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Below is a copy of an email I sent to Lenny Pippin who was the CEO at the time I resigned from Schwan's Home Service.

Dear Mr. Pippin,

I hope you will take the time to read this entire email. I was an employee of Schwan’s Home Services in Ohio for about four months. I really enjoyed the job but quit for reason I believe you should know. I am 46 years old and before I started with Schwan’s I owned and operated four businesses for the previous 25 years. Had this kind of treatment taken place in my businesses I would have certainly wanted to know.

During my time at the depot I heard many comments about the huge turnover of new employees and now I understand why.
During my hiring interview I was lead to believe I would earn $750 or more a week after my initial training period. The opposite happened and my pay decreased significantly, to nearly half of the aforementioned amount. It became apparent to me that making $750 a week on straight commission was nearly impossible with the routes I was assigned to after building. I received my guaranteed pay of $750 a week until September 22, 2007. My check for the week ending September 29, 2007 was for $504, it contained $74.52 in a commission supplement that was in reserve from the previous 6 weeks. My next check (pay period ending October 6, 2007 was $440 gross (no reserve pay left). My last check (pay period ending October 13, 2007) is estimated at $325 gross pay. You will read below that although my pay was based on commissions from my sales, Schwan’s (my LGM) sent the former CSM to the homes of my customers to sell to them on off-route days. This affected my sales when I returned on the scheduled delivery dates and many of my customers had already made their purchases through another Schwan’s employee. These are customers that were in my route books given to me by Schwan’s. It was only then that I found out that there are no territorial boundaries within Schwan’s. Any other employee can come into my route area and sell to my customers anytime. This had a direct negative effect on my sales and hence paycheck since I was to live on a commission pay only (7.5% of my sales). At NO time was I told by Schwan’s that anyone else would be selling to my customers in between my scheduled delivery days. I had been working long and tiresome hours, usually 60-70 hours a week, with the belief I would receive a paycheck similar in amount to my training wage of $750 weekly.

FROM THE BEGINNING

I was interviewed and hired by the LGM of the Schwan’s Depot in Ohio to be a “Builder”. It was explained to me I would earn $150 daily for about the first 7 weeks then my pay would drop to $125 daily plus $5 for each new customer I signed up and a commission of 11% of what I sold to those new customers. During my hiring interview I was not informed of how the pay would work if I were assigned to a route because no routes were available at that time. When I questioned the pay rate for CSM’s (route drivers) all I was told was that I would get a supplement pay and I would “want to be off it because you will soon make more on commission”. I was also told that all routes were soon going to be flex routes. I was NOT told I would have to allow another person to drive my personal vehicle or that I would have to drive another person’s vehicle in order to make the shift change at 3pm.

My work schedule was as follows:

1. Monday, June 4, 2007 I started with four days of classroom training (NEO class) in Obetz, Ohio.

2. Monday, June 11, 2007 started two weeks of riding with actual CSM’s (route drivers) on their routes. Very little training went on during the two weeks because the current drivers did not want to take the time. Their main concern was serving their customers and actually at times I was in the way.

3. Monday, June 25, 2007 I began 4 weeks of the required building of new customers in order to continue employment. I had to get 120 new customers (sales) within the four weeks or I would be terminated. I achieved 186 new customers. (Since then this requirement has been dropped). Into my 3rd week of required building of new customers I was then shown I could qualify for a bonus ($150 minimum) if I got the new customers to purchase an average of $40 or more. At no time before was this mentioned to me. This paper should have been presented to me on June25, 2007.

4. On Monday, July 23, 2007 I was assigned to run route #xxxxx which consisted of nine weekday route’s over a two week period. I had to run this route because the previous CSM (route driver) walked out after his guarantee of $150 daily was up. This route system was a solo route which means one person runs the route until all stops for that day are done. Some of the routes took up to 12 hours. I earned $150 daily while running this route system.

5. On Monday, August 6, 2007 I returned to Obetz, Ohio for 4 days for CSI training. This training did not cover anything with running a route or the pay structure after my training pay expires.

6. Monday, August 13, 2007 I was assigned to route system #XXXXX (10 different routes) because the two CSM’s who ran it quit within 3 days of each other. That happened to be when their guarantee pay of $150 daily ran out. One of them stated his pay check dropped to about $300. Part of this route system was originally run by a CSM who was out on a medical leave. When he ran the route the pay structure was different. After the former CSM left this route became a Flex Route. When I was assigned to this route I was told I would be the permanent driver along with my new partner. The first 3 weeks I ran the route solo because my partner and I were told the depot had to have two builders and she was one of them. My guarantee pay of $150 daily continued for the first 6 weeks of running this route system. When my partner joined me in the beginning of my week 3 her guarantee pay ($150 daily) began for 6 weeks. During my first 6 weeks of running route #XXXXX I worked an average of 13 hours per day. Even when my partner joined me my hours continued because she was not trained in running a route and was not familiar with the areas therefore we ran the routes together.

Only when I was assigned to route #XXXXX (August 12, 2007) was I then presented with a sales and performance forecast (documentation available) that I must achieve in order to receive my full guarantee pay ($150 daily, $750 weekly). This was NOT mentioned to me during my interview or training. My pay was now based on average daily sales, number of buying customers per day, plus I had to get 3 new customers per day on each route. Each week these goals would be raised. This would be in effect for 12 months. These are goals that even the seasoned veterans in the depot are NOT achieving. I even questioned these goals during a meeting with the LGM and the District Manager. I asked how many other CSM’s in the district have met these goals and was not given an answer. I believe no one is accomplishing these goals and maintaining their guarantee pay of $750 weekly since the DM avoided answering my question.

While running route system #XXXXX I was presented with many obstacles such as incomplete directions and route books out of sync with the Hand Held Computer (HHC). I made repeated comments to the LGM that my HHC was not in the same order as the last time I ran the route. Into the second week after my guarantee pay expired I discovered my HHC was not placing customers in proper order. I asked my LGM, two depot supervisors and about 3 CSM’s if they have ever encountered this problem. All stated they had not. I was advised to call the tech support center for the HHC and my HHC was replaced with a new one. Because my HHC was not in order it cost my partner and I much time. We had to search each customer by address when out on the route. This took about 2 minutes per customer. Our routes averaged 120 customers per day. We figure this wasted about 3-4 hours of valuable time each day which cost us lost sales. In addition the former CSM who was out on a medical leave (over 5 months) was visiting my customers and informing them he was kicked off his route. I was also told he was crying at their homes. He even was complaining he did not get his original truck back. I informed my LGM daily of what customers were telling me about his visits to their homes. He stated he talked with Schwan’s legal department and they had informed the former CSM he was no longer allowed to contact his old customers. After hearing continued comments from customers I once again complained to my LGM. He told me once again he would speak to the legal department. I went as far as mentioning it to the District Manager who then told me to just replace those customers with new ones (easier said than done). I lost many customers because of the former CSM complaining about the Schwan’s Company. The actions of the former CSM cost my partner and I lost sales and lost customers.

At our mandatory Depot meeting on Sunday, Sept. 23, 2007 (unpaid) my partner and I were officially informed we were a focus route. Also we were told we now had ADDITIONAL goals we must meet such as:

• We must have 2 BC’s (buying customers) BEFORE 8:00am and 2 BC’s AFTER 10:00pm each day. This does not mean stops but actual customers who make a purchase.

• We must add 4 NEW customers each day, not 3.

• The CSM running the day shift must have 12 warm doors every day. A warm door is when we solicit new customers and they allow us to come back in two weeks and we try and make a sale. This must be accomplished before the day shift is considered complete. If we fail do get 12 warm doors before 3pm we must stay past 3pm until it is done. (documentation available)

That evening after the depot meeting I received a phone call from our LGM. He told me he was tired of issues with the former CSM contacting my customers and he would be phoning the Human Resource Department of Schwan’s Monday to see how it could be stopped. I found that call odd because I was told at least 4 times before he was already talking with Schwan’s legal department.

The next day, Monday, Sept. 24, 2007, my partner and I ran our route. Our sales for that day were approximately $1100. This was the first day I was off my guarantee pay of $150 daily, $750 weekly. That day I made approximately $83.

The next day, Tuesday, Sept. 25, 2007 we return to the depot after running one of our other routes. I find out then the former CSM was assigned to “sweep” my Monday route (documentation available). WE WERE NEVER INFORMED OF THIS IN ADVANCE. When I run my routes if a person is not home I leave a note with contact information on their door for them to contact me that day. They can page me up to 10pm and I will return to their home for service. On Tuesday the former CSM sold over $600 to my Monday customers and was paid $150, I sold $1100 and was paid $83. According to our LGM he was NOT to be in contact with my customers but yet our LGM sent him to sweep our route. On Wednesday my partner and I questioned our LGM and pointed out to him we lost approximately $45 each in commission pay do to the former CSM sweeping our route. After being interrupted by a phone call our LGM informs us something had changed (as a result of that phone call) and will not be sweeping our routes. However it continued and by the end of the week 3 of our routes had been swept for a total of about $900 in sales. My sales that week were over $6000 and I was paid $504. This sweeping cost my partner and I lost pay from future sales. Also the former CSM, according to our LGM was not to be in contact with our customers but was sent out on our routes.

Our LGM explained to my partner and I that the “sweeping” was for our good. It was an attempt to try and find out when those customers would be home so we could adjust our schedule and meet their needs. Of all the customers who were swept NO information was ever given to my partner or I. When I discovered our Monday route was swept on Tuesday, Sept. 25th I told our LGM I had printed a list of the customers contacted that day. After that day I was no longer able to access the computer to get to the names. When I was finally able to access the computer I discovered they started to register the sales in the HHC as “Miscellaneous” sales so I could no longer track who they sold to on my routes.

Truckload sales are another issue. Three times in one day the pay structure was change for anyone willing to do a truckload sale on Saturdays. First it was a flat daily rate, then a flat daily rate plus commission. Then the daily rate increased and no commission. Does it make sense to pay someone $150 for the day to go out and sell $125 in product during a truckload sale? Well it happened in Ohio. Much that goes on at Schwan’s does not make sense.

I feel I gave the Schwan’s Company 110%. I was never late for work and I never missed a day. I worked a minimum of 10 hours every weekend to get better organized with the routes. I had Schwan’s best interest in mind when I was working. Because of the issues listed above and little support from management in the depot I found it in my best interest to resign.

Sincerly,

My Signature