Posts Tagged “driver wages”
Walmart will be adding hundreds of more truck drivers this year after adding 1400 drivers in 2018.
The company reports assessments, mentorship and a faster hiring process are all a part of new onboarding events that are filling critical new jobs created by Walmart’s business growth during an industry-wide driver shortage.
“These hiring events are both improving the skill level of our candidates and enriching their onboarding experience,” Lori Furnell, Walmart’s director of driver talent acquisition, said in a press release.
“We’re leaning heavily on the expertise of our Walmart road team and our certified driver trainers to grow our skilled fleet of professional drivers,” she said.
Walmart is raising driver wages, accounting for a one-cent-per-mile increase and additional pay for every arrival.
Walmart drivers will now earn on average $87,500 a year and with an all-in rate close to 89 cents per mile, according to the release.
Furnell said Walmart is transforming its hiring process to give applicants the opportunity to learn the “Walmart way.”
The release said two centralized locations — Casa Grande, AZ., and Lauren, S.C. — serve as week-long onboarding facilities for new hires to observe veteran drivers and then practice those skills “the Walmart way.”
Targeted one-on-one mentoring from veteran drivers has been introduced in the new way that Walmart hires, according to the company.
The revamped orientation initiatives have already cut in half the time between a candidate’s initial interview and a mandatory driving assessment, according to the release.
To be hired by Walmart, drivers must meet Walmart’s high minimum standards for its private fleet drivers, which includes 30 months of experience in the past three years and a clean safety record, according to the release.
The trucking industry brought in $700.4 billion in revenue in 2014, according to a report released this week by the American Trucking Associations. That’s the highest total revenue in history for the industry and the first time trucking has surpassed the $700 billion mark, ATA says.
The combination of a significant jump in freight volume in the year and tightening capacity spurred the revenue uptick, says ATA Chief Economist Bob Costello.
ATA’s report,its annual American Trucking Trends, also showed the trucking industry moved 68.8 percent of all domestic freight, or 9.96 billion tons, in 2014.
And the $700.4 billion in revenue accounted for 80.3 percent of all freight transporation spending, ATA says.
Owner Operators/Independents
Owner-operators, led by independents and flatbedders, had a record year for net income, according to averages from ATBS, the nation’s largest owner-operator financial services provider. Leased operators and independents together cleared an average $56,167 during 2014. That’s 7 percent above the 2013 average, $52,406. Strong freight demand, a driver shortage and plunging diesel prices contributed to the increase.
The 2014 total “is $2,000 higher than we predicted and most of it comes from the fourth quarter fuel cost reduction,” says Todd Amen, ATBS president and CEO. “All segments had a really good year.” Net income for independents and flatbedders topped $60,000. Independents’ income showed the biggest gain over the year, 8.7 percent. Flatbed haulers, however, experienced virtually no change in income in 2014. That reflects flatbedders experiencing stronger demand and rates a few years before dry van and reefers haulers, says Gordon Klemp, head of the National Transportation Institute. NTI’s National Survey of Driver Wages tracks compensation of drivers at medium-size and large fleets. “Most of the independent contractors operating in the independent and flat markets are on percent of load type programs, so their pay adjusts quicker,” Amen says. “The independents are certainly more in the spot market as well. So these two segments reflect a really good freight market last year. They have higher highs in good times and lower lows in bad times, more volatile than the other segments.”
2014, net income for the groups tracked by ATBS was:
- Independents: $60,157
- Dry van: $54,490
- Flatbed: $60,510
- Reefer: $52,064
Klemp says falling fuel prices helped owner-operator earnings in two ways. One is owner-operators receiving less than a 100 percent fuel surcharge pass-through have seen their share of fuel costs dropping proportionately. The other is that because surcharges are adjusted weekly after the U.S. Department of Energy releases its average fuel prices, a surcharge will overcompensate an owner-operator as long as prices continue to fall during the week.
Sign-on bonuses have been stable in recent months, Klemp says. The mid-point is $3,000 to $6,000, with the top tier $6,500 or more. Team bonuses remain very strong, and he has seen them as high as $15,000. Many fleets use bonuses selectively by region, to meet demand, and often keep high bonuses in place only briefly.