Wages need to go up ??

[One]

Since deregulation it seems the income of a truck driver has not moved much calculating for inflation adjusted dollars.....
In order to even stay at current income level year after year, wages have to go up but the inflation rate every year..so if u didnt get a raise this year u actually made less depending on the inflation rate.....
So how do we bring the wages up? Tightening standards on drivers to reduce the workforce?? Csa2010 disqualifying drivers?? Unionization? refusing to go work for cheap so those companies cant deliver their freight unless they pay more?

Just some random thoughts to try and spur a discussion, i havent been active here in a long time...

[Malaki86]

The other night I was sitting at a Petro listening to a bunch of old-timers. They were talking about how things "used" to be. A young, new driver, asked one of the older drivers about the wages he made when he first started driving.

The older driver started driving in 1968 for 17cpm. Doesn't sound like much, does it? Well, when you consider that you could buy a NEW house for $10,000, a NEW car for $1,000, etc, it puts things into perspective. I'd say the average pay for a company driver now is in the 34cpm range. That'd be fine if a new house was $20,000 and a new car was $2,000.

In 2006, I drove for Celadon for a few months before I had to change jobs for personal reasons. At that time, I was making 32cpm. I rehired at Celadon in March of this year for the EXACT same pay, even though I drove for another OTR (regional) carrier the entire lapse away from them. I've also got 7.5 years verifiable driving OTR experience.

Does the average pay need to increase? Yes, it definitely does. Will it? I doubt it. Why won't it? Truck drivers aren't covered by the fair-wage laws. That in itself will keep the average pay from increasing.

[GMAN]

The other night I was sitting at a Pietro listening to a bunch of old-timers. They were talking about how things "used" to be. A young, new driver, asked one of the older drivers about the wages he made when he first started driving.

The older driver started driving in 1968 for 17cpm. Doesn't sound like much, does it? Well, when you consider that you could buy a NEW house for $10,000, a NEW car for $1,000, etc, it puts things into perspective. I'd say the average pay for a company driver now is in the 34cpm range. That'd be fine if a new house was $20,000 and a new car was $2,000.

When I started driving around 1971 or so most solo drivers around my little corner of the world started out at about $0.10/mile and teams were being paid about $0.14/mile. I am not sure that you could buy a house for $10,000, but you could buy one for about $15,000 or so. About the only new car you could buy at that time for about $1,000 was a Volkswagen Battle or perhaps a MG Sprite. In 1969 you could purchase a no frills Plymouth Valiant for about $2,200. If you wanted what we now call a muscle car you would lay out about $3,800 or so.

In 2006, I drove for Celadon for a few months before I had to change jobs for personal reasons. At that time, I was making 32cpm. I rehired at Celadon in March of this year for the EXACT same pay, even though I drove for another OTR (regional) carrier the entire lapse away from them. I've also got 7.5 years verifiable driving OTR experience.

Does the average pay need to increase? Yes, it definitely does. Will it? I doubt it. Why won't it? Truck drivers aren't covered by the fair-wage laws. That in itself will keep the average pay from increasing.

Before trucking was deregulated rates were pretty much fixed for lanes Two things happened when trucking was deregulated. Deregulation made it much easier for anyone to get their authority and rates were no longer regulated. Wages are tied to freight rates. Rates are not much higher than they were 30 years ago. Until rates come up significantly wages are not going to rise much. There just isn't enough money to go around to have much of a wage increase. Even if drivers were put under the fair wage laws I don't see wages rising. It would have little or no effect. It would be difficult to put drivers under the fair wage laws due to the way they are compensated. Most drivers are paid mileage or percentage unless they drive locally. It is fair to pay drivers based on mileage or percentage. Drivers work mostly unsupervised and don't punch a time clock. Some people have a good work ethic and will do their best whether their boss is around or not. Others will do only the minimum and when the boss isn't around they will find a way to milk the clock. That is the main reason drivers are paid based upon performance. It is fair to both the driver and carrier. No matter how the driver is compensated, his pay is tied to the freight rates that are paid by the shippers and brokers. Lower capacity will force rates up, but as soon as that happens companies expand, hire more drivers and the cycle begins again. You cannot force people to demand higher rates. Unfortunately, there are too many people running companies who should not be in that position. There are too many carriers, too many owner operators and too many drivers. That thinking goes against what was recently reported on the media. According to the report we have a driver shortage in this country. Shortages create demand. Demand pushes rates and wages up. If there was really a driver shortage then rates and wages would be higher.

[One]

Maybe Csa 2010 will weed out some of the cheap freight haules and raise the rates!

[Bigmon]

If it's so bad why is the old timer still doing it.

[coalregion]

If it's so bad why is the old timer still doing it.

Maybe in his old age he's grown accustomed to the finer things in life like eating, electricity, heating the house in the winter,etc? 8)

[GMAN]

Maybe Csa 2010 will weed out some of the cheap freight haules and raise the rates!

I wish that would be the case. If these people who are hauling these cheap rates cannot afford to repair their equipment then they could be put out of business....eventually. The less capacity the more demand that will be placed on those left standing.

[GMAN]

If it's so bad why is the old timer still doing it.

Perhaps he doesn't know anything else to do. Maybe he just enjoys being out on the open road. Or, it could be like coalregion suggested about enjoying eating, etc.,

[Jackrabbit379]

Back in the 'good ole days' the wages were less than they are now, but folks didn't need much then. Fuel costs weren't sky high, the cost of living wasn't outrageous.
My dad and his brothers picked/chopped cotton for 50 cents a day, when they were growing up. But just think about the cost of living, and the cost of fuel/autos were in the 50's.

[GMAN]

Back in the 'good ole days' the wages were less than they are now, but folks didn't need much then. Fuel costs weren't sky high, the cost of living wasn't outrageous.
My dad and his brothers picked/chopped cotton for 50 cents a day, when they were growing up. But just think about the cost of living, and the cost of fuel/autos were in the 50's.

We still don't need much. We just WANT more. If you don't have any debt and resist buying a lot of junk you don't really need, you can live much cheaper than if you go out and buy a lot of stuff that you don't need. I think most people simply don't know how to manage money and don't have the discipline to resist buying things they cannot afford. One reason so many people have such high debt is because they don't have any will power. They are like children who want everything that they see. We need to rethink our priorities in this country.

[geeshock]

We still don't need much. We just WANT more. If you don't have any debt and resist buying a lot of junk you don't really need, you can live much cheaper than if you go out and buy a lot of stuff that you don't need. I think most people simply don't know how to manage money and don't have the discipline to resist buying things they cannot afford. One reason so many people have such high debt is because they don't have any will power. They are like children who want everything that they see. We need to rethink our priorities in this country.

you hit it g. our cars aren't new but they are paid off. no need to get another till, these don't run. We have a tv, no need to get a plasma/lcd till this one burns out, etc. imagine the savings

[Mackman]

Ok who was the 2 people that said NO. I know Gman was more then likely one. Since he thinks truck drivers make millions lol.

[GMAN]

you hit it g. our cars aren't new but they are paid off. no need to get another till, these don't run. We have a tv, no need to get a plasma/lcd till this one burns out, etc. imagine the savings

I don't plan on buying another TV until the last one dies. I still have 2 that work. I did fire Dish Network. They decided to start charging me $5/month because I didn't have a landline connected to their receiver. That saved me about $70/month. I had a landline that was costing me $45/month and never used it so I got rid of it, too. Most of us don't really have to have a cell phone. We got along for many years without cell phones. Some of us do use them for business. In that case, we probably will need to keep them. We don't need to get phones for all the kids. That could save some households a lot of money each year. Children WANT a cell phone. They don't NEED them. You know, if we would sit down and see what we spend each month on things that we WANT rather than what we NEED I bet we could all save a big chunk of money in the next year.

[GMAN]

Ok who was the 2 people that said NO. I know Gman was more then likely one. Since he thinks truck drivers make millions lol.

Not millions, million.

[One]

I tendto agree with Gman that we live above our means, but i must say weve been trained to do so by media and tv idolizing living the big life in 'Dallas' over the 'little house on the prairie'. But saving money is not the solution either, this biz barely makes for a middle class living (and not that i know first hand) like another poster said the cost of living has sky-rocketed... My pickup truck cost 1300 new i think...

[geeshock]

I tendto agree with Gman that we live above our means, but i must say weve been trained to do so by media and tv idolizing living the big life in 'Dallas' over the 'little house on the prairie'. But saving money is not the solution either, this biz barely makes for a middle class living (and not that i know first hand) like another poster said the cost of living has sky-rocketed... My pickup truck cost 1300 new i think...

I agree, there needs to be cashflow for our economy. I think the key is pay off the things you need to then if you want that other stuff don't break out the master card and charge away, don't by that car that's going to require you to streach your paycheck to the max, etc. you know, live within your meens.

[GMAN]

You can have cash flow for the economy without all the debt. Just buy what you can afford to pay for with cash. Imagine how much you could save on interest and transaction charges. Merchants must pay a fee every time we use a debit or credit card. Those charges are passed along to us in the form of higher costs for products. When we pay with a credit card there is always the temptation to not pay the bill at the end of the month. It is much easier to only pay the minimum due. We could easily pay from 1/3 to double the price we pay if we stretch the payments out long enough.

[One]

Yes,yes everyone should be managing their money well..I dont even have a credit card or car payment!! But i still cant send 2.3 kids to school, afford a nice house, and 2 descent cars, go on vacation once a year....Thats what a middle class income should get me like it used to. Saving money is not an alternative to getting the wage that you deserve for going out here playing russian roulette every day....

[GMAN]

I am glad to hear that you don't have credit card and car payments. You are ahead of most people these days, even if you think you are not making as much money as you would like. Saving is good, but sometimes we spend a lot of money that we don't even realize. Some years ago I tried an experiment. I wondered where I was spending my money. So, I got a composition book and pen and kept it with me all the time. I wrote down everything that I purchased for several weeks. Nothing was too small to track. Even a soft drink or piece of gum. Over those few weeks I found some things that I need to change. Most people would be astonished at where they spend money. You think that a coke is only $1.29, but it really mounts up over the course of a year. If you only have one coke each day for a year you will have spent over $470. If you have 3 per day you will have spent over $1,300. And that is only one item. I would not discount saving.

I understand that most of us would like to make more money. Longevity tends to pay off with higher wages in this industry. But, I suppose some people consider $40,000 or $50,000 as chump change.

[Mackman]

But, I suppose some people consider $40,000 or $50,000 as chump change.

It is when you have to work 70+ hrs week after week to get it.