USA Truck Inc. increased driver pay as much as 38% for some independent contractors beginning Oct. 1, the company announced.
Independent contractors now get paid $1.02 to $1.35 per mile, depending on length of the haul, up from a flat 98 cents per mile. A company spokesman said that about 18% of the total drivers are independent contractors.
The raise doesn’t apply to the company drivers, who are paid 37 to 42 cents per mile, plus benefits and bonuses.
The Van Buren, Arkansas, carrier also announced it would offer substantial discounts on fuel at in-network fuel stops and parts at approved maintenance shops.
“Our continued success in serving our customers derives from selecting the best contractors available, which we can do by providing fair and equitable compensation,” said Martin Tewari, president of trucking at USA Truck.
The announcement comes during difficult times financially for the motor carrier, which reported $3.1 million in losses over the first six months of the year. Chief Financial Officer Michael Borrows also resigned on May 19.
USA Truck will release its third-quarter earnings on Nov. 4. Analysts estimate that profits will plummet to $300,000, or 13 cents per share, from $2.55 million or 43 cents a year ago at this time, according to a consensus survey by Bloomberg News.