Per cent pay ??

Leave the FSC out of the gross. FSC should go solely to the owner buying fuel

 

FSC go's to the truck owner not the driver, if it's your truck it's your money to offset fuel prices.

 

Be careful about how you pay if you are hauling loads for brokers. The broker will pay you more as fuel prices go up, but may not break out FSC as a seperate item. Essentially, you will be paying your driver more as the cost of fuel goes up. For example, lets pretend the cost of fuel today is $1.00/gallon and a broker is paying you $1000 all inc for a load. You would pay your driver $280.00. In six months, the cost of fuel doubles to $2.00/mi. The broker is now paying you $1100 (even though he is probably getting $125 in FSC). You would pay your driver 308.00 for the load. He just got a pay raise that was supposed to offset your increased fuel cost. It would seem much easier to pay a mileage rate. Sooner or later you will get it worked out no matter how you go. If you are not already tired of listening to me, I would make one more suggestion. You can always increase your drivers pay/benefits/etc, but it will be pretty difficult to take something back. You probably want to start on the low side and work your way up.

 

One more thought that I have always been interested in would be paying the driver a percentage of NET. Then he is going to be incented to get good MPG, tire wear, take care of equipment, buy the best priced fuel etc. We have too many trucks to try the experiment with, but you might be able to do it with one truck.

 

Whatever you pay the driver make sure he understands exactly how he is being paid. For example I started driving for a company and was paid 28% off the top. Three months into it the owner changed the rules and I was never informed. I hadn't been hauling alot of broker loads but bulk paid % of the weight. Well when I started doing broker loads again I saw that I was making 23% of the gross. They said oh no you're still getting 28% but from the net not gross like I had been paid. Needless to say I was a bit pizzy about that. It woulda been easier if they had just told me instead of letting me find out the hard way.

 

That is how a so called lease purchase works, everone gets paid and what little is left goes to the driver. Pay mileage, then the driver just needs to go wheer he is told. your rates are none of his business. You get a good run set up at top pay the driver starts bragging about it and some one will cut in on you business. Don't think it happens? I can tell you about a driver bragging about his good hauls in a popular trucking mag. Cost his broker about 25 million a year in lost business and hurt a lot of good O/O's.

 

We have company drivers that are on percentage. They get 25% of gross. These guys pull step decks, stretch's and RGN so their % is right on up there money wise.

 

This isnt directed at anyone, but to sort thru alot of cunfusion, there needs to understood the distintion beween a fair baseline rate, and fuel cost fluctuations. If you have a driver making say $60,000 year with $3.00 diesel, I dont think it is neccessarly correct he starts making $80,000 just because diesel hits $5.00 or whatever, nor should he start making $40,000 if diesel goes to $1.00 (hypotecticaly exagerated to make my point)

 

Exactly the point I was trying to make Winchester. Just be honest with your driver and hopefully your driver will be honest with you. Most of us are looking for HONESTY with an employer, I know I am. I don't expect to get rich out on the road, but I do expect to be compensated fairly for my time on the road and away from family. If my employer is honest with me I'll be honest with them.