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Driver Pay

Discussion in 'Business Strategy' started by Michael Ludwig, Dec 14, 2015.

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  1. lowmiler88

    lowmiler88 Site Supporter

    We do not have a lot of brokers but gave them 4 months then no choice except to switch, but by then we had good data to show them how it works and really lost 1 of 6 out of it.
     
  2. truck05

    truck05 Member

    Totally agree about the whiners.
    We've had very successful roll out with the company drivers, seems to be an uphill battle with the Owner ops though.
     
  3. lowmiler88

    lowmiler88 Site Supporter

    truck05 you need to see what they make now (gross) and figure that out to 2500 miles per week for your good guys. If you are a good company and can keep them close in earnings you will not loose to many of them, most of our Super Truckers would not switch back to paper. We are starting to realize that the couple that still whine are probably not the ones we want in our fleet anyways.
     
  4. truck05

    truck05 Member

    Has anyone got any great ideas or incentives on how to bring around some of the older slightly stubborn drivers to get on the ELD's? Doesn't seem to matter how nice you talk about ELD's to some of them they don't even want to entertain the thought.
     
  5. lowmiler88

    lowmiler88 Site Supporter

    We started ELD's in June our high milers dropped in miles hence the pay raise to keep their wages as close to static as possible, The interesting part was the bottom guys actually increased a couple of 100 miles a week because they had to sit in the seat and drive and quit wasting time. As soon as we tell customers and brokers our drivers are on ELD's their is no issue as we can pretty much tell them more accurately when the driver is going to arrive, no more trying to track down the driver for an ETA. The only issue with our drivers is/was waiting between loads as they now see the clock ticking and cannot stop it.
     
  6. Michael Ludwig

    Michael Ludwig Well-Known Member

    I would think by now you would have a short list of potential suppliers. What technologies are you looking at?
     
  7. martinetav

    martinetav Well-Known Member

    ThanX, we are just a little curious and are watching others in order to help us determine which way we should go
     
  8. Loadlooker

    Loadlooker Member

    I am sorry I dont know. I do know that some of the o/o left when we introduced it as they didnt want to change
    Not that I am aware of.
    I do know that our City drivers do the Beginning/final mile for Pick up and delivery. Our OTR drivers do not sit waiting for loading and unloading here in the GTA. A lot of our customers and drop and switch. This really helps our drivers as well.
     
  9. TransAction

    TransAction Active Member

    LOL, good point!
     
  10. Michael Ludwig

    Michael Ludwig Well-Known Member

    Aha ... it's a trick question !!!
    If you are legally logging a paper log, why should the switch to electronic make any difference in transit times ???
     
    snafu likes this.
  11. TransAction

    TransAction Active Member

    How will this affect transit times? I am assuming some points that are just on the cusp of next day will turn into 2 day points and 2 day points to 3 days and so on?
     
  12. Michael Ludwig

    Michael Ludwig Well-Known Member

    You're right it does still work paying by the mile, however when everyone is on e-logs, the ground rules change quite a bit. The guy around the corner that runs by the seat of his pants will be on an even playing field now ... no more can he scoop you by running outside the HOS regs. All drivers become the same pool of qualified employees.

    Quick example ... right now there's a super hot market in Philly. Everyone and their dog is begging for trucks down there. In two years time the question will not be "Do you have a truck in Philly?", but "Do you have a driver with hours in Philly?".

    @Rob ... so why isn't a qualified and skilled commercial transport driver as valuable as the dickhead that shovels the sidewalks for the city for $32.50 an hour plus an OMRS pension ??? I'm not pointing my finger at you, or anyone else for that matter, but it just pisses me off that our industry treats its most valuable assets like second class citizens when it comes to compensation. I truly hope the e-logs changes the landscape for drivers across the board ... God knows they have deserved it for an awfully long time. Just look at the sunshine list and ask yourself how many of those people carry even half the responsibility that a commercial driver does ... that answer is not too damn many of them.

    Where's the money coming from? Some of it is going to come from your own efficiencies. If you're not reconfiguring your fleet for 10+ mpg, you're behind the 8-ball right off the start. In cab scanning and printing is going to move your money quicker which means less carrying cost for you. The rest is going to come from the consumer ... you know, the people that think pork chops just "appear" in the grocery store's meat department.

    @whatiship .... Amen !!!
     
    martinetav, Igor Galanter and snafu like this.
  13. whatiship

    whatiship Well-Known Member

    The biggest problem I see is that when you ask most good long time drivers why they continue to run, and put up with the stress and nonsense out on the road the standard answer is that they enjoy a job when no one is looking over their shoulder everyday watching every move they make.
    Rarely do they say "I do it for the money"
    They started trucking back in the day when their contact with dispatch was a phone call when empty and maybe a once a day status update on a long haul.
    Now, with satellite tracking, cell phones and Elog's that feeling of being "your own boss" out on the open road is quickly disappearing.
    Money took a back seat to the joy of doing something that you loved to do. Once "Joy" is gone "Money" is going to jump into the front seat and start giving orders.
     
  14. martinetav

    martinetav Well-Known Member

    Loadlooker, I'm just a little curious. Did this bring down the drivers' paycheck at all?
     
  15. snafu

    snafu Active Member

    For what it's worth, currently the mileage/hourly rate puts me at a figure north of $28 per hour and that number goes up if specific duties call for things like team operating or after hours work.

    And no it is not a union shop.

    Michael really isn't that far off with his numbers if we're projecting 2 years ahead.
    I believe the industry is looking at a reality of a $30/ hr+ pay rate.
    For some it's already here.
     
  16. Loadlooker

    Loadlooker Member

    The Company I work for has been on ELogs for almost 4 yrs now. We still pay by the mile for most drivers. It still works.
     
  17. Rob

    Rob Site Supporter

    Michael,

    $35.00 a hour at 60 hrs a week 50 weeks a year is $105,000 a year. I know what you and I pay drivers and that sure is a big increase. My top highway driver was around $80k last year so you think electronic logs are going to give drivers a 25k yearly raise. Sorry can't see it. I cannot see where the money is going to come from. Would I like to pay a driver that sure if it is there but it isn't. Hell we all bitch that teachers make 90-100k .

    The rates you listed are all POS union jobs that are way out of line with the norm for unskilled labor in the general marketplace. Forklift drivers are around $14-$18. The guy in the machine shop is lucky to get $25 etc. Union wages are not even $105k a year now for teamsters drivers what will they go to 150k?
     
    Wiley One, chica123 and martinetav like this.
  18. Michael Ludwig

    Michael Ludwig Well-Known Member

    @Rob
    The guy that works for the City makes $32.50 an hour. The guy that works at the steel mill makes $37.50 an hour. The guy that works the line at the car plant makes $42.00 an hour. Non of these people are skilled labor. So, what do you think a fair hourly rate for a driver is? I know my drivers are looking at the $35.00 mark just for starters.

    @GSTRUCKS
    We won't find efficiencies to cover that much of an increase. rates are going to go up. There's no alternative.

    @lowmiler88
    Try this ... You pay your driver for 14 hours a day x $25.00 an hour, or $350.00 a day. You dispatch a load out and a load back and calculate the whole turn as 11 days, loading and unloading included. You pay the driver 11 days at $350.00 per day, or $3,850.00, no matter what happens. If it takes 12 days, he eats a day. If he does it in 10 days, he gains.
    Your rate structure changes to $x.xx per mile for your truck, plus $350.00 per day for the driver, plus 20% of $350.00 for payroll taxes and such. Driver pay becomes and independent cost center as far as the books are concerned.
    Might not be a perfect solution, but it's a start. Equipment cost & profit is covered by the mileage rate, and the driver is covered by the wage portion.
     
    snafu likes this.
  19. lowmiler88

    lowmiler88 Site Supporter

    Here is the problem with hourly you would need a split wage (I know all drivers freak out) but you would need a driving wage and a on duty wage because no matter what you have to have an incentive for the driver to have their ass in the seat driving. I know for the best of the best that is not the problem because they do what is right for the company but what about the other 50% who would spend that extra time at a dock or pick the longest line at the border etc etc. This seems ridiculous but take the -# of drivers X 1 hour per day X $25 (Good Quality Driver) X 5 days per week X 52 weeks per year - and you will see what I mean. The next question is are you paying for that time in between loads, if not do you not think it will take an extra hour to unload/load/border? This industry sucks for a driver but it can also be very rewarding, not too many high school educated people can make 80K a year. It has taken about 5 years to figure out a pay scale that works for ELD's and we successfully implemented that with the loss of 1 driver. I am confident that we can figure out an hourly rate that is fair for everyone in a couple of years because I believe a driver deserves to be paid for everything they do. It takes a long time to change an Industry Standard and you will take a hit but if you are smart about it you are way ahead in the long run.
     
    Salma, Igor Galanter and Rob like this.
  20. GSTRUCKS

    GSTRUCKS Member

    Where will the carriers find efficiencies paying drivers by the hour? I put this out as a debate topic, as I have some drivers that take an extra day or 2 compared to others on runs to the west coast/longhaul etc.... where do you find your baseline to determine cost if not paying by the mile, which the mileage rate would be the same for the driver that does the West Coast turn in 9 days versus 11 days...do we quote customers more money when we know the driver needs an additional 2 days to cover the same mileage... what about the truck stop heros that stop every 100 miles versus the drivers that don't stop driving during their shift at all?
     

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