Rethinking Trucker Pay

When a longtime truck driver talks about the good old days, chances are they will say that they felt that they made a good living doing a tough, and respected, job. Today, many of those drivers feel over-regulated, unappreciated and underpaid.

They make legitimate points. Drivers and trucking companies have far more official rules and regulations to follow now, with the promise of more to come. The hero image of the long-haul trucker has diminished, possibly due to traffic frustrations and media stereotypes. All of which would not feel quite so defeating if drivers felt they made a fair living. But according to the National Transportation Institute (NTI), which analyzes driver pay for truckload carriers, driver wages have not kept up with inflation in the past 30 years, despite high turnover rates and a shortage of drivers severe enough to cause concern in the industry.

For years trucking companies trying to attract and retain drivers also were dealing with high fuel prices and low freight rates. But now fuel costs have gone down at the same time that trucks have become more fuel efficient, and driver habits are now geared toward fuel economy.  Add in an optimistic forecast for trucking rates and revenue in the future and the stage is set for a re-evaluation of driver pay.

Many large carriers have been increasing per mile rates for the past few years, with some success. But a comprehensive look at the issue in Fleet Owner magazine explains that the structure of pay is being reconsidered also.

In the past few years, carriers have found success with:

Guaranteed Miles or Guaranteed Pay

Drivers can count on a steady paycheck, rather than an ever-changing amount based on miles driven on a particular week. NTI points to guaranteed pay as a proven driver retention strategy, and in and industry that has more than 100% turnover, keeping drivers costs far less than constantly recruiting and training new drivers.

Detention Pay

Truckers like to say if the wheels aren’t turning, then you aren’t earning.  And while the saying can be seen as a cheerful reminder to keep trucks in good shape, it’s also a frustrating fact when truckers are forced to sit for hours waiting to be unloaded. The time goes on, eating into their earning hours, but they usually don’t get paid. More carriers, just as frustrated with the problem, are making sure that their drivers do get paid for that time. Of course, the goal is to get the shipper or receiver to pay detention fees, and many experts say that the mandatory ELD regulation will help to reduce the problem.

Rewards programs and incentives

Fleets can gather a lot of detailed information about driver performance through telematics. Some now use that information to recognize drivers who achieve goals in safety, fuel economy or good driving habits, awarding cash bonuses or gift cards. In addition to giving drivers reason to stick with the company, fleets benefit from improved driver performance.

The trucking industry continues to change, and drivers still sit at the center of it all. In a period of economic uncertainty, their wages fell, but other options were scarce. That’s not the situation now, and carriers of all sizes are adjusting to the new reality.