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CRST International
Company typePrivately held company
IndustryTransportation
Founded1955; 69 years ago (1955)
FoundersHerald and Miriam Smith
Headquarters
Cedar Rapids, Iowa
,
United States
Key people
Hugh Ekberg (CEO)
Websitewww.crst.com

CRST The Transportation Solution, Inc. (formerly CRST International) is an American freight company based in Cedar Rapids, Iowa.[1]

Founded in 1955 by Herald and Miriam Smith, it is a privately held company with a current fleet of about 4,500 trucks and annual revenues of $1.5 billion.[2][3]

History

CRST was founded as "Cedar Rapids Steel Transport"[4] in 1955 by Herald "Smitty" and Miriam Smith. They bought a chicken coop for $125 and with no trucks or customers, started their company. Herald saw his opportunity when he noticed truck drivers hauling livestock to Chicago and returning empty. He convinced Chicago firms he could save them money by loading those empty trucks with steel on their return to Cedar Rapids, hence the name of the company. Smith later purchased his own trucks, and expanded beyond the Chicago to Cedar Rapids route. By 1963, CRST had reached $1 million in revenue.[3]

Herald's son, John Smith, took over as president in 1983. Under John's leadership, CRST began acquiring niche carriers. The most notable was the acquisition of Malone Freight Lines, Inc. out of Trussville, Alabama, which allowed CRST to expand its territory into the Southeast of the United States. In 1997, revenues were $300 million and John bought out the rest of his family's holdings in CRST.[3][5]

In 2010, David Rusch became president and CEO of the company, with John moving on to become chairman of the board.[3]

CRST entered a phase of mergers and acquisitions in the 2010s. It acquired Specialized Transportation Inc. out of Fort Wayne, Indiana in 2011. It later purchased the Special Products Division of Allied Van Lines in 2013. That same year, CRST acquired The Besl Transfer Co. of Cincinnati, Ohio, which specializes in flatbed transportation. In 2015, CRST purchased Pegasus Transportation which is a high security, temperature-controlled freight company out of Louisville, KY.[3]

In 2014, CRST began building its company headquarters in Cedar Rapids, Iowa.[6] In the same year, it began a program called "Gold Rules" to shift the corporate culture to focus on the drivers needs.[7] Founder Herald Smith died in 2015.[8]

Criticisms

In 2011, the company lost a sexual harassment lawsuit in California's San Bernardino County Superior Court and was ordered to pay $1.5 million to the defendant, who stated she was sexually harassed by her managing driver. An appeal by the company was denied in 2015.[9][10][11]

Another lawsuit, involving 67 plaintiffs who sued the company over sexual abuse and harassment beginning in 1999, began in 2007 and was lost for failing to meet pre-suit obligations. The lawsuit was re-filed with three plaintiffs in 2015.[12][13][14] CRST took the case to the US Supreme Court to claim reimbursement of legal fees by the EEOC due to their failure to investigate many of the cases brought against CRST. The EEOC claimed they do not owe CRST these fees, however,[15] following the Supreme Court's decision in CRST's favor, the matter was remanded to the Eighth Circuit Court of Appeals and back to the United States District Court for the Northern District of Iowa for further proceedings. In December 2017, the District Court ordered the EEOC to pay CRST $3.3 million in attorney fees. The EEOC appealed this order to the Eighth Circuit, which affirmed the fee award to CRST, paid by EEOC in 2020.[16]

References

  1. ^ Miller, Eric (2021-04-28). "Carriers, Contractors Voice Support for Keeping DOL Rule". Transport Topics.
  2. ^ "CRST International, Inc. Celebrates 60th Anniversary". 30 March 2015. Archived from the original on 23 September 2015. Retrieved 21 August 2015.
  3. ^ a b c d e "About Us - CRST International". Retrieved 21 August 2015.
  4. ^ "About CRST". CRST. Retrieved 16 August 2021.
  5. ^ Rodengen, Jeffrey (2005). In It for the Long Haul: The Story of CRST. Fort Lauderdale, FL: Write Stuff Enterprises, Inc. p. 77. ISBN 1-932022-09-0.
  6. ^ "CRST takes steps for downtown". The Gazette. Retrieved 2016-01-28.
  7. ^ "CRST implements second pay increase as part of "culture change"". fleetowner.com. Retrieved 2016-02-01.
  8. ^ "CRST founder Herald Smith dies". The Gazette. Retrieved 2016-01-28.
  9. ^ "Female driver wins $1.5 million harassment judgment against CRST Expedited". The Gazette (Cedar Rapids). Retrieved 21 August 2015.
  10. ^ "Shank v. CRST Van Expedited CA" (PDF). Retrieved 21 August 2015. In August 2006, plaintiff filed this action, alleging causes of action for breach of contract, breach of the covenant of good faith and fair dealing, unlawful sex discrimination, failure to maintain an environment free from harassment against all defendants, wrongful termination against CRST, and assault and battery against Wilson.
  11. ^ "Unhappy Trails: Female Truckers Say They Faced Rape and Abuse in Troubled Training Program". Jezebel. Retrieved 21 August 2015.
  12. ^ "CRST driver harassment claims resurface". Corridor Business Journal. Retrieved 21 August 2015.
  13. ^ Cathy Sellars et al. v. CRST Expedited, Inc. (Docket Report), C.D.C.A., 18 May 2015, no. 5:15-cv-00969, retrieved 21 August 2015 – via Recap (PACER current viewPaid subscription required)
  14. ^ "Gender Discrimination In Silicon Valley Is Bad. Gender Discrimination In Trucking Is Way Worse". Fast Company. Retrieved 21 August 2015.
  15. ^ "Justices Agree To Hear Trucking Co.'s EEOC $5M Fee Fight - Law360". www.law360.com. Retrieved 2016-02-01.
  16. ^ Oxyer, Alex (December 13, 2019). "End of the Road: Eighth Circuit Upholds $3.3 Million Fee Award Against The EEOC For Frivolous Claims". JD Supra.


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