JB Hunt - Lowell, Ar.

Thank you for the compliment, and I appreciate your comments as well.

You're absolutely welcome to do so at any time.

You're absolutely right, and in my past, I used to argue that same point with many people and pretty much leave it there. We do choose our careers. We elect to take certain positions, and we choose our employers.

Of course there are factors that affect the career choices available to a person, such as the education that they receive or can afford, the skills we develop as we go through life, and the references we offer that can sway hiring decisions.

Now...don't get me wrong, people most certainly are responsible for their own destiny in life, and you pretty much get out of it, what you put into it. That aside, and in a post union protected employment environment, I have seen a definite movement backwards in many industries, in terms of the way employees are treated, paid, and valued. Of course, there is no loyalty to employers as well.

Trucking as it is in the OTR segment, has never offered any protection for the drivers, not even from the Government. The protections afforded workers in other careers by the Federal Labor Standards Act, do not apply to drivers employed by motor carriers engaged in interstate commerce. The ONLY provision that can be clearly enforced is that employees must be paid minimum wage for every hour worked. That's pretty pathetic, isn't it?

There are standards set forth for advertisements of products and services, but there are none for advertisements for employment. This means that a company can claim practically anything they want in an advertisement, and there is no recourse for dishonesty in their advertisement. Oh...and there are no standards for what a recruiter is allowed to tell you in regard to a job either. They can lie through their teeth, and there most certainly are enough out there currently, that do this routinely.

Okay, so we have an environment where companies can print and say whatever they wish, and there is no recourse or penalty for doing so, if it is a complete misrepresentation of the facts as they may be.

Turnover is a BIG problem within this industry, and there are plenty of fingers to point in just as many directions for the cause of it. We have dishonest companies, whose goal is to fill empty seats by whatever means necessary. We have drivers who read an advertisement, thinking that it sounds good, and they are reeled in...hook, line, and sinker. Top management may have good ideas, and may offer policies that appeal to drivers, but those policies are not always adopted or honored by those in lower level management. Drivers do not often research a company to find out if it is a company that is known for honesty or dishonesty, and to discover if the job will meet the criteria needed for long term employment and contentment on the job.

The most disturbing trend, and one that I did not personally involve myself to understand or care about until the past few years, is in regard to how entry level drivers are abused by so many companies out here offering "free" training in exchange for a commitment of service period. I have learned of the vast array of training schools that are abusing people as well. I've learned of money trails out of Washington D.C., fed to these companies and schools though non-profit organizations that are supposed to be independent in nature, but are instead clearly and closely tied to nearly all of these same motor carriers.

Hundreds of thousands of people have walked into these companies doors, lured in by slick salespeople, thinking that they are going to learn a new career through companies that care, and nothing could be farther from the truth. The people that these companies get to sign on the bottom line are only viewed in terms of dollars and cents, and nothing more. It's shameless, it's scandalous, and it needs to be stopped.

Without question, there are some that weave their way through this system, and they go on to actually make it into the driver's seat, but not nearly enough to justify the millions that makes it into the bank accounts of these carriers. All but a couple of these carriers have horrible safety and accident numbers. They have horrible retention rates. They have a nearly 90% failure rate of people that actually make into a truck, and drive it solo for their commitment periods to make the training actually free. One has a 96% failure rate.

Trucking is not alone in these types of rackets. Stand alone institutions that train for the computer tech industry have a similar record of not producing jobs that are promised, while banking immense amounts of money from both people seeking a new career and from the Goverment for the training of displaced workers.

What all this means is simply, that there are people that know how to look out for themselves, who can recognize the pitfalls of anything they might be walking into, but apparently, there are so many others out there that either do not or cannot see a potential disaster, even when it's staring them in the face. We now live in a world where trust and the assumption that people are being honest and forthright no longer exists, and that is a sad thing to come to realize. It's really sad if you have to find it out the hard way.

Agreed, and I don't know you, but I can bet that I know a little about you, based on what you say and the way you say it. You probably came into trucking after having been successful in another career, and with a stash of available cash to keep you going during the transition.

The thing is, there are so many people that come into this industry in a state of desperation. They have been displaced and looking for employment for months. They have mortgages. They have credit card bills. They have families at home, teetering on the edge of poverty, because they cannot replace the income they were used to making.

Add to this, the formerly mention dishonest environment combined with another disturbing tactic, where companies actually go so low as to drum up warm bodies through the state employment offices, with all kinds of promises and time tested sales tactics, and these people go for it, and they wind up losing all they have or had, because the promises fall short, and meaningful income doesn't start flowing in for sometimes 60-90 days, and then it often is nothing in terms of what they thought it would be.

Your hurdles might just be walls to others.

Yes, education is a necessity in life, and there are many reasons why some people fail to get an education, but I personally don't hold it against people for failing in that department. Theoretically, we all have the same opportunities to obtain one, but reality deals everyone a different hand of cards to play. What appeals to my desire to help someone, is their desire to learn.

I look at this industry in a different light than most, when it comes to the driver "shortage" issue. The perceived shortage has been blown out of proportion by several factors that are never taken into account. At any given moment, you will have hundreds of thousands of drivers in transition phases from one company to another. If every viable driver were on the job when these numbers are taken, I don't think that the shortage would be anywhere near what it is reported to be.

Why do I think the figures are purposely being skewed? It all ties in with the plan by so many Corporations and our current Administration to import workers from the south, under the proposed "guest worker" programs. I'm in the middle of doing quite a bit of research on this and plan to offer posts on the subject soon.

You have carriers that are not focusing on being profitable with the employees they currently have on staff, and/or the number of trucks they are currently operating. In the Corporate environment, the focus is always on growth. These Corporations are never satisfied with stability and consistent profit. It's always more..more...and more again.

I have never understood how a company can focus so much on growing their businesses, while their ability to remain stable is in question.

How much money could actually be saved, by using it to retain good drivers, rather than to spend it on trying to replace one when they quit.

Industry figures have proved that the cost of replacing a driver can exceed $1000 per head, when loss of production, recruiting and hiring a new drivers is completed, and getting the new employee up to the same level of production that of the previous driver are all factored in.

Some people may respond to this with a less than favorable view, but I will not do so. You apparently have a good head on your shoulders, and you may even perhaps have a military background, which is my guess.

I would have been more impressed to learn that you have had years with JB Hunt. With only three months in with them, it is doubtful that you have seen the types of problems at this point and time, that are outlined in so many complaints about that company.

Hopefully, you will stay in contact with the forum, and keep us up to date.

 

This is the information I promised on JB Hunt in regard to the compensation packages and and outline of their Owner/Operator and Lease/Purchase programs. I will comment at times (in blue) on some of the specifics, for various reasons. Some of what I was told on the phone, was in direct conflict with what was in print.

J.B. Hunt Transport - Independent Contractor Group

O T R C O N T R A C T O R S

Average over $1 per mile
90 cpm base, loaded & empty, plus flexible fuel surcharge
Base plates and permits paid
Toll cards and passes issued; scales reimbursed
Significant discounts on tires and maintenance
Fuel deducted from weekly settlement
Weekly settlement administered via Comdata® or direct-deposit
Opportunities available east of I-35


R E G I O N A L C O N T R A C T O R S

87 cpm base, loaded and empty, plus flexible fuel surcharge
Regional contracting opportunities available within 100 miles of Atlanta, Columbus & East Brunswick -or- 75 miles of Chicago, Indianapolis & Saint Louis

S O U T H W E S T 6 R E G I O N A L C O N T R A C T O R S

87 cpm base, loaded and empty, plus flexible fuel surcharge
Regional contracting opportunities available within 100 miles of South Gate, San Bernardino & Stockton -or- 130 miles of Phoenix -or- 50 miles of Fresno, Las Vegas, Reno & Sumner
Contractors west of I-35 experience extended time out (home at 3-week intervals)

L E A S E – P U R C H A S E D R I V E R S

85 cpm base, loaded and empty, plus flexible fuel surcharge

[Can someone explain to me why a driver leasing a truck, who is making payments on that truck, maintaining it, and paying similar costs as an owner of a truck should be paid 5 cents LESS per mile?]

A C C E S S O R I A L R A T E S

$50 congestion pay (five boroughs of New York)
$50 layover pay after 24 hours (weekdays)
$35 entering and $35 exiting Canada (total of $70)
$25 per hour local/shuttle driving
$20 pallet jack
$25 per hour for safety training
$2.25 per 1000 lbs loading/unloading
$500 referral bonus for drivers hired/dispatched or contractors leased/dispatched

S H O R T - H A U L R A T E S

0 to 74 miles…mileage rate plus $45
75 to 149 miles… mileage rate plus $35
150 to 225 miles…mileage rate plus $25
226 to 300 miles…mileage rate plus $15

W E E K L Y S E T T L E M E N T

Weekly settlement via direct deposit or Comdata® card each Friday

All freight unloaded before midnight Monday included in following week’s settlement

Fuel and voluntary benefits premiums deducted

Fee of $1.20 will apply for each payroll deposit via Comdata® . After two self-directed deposits or drafts, a fee of $.80 will apply for each transaction. ATM transactions incur a fee of $1.00 per transaction in addition to terminal-owner fees. Funds applied to the Comdata® card are available for 60 days following termination of contract. J.B. Hunt reserves the right to subtract funds for money or advances owed to the company. Replacement cards are issued at a cost of $5.00.

[I think direct deposit to an account makes much more sense, and it's a hellova lot more secure. Comdata is not exactly a secure place to stash money.]

F A Q

Can I use J.B. Hunt’s maintenance facilities for repairs?

Yes, J.B. Hunt’s outsourced maintenance vendors may be utilized at a discounted rate; J.B. Hunt shops do not provide maintenance services or sell parts, but our 24-hour Road Service department may be used.

[In other words, you are not allowed to have work done in any of our company shops. Why mince words?]

Will I have to rent trailers?

No, you will pull a J.B. Hunt trailer at no cost.

Am I able to receive advances from future paychecks?

Yes, advances will be applied individually.

Are benefits offered to me as an independent contractor?

Yes, an option to purchase a full voluntary benefits package is available.

Is there a maintenance escrow?

Yes, you may opt to set up an escrow account, from which deductions will be made at a pre-arranged rate you choose. A $20 per-event fee will be charged for use of the J.B. Hunt maintenance vendor system. Interest will accrue at a rate equal to the 90-day treasury-bill rate.

[I find this $20.00 fee to be outrageous. A transaction charge of $5.00 or less is ordinary.]

Will the company pay fines for speeding or overweight tickets?

No, drivers are responsible for fines due to citations.

E Q U I P M E N T R E Q U I R E M E N T S

Tractor year model 1993 or newer (regardless of engine rebuild)

Wheel base 270 inches or less (from center of front steer axle to center of rear drive axle)

Pass DOT inspection twice a year (paid by company)

[Wow!!! A freebee!!!]

Weight of truck (including driver & fuel) must not exceed 20,000 pounds

Fifth wheel must measure 47-1/2 inches (or less) from ground to top

[Recruiting areas snipped]

W I T H H O L D I N G S

$1500 escrow withheld at $50 per week; returned within 45 days of termination

$25 per month for use of 3-piece OBC unit; $50 for 2-piece unit (selected by driver)

$50 annual administrative fees (tax, etc…) deducted at end of first month

[Adminstrative fees? This is a first...]

$1500 deductible for personal injury/property damage for preventable accident (driver is responsible for first $1500, J.B. Hunt pays remainder)
$500 deductible for preventable cargo damage (driver is responsible for first $500, J.B. Hunt pays remainder)

Voluntary general fund (maintenance escrow) available

.01 cpm fuel usage tax to be paid quarterly

[A FUEL USEAGE tax? Why not be honest and state that they are going to take back a penny per mile of your pay? There is no such thing as a "fuel useage tax" that ANY company is to collect or is assessed by any entity. That just dropped your mileage pay to 84 cpm if you lease a truck, and to .89 cpm if you own your truck and lease it to them.]

V O L U N T A R Y B E N E F I T S

[info snipped]

O T R O P E R A T I O N S

No forced dispatch

[You are expected to take one of three offers, per phone conversation]

14 days out at a time with flexible time off; 2-3 days is generally preferred

Average length of load is 670 miles

[Sounds like a lotta short hauls in the mix]

Drivers are paid on the mile as calculated by Rand-McNally; average 2500 miles per week

Haul same freight as company drivers – 98% no-touch freight

Passengers permitted (must be 10 years of age during summer months; 16 years otherwise)

Pets permitted (cats or dogs weighing less than 50 lbs); current vaccination record must be provided and prior approval must be obtained.

[Have you ever heard of a company that would limit the size of a pet?, much less make them ask permission to have one in their OWN truck?]

Pets are prohibited in lease-purchase trucks.

Drivers are exclusively leased to J.B. Hunt, but for no specified period; either the driver or the company may cancel the lease agreement at any time.

Dispatch immediately following orientation; centralized dispatch from Lowell, Arkansas

Operate within eastern 2/3 of the United States. Fleet managers will attempt to accommodate preferences to run in a particular area (no guarantee)

[Expect to be told..."There is no one else in the area to take the load. You must take it!"]

Required to log legally and run posted speed limits

O P E R A T I O N S F A Q:

Will my tractor be governed for restricted speed?

No, J.B. Hunt expects contracted drivers to run within posted speed limits.

Am I required to go to New York City?

No, with our non-forced dispatch system you may turn down one load per dispatch.

[Oh...so this was not related honestly over the phone. You can only turn down ONE offer? Do they know what the phrase "non-forced dispatch" means?]

If I become ill, can I get a substitute to drive my truck for me?

No, all drivers are screened by Corporate Driver Personnel to ensure all hiring requirements are met.

Does J. B. Hunt provide lumpers?

Yes, lumper services are provided to contractors as they are to company drivers.

Am I required to use load locks or straps?

Yes, both load locks and straps should be used.

Can teams be contracted?

Yes, however teams must be related by marriage or both drivers must have ownership in the truck. Miles will average between 2,800 and 3,200 per week, not exceeding 4,000.

[Say What? Why would anyone think of operating as a team if this is all that can be expected in terms of mileage per week?]

C O N T R A C T O R O R I E N T A T I O N

[snipped]

Provided by J.B. Hunt:

35 cpm travel from home to orientation

$75 per truck per day for completing orientation, paid the following week
Lodging (double occupancy unless you pay additionally for single accommodations)

[I don't know about other people, but this is one item that would turn me completely off, even if everything else was fine. I do not sleep in a room with strangers I do not know. How cheap can you get? I find it a very lackluster way to welcome you to a new company]

Two meals per day during orientation

[Orientation sites snipped]

T E M P O R A R Y R E G I S T R A T I O N & H U N T E R P E R M I T S

Each driver is responsible for obtaining a “hunter permit” in order to run without base plates. Not every state requires the permit, yet it is each driver’s responsibility to contact the DMV’s Special Plates Department for this information.

[Isn't that nice? JB Hunt could provide links or contact information to assist people find this out quicker, but...."dig it all up yourself".]

I N S U R A N C E R A T E S

Occupational Accident: $118.40 per month. Includes passenger insurance and rate reduction for those over 70 years of age.
$300,000 accidental death benefit
$300,000 accidental dismemberment maximum
$1,000,000 per person accident medical expense
70% disability wage benefit up to $500 weekly maximum

[Interesting way they worded that. The rate is decent, but what is the rate if you are UNDER 70 years of age? How many "over" 70 year old truck drivers are there out there, on average?]

Physical Damage: $92 per month. .001842 x insured truck value. Includes down-time and towing package. $2.21 per $100 of value per year.

Non-Trucking (Bobtail): $20 per month. $1m coverage per event.


R E Q U I R E M E N T S F O R N O N – T I T L E D D R I V E R S

[snipped]

*******************************************************

O T R L E A S E – P U R C H A S E

Drivers now have two options for entering the lease-purchase program:

Hire on as an OTR company driver for 60 days, then opt into the lease-purchase program with zero down

Bypass the 60-day driving period with a down-payment of $300, entering the lease-purchase program from day one; the deposit will be returned upon termination of the lease, less any monies owed J.B. Hunt

Lease-purchase drivers attend orientation in Lowell or Louisville

The average truck age is one to three years, with payment based on year model of tractor

85 cpm, loaded and empty, plus fuel surcharge

[No...that's .84 per mile due to the unexplained "fuel useage tax"@.01 per mile deducted quarterly.]

J.B. Hunt Lease/Purchase Information

Lease Independent Contractor Compensation plan:

85 cpm, loaded or empty OTR [.84 per mile]

82 cpm, loaded or empty Regional [.81 per mile]

Short Haul Pay

Shuttle Pay $25/hr plus miles on locals.

Fuel surcharged based on DOE avg price (adjusted weekly)

[I would definitely advise anyone to get a CLEAR answer to what formula they use. This is extremely vague, and potentially misleading.]

$35 per additional stop between pick up & delivery
$2.25 per 1000 lbs loading/unloading (can use jbht lumper service)
$20 pallet jack use per load
$50 for delivering or picking up in one of the 5 boroughs of New York
$75 per day for orientation
Discounts on fuel and tires
Referral bonus paid for drivers hired to the company
Base plates & permits paid by company
Scale tickets reimbursed by company
Toll cards & passes issued (same as company OTR driver)
Paid weekly by direct deposit or Com Data
Access to the JB Hunt Shops for maintenance

Lessee will lose all company benefits. Driver will be terminated as a company driver before the lease is signed. All benefits will stop at that point.

For information about Cobra insurance coverage and 401k termination, driver will have to contact the Benefits Department. Independent contractors are not eligible to participate in the J.B. Hunt 401k retirement program.

No major modifications to the truck. Lessee is not allowed to make modifications or changes to the lease vehicle that can not be removed without damage (i.e. paint or accessories that require holes being drilled in vehicle.

Responsible for fuel taxes. Driver is responsible for all taxes on fuel use. If driver fuels within Hunt System .01 cpm will be deducted from settlement for fuel taxes and we will file it each quarter.

[I notice there is no mention of any wording of what is done with over purchases in states. Combined with a .01 cpm "tax", this is nothing short of a rip-off.]

All major repairs have to be coordinated with MOC. All maintenance other than oil changes have to be coordinated through the IC Maintenance coordinator to insure work is done properly and to get use of truck warranty.

[In other words, it's our truck, and we'll tell you when and where you can take it, and what to pay to have it fixed.]

Required to turn in monthly maintenance reports. As an Independent contractor you will be required to turn in a monthly report of work done on the truck. This has to be turned in by the 15th of each month for the previous month. It is treated with the same weight as missing logs since it is a DOT regulation.

Required Quarterly maintenance inspections. J.B. Hunt will pay for the inspections, but all work required to get truck to pass is the Lessee’s responsibility.

Independent Contractor will be responsible for self-employment taxes. You are responsible for all local, state, and federal taxes that apply to you. J.B. Hunt does not deduct for these taxes out of weekly settlements.

$1,500 deductible for property damage, a $500 deductible for cargo claims. As an independent contractor, the driver is responsible for the first $1,500 of and accident reserve for physical damage on a preventable accident and/or incident. If the reserve is lower below the amount paid by the IC, they will be reimbursed the difference, same for Cargo Claims reserve.

Settlement Deductions

Lease Payment: $1500 to $1998 a month

[Two times over the phone, I was quoted a figure of $270 - $350 per week depending on the age of the truck, which comes to $1,170 to $1,517 a month. How hard is it to be consistent when relaying critical information like this? Absent from these figures is the fact that there is a balloon payment at the end of the lease term period of at least $10,000, a figure quoted on the phone, that I now have reason to suspect was misrepresented]

Short Term Lease can also be available. Payments are from $1315 to
$1593 a month depending on the age of the truck. Short Term Lease
depends on the availability of trucks. Short Term Lease is for a term
6 months.

[We're getting closer, but a "six month option" was never described or offered in phone quotes. What are the chances that one of these "short term" lease trucks are NEVER available? And who wants to lease a truck every six months?]

Fuel- for the previous week
Insurance- Bobtail, physical damage, and occupational health
A. Bobtail-$20.00/mth
B. Physical Damage- Approx. $129.27/mth
C. Occupational Health- $118.40/mth

Maintenance - For Road Service charges that closed out in the previous week.

Fuel taxes- Figured off of fuel purchases and deducted weekly with fuel charges. If fueling outside the Hunt system and receipts are not turned in to fleet manager, the company will figure tax liability by the IRS auditing formula and charge for each quarter.

[First of all, fuel taxes are not collected by or for the IRS. To use their "formula to figure tax liability" means what exactly? When the IRS figures tax liability for income in the absense of a return, they assess the full tax due for the income bracket that your gross income places you in, before any deductions are applied. So by applying that "formula", it could mean that JB Hunt will take your mileage pay, without any deductions applied, and deduct up to 50% of your pay to cover this tax, if by those calculations, this places you in a 50% tax bracket. I would SURE want to get a clarification on that one. BTW, I was not able to get an answer to that in ANY phone conversation, and I tried repeatedly to get a clarification.]

Admin fees - Annual $50 admin fee, $20 Road Service charge per occurrence, $10 com check fee for personal advances.

[I absolutely detest "administrative fees" of any kind, and have walked away from mortgage contracts for crap like this, and a trucking company that would invoke this practice, even at such a low amount, is out of the ordinary, and not something I would accept. A $20.00 road charge service is out of the ordinary as well. I've never heard of it, and never been asked to pay such a charge by any carrier I have leased to. A $10.00 charge for advances is also too high. There is no way that ComData is charging them more than $4.00 for an advance without a fuel purchase, and I'll bet that they are paying far less than that.]

Equipment usage fees- $25/mth OBC usage charges

Escrow payments - $100/ wk until total equals $3,600 for security deposit.

[This is a ridicuously high amount for "escrow". Most companies require an amount equal to the highest deductible amount for instances of neglect and related to insurance claims. The real purpose of this account is explained below.]

5 cpm will be taken from all miles ran for a maintenance fund to be used toward tractor maintenance on all Long Term Leases.

[Apparently no top limit for this, and it can be used to pay off ballon payment at end. Of course, this now reduces your mileage pay to .79 cpm. I was told on phone that interest was paid on all escrow accounts, but no mention of it in print]

8 cpm will be taken out for the maintenance escrow on Short Term Leases. The security escrow will only be released within 45 days upon termination of lease.*

[So...if you are fortunate enough to lease on the six month plan, let's cut that OTR pay to .76 cpm. Houston, we have a problem]

There is also a voluntary escrow fund that can be set up at driver’s request. This fund is accessible to the driver Monday-Friday during normal business hours only.

*If a driver terminates the lease he is responsible for all maintenance charges to bring that truck back to Freightliner Trade Specs. If the driver does not have enough money to cover the maintenance cost the remainder will be taken from his required escrow. He will also be charged any repo charges for us to send a driver out to bring the truck to Lowell or Louisville to be released. We also have an in our lease. If a driver quits before his lease is up he will be charged $100 per week up to $3600 for the remainder of the time left on the lease.

[Can you read between the lines here? If you quit, THEY will determine what it takes to "bring the truck back up to specs". I haven't seen any major complaints YET on the web about JB Hunt being unreasonable in returning escrow funds, but then this program is relatively new, and I find this wording and warning to be a VERY BIG RED FLAG. The $100 per week "early termination penalty" is unprecedented, and an economic enslavement tactic.]

Commonly Asked Questions

How many miles can a driver expect to average?

Miles depend on the driver. How hard is he willing to run, how much home time he takes, does he keep his ETA correct, is he turning down to much freight? These are all factors that play a part in how many miles a driver can get. The goal is at least 10,000 miles a month.
[Notice how they try to make it the fault of the driver if he doesn't make the "goal"?]

After deductions what can I expect my pay to be?

We do not give an average pay. The reason being drivers will have Different deductions and their miles will vary from week to week. (Note: Never tell a driver a number that will stick in his head and lead to problems for the fleet manager later.)

[Was this a slip-up? The note reads as if it was intended for the recruiter, as an instruction to intentionally avoid this question. No promises. No projected expectations. No nothing. It's intentionally vague, and for a reason. You'll make as little as possible, but maybe enough to keep you around for awhile.]

Can I pick out my truck before going into orientation?

No, the drivers will all go out together usually on the 3rd day of Orientation and pick out trucks as a group.

[Will security be present to stop the fights that will break out over the arguments as to who has the pick 'o the litter?]

How long do I have to be a company driver before being eligible to go into the Lease Program?

2 Months minimum or must bring a down payment of $995.

[Another discrepancy. An offer was on the table to come in for free, if done prior to January the 1st. If not, then $300 down was required. Now we have this surprise in print. Which figure represents what will be asked for in orientation? Okay, maybe people don't take the time to update what they send out to drivers, but attention to detail is important, especially when you are quoting terms of a contractual obligation.]

Can I get out of my lease at any time?

You the driver have signed a legally binding agreement with JB Hunt for either a 6 month or 3 Yr Term. If you choose to default on your agreement with JB Hunt you will be responsible under the terms of the agreement to make all truck payments until the unit releases, pay for any maintenance charges to bring the truck back up to Freightliner trade specs, pay the cost of any repositioning cost to get the truck back to Louisville or Lowell and the early termination penalty of $100.00/wk for the remainder of the lease.

[The terms stink, but they are right. If you sign it, you are bound to it. What they fail to mention, is that if THEY decide to terminate you, the binding agreement will mean nothing. You're gonna go. The terms will STILL apply. You will STILL pay for all of the above, and that is what stinks most of all about this arrangement.]

Can I purchase the truck before my contract is complete?

Yes, the truck can be purchased at anytime during the contracted period.

[Unless there is a month by month calculation chart supplied as an addendum to the lease/purchase contract, be aware that the amount they deem to be the purchase price is at their sole discretion. The sale will be cash only, and subject to a pre-determined amount of time to complete the sale, anywhere from 3 days to 30 days from the date of termination, which also should be specified in the contract. If you fail to complete the sale on time, they are free to do what they wish with the truck.]

Can I become a lease purchase driver if I do not work for J.B. Hunt?

Yes, if you meet JB Hunt minimum hiring requirement and bring a $995.00 as a down payment to orientation you can lease a truck from J.B. Hunt. However the $995.00 will be required to be paid in full at the time you attend orientation.

[Here's the SECOND printed mention of the $995 down payment figure. Discrepancies bother me. I don't like surprises when I arrive at a place to find that terms are willfully or mistakenly misrepresented. Of course, they can say, "You were sent a copy of the Lease/Purchase terms by email/fax and we have a record of this being sent right here."]

Can I bring a pet on a Lease Purchase Truck?

No, Pets are not allowed on lease purchase trucks under any circumstances. If this policy is violated this could be considered a violation of the lease agreement and could result in immediate termination of contract.

[What bothers me about this clause is simple. You are leasing a truck, are responsible for all aspects of maintaining that truck, are forced to give them funds on hand, equal to what could be over $10,000 to cover expenses to maintain and bring it up to specs if you quit, and a pet is not allowed under any circumstance. Not that it is a personal issue to me, but it's ludicrous restriction and a declared reason to terminate the contract on THEIR part.]

Am I allowed to bring a passenger on my truck?

Yes, but the passenger will be required to meet all the guidelines in JB Hunt’s Passenger Policy. You will only be allowed 1 passenger at any given time.

[Just make sure your passenger is not a pig.]

Are Lease Purchase trucks governed for restricted speed?

Yes the trucks will be governed at 72 mph

Can teams participate in the Lease Program?

Yes, however teams must be married to be eligible to use J.B. Hunts Occupational Accident Insurance. If a team is not legally married they will have to obtain Workers Compensation Insurance for the 2nd seat driver. This will need to be done prior to orientation. Also only the 1st seat driver will be allowed to sign the contract. The 2nd seat driver will only be a driver of the truck. They will not receive any pay or advances. The 1st seat driver is the only one allowed to receive pay or advances.
--------------------------------------------------------------------------------------

Let's run some numbers:

@10,000 miles per month - the "goal" previously mentioned, along with all that is offered in information that the DO disclose up front, you will basically expect to make as an OTR lease/purchase contractor:

$7,900.00 in basic mileage pay (10,000 miles, less the 6 cpm deductions)
$1000.00 in accessorial pay items (generous, and doubtful)

$8900.00 gross monthly income

-$1700.00 (Average monthly lease payment - splitting the middle)
-$267.67 (Insurances)
-$3996.73 (fuel - 1,666 @6.0 mpg, and @$2.399 pg - doubtful this cheap)
-$150.00 (minimum maintenance expectations)
-$90.00 (fees for fuel and cash transactions)
-$400.00 (escrow deduction for 36 weeks)

$2,295.60 net profit (pre income and self employment taxes)

$529.61 per week (net settlement before advances for meals and misc. AND taxes)

-$125.00 (meal expenses per week)

$404.61 (net AFTER meal expenses)

-$80.92 (average tax liability per week on net after meals)

$323.69 (Actual net spendable income)

Now, understand that the above represents what should be a BAD week and some real quick figures. Hopefully, JB Hunt gives more than 2,500 miles per week to it's drivers, but look at that up there if they don't....it's not great at all.

With low miles being among the number one complaint all over the web on them, who can live on that amount of income, if this is their "expected goal"? It's ridiculous.

Then you have all the restrictions they have, the two required escrow accounts they make you fund, the outrageous fees involved, the deceptive "non-forced dispatch" policy, etc., so who in their right mind could take chances like this? What makes it worth it at all?

Then you add in the early termination clause provisions, where you will lose most, if not all of that escrow at $100 a pop for each month you are short of the 36 month mark, and because they control each and every aspect of determining the condition of the truck upon termination as well as the associated costs to bring it back to THEIR specs. If they determine that tires are needed, there goes your one escrow account. Then when that's depleted, they tap what's left of your maintenance account for more, or visa/versa. It's nothing but Hurricane Katrina sucking it out of your bank account, and it will be blown right into theirs.

Owner Operators don't have it quite so bad, but I see nothing that would make me lease a truck to them in that capacity either.

I do apologize to Geno, and any other current associate with JB Hunt, because I know that you are doing what you feel is good and right for yourself, and I pray that it stays that way for as long as you are with them, but I have to say the following;

JB Hunt still stinks to high heaven, and it seems they have been taking a lesson in how to exploit drivers from Swift. It's a tossup as to which company stinks worse at the moment. Locking people into contracts with severe economic penalties is a new low, and indicative that there is no end to the tactics that will be tried, in order to strap a driver in the seat of a truck, work him for peanuts, and keep him and/or his family almost literally starved to death.

It's economic slavery in it's best evaluation. It's outright theft of a workers time and efforts at it's worst.

Don't become a victim to it.

[Note: I floated this post by my Attorney, and was assured that I am legal to offer the information publicly, because the specific information that is in this post was sent without solicitation or request on my part to obtain it, there are no proprietary issues involved, nor is there any indication that the information is of a confidential nature.

The opinions and comments expressed in this post are my own, and are not necessarily shared by anyone else connected with this forum or website. ALP 1/01/06]

 

Most drivers that are talked into being an OO don't take a good look at the numbers, if they did they would come up with something like this. One thing Turbo did not put in is the health insurence.
At one time I considered buying a truck but then I took a good look at the numbers and came up with something like what was mentioned herer and decided then and there that I was better off staying company...

 

You're right. I did leave that out, and I snipped the information in the post that did refer to the voluntary benefits that are offered to contractors and those that are in the lease/purchase plan.

I think it's easy to see that affording the benefits is a little out of the question.

Actually, the costs of those benefits were VERY reasonable, although I was not able to get the specifics as to how good they were, but as you can see, unless you have a steady diet of miles that FAR exceed the stated "goal mileage per week", you haven't a chance to make what you should as one assuming an increased risk in profit and loss.

As I've stated elsewhere on the site, I have YET to see one of these lease/purchase programs that is worth a first or a second look, once you dig into them.

 

I agree with you on this point. Most "lease" programs I have seen have a balloon payment at the end of the contract, generaly the number is the original purchase price of the truck. So after making payment on the truck for, say three years, you still owe the original purchase price on the equipement that has depreciated over the life of the contract.

 

Good stuff Turbo! Keep up the good work........

 

I will respond to your post on the "Lease Info" you recieved shortly soon. I'm boarding a plane to HQ in Lowell tomorrow morning and will be able to take notes on your post and respond more appropriately.

Some minor discrepencies off the bat that I can verify are not true. Occupancy in hotel is "Backwards". Rooms are assigned "Single" and you pay an additional $8.00 for "Double" only if your spouse is joining you and not part of the orientation. They encourage your spouse to join as leasing on as "Owner/Operator" is a "Family Decision" that the two of you should be involved in.

The "5 Cents" difference that caught my attention is pertaining to the "Short-Term" contractors. You have an option to lease for 6 months and back out at that time. The pay rate is lower because your monthly truck payments are lower. JBHunt compensates adequately for you to make your payment and still net a good "Take Home" net. I can't give you an actual dollar figure to rely on because "Performance" is an individual trait that only the contractor can produce, not I. However, I can tell you that I am on a 6 month lease, in a 2005 Century Class/ST and my payments are $1545 a month. I Gross $13,250 on average and "Net" roughly $9,000.00 after all operating expenses. Taxes are not taken out of my check as this is the responsibility of the "Owner Operator" and I reserve $1,500 per month (25%) is a "Sound Number" to work with for those interested.

I'm not trying to recruit drivers. Don't even go there. I encourage anyone and everyone to look at "All Companies" offering lease purchase options. Do your homework and make a "Sound Business Decision" that fits your needs, not someone elses.

I gotta go. Will post more soon. My son is tugging at my heals to go walk the dogs!

Ciao' Mon Ami's

 

If you say it's backwards, then I bow to your correction, and someone should update the information that is sent out to people to reflect current conditions and offers. I for one, would reject a position outright on that one issue alone, which may seem silly to some people. I understand that they traditionally fly people to orientation sites, unless they are within 400 miles of a site, but to then get cheap and try to shove two strangers in a room together, just isn't something I care for at all.

The line I commented on clearly read; (in the context of JB Hunt paying the costs of as a part of orientation

"Lodging (double occupancy unless you pay additionally for single accommodations)."

Well.. let's understand that an Owner/Operator, who leases a truck to JB Hunt is paid a base rate of .90cpm. Lease/Operators in the 36 month plan are paid .85cpm as a base. Those in the six month plan are paid the same base of .85cpm.

What IS different, according to the information outline, is the amount of escrow taken from the drivers in these two differing plans. The long term lessor has .05 taken from them and put into escrow. The short term lessor has .08cpm taken and placed into escrow. So we're talking about a .03cpm difference between the short term and the long term lessor. This particular escrow deduction is taken throughout the entire time they are leasing the truck, under either plan.

Number one, Swift is the only other carrier I am aware of, that pays those who lease a truck from the company, on a different pay scale than they do other contractors, with THAT distinction being the only factor involved. Without looking it up, I also think it is a .05 cpm difference.

Basing the deduction on the amount of the lease payment is not a very good excuse, in my opinion. Why? Because a lower payment is associated with an OLDER truck, and that driver will more likely have increased maintenance issues during the period he leases it. Despite any OTHER reason that could or would be given, the fact remains that a short term lessor will only make .76cpm for every paid mile the rack up in the six months they drive the truck. The long term lessor will only make .79cpm for every mile they are paid on.

Assuming that each stays for the entire 36 month period, the bottom line is, the Owner/Operator will net $125 more per week, or about $19,500 for his stint than the long term lessor, for simply getting a nickle more a mile.

The lessor will have about $9,000 in his maintenance account by this point, if he is VERY lucky, with about $10,500 having been used for maintenance costs over the period by BOTH contractors, based on averages. If the driver purchases the truck by paying off the balloon, that is gone as well, and then some. The gap between the two, is around $18,000 when all is said and done if they had equal truck payments. I can find a decent and equally valued truck for about $650 less per month, so add another $23,400 in my account, or a total of $41,400, which will be just about what the price of my truck will have been when I bought it. As a matter of fact, I priced one just last week in that range, and the salesman is driving me nuts....(I'm not going to buy another truck just yet. I accepted a line haul driving position offer this past Friday, and am set to go to Wisconsin this next week to start.)

Fair enough, but I'm not convinced that I should retract anything up yonder, because I know what it takes to make a decent living, and nothing I see will deliver it to the average driver that would attempt to drive legal.

I hate to contradict someone when they make a claim, but you're going to have to justify those figures, if you want to be taken seriously. You did state you were a trainer, and this might explain a little of it, but I'm not quite that gullible. You're claiming that your expenses are only $4,250.00 a month. That is categorically impossible. You need to remember that I was generous in some of those figures previously. Fuel prices are WELL above what I used in that table. Add about $415 for every 25 cent jump above that $2.399 figure. I was giving JB Hunt the benefit of the doubt, in that they TRULY have discounted fuel.

I'll base the cost deductions on a 10,000 mile month, and leave your $13,250 gross figure standing, which would mean that you would be getting effectively $1.32 a mile, which we KNOW isn't happening.

$13,250 less the basic and KNOWN deductions above doesn't begin to wash.

$1545.00 - lease payment
$267.67 - Approx. Insurance
$4090.00 - Approx fuel and fee cost per month
$500.00 - Approx. maintenance escrow
$150.00 - Maintenance and misc.

$6552.67 total minimum and deducted expenses.

The above doesn't include the $100 a week escrow account deduction. It doesn't include the one penny mileage deduction for the "fuel useage tax".
It doesn't include the deduction for the MobileMaXX unit that JB Hunt charges you for each month. It doesn't include any of the other charges and deductions that are NOT know, and are surprised on you when you sign the lease...I know there are some of those too...

And keep in mind that the fuel cost figure rises with each mile you claim to run in a month. So does the escrow deduction @ .05 a mile, etc.

Wait a minute. Why would you be flying to Lowell? Hmmm...

 

My wifes mother passed away December 19th. I was in Arkansas at the time of her call. JBHunt flew me to California where I reside, and we flew to Maui and Honolulu for the funeral.

I'm returning now after 3 weeks LOA.

But, not that it's any of your business as I new better than to think there were "Decent" people on this board to share experiences with. I can see that nothing has changed and everyone just wants to get into a "Pissing" contest.

Piss Off Then...!

 

Until now I thought this was two intelegent people discussing this subject........I guess I was mistaken......