from the average gas price for the month.

With oil and gas prices breaking records and no resolution in sight, it may force employees to consider other employment closer to their homes, which would clearly hurt our company, Adams said.

Adams, driven by his anger at the gas prices, decided to do something to help his employees. “They can’t afford it,” he said. “This is crazy.”

No argument from me.

Doug, I commend you for your empathy and your generosity.

Let me know how your plan works out in a couple of months.

Lois Caliri
Editor

Comments

5 comments on “CEO eases gas prices for employees

  1. Kelly

    Sounds like a great guy. I would also recommend he create an incentive for empolyees who car pool. This extra incentive will help the environment too!

  2. Bob Schwarz

    Lois,

    Interesting article about the gas. if you could write out the formula on how it is computed, i would be interested in seeeing this and how it works.

    We are doing a different approach and giving our employees a set number of gallons of gas

  3. Tobias

    Congrats to this CEO. I admire him for taking the incentive and making a more stress free work enviroment possible. I will lay you odds that his company will become more profitable with the simple investment in people and not concentrating on the bottom line.

  4. Frank Feather

    I track all kinds of trends, and subsidization of gasoline costs is a rapidly spreading trend. But rather than subsidizing with cash, many people are reducing their travel costs with gasoline-saver capsules which make the carburetor burn gasoline more efficiently. For the average family vehicle you just drop one capsule into the gas tank at each fill up. These things really do work, including for boats. I record my auto mileage carefully, and we are saving 21%-22% on our monthly gasoline bills, both for home and business use. Savings range from 10%-25%, depending on the make of your vehicle, its engine size, its age, driving conditions (city, highway), and your own driving style. I distribute these, and have many business clients who use them in their commercial truck fleets and/or give them to employees, both as a perk and to retain them on staff. I give them away to family and friends. I am posting this merely to contribute to the topic, so I will not mention the product by name. But I will be happy to mail a sample to anyone who e-mails me (FFeather@gmail.com).

  5. David Sheriff

    As a Marine electrician, I put a lot of miles on my van every workday. I got some customer resistance when I instituted a travel charge several years ago when gas prices were on the way up. The charge is fixed for each location, but varies depending on the distance.

    Doug Adams has come up with a very creative way to lessen the impact of energy prices on his employees by spreading it out over the entire business. I expect we will see a lot more of this in the future.

    My real concern is that customers who are not “very well off” will use their power boats a lot less. I’ve heard of one fuel dock owner in Southern California who is facing going out of business because of the decreased demand.

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