Driver Wage Increases Continue to Slow

Few trucking companies made significant changes in their driver pay last quarter.

According to The National Survey of Driver Wages' February 2001 report, only 13 percent of the more than 400 truckload fleets in its survey made changes during the quarter, and those changes only averaged 1.3 percent. In the previous quarter, 14.7 percent of the carriers made changes averaging 2.6 percent.
Flatbed carriers made changes more often than dry van or refrigerated, with 15.2 percent of carriers increasing wages an average of .8 percent. Refrigerated carriers made the biggest changes, with 12.3 percent of them raising pay an average of 2.6 percent. Dry van carriers were the least likely to raise wages during the quarter; 11.4 percent of carriers raised wages an average of .4 percent.
"With the industry suffering from high fuel costs and slow freight, it is not surprising" that few carriers raised driver pay, according to the Survey. "The moderation in wage increases is a strong confirmation that for now, supply and demand for drivers is in balance. Most recruiting managers believe that drivers are in good supply right now due to carrier failures and owner-operators turning in their trucks and becoming company drivers." The survey lost 4.4 percent of the wage packages on which it normally reports this quarter, due to carrier buyouts or bankruptcies.
There were only four carriers in the survey who increased their starting base mileage pay for a solo driver with three years experience: dry van carrier Menasha Transport, and refrigerated carriers ETV Inc., Sather Trucking Corp. and Wilson Lines. In addition, West Motor Freight of Pennsylvania, which pays its drivers a split of the revenue, increased the drivers' share from 24 percent to 26 percent.
Of the carriers making a change, more than 55 percent had a change to the drivers' weekly health insurance premium. Reflecting profit pressure, the carriers had to pass on changes to their health plans, increasing the costs to the driver.