Overdrive

July 2018

Overdrive Magazine | Trucking Business News & Owner Operator Info

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26 | Overdrive | July 2018 I n May, 200-plus-truck flatbed fleet Smokey Point Distributing announced a base salary com- pensation structure for its over-the-road company drivers. The fleet, part of the larger Daseke Inc. group, started the program June 1, paying solo OTR drivers with flatbed hauling experience an annual salary of $65,000 and each qualified and experienced member of a driving team $75,000. The move was among the most recent in an accelerating turn toward minimum guarantees for drivers. North Charleston, South Carolina-based Bulldog Hiway Express, also part of the Daseke group, last November guaran- teed flatbed haulers a minimum $1,000 a week in its Salary Plus program. Monroeville, Alabama-based Hornady Transportation followed suit with a simi- lar plan. Around the same time, Sioux City, Iowa-based K&B Transportation committed to drivers 2,500 paid miles per week, or a $1,125 per week mini- mum. The trend responds to a chief chal- lenge in OTR trucking — how to fairly compensate drivers subject to unpredict- able income due to piece-pay structures such as per-mile and percentage of revenue. Lacking any minimum-pay backstop, most OTR drivers can suffer serious pay shortfalls due to detention, weather and other factors beyond their control. The largest share of Overdrive's natu- rally entrepreneurial owner-operator readers continue to prefer percentage pay for the opportunity it affords to use load-choice latitude to maximize profitability on the fewest miles. But for company drivers, fleets large and small are pitching guaranteed pay, recognizing that "stability needs to be added to the pay package," says compensation analyst Mark Murrell. For owner-operators, truckload car- riers "haven't figured that one out yet," but Murrell speculates that "in theory they could pay [owner-operators] a monthly retainer" of sorts that might function as a minimum. The idea also was floated in recent history by a party among the new crop of technology- enabled brokerages as a time-based con- Washington State-based Smokey Point Distributing in May announced a new salary-pay structure for company drivers. The move reflects a trend among top-performing fleets toward minimum guaranteed pay. Courtesy of Smokey Point Distributing Guaranteed pay Fleets are introducing plans that promise company drivers a minimum weekly pay. Will owner-operators be next in this growing trend? BY TODD DILLS

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