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Driver Pay
- Thread starter Michael Ludwig
- Start date
20
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Drivers if they're smart will look for carriers that pay hourly for ALL time spent performing 'on duty not driving' duties including all time spent at customers or in lineups to cross/clear customs as well as the good old " call us in an hour or give us an hour to find something"..
Those who also pay hourly for LTL within a major city will also have an advantage.
No freebies and no excuses to not compensate in that manner really when all the data is stored electronically.
That being said, I was happy to have received a 10% raise in hourly pay plus a 10% increase in the mileage pay recently.
Bottom line is that driver pay is going up if you want to compete for quality staffing
Or... you can encourage Owner Operators to go buy pre 2000 equipment which will apparently be exempt from the electronic logs which I can see some doing lol
Those who also pay hourly for LTL within a major city will also have an advantage.
No freebies and no excuses to not compensate in that manner really when all the data is stored electronically.
That being said, I was happy to have received a 10% raise in hourly pay plus a 10% increase in the mileage pay recently.
Bottom line is that driver pay is going up if you want to compete for quality staffing
Or... you can encourage Owner Operators to go buy pre 2000 equipment which will apparently be exempt from the electronic logs which I can see some doing lol
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Snafu has brought up the point of hourly. What would be a fair hourly wage? I do believe that will be the wave of the future.
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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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.
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@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.
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.
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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?
$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?
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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.
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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.
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.
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Loadlooker, I'm just a little curious. Did this bring down the drivers' paycheck at all?
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.
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.
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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 !!!
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 !!!
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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?
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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 ???
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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.
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ThanX, we are just a little curious and are watching others in order to help us determine which way we should go
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I would think by now you would have a short list of potential suppliers. What technologies are you looking at?