U.S. fleets substantially hiking driver compensation

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U.S fleets have hiked driver compensation considerably over the previous two years, based on a brand new research from the American Trucking Associations (ATA).

Whereas the survey of fleets with greater than 135,000 firm drivers and 20,000 unbiased contractors didn’t embrace Canadian members, the ATA famous pay will increase have been widespread and substantial.

“The info helps what trade sources have been saying for a while – the driving force scarcity has been nice for drivers who noticed their salaries rise final 12 months,” stated ATA chief economist Bob Costello. “Pay will increase have been broad-based throughout the trade, for instance between wage will increase and bonuses, the typical truckload driver noticed a wage improve of 10.9% final 12 months.”

(Picture: iStock)

The median earnings for a U.S. truckload for-hire driver was $69,000 (all figures U.S.) in 2021, an 18% improve from the earlier survey in 2019. Greater than 90% of surveyed fleets elevated pay in 2021, with the typical improve being 10.9%. In the meantime, 96% of fleets provided referral bonuses for brand new drivers, and 54% paid sign-on bonuses.

The median wage for LTL drivers was $73,000, whereas non-public fleets paid drivers a median wage of $85,000.

Non-drayage owner-operators earned median gross revenues of $235,000. In a follow-up convention name with media, Costello stated information was collected late final 12 months and into January and February of this 12 months, with practically 60% of responding fleets reporting they deliberate additional pay will increase in 2022.

“I feel that’s certainly the case and is occurring,” stated Costello.

The figures included compensation and bonuses, however not advantages. “Drivers get good advantages, together with retirement plans, medical insurance, paid break day,” Costello stated. “This occupation is a path to the center class and there’s not lots of that left anymore.”

The survey discovered 80% of drivers are nonetheless paid by the mile, whereas 20% are paid hourly or by wage. Costello stated pay by the mile was as excessive as 95% a decade in the past.

For the primary time, the survey requested about compensation for Closing Mile supply drivers, who made about $65,000 – or $5,000 lower than an over-the-road for-hire driver. However Costello famous these are extra labor-intensive jobs, together with dealing with and in some instances organising deliveries.

“Numerous these over-the-road for-hire drivers don’t contact freight,” he identified.

Driver turnover stays within the 70-75% vary regardless of larger pay, however Costello stated it’s principally churn throughout the trade. Signal-on bonuses have been sometimes within the vary of $1,500 to $5,000, with some extraordinary bonuses that have been a lot larger on provide at some fleets.

Fleets have been requested if some drivers selected to drive much less whereas incomes the identical revenue when their pay was elevated and that was a “resounding sure,” Costello stated. “I’ve heard that from years from fleets, and it’s gotten much more so. You’ve gotten an occupation the place individuals are making within the excessive 60s, low 70s on common and also you give them a pay increase and lots of these people wish to be dwelling extra usually. Now it provides them a possibility to do this and make the identical amount of cash.”

The complete report may be bought right here.

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