* Tennessee - US trucker turns to guaranteed pay to fight driver shortage
-- In an intense battle to hire and keep drivers, trucking companies increasingly offer not just higher pay but guaranteed pay, augmenting per-mile pay packages... Covenant Transport, the 18th-largest U.S. truckload carrier, is rolling out what may be the largest guaranteed driver pay program in trucking to date, offering $1,000 week in minimum guaranteed pay to more than 1,000 of its approximately 3,600 drivers... The shortage of qualified drivers is now the biggest check on truckload carrier expansion and perhaps the biggest factor pushing up the rates shippers pay for capacity... For decades, long-haul truck drivers have been paid by the mile, usually through a cents-per-mile formula. With qualified drivers in short supply, that’s starting to change. Increasingly, carriers are looking at different pay methods, often based on the type of driving involved, whether long-haul or regional, hauling general or specialized freight... The basic problem with per-mile pay, he said, is that it’s not consistent. Carriers can’t always guarantee a set number of miles per week, which means pay levels fluctuate. Breakdowns, roadside inspections, delays at shipper docks or highway congestion can cut into miles and unexpectedly slice hundreds of dollars from truck driver earnings...
(Photo) -- Chattanooga, TN, USA - J.O.C., by William B. Cassidy - Jun 04, 2015Labels: truck drivers payment, truckers shortage
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