Trucker Dave is a seasoned, professional driver. Trucker Dave blogs on smart-trucking.com and on its YouTube channel
Trucker Dave responded via YouTube to a Transport Capital Partners (TCP) blog about a survey that indicated, due to lackluster demand, driver wages won’t increase by much in the next year. Trucker Dave is not happy.
A substantial majority, 70% of carriers surveyed, expect wage increases of only 1% to 5%. Transport Capital Partners
Trucker Dave is incredulous. He can’t believe it. His perception is different . . .
The cost of living has nothing to do with the freight index.
The cost of living on the road has nothing to do with the freight index.
Freight volume is not tied to your pay.
It’s a nice try. It’s another excuse for not raising our wages, but that just doesn’t cut it. By God— Don’t buy it for a second.
Freight volume has nothing to do with the money we make.
Following their logic — in low volume years — they expect drivers to live in grass huts and eat nothing but cabbage and potatoes. That’s the kind of logic that’s coming out of that argument. Thank you, TCP, but we’ll look elsewhere for advice. Appreciate it . . .
Here’s my response to Trucker Dave . . .
- Price is information. Price (i.e., wages) is also known as price signal. When things become scare, they can become more valuable. A thirsty man will pay more for that first glass of water, then he would for a 100 gallons of water, especially after his thirst has been satisfied. Price is information that helps in decision making.
- Wages are flat during recessions. Everyone in the U.S. experienced a shave and a haircut during the Great Recession. Trucker Dave is based in Ontario and Canada never really experienced what happened in the U.S. during the recession.
- Wages in trucking are one of the top expenses. According to the American Transportation Research Institute (ATRI), 34% of trucking’s operational costs per mile is driver pay ( An Analysis of the Operational Costs of Trucking).
Many fleets pay a competitive wage for quality drivers. Quality drivers are in demand and will be for a long time.
No Facts about the Future
No one knows what will happen in the remainder of 2016 and beyond. There are no facts about the future. But in the possibility of a continued freight slowdown, the likelihood of driver pay increases as seen in 2014 and 2015 is not that high.
Tip: Top companies conduct business literacy training programs to . . .
• Help employees understand the business information shared with them.
• Develop future, high-level leadership.
We need to constantly communicate not only what is going on in the business, but in our industry and how it affects operations.
Thank you for reading this.