A couple of interesting articles out over the past week that you may have seen circling around. The first from Overdrive Online titled 'ATRI:Cost of Trucking Fell in 2012 Due to Driver Pay Decrease'. View it here. The second from 'The Globe & Mail titled Trucking Companies:Stocks for the Long Haul'. View it here.
With all the talk of driver shortages, the need for better training, the fact that drivers are still classed as unskilled labour, and a continuing trend of saddling drivers with greater accountability in meeting safety & compliance standards that do little to improve the quality of working conditions that a driver faces each day, we now see evidence that drivers are doing what they do for less money while others reap the benefits of their hard work. I raises many questions that drivers should be asking themselves.
The industry is forecasting that mergers & acquisitions will continue at a strong pace in 2014. How will consolidation of the industry effect the driver on the front line? Will pressure on wages continue? Will we see any investment in training and education or will "safety through enforcement" continue to be the trend?
Will consolidation and the push for short term financial gains for investors see the push for drivers to become owner operators continue. As pointed out in the Globe article this "asset light" model allows large companies to respond quickly to market conditions. In other words the operating costs have been largely passed on to the individual owner operator and if there is a downturn in the market or loss of a major contract guess who absorbs the bulk of the financial pain.
It was pointed out while discussing this on my twitter feed that there are successful owner operators out there. It's not surprising that a successful O/O also has a strong set of business skills and has aligned themselves with a company that recognizes long term success is built from the ground up. But is that the focus of the large publicly traded corporate trucking sector?
There are many factors to consider but it looks to me like the trend does not bode well for the average driver busting his ass out here on the front lines pretty much 24/7. Nor does it speak to a safer and healthier environment for drivers to work in.
What do you think?
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When u have 90% of the carriers still violating the laws of this country by not following the federal labour act which says drivers are to be paid overtime after 60 hrs per week. As well as paid overtime rates for working on a statutory holiday which most highway drivers do routinely.... it speaks volumes about how the industry really thinks about driver pay... and then they bitch that they cant find drivers to fill seats... nothing will change until the neanderthals change their ways.
ReplyDeleteInteresting isn't it? Organized labour has been taking a beating over the past 4 decades seeing declining membership and being vilified as the cause for declining profits and the loss of jobs because of the high cost of workers. Meanwhile front line employees now with less disposable income are expected to be the consumers that are supposed to be the driving force behind a service based rather than skill based economy. What a bunch of crap. Our problems extend far beyond just the transportation sector that we work in.
ReplyDeleteHi there Al....are you up for another blog and some good news?
ReplyDeleteAlways open to discovering new blogs and I certainly enjoy good news. :)
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As someone who also drives trucks, I agree with you when you say that the trend does not seem to lead to a safer and healthier environment for drivers to work in. With that in mind, it's really great to know that there are companies that provide great insurance services so drivers like us don't have to worry so much. Thanks for bringing these issues up.
ReplyDeleteFrank Smith @ C2CServices