How much should an OTR driver earn? Here's my opinion!

Discussion in 'Questions From New Drivers' started by wheelwatcher, Jul 1, 2011.

  1. jbatmick

    jbatmick Road Train Member

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    :biggrin_25523:Well, we can believe a job might be worth 52 thousand a year, or 60. Maybe newbee's should start at 30 grand. Maybe less, perhaps more. Freight should pay an O/O 4 bucks a mile, or 2. Many variables in our job scenario.
    But it boils down to one thing. Supply and demand. Too many steering wheel holders, lower pay. Not enough reliable drivers, wages go up.
    As long as these schools keep turning out people who think they want to be a big rigger, our paychecks will remain low.
    As long as someone will consistently haul cheap freight, the rates will remain low.
    Trucking is trucking, and it is all about supply and demand. Never will change.:biggrin_25525:
     
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  3. Wargames

    Wargames Captain Crusty

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    31 years driving. Some people post high amount of years of service, but we can tell. It is what you say, and how you say it here. All of us veteran drivers can tell. Your years are definately Genuine. Thanks I enjoy reading past experiences from all Veteran drivers. The good ol days, were the best.
     
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  4. ChromeDome

    ChromeDome Road Train Member

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    I would say that 1000 per week for a NEW driver is about right. A driver with 3+ years experienced should be making a good bit more than that.
    And that is drop and hook. 2200-2500 miles per week and home weekends. Full OTR should be higher even than that.
    We are under paid by tens of thousands per year for the work that we do. And this is as company drivers. No matter what the bean counters say. We are worth ALLOT more than we earn.
     
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  5. ChromeDome

    ChromeDome Road Train Member

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    I agree and disagree with this.
    I believe that even a starting driver full OTR, running 48 states. Driving around 3000 miles per week. Is working enough that he/she should be earning at least 1000 per week. This is a minimum.
    The industry has decided that this is a top wage. When it should not even be close to a top wage when you look at the hours put into it.
    To run 3000 miles per week a driver must work a good 60++ hours. That is about 15 bucks an hour. With the 20 hours OT. Remember, this is a minimum time needed.

    You make the argument that there is no other field that you can make that money without education. It does not really matter about the education. It is the difficulty of the work and the time we put into it to get it done that matters. Most people cannot drive a truck. They may think they can, and may even try it. But most will never make it on the road in the long run.
    And I can tell you. Even a new driver, that is not the best planner. Is worth 15 bucks an hour.
    Sure, if this was a 9 to 5 job working 40 hours per week. Then I would agree that 1000 bucks a week was to high for a new driver.
     
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  6. G/MAN

    G/MAN Road Train Member

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    Education does matter in most professions. If we want to use difficulty of work rather than what we know, then those who dig septic tanks or ditches by hand should be highly paid professionals.

    In truth, a worker is only worth what his value to the organization is based upon market forces. A new driver is like any other new employee when he first enters the business. He has little knowledge or skills and therefore has less to offer than someone with several years experience. Every industry is subject to market forces. Companies will offer wages that is a percentage of revenue. I usually count on about 30 percent of revenue as going to wages. If I am getting $1.50/mile for my rate, then based upon my formula, I can allocate up to $0.45/mile for labor. Labor costs include wages, taxes, insurance and any other benefits. The benefits that companies pay to workers is often not considered by them when they think about their pay. Benefits are a cost, whether it comes from the worker or the company. One problem with wages and rates today is that rates are very fluid due primarily to oil prices. The $1.50/mile rate that I noted may include a fsc of $0.35-0.50. The fsc is used to offset the spikes in fuel costs. If we take the fsc from the rate that leaves a true rate of about $1/mile. That means that the driver wages using this formula should be $0.30/mile, which is in the range of what most carriers pay drivers.

    I have always paid drivers percentage. Most like it, some don't. If a driver wants to make more money or receive what some consider a "fair share" of the rate, then this is the best way to go. When rates are up then the driver makes a bigger paycheck. When rates are down then he makes less money. This method of payment would eliminate the hammer unions use to shake down carriers and is more equitable to the company and worker.

    When any company calculates wages, they do so by considering what is likely to happen to rates. If a carrier based their wages on the highest rate they receive when fuel is high, then they would need to cut wages or lay off drivers when rates and fuel costs are lower. It makes more sense to keep wages at a constant rate.

    There is only so much money to go around. Whether the rates are $1/mile of $5/mile, we based our decisions on the rate we receive from shippers and brokers. The market will always dictate rates. If there was a smaller pool of drivers then demand would be up and carriers would need to pay higher wages. If there were fewer trucks to haul freight, then shippers and brokers would need to pay higher rates to move their freight. It is supply and demand. Drivers want new equipment to drive. That costs money. Carriers can conceivably pay higher wages when they have older equipment. If a carrier only buys 389 Peterbilts instead of Volvo's or Freightliners, then they will likely pay lower wages to drivers since the cost to purchase and operate a Peterbilt is usually higher than some of the alternatives.

    For those who do want much higher wages, I would ask you what you are prepared to do that will set you apart or enhance your value as a driver that would increase your value to the company? Why should you command more money than another driver? How much more can you make the company than another driver?
     
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  7. tinytim

    tinytim Road Train Member

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    I guess it depends on your perspective. When you consider the amount of hours involved it's hard not to say we are underpaid. When you take the hours worked, account for overtime and then consider the extra costs of living on the road we're not doing that well.

    Then there is the argument about the minimal education needed and the difficulty of the work. Sure, not everyone can do the job but that is true for a lot of other jobs that pay less money. Sure, I could learn to do a lot of other things but I know I wouldn't enjoy them as much regardless of the amount of money.

    The way I see it, whether the industry underpays or not is irrelevant. I got into it knowing what the income range is and I accepted it. It seems many get into without knowing that and get all upset because their unfounded expectations are not met. I'm actually doing a little better than I thought I would be just a few years in. In a couple more years I will be ready to buy a truck and go o/o.

    Wishing things that things you can't control were different is a waste of time. There are many different ways to make a living in the industry. Some pay better, some provide more home time, some are harder physically etc. One needs to find which fits them best and then work themselves into that place. If money was the only consideration I wouldn't be driving truck.
     
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  8. American-Trucker

    American-Trucker Road Train Member

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    My FIRST OTR driving job, here at Watkins i've taken home $700-$1100 EVERY week TAKE HOME. I had exp before comeing here, but it was local and not full time so i started at the bottom of the payscale here. A NEW FRESH OUT OF SCHOOL driver to W/S will GROSS $40-$45,000 their FIRST year here.


    My Last job before Trucking, Forklift Operator in a DC I GROSSED $41,000 .

    When I was a Mechanic, I was Takeing home $750-$975 each week.

    When I managed a Resturant I was on salary $725 a week Take Home (NOTE: I was working 6:45am to 10:45pm 7 days a week for this)


    Point is, there IS money out there you just need to find it and WORK your butt off for it in most cases.


    As for trucking A NEW OTR driver should GROSS at least $40k their first year they climb relativly quickly to $50K-$60K over there next 3-5 years. There is too much time away from home, to much risk to health and life, and to easy to end up in jail/ dead/ without a CDL/ or blackballed out of the industry to NOT get at least that much...





    American Trucker
     
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  9. G/MAN

    G/MAN Road Train Member

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    If a driver shows initiative and drive, takes care of his equipment and has good communication skills he will do better than the average new driver. All may start at the lowest point, but as they say, the cream will always rise to the top.
     
  10. American-Trucker

    American-Trucker Road Train Member

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    this is true, i can't speak for other companies but at W/S thats 150% true, the harder you work for them the harder they'll work for you as well as your paycheck grows :yes2557:.


    and i've been called allot of things before but never cream! :biggrin_25514:



    :biggrin_2559:


    American Trucker
     
  11. BigJohn54

    BigJohn54 Gone, but NEVER forgotten

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    These are all great posts. The bold part of all remind me of something I have always been aware of and practiced to earn more. I have shared it with those under me when in a supervisory role. It was something like (sorry old-timers/can't member exactly):

    Those who never do more than they are paid for are seldom paid for more than they do. First you need to find a job that fits you. Then you need to set yourself apart from the other employees. Get licenses and certifications. Work harder than the rest. Take more of the less desirable assignments. I really can't remember a time this didn't payoff for me. Even the second-rate companies appreciate this.

    I once worked as an assistant manager. The manager told us all in a meeting, stealing his quote from JFK and modifying it:

    Ask not what this company can do for you; ask what you can do for this company.

    I'm in no way saying you should stick with a company that underpays you, mistreats you and dumps on you. But if you want more money, taking the initiative to show you're worth it will almost always bring results. In trucking even if it doesn't equal more CPM, it can still equal benefits like better loads, more miles and better home time.
     
    Last edited: Jul 3, 2011
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