More Truckload Carriers Raise Pay in Effort to Reward Drivers
This story appears in the Aug. 18 print edition of Transport Topics.
Three large truckload carriers last week announced pay increases, potentially indicating that a trend to increase compensation may be accelerating.
The truckload unit of Con-way Inc., which ranks No. 4 on Transport Topics Top 100 list of for-hire carriers in the United States and Canada, on Aug. 11 said its enhanced driver compensation package will raise mileage, incentive and layover pay.
A day later, No. 18 U.S. Xpress Enterprises Inc. said it was raising solo driver over-the-road pay an average of 13% as part of a restructured approach. Then, on Aug. 13, No. 71 Transport America said it is increasing pay in all driver categories by as much 4 cents per mile.
The moves are being made as capacity tightens and comments from other fleets have indicated a worsening driver shortage. They follow similar steps by other truckload fleets.
None of the companies that announced raises mentioned those specific situations, but all cited the importance of drivers to their success.
“After listening to their feedback and evaluating current market trends, this is the right time to increase our mileage rate and add new compensation programs which reward driver loyalty, productivity and safe driving performance,” Con-way Truckload President Joseph Dagnese said in a statement.
“U.S. Xpress made these significant changes to the pay structure for OTR solo drivers because the company continues to identify new, emerging business
opportunities with its strategic customers, most of which will be supported by OTR solo drivers,” the company’s statement said.
“Not only have we increased entry level pay, but we also enhanced the earnings experienced drivers can achieve within our organization,” Transport America CEO Scott Arves said.
Pay rates among fleets that are giving raises are accelerating at the fastest pace since 2006, Gordon Klemp, principal at the National Transportation Institute, recently told TT.
However, Bob Costello, chief economist of American Trucking Associations, said on an Aug. 7 webinar that even with recent increases, compensation for drivers over the long term still trails inflation by 5%.
At Con-way, where the increases go into effect Sept. 7, pay for new-hire experienced drivers rises to 42.5 cents per mile. Layover pay improves to $75 per day from $60.
Incentives are being added for mileage and continuous employment to create a bonus of up to 3 cents per mile. Independent contractors also are receiving higher mileage pay.
U.S. Xpress’ increase is effective starting the week of Aug. 25 and targeted to drivers who aren’t on dedicated runs. Based on driver comments, the company also streamlined its pay structure to give all solo over-the-road drivers the same base mileage pay.
Transport America’s Sept. 1 move affects solo, team, regional and owner-operator divisions. Team drivers will receive 4 cents per mile more for hazardous material moves, and most will receive 1 cent per mile for all freight. Owner-operators will get 2 cents more per mile, while experienced drivers will start at 43 cents for over-the-road and as much as 40 cents on regional runs.
