UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
August 11, 2006
------------------------------------------------
Date of Report (Date of earliest event reported)
Con-way Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-5046 94-1444798
---------- ------ ----------
(State of other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
2855 Campus Drive, Suite 300, San Mateo, California 94403
------------------------------------------------------------
(Address of principal executive offices)
(zip code)
Registrant's telephone number, including area code:
(650) 378-5200
- ------------------------------------------------------------------------------
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligations of the registrant
under any of the following provisions (see General Instruction A.2
below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 8.01 OTHER EVENTS
In 2003 Emery Worldwide Airlines, Inc. ("EWA") and Menlo Worldwide
Forwarding, Inc. ("MWF") were sued in a California federal court action by
the Air Line Pilots Association, International ("ALPA") to compel arbitration
of ALPA grievances over the furloughs of its members after EWA ceased air
carrier service in 2001 ("ALPA Grievances"). The ALPA Grievances protest the
furloughs of EWA's pilots and other flight crewmembers ("ALPA Members) and
the use by MWF of other air carriers, and seek recovery of lost wages and
other damages for those ALPA Members. Since 2003, (i) ALPA amended its
lawsuit to include Con-way Inc. ("the Company") as a defendant, (ii) the
Company sold its air freight forwarding business, including MWF, to United
Parcel Service, and (iii) some ALPA Members notified ALPA that they elected
not to be represented by ALPA any longer, and that they would be separately
represented. As a result, as of August 8, 2006, ALPA continued to represent
279 of the original 484 ALPA Members. On August 8, 2006, the Company and
ALPA concluded a final settlement extinguishing the beneficial interests in
the ALPA Grievances of those ALPA Members still represented by ALPA. Under
the terms of the settlement, EWA will pay its former pilots and other flight
crewmembers who were still ALPA Members an aggregate sum of $10.916 million,
the allocation of which is determined solely by ALPA. In addition, the
collective bargaining relationship between ALPA and EWA was terminated, and
ALPA released the Company and its affiliates. ALPA has dismissed its lawsuit
with prejudice. The ALPA settlement does not affect any accrued rights of
EWA's former pilots and other flight crewmembers who were no longer
represented by ALPA as of the date of the settlement. The Company will
continue to defend the ALPA Grievances and related litigation by the 205
former ALPA Members. Based on management's current evaluation, the Company
believes that it has provided for its estimated exposure related to the
remaining ALPA Grievances and related litigation.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.
Con-way Inc.
------------
(Registrant)
August 11, 2006 /s/ Jennifer W. Pileggi
-----------------------
Jennifer W. Pileggi
General Counsel