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Nussbaum Boosts Pay for OTR Van Drivers
Mileage Pay, Weekly Guarantees and Profit-Sharing Are Part of the New Compensation Package
Key Takeaways:
- Nussbaum Transportation announced what it called its largest compensation update in recent history for over-the-road van drivers.
- The package raises mileage pay, weekly guarantees and first-year earnings, with larger increases for new hires in five designated markets.
- Nussbaum also added a $3,000 transition bonus, quarterly profit-sharing eligibility and a $2,000 early exit option.
Nussbaum Transportation on May 26 announced what it described as its largest compensation update in recent history, increasing mileage pay and weekly guarantees for over-the-road van drivers while adding profit-sharing and transition benefits for all drivers.
The package includes a 3-cents-per-mile pay increase and a $50 boost in weekly minimum guarantees for current OTR drivers. New hires will start 5 cents per mile higher than they would have earlier this year, along with a $100 increase in their weekly guarantee.
The largest increases apply to new irregular route OTR van drivers in designated markets: Chicago and Carbon Cliff, Ill.; Kenosha, Wis.; Indianapolis; and Columbus, Ohio. Drivers hired in those areas will start 10 cents per mile higher and receive a $200 increase in their weekly minimum guarantee.
“Our professional drivers set Nussbaum apart by living our vision and values in a job that can be quite challenging,” Nussbaum President Bill Wettstein said. “They deserve this pay increase, and we are excited for them to continue sharing in the value that their hard work and dedication have created.”
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Wettstein
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Nussbaum said the mileage increases and transition bonus apply to irregular route OTR van drivers. Profit-sharing and the company’s early exit option apply fleetwide.
Under the new compensation structure, new irregular route dry van hires are expected to earn an additional $5,000 to $6,000 per year, or about $120 per week. First-year earnings are expected to range from $81,000 to $92,000, depending on experience.
The Hudson, Ill.-based company said the increases are larger for drivers hired in the designated markets. Those drivers are expected to earn $12,000 more per year, or $230 more per week. First-year earnings for those hires are expected to range from $86,000 to $95,000, rising to $91,000 to more than $100,000 by their second year, according to the company.
Nussbaum also added a $3,000 transition bonus for new drivers, paid in full within the first six months.
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Drivers also will be eligible for quarterly profit-sharing bonuses tied to the company’s financial performance. Nussbaum said payouts will vary, but an average year would work out to about 2 cents per mile, while stronger years could exceed 4 cents per mile.
The company also doubled its early exit option to $2,000 from $1,000. The program provides transition assistance to new hires who determine within their first 90 days that Nussbaum is not the right fit.
Before the pay increases, the top 30% of Nussbaum OTR drivers were earning an average of $100,000 per year, according to the company.
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