If the trucking industry is bad why are a lot of companies hiring drivers?

Let me clear up one misconception... Newbies are not new to the industry, every driver had their first year, followed by a second year and so forth... It is impossible for any driver to start out with 5+ years of experience, without having gone thru the first 4... So the experienced drivers of today were yesterdays newbies, and when they retire, todays newbies will be tomorrows experienced drivers.

Now, the amount of newbies entering trucking is way out of control. How is hat happening, currently three things that are wreaking havoc...
1. CDL Mills... What a racket that is, think about it, in order to drive for a cdl mill company, I first have to agree to pay them $5000, (for so called schooling and getting a CDL) then I have to agree to low training pay, (while running suedo team), and for many they even get them to lease a truck and bear all the costs for a few more cents a mile.
So, if a fast food company did that, in order to work for them, you first pay them for the job, work for well under minimum wage while training, and provide the frozen hamburgers, fries, mustard, ketchup, chicken strips and all and pay to repair the fryer, grill, pop dispenser, whatever....
Believe it or not, there are hundreds of people across the country who can't wait to sign up for that... and asap since they are already broke....
2. The job market today, many people who would never consider getting into trucking are and if it didn't occure to them on their own the WIA is suggesting it and will pay for it if you qualify...
Now, trucking is not something anyone should get into without some money saved up, but to qualify for WIA you have to have been unemployed for months and meet financial requirements, which is be broke... So, sending broke individuals into a career which requires money on hand is work force in action... To para-phrase.. Lets spend tax payers dollars setting up unemployed individuals to fail. (Now, yes, there are some WIA success stories, but for many it was just a bad idea.)

3. Is actually just the sum or end result of the first two. If the big CDL mills can make millions by a never ending supply of newbies, they don't have to turn as much profit of the freight the move, they can charge an cheap rate, take their cut, toss some pennies at the drivers. They not only don't have to keep their drivers happy, they don't want too many drivers sticking around because it is more profitable to if they quit so they can keep the flow of newbies paying $5000 and maybe willing to lease and absorb the overhead costs.

Now, for the smaller companies that are not cdl mills, the small fleet owners and OO's, they have to deal with the rates for transporting freight being driven down to where it is barely profitable.

Now, although yes, I am a newbie, I did not go that route, I went to a private school and a good small company. I did not begin my new career broke, and I will be tomorrows experienced driver.

 

4. Companys taking advantage of tax breaks.?

 

The WIA (Workforce Investment Act) is a Federally funded program that helps train or re-train participants to enter/re-enter the workforce.

They do not promote any one particular field of study. They encourage training to help the individual increase their income potential.


To qualify, you must be unemployed (for any amount of time 1 day+), under employed (if your income qualifies) displaced worker....

It is a very good program, which also works in conjunction with the Pell grant.

I assure you that the Case Workers are aware of the truckers plight. The unemployment offices have seen the faces of many an unemployed trucker.
Jon placement preference is in critical skills, trucking is part of that, of course.

The WIA Case managers will not allow a participant to use the funding for CDL training if they have a background or MVR problem. Unlike many trucking companies, CDL schools and their recruiters.

 

they can get new driver or recent Graduate for a little or nothing and the overturn is great, 90%!

 

Bad companies exploit new drivers that are desperate for money. You sign a contract for schooling and a set amount of time to work for them. You are under paid, though you won't know this until you see checks of $100.00-$150.00 per week for maybe a month or more.

During training you will get advances to live on that most times have to be paid back. You will be used and abused, broke, and owing the company appx $5000.00 for training, there's not much you can do about it.

When put out on your own you will either be run to death, or left sitting, according to how stupid or vindictive your dispatcher is. You are still making slave wages, all the while the training payments are being deducted from your check.

You will most likely not see home for months, you will many times get a truck that stays in the shop while you sit making zero dollars, or the truck will have problems they will not fix.

After starving for a few months, being lied to, and abused this whole time, it's just about time for your raise. Now is about the time your miles drop so you will quit, or you will get fired. As a bonus you will still owe them for your CDL school, and get dinged on your DAC, or whatever today's name is, so you can't work for anyone else.

The company will have 15 bright eyed new trainees waiting for your truck, so this system of working new drivers for free can start all over again.


This is why companies are still hiring all the time in today's economy.

 

Keep on believing that. Some will make it, most won't. Think for a minute, where are all the drivers going to that these companies have to keep hiring when there are no jobs to be found in any other industry.

PS...No, I did not start this way.

 

Do some searching on this site . I've posted Werner's 3rd quarter report several times . They have reduced their fleet 10% and mileage in October 2009 was down 11% from mileage in October 2008 . They keep hiring because drivers keep quitting .