@BusinessGenius do you see truckload pay rates / driver quality of life improving over the last couple of years?
I work in IT for a hazmat / tanker carrier, I have some visibility into how we’ve had to make changes over the years. Like you and @boredsocial said, every manner of trucking is different and I know nothing about those other modes. So all of this is specific to my industry and New York / the northeast over the last 8 years. We have a few guys that stay out in sleepers, but most guys are home every night. These are still 10-14 hour days that either start at 3am or end at 3am. It’s a hard schedule for most people, but it be considered “easy” in trucking.
We historically have not dealt with brand new drivers. Guys had to have had at least 2 years doing tanker driving before we would even look at them. We’ve had to start getting away from that, taking guys who have driving experience but not tanker/hazmat. And we’ve started doing a little bit of a training program, taking newer guys but not giving them hazmat work. We don’t want to do that work, it’s specifically done just to train drivers who can’t yet do hazmat/tanker. It was a big success that we moved 2 guys from that program into doing the “real” work.
Signing bonuses have tripled in the last year. We also have a really aggressive referral bonus - if a driver refers another driver, the referring driver can earn up to $3k - four $750 chunks based on passing training / 90 days after training / 180 days after training / 1 year) but we’ve only ever paid it out a few times.
All experienced drivers are commission based for us (this is not typical in the northeast for this industry, most companies are hourly) - when I started it would be usual to see a less experienced driver come in at 28% and stay there for a year or more (so he’s making 28% of Linehaul / Accessorials, not any fuel costs). No one is ever under 30% now, and it’s rare for a guy to be below 32% - experienced drivers often come on at 35%. Brand new drivers, we have a guaranteed salary minimum - so effectively they are hourly - but we break out what they would have made had they been commission, convince them that they will make more, and move them over. That guaranteed salary floor we had to put in place to recruit, commission is understandably a dealbreaker with some guys.
We’re super flexible with shifts now. We still require one weekend shift, but basically anything else is on the table now (it was not like this years ago). 4 days on 3 off, 4 on 4 off. I think I told you before but if a guy wanted to work 3 days a week, I bet they’d hire him.
Delay that is the customer’s fault is paid to them at at least $25.60 an hour - those are old contracts, all new / revised contracts pay at least $32. What we call non chargeable delay - say a flat tire or whatever - we paid at $18/hr 8 years ago. That went to $23 to $25 to $27.
Rates to customers have also risen rapidly the last few years (being commission based that’s passed on directly). There was one customer that was under contract but we told them “We cannot find drivers that will do your work at this rate any more.” They renegotiated.
We’ve tried to do some quality of life increases - one small one, AQ mentions above inward facing cameras. We had those, and did away with them because they were so hated. Another one - drivers hated going to a specific loading point, so we went to every customer that loaded there and told them they were getting a additional charge for every order at that origin point, that was passed directly to the driver 100% - meaning the company took no percentage of it. I think that would have been unthinkable a decade ago. The few sleepers we buy and use are a bit bigger. AQ mentions above that dispatch will refer to a driver as a pussy if they turn down a load, I know that is how it is in the truckload world but we wouldn’t allow that here. Good dispatchers are hard to find, too, but there’s no way we’d let someone abuse a driver here.
The average guy - when we compare his commission to hours in his log is at $37+/hr. We have guys that are like the robots that AQ mentions above that are well above $40. One guy swears to me he makes $50 an hour, but I think he’s just bad at math. Our average driver works 5 days a week, but the guys that often do 6 (or stay in a sleeper) make $135K+. Our top guy this year was $162k. With rate increases, if he works the same amount this year I bet he’ll be $185k. Average guy was $102k, average full time guy that works 5 days a week (so removing the robots) was $93k. The vast majority of these guys are home every night.
At least in my sector we’re trying hard to improve things for the drivers. This is the only way to keep the guys.