Comments on: Is Mileage Pay A Fair Way To Pay Truck Drivers?

By: Larry Harlow

Larry Harlow — Fri, 08 Apr 2011 15:54:23 +0000

I've been paid both ways. The best way I see pay to be implemented is a very simple formula. Drive by the mile, pay by the individual job you do. Set up extra duties by a commission basis. You do the job and you get paid the same amount for it regardless of the time spent doing it. pallet loads vs floored loads would pay more for the load on the floor. Set a minimum gvw pay for having to scale. DOT inspections pay depending on the type being done. Breakdowns are easy. From the time you call in for road assistance to the time the repair facility calls your company with the final bill. Traffic delays are just something you'll have to deal with. Weather delays would send that person into an immediate 10 hour break then pay by the hour up tp 11 before requiring another 10 hour break. Fueling a basic 1/2 hour. Detention time is/should be monitored by qualcomm from the time of arrival/scheduled arrival until the person sends an empty call in.

By: Thomas

Thomas — Sun, 23 Jan 2011 20:18:41 +0000

Brett percentage isn't that great ! because you don't get paid for sitting waiting on a load,and alot of companies out there take advantage of that ! I've worked for several and have put in as much as 6-8 hrs.per day,not getting paid for waiting to get loads. and in the oil/gas industry i was told when I get to the customer not to charge them untill after 4 hours sitting waiting to unload,when the load paid the driver 27 % or about $ 58.00 to the driver.
and the company I'm with now tells you to be at the shop at 8:00 so you can be at the customers at 9:00 and
when you get to thier location your time does'nt start till 9:30 or 10:00 . thats time you don't get paid for !

By: Mike D

Mike D — Thu, 20 Jan 2011 01:46:56 +0000

Shippers would have to be more efficient, driver dispatchers would have to be more efficient and both would be in a position to create more income. Less fuel used, less trucks on the road, fewer drivers aaannnnddd all the associated costs. One would have to believe shippers and recievers would like more timely departures and arrivals, yes? Then how can they continue to make the excuse "if we only had a "good" driver" the load would have made it on schedule? By demonstrating lack of and being held responsible for, efficient manhour use… with a carrot.
Since loading a truck(Van palatized), takes ave. about an hour or less, the ave load has about 15K$ shipper product, the Driver wage (if efficient)= 150-200$ a day, Fuel cost(if efficient)= 100 gal.<>=300$<>, tractor cost + 60 cents a mile x600 miles a day with payment and or maint.,… shipper costs on labor and forklifts are the least expensive portion of an individual load I believe. These numbers change with time, but are representative of how much goes into a "load"… so a little "help" in regulation could go a long, long ways.

By: Mike D

Mike D — Thu, 20 Jan 2011 01:43:02 +0000

It's no pretty thing managing a loading scheme for dock loaders as we've all seen,, but most loaders would like to be aware of numbers of loads to be handled the day before, AND have enough labor on hand to get the job done, without OT. It is not always how many doors do we have/what assets in forklifts and forkdrivers and lumpers that limits getting more loads out the door with what we have on hand at this jucture.

Again, much of the accounting on shippers part can be handled in software, and efficieny on loading would be seen more readily. Profit then can be honestly seen and a uniform cost analysis on loading time and manhours could give a number that can be relied apon. This would give a applicability to a surcharge on loading. If an efficient loading system handles the loadouts, then the Govt. could reimburse the shipper a nominal amount. This amount would go down for inefficiency to nothing. Rather than penalize, reward for keeping trucks moving.

By: Mike D

Mike D — Thu, 20 Jan 2011 01:41:49 +0000

Detention
This is the only real limit to productivity of the CDL driver. Weather does not affect daily opportunity all year round.

What regulation would need is a required notification of loads over, say 400 miles to be on a "18 hour awareness report". This could generate via software as interactive software to billing/shipping andwould be a requirement as a licenced shipper. The driver checks in, has a stamped "arrival" slip, this arrival time is handled at the dock mostly now and only regarded, not by management, but by a "dock supervisor". So in effect, management is unaware of much of the delays and are not "responsible" so do not see any benefit possibilties as those shipping point managers are out of the loop… responsibly. Without being made to "be aware", productivity will never be ramped up and the excuse of managing loader manhours will always be the excuse.

By: Mike D

Mike D — Thu, 20 Jan 2011 01:40:06 +0000

I have to agree with point Brett Aquila brings up on detention, and it ultimatly being in control of by the shipper, and all shippers would need a guideline on delays, and it would require regulation.

The problem I see is simple disagreement on the shippers part, they will think it would be an expense not called for.

As most of us that have driven, we've seen that, most shippers have nothing to brag about in efficiency in shipping depts. There are those, large shippers, that do get a lot done, some with too few assets, but even those intentionally keep costs down by limiting worker/loader manhours regardless of loads to be handled on daily basis. IMO, other than knowing saturday will be slow than monday and spring is more intense than Christmas/ will be buisy, the Big shippers do not vary scheduled manhours on an intense level.

By: Renee

Renee — Tue, 07 Dec 2010 07:17:50 +0000

Great Topic!!! My business partner and I are in the beginning stages of starting a small trucking company. Our original plans were to have owner operators lease on to our company, run under our authority and we provide them with a trailer. However, we started out purchasing two trucks and two reefer trailers and plan to hire two company drivers. Since my ex husband was an owner/operator and a company driver, I saw how many companies cheated him. So its important that I'm extremely fair to my drivers. We've decided to pay company OTR drivers on a percentage bases (70/30 split..with 30% to the driver). I'm trying to take into consideration everything that a driver must do while on the road. My only concern is will the 70% be enough to cover fuel, ins, tolls, equipment capital, highway road tax, truck & trailer repairs, etc). My biggest concern is the cost of fuel. Should I deduct the cost of fuel off the top and then do a 70/30 split? I really want to do whats fair to the driver, while making sure I can pay the bills and make a profit.

By: baquila

baquila — Tue, 13 Apr 2010 15:06:38 +0000

Ya know, that's interesting about the way they pay European drivers – I've never even looked into that. I'll have to take a look and see how they approach it. Ultimately though, it's going to be a combination of competition and legislation that determines the method of pay for drivers. Companies must be able to compete with each other, and they're going to do whatever they can to cut costs. So the idea of "they should do it this way" will likely have to be guided by some sort of legislation here in the US, not by morals and not by the way companies outside our own country are doing it. People want change, but they tend to freak out when you mention legislating anything. Unfortunately that's the only way you can get change in some circumstances.

And often times when it seems I'm going against a driver's best interest, there's more to it that you may realize. I'm a realist – I was a hard-working company driver for 15 years but I've been a small business owner outside of trucking for a number of years now. So I understand both sides – that workers want fair wages and fair treatment, but a company has to do whatever it possibly can to make a profit. Often times when someone disagrees it's because they've never owned a business before – they don't understand the realities of having fierce competition all around you trying to wipe you out every chance they get. Companies do not exist as charities for workers – they must be profitable or die trying. That's the reality that drives working conditions – competition and legislation – not morality or charity.

By: cman

cman — Sat, 10 Apr 2010 02:53:02 +0000

considering the vast majority of companies used the mover's guide and the miles are way off the milage pay is not fair. I don't understand why you wouldn't even look at the pay for european drivers with a combination of hourly and milage, with overtime on the hourly. That is a much more fair way to pay. I have looked through your different article and it's striking how many times you decide against the drivers best interest. Are you being paid by any companies through advertising?

By: russ

russ — Mon, 15 Feb 2010 07:15:16 +0000

First of all driver unload or assit is the way that the co. your delivering to saves money by not having to pay for its dock help,even to the point of the break down requirements of pallets in order for them to fit them in there racks,for there convenience,with your labor.As far as pay goes Mileage pay or percentage work is good for an owner operator,but only if its fair and just,one should not be getting the short end,with the price of fuel ,ins ect The rate should be brought way up to reflect the costs of modern days and locked in as a minimum,aka regulation, two dollars a mile+ stop pay-.Company drivers should not be behind the wheel for under 60,000 a year.Road and regional drivers should be paid on a 14 hr day @ minimal $20.00 per hr.Time is money for the rest of the working world why not for us? Ive been trucking 25 years or more and make less now than 20 years ago perspectivly.I could go on and on about the lack of fairness in this industry and the deteroration of it as well