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Many carriers offer better pay, benefits in '05
By Linda Longton
Many drivers can’t believe their good fortune these days. “We’ve had to battle owner-operators on the phone telling us it’s too good to be true, you can’t do that,” says Doug Albrecht, Barr-Nunn’s director of recruiting.
Albrecht refers to Barr-Nunn’s guaranteed low diesel price, one of a host of pay and benefit incentives that carriers are offering this winter in an industry desperate for drivers.
Schneider National announced in December what it called the largest pay increase in its 70-year history. The per-mile base rate for Schneider owner-operators jumps from 86 cents to 90 cents, which means an extra $4,000 for someone running 100,000 miles a year. The average pay increase for company drivers, too, will be $4,000 a year, the company said.
Dart Transit announced in December its second round of owner-operator pay increases in a year, to take effect in the first quarter of 2005. “Adding the two increases together, Dart has raised contractor pay about $7,500 a year,” says David Oren, Dart executive vice president.
Heartland Express announced in December a pay increase of 3 cents per mile, which combined with an earlier 2004 pay increase means Heartland drivers will make 15 percent more in 2005 than in 2003.
Sign-on bonuses for owner-operators are $5,000 at Parrett and U.S. Xpress and $7,000 at Paschall Truck Lines (PTL), which will double its sign-on bonus for company drivers to $3,000 on Jan. 1.
Beginning in August, Barr-Nunn, based in Grainger, Iowa, guaranteed 99-cent diesel to its owner-operators who fueled within its fleet network, which includes Flying J, Pilot and TA. More than 99 percent of the fleet’s contractors took advantage of the offer, which puts Barr-Nunn is in a better position to negotiate fleet discounts. Even more importantly for the carrier, 50 new owner-operators have signed on, and driver turnover has dropped from 90 percent to 60 percent.
“At first it cost us a pretty penny, but now our fuel surcharges have caught up with it,” Albrecht says. “It’s really been innovative. We’ve gone from losing 14 to 15 owner-operators per month to losing four to six per month.”
Barr-Nunn will continue the program through June 30 at least, Albrecht says, though the guaranteed price has inched up a nickel to $1.04. The national average diesel price is nearly twice that.
Some argue that a price war of compensation packages will do little to bring new drivers into a tough industry -- but while it lasts, it sure will help drivers already in it.
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