Richmond company ups benefits in lieu of raises

Like many businesses, James River Bus Lines could not give its employees a pay raise this year because of the recession.

Instead, the 81-year-old company is increasing benefits for its 180 employees, including raising the company's 401(k) retirement plan match from 75 cents to $1 for every $1 the employee contributes.

Stephen Story, president of the family-owned business, said improving the company's benefits was a cheaper option than a pay raise and one that he hopes will help reward longevity with the company.

"Doing just the benefits increase was not as expensive as a full pay raise across the board," Story said. "It was just something that we hoped would help."

"Employees by far are our strongest asset," he said. "The longevity of people at our company is very important to us, and we felt like the benefits would be the best way to help people decide to stay here longer."

Among other benefits improvements, the Richmond-based company is increasing the number of paid bereavement days for employees from two to three days, and adding Martin Luther King Jr. Day as a paid holiday. Effective May 1, its weekly short-term disability benefit will increase from $100 to $200.

James River Bus Lines, which also owns Carey Transportation, operates bus, van and shuttle services in the Richmond and Hampton Roads areas. Employees at its locations in Richmond, Williamsburg and Norfolk include drivers, dispatchers, mechanics and salespeople.

The privately owned company does not release revenue figures, but like other transportation companies, James River Bus Lines has seen its revenue hurt by the economic downturn.

Corporate travel has been especially hard hit, Story said. But school field trips have remained a relatively strong source of revenue.

Yet Story said the downturn in travel and tourism after the Sept. 11 attacks was worse in many ways, because it was such a sudden shock to the industry.

This recession, he said, "is deeper, but we had time to prepare for it."

Contact John Reid Blackwell at (804) 775-8123 or .