Driver Pay Package

#1
Hello Folks

What are the different ways/bonuses do you pay your long haul drivers to keep them happy instead of flat per mile rate. for eg. Paying them for their reset on the road. for scaling. etc

Thank you
 
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Freight Broker

Well-Known Member
#3
When I was with Sunbury we paid fuel efficiency bonuses, extra for NYC (an extra $100.00 to any of the five boroughs), safety bonuses, longevity bonuses, and driver referral bonuses. The bonuses improved the flat rate per mile significantly.. Even had one driver who made more referring drivers to Sunbury than he made driving a truck!
 

snafu

Active Member
#5
With elogs drivers are going to demand hourly pay for all driving time and on duty not driving responsibilities.
You can either get ahead of the pack and offer it or watch the pool dry up.

Hourly pay especially if you run the eastern seaboard..
 
#6
So has anyone adjusted their costing to the customer based on this yet (successfully)? Or do we all just run for broke switching to hourly pay, which increases the variables involved with costing a load and puts carriers responsible for even more that they cannot control consistently. Who is to say driver A is going to be as productive as driver B? If all was equal with drivers from one to the other then I would agree hourly pay could work...but no driver is alike... and some can vary by several hundred miles a day worth of production (when averaged out over a week)

Will certainly be interesting to see how this all works out...the fleets with the drivers, because they pay hourly, will be bankrupt as they cannot accurately cost loads to get the freight, and the fleets that pay by the mile will be able to cost loads effectively to get the freight but will not be able to get drivers (according to some on here anyways) to drive the trucks...sounds like a typical lose/lose trucking problem that gets pushed on to the industry to figure out based on half assed thought out legislation...

To be continued I am sure...



With elogs drivers are going to demand hourly pay for all driving time and on duty not driving responsibilities.
You can either get ahead of the pack and offer it or watch the pool dry up.

Hourly pay especially if you run the eastern seaboard..
 

lowmiler88

Site Supporter
#7
GSTrucks I'm not sure I would take SNAFU as talking for all drivers it will eventually happen but not until some of the big boys get into it which will be a number of years. I'd like to know who SNAFU is driving for now and does he get paid by the hour for driving on the highway? If not why is he not working for some of the carriers advertising hourly pay?
 

snafu

Active Member
#8
Lowmiler... someone has to stand up for drivers because God knows very few here are going to.

Sorry if my advocacy irks those who don't want to hear it but if you don't believe that a large contingent of drivers are in favour of hourly pay then you aren't paying to the drivers.
There's been calls for it for 3 years now.

Heck even Mark Seymour of Kriska called for it.
 
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Freight Broker

Well-Known Member
#9
Seymour called for it and quickly backtracked when he understood the cost involved... notice how Kriska is still NOT paying hourly now, four years after he made his pronouncement about paying drivers hourly. The amount of money available for driver wages doesn't change depending on the mode of payment used.. i.e. the total money pot remains the same size regardless if you're getting paid by the hour or the mile or by some other measure.
 

lowmiler88

Site Supporter
#11
snafu don't fall off that soap box. We take care of our drivers, we've been on ELD's for over 2 years (before that never once asked a driver to run over their log), we are in the top pay bracket, no forced dispatch unless you are the last driver and 1 load remaining, great benefits etc etc etc without drivers we would not have a trucking company. The part that I don't understand is the bitching and complaining but continuing to work for companies that do not treat their drivers right. Would I like to pay by the hour absolutely but much like all other companies how do you do it and stay in business? Don't say raise rates we are not big enough to scare anyone into paying a lot more because they can find the next carrier in 2 minutes to haul the load. I truly believe ELD's for everyone is the first step and then we need some very large carriers to lead the way to make it work. Wouldn't it be a wonderful world if we could all work 4 - 8hr days and make a 100K a year but that is not how it works in any business.
 

snafu

Active Member
#12
Lol every company claims to be in the top pay bracket.
I particularly like the 'competitive wages' offer that most advertise lol

lowmiler88, nothing will ever change without drivers pushing for it because as we've seen here, the inside doesn't want it to.

As Al Goodhall (Truck News monthly column) said..

Al Goodhall says:
February 12, 2014 at 9:02 am
All this worry about tracking the productivity of drivers before implementing a pay by the hour system for drivers is frankly, ridiculous.
The industry already possesses all the data it needs. Fleets know the average speed per mile a truck moves in real time for each of the different lanes they operate in. You can’t tell me that fleet executives and managers don’t know how long it takes to drive between any two fixed points in North America for a single or for a team. You also can’t tell me that fleet executives and managers don’t have the know how to factor in potential delays, they happen. Productivity is built into the system. You hire a driver with the expectation they can meet a set of minimum delivery time standards between points. The EOBR becomes nothing more than a time clock. It measures the standard agreed upon at time of hire.
The elephant in the room is always the hourly rate of compensation. Nobody wants to talk about it. Why? Because it would bring transparency to the issue of driver pay and compensation.
If a line haul driver is working 2500 hours per year (driving and on duty) for $60,000 that’s a rate of $24 per hour based on an average work week of 50 hours per week and a 50 week year (2 weeks off for vacation) so that’s 2500 hours per year. Many line haul drivers presently work well in excess of 2500 hours per year. An average 60 hour work week is 3000 hours per year. Now for that same $60,000 per year income we are looking at $20 per hour. We have not even approached the 70 hour per week cap fleet executives often bandy about when they are discussing maximizing productivity.
Okay drivers, now think about the risk you put yourself at, the demands this job takes on your health and family time, the skills you employ everyday navigating a piece of heavy equipment safely on today’s public roadways and the expectations, limits, responsibility, and liabilities that are placed on your shoulders by legislators and fleet executives.
In a world of pay per hour compensation a line haul driver shouldn’t be accepting anything less than $30 per hour. That’s a starting point for fair compensation that executives within todays trucking industry probably don’t even want to think about, let alone talk about.
 

Michael Ludwig

Well-Known Member
#13
Been out of touch for a bit and just saw this thread ...

Lowmiler... someone has to stand up for drivers because God knows very few here are going to.
That's a lie.

Every responsible carrier and broker on this site, and I expect that is most of us, will back our drivers, and our carrier's drivers, to the hilt. Lord knows they back us companies up all day, every day, and none, I mean NONE, of us would be in business without them.

Brother, I believe you owe the stand up citizens of this community an apology.

Lastly, Al Goodhall may have been ahead of his time, but he is not wrong. If I go to $42.00 an hour for my drivers right now, I will have about enough work to last until Friday. The system needs to change all at once. The only way that happens is by government mandate ... the Elog is that mandate. My best guess, by the end of 2019, when Canada is full on board with Elogs, drivers will be paid by the hour.
 

snafu

Active Member
#14
Don't hold your breath waiting on that apology.
It'll come when and only when you folks start taking the drivers anger and frustration seriously. For 7 years this has been talked about. Al Goodhall wrote that 3 years ago and now you want us to believe and trust that it's going to happen in another 2 years from now? LOL.. OK Lucy.. (Charlie Brown and her holding the football reference)

It's very very obvious that any suggestions that drivers must be paid substantially more are always shunned and again the claim. 'Of oh we can't afford to do that' we'd love to but blah blah blah...

Look at the overtime pay issue. Drivers are lied to and told oh there's no overtime pay for OTR drivers and have been for how many years now despite it being the law.

Sorry Michael but drivers have absolutely no reason to trust any carrier or broker will keep a promise. The industry created that mistrust.

The smoke being blown up our asses doesn't work any more.

That's the cold hard truth.
 
#15
Don't hold your breath waiting on that apology.
It'll come when and only when you folks start taking the drivers anger and frustration seriously. For 7 years this has been talked about. Al Goodhall wrote that 3 years ago and now you want us to believe and trust that it's going to happen in another 2 years from now? LOL.. OK Lucy.. (Charlie Brown and her holding the football reference)

It's very very obvious that any suggestions that drivers must be paid substantially more are always shunned and again the claim. 'Of oh we can't afford to do that' we'd love to but blah blah blah...

Look at the overtime pay issue. Drivers are lied to and told oh there's no overtime pay for OTR drivers and have been for how many years now despite it being the law.

Sorry Michael but drivers have absolutely no reason to trust any carrier or broker will keep a promise. The industry created that mistrust.

The smoke being blown up our asses doesn't work any more.

That's the cold hard truth.

Who did you drive for that made you so angry???

Our drivers are happier than pigs in poop and we don't pay by the hour as of right now, BUT they gross almost $80-$100G per year and are always home on the weekends, never hitting their 60 hours. But hey, I'm sure you're convinced that we're ripping them off somehow right????
 

chica123

Site Supporter
#16
Snafu, I feel so much anger and hatred coming your posts. Where has all this come from? This is a tough industry. It is very hard for drivers, for sure. I, personally would love to pay drivers whatever they asked for. We can't run a business without them. But let's be realistic, we are not out to lie and cheat drivers like your post says. Trucking is a very difficult business to turn a profit in. We can't run our business into the ground. If we did, drivers, dispatchers, accounting, everyone would be out of a job. I think it is great you are standing up for drivers and the difficulties they face, but please don't assume that all drivers share your hatred and please don't assume that all companies are out to get the driver. I just think your posts would be more effective by sticking to the topic at hand without spewing all this negativity.
 

snafu

Active Member
#18
Morning Chica.

If you're still wondering where the anger comes from then just look to the news over the past 2 days.

Or do we need more deaths for folks to 'get' it. ?
 

Michael Ludwig

Well-Known Member
#19
That's the cold hard truth.
The cold hard truth ???
I seriously doubt you can handle the truth, but here it is anyway ... the cold hard truth brother is it's your own blood, that is other owner-operators, that are screwing you, not the carrier base. Every single one of us here would love to pay you substantially more than what you are getting now. Every single one of us.
Lets say that you are a stand up guy. You run like a business. You save your money. You have a nice home for you and your family. You pay your 20% down on your new truck. You pay your taxes. You have calculated you require $2.00 a mile, and a fuel cap to make your business work. That's a fair assessment, and carriers can get on board with that.
(Please don't anyone take the rest of this as being racially insensitive)
However, just as I am is about to hire you, another owner-operator walks in. He has recently immigrated from another country to Canada. As a new immigrant, the Canadian government gave him $250.00. For that $250.00 down Sheehan's sold him a brand new Volvo. His church backed his loan at an exceptionally low interest rate, and provided him and his family with low cost housing. He calculates he can run for $1.10 per mile plus a fuel surcharge.
I expect you can see where we're starting to have a problem, correct ???
Now we're going to compound that problem. I, as a carrier, have contact with a fortune 500 company. I have calculated my costs, and including a 10% profit margin, figure I need $2.25 a mile, plus a fuel surcharge. My customer agrees, and we contract. However, six months in, along comes a newly minted carrier. He's going to revelutionize the transportation industry. He figures (didn't really calculate) he can work for $1.85 a mile, all in. He goes out and hires a whole bunch of owner-operators that figure they can work for $1.10 a mile.
Fortune 500 companies, like pretty much any other company, answer to shareholders, and shareholders only. Guess what happened to my contract?
I suspect now you have a bunch of comments ...
1) But these new guys aren't qualified. They don't have any experience. To which I answer, who cares?
2) But these new guys are going to go broke. To which I answer, who cares?
3) But these new guys are going to get into accidents? To which I answer, who cares?
4) But these new guys run illegally. To which I answer, who cares?
5) And so on, and so on, and so on ... who cares?
Fortune 500 companies, like pretty much any other company, answer to shareholders, and shareholders only.
Whether the scenario is owner operators or company drivers, it's the same formula.

It boils down to simply this ... If I can only get $1.85 a mile for work, how can I pay you $2.00 a mile? I am not a charity, and I don't really give a shit if I get a good seat in heaven or not. I, like you, like any other company, answer only to shareholders, regardless if that is one shareholder, or millions.

Sit in my seat for a while. You figure out how to pay drivers more. It's not as simple as "charge customers more". You can hike your rates and wait for shippers to run out of low cost carriers, but now instead of your drivers doing 3 turns a week and making 80-100k a year with weekends off (which mine do also), they might get one, and it's definitely going to be a weekend load. Don't forget though that whether you work your trucks or not waiting for that big payday, the taxes and rent are still due at the end of each and every f@#$ing month.

Rome was not built in a day. It took decades for this disparity in fairer compensation to come to where it is. Do you really think it is going to be solved overnight? If you do, you are a fool, and I for one, feel sorry for you.

One final thought; wish lists are for little children that still believe in Santa Claus and the Easter Bunny. Stand up like a man and fight for what you believe to be yours. Quit hiding in the dark, whining, crying, shouting, and complaining. Become part of the solution instead of a distraction to others that are really trying to solve legitimate problems that face drivers and owner operators. See if you have what it takes to bring real world solutions to the table.

My name, my real name, is right there to left of this post. I like to think I am one of the many that are desperately trying to solve the issue. I'll be waiting to hear your solutions. That, I won't be holding my breath for.
 

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