A wild theory of mine. Please comment.

Discussion in 'Experienced Truckers' Advice' started by Tip, Apr 16, 2006.

  1. Tip

    Tip Tipster

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    I really like this website. I stumbled across it by accident like three weeks ago and started posting.

    Anyway, let me get to the point. Please feel free to flame me if you like. I don't mind. There is a kernel of truth in even the most outrageous flame.

    Claim: The reason truck drivers' pay is so low is because there are so many CDL holders out there. Pay is independent of the actual number of current drivers. What really counts in the supply vs. demand equation is the number of POTENTIAL drivers.

    Many drivers 'quit' driving but keep their CDLs. They've quit for various reasons, but most have quit because of compensation. Driving doesn't pay as much as it did before Ted Kennedy's deregulation castrated the industry. But most of the drivers who quit hold onto their licenses with the hope that someday, SOMEDAY, the 'good ol' days', with high pay rates for drivers, will return.

    These guys are dragging down current drivers' pay, in my opinion. Wall Street, the ultimate master of the trucking industry, sees the supply of drivers as the supply of actual drivers plus the CDL holders who no longer drive. The big corporate companies set their pay rates based on this observation, and the 'little guys' set their rates based on what the big fish pay their drivers.

    If 'non-driver' CDL holders would give up their CDLs, CDL holders who currently drive would see their pay increase.
     
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  3. Redneck

    Redneck BANNED

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    Well I won't argue with a wild theory like this.....But

    The reason I think the pay is so low is because of all the cut throat companies that are out there.
    They are the same companies that run these "CDL Mills" These companies cut the rates down because they operate by "Quanity" not by "Quality" they still make money even though they haul freight so cheap.
    There is not enough unity in the trucking industry, if you had unity then these companies wouldn't be able to afford to do this.

    I went from a company paying me .40 cpm loaded and .25 cpm empty which brought the average way down....to

    I now work for a union company that hauls "new" trucks to different dealerships and or companies.
    My single unit rate is .47 cpm and my hourly rate is $19.25 hr, a 2-way load pays me .48 cpm, a 3-way pays me .49 cpm, a 4-way pays me .50 cpm also keep in mind we only get paid loaded miles. But with this kind of pay I still make pretty good money. This is my set rate based on what union says we will work for. BTW this is not teamster.
     
  4. BUBBABONE

    BUBBABONE Light Load Member

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    I cannot discuss my pay but i can say that my pay and benefits are among the top in the industry. I have read articles in recent news magazines that state a very bad driver shortage and it is only getting worse. The news media and myself do not believe that pay is the only reason for driver shortage but the over regulation by the fmcsa. I really love my job and hope to stay on the road but I only see a very dark future for trucking if thing keep going the way they they are going now.
     
  5. pro1driver

    pro1driver Heavy Load Member

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    i will not discuss my pay in too much detail either,except to say that my current job pays only $30 less per week than my former job. but, i only log about 53 to 56 hours per week, as opposed to nearly 70 hours from my former job. so technically, i am being paid less money, but, i'm still ahead since i work less hours, so i see a *match* in dollars and cents with my current employer. i think that driver pay will increase and in fact many ads in my local newpaper classified ads reflect higher wages now than as little as 5 years ago. it can only go up higher as more drivers retire, quit, and companies will not be able to find competent people to drive. the local driving schools are forever increasing thier cost of education, which i know to be about $7,000 in some areas.
     
  6. leannamarie

    leannamarie "California Girl"

    My question is this, is there really a driver shortage? It seems like there are more than enough drivers out there, and the low pay just proves that. As long as the big companies perpetuate the myth that there is a driver shortage, people will rush to get their CDL's. Once all these new drivers are sitting around with no work, they are willing to drive for lower and lower pay just to earn something. I have read too many posts from drivers complaining that they are sitting around, not getting the miles they want. How can this many drivers sit around, not getting enough miles, yet there is a driver shortage? That just doesn't compute.
     
  7. NevadaJim

    NevadaJim Light Load Member

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    I doubt the actual number of CDL holders is affecting pay rates. There is too much of a variance between companies. Not all companies are paying crap wages, which throws the theory out the window. Most of the low pay seems to be with the starter companies. These companies work off of volume, volume being drivers, not freight. As long as the working population continues to roll into these starter companies in droves the sheer volume of applicants will keep wages low. There may be a shortage in experienced drivers (assumption), but there doesn't seem to be a shortage of rookies wanting to try driving as a career. This is evidenced by the high turnover, and class seats being filled. As long as the pool of rookie drivers remains large, wages will stay low at the rookie levels. Simple supply and demand.
     
  8. possumbelly

    possumbelly Bobtail Member

    The outfit I work for pays a bit above average and has NO driver shortage...the good companies have a stack of apps...treat your crew well and they stay ...treat em crappy you have a diver shortage
     
  9. kd5drx

    kd5drx <strong>Master of Electronic Communications</stron

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    It all boils down to volume for the big company and if they make it or not. I heard a statment from J.B. him self seceral years ago and it went like this if he could make 1.00 a day profit on every truck he had he would be a million air in a year. Well he made it several times over so does that make you think about it. Its just like the owner operator that pulls cheap freight. the more that do it the less the pay will be. IF you settle long enough it becomes the norm and that's what we as drivers have done is settle for less pay and tryed to make it up with miles. while the company just keeps getting bigger. So as long as we the drivers are willing to work for peanuts they will feed you peanuts till they decide to cut down to shells then they will feed you the shells untill you like that then they will cut it down even more. The only way the number of drivers effects the wages is as longt as they are new drivers they can start them out cheaper every time.
     
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