Driver Pay Hikes

I found an interesting article in Transport Topics that I wanted to share about compensation for drivers.  Here are the high/low points:

• Most carriers believe there are very few quality drivers out there to hire.
• Most carriers don't believe raising pay will bring the number of drivers they would like to have.
• 3.7% of the 300 fleets that were measured raised pay in the past quarter.

Bill Graves, president of the ATA, said, "The fact is that driver pay, in terms of real wages, hasn't risen appreciably in 20 years. The pay-by-mile model will continue to grow more and more challenging due to declines in average length of haul and congestion."

Graves offered several options.  Incentives such as on-time delivery or meeting safety targets will have to be created, or the basis of our pay will have to shift to hourly.

Here are some opinions from competitors:

US Express---Our strategy is not necessarily raising pay for drivers as a whole.  Instead, we reward drivers for the the right behaviors such as safety and utilization.

NFI-------------Pay is based on specific accounts and geography.  100% of their jobs are dedicated.  Pay is adjusted based on services (unloading, etc) performed and seniority.

Here is an opinion from a consultant in the industry:

Fleets are buying capacity.  If you are going to grow as a fleet, you will have to take new CDL holders and do finishing training or a lease purchase program.

All interesting concepts in the ever changing world of driver compensation.