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Old 11-22-2009, 05:21 AM
607 607 is offline
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Default Per Diem Question w/ some venting

I drive for a company with 80 trucks & 1 yard/office. Yesterday I found out that my cpm was reduced by 3 cents and my per diem was increased by the same 3 cents. I found out while checking my pay stub. Worse it has been this way for the last 2 weeks. I was not notified & had I not been paying attention I do not think I would have been told about it. In my opinion "the company" is pulling a fast one on the drivers. I asked about it and "the company" is taking a nonchalant attitude about this saying that my pay is the same, which we know it is not. I was told to talk to accounting which I did. They confirmed my perceptions of the situation, which are (1)my pay has been reduced & (2)this pay reduction only applies to drivers not to office staff.

Guess my question is do I have options? I am looking for ideas, not quips. I don't mind tightening the belt, so to speak, in these though times. It just seems like the drivers are getting the short straw.

Thanks for your time
Dan
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Old 11-22-2009, 11:05 AM
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I don't know of any company that will automatically change your pay to include per diem without your permission. You are still getting the same gross pay if you include the per diem. The difference is that you won't be paying Social Security taxes on the per diem, neither will your employer. That means that there will be less contributions paid to Social Security. In a way it isn't a biig deal, but if it bothers you then you may speak with your local labor department or state employment office and ask about whether the company can automatically do it. You may have been sent something in the mail that you over looked notifying you of the change but over looked it. It seems odd that a company would automatically make changes to your pay without first notifying you. Companies are trying to do what they can to stay afloat. This small change will save them about 7.5% of the per diem part of your pay for their contribution.
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Old 11-22-2009, 07:01 PM
607 607 is offline
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Thanks for the reply Gman. I would like to clarify a few things.

[QUOTE/] I don't know of any company that will automatically change your pay to include per diem without your permission. [/QUOTE]

"The company" did not change us to Per Diem they changed the ratio of pay. Before the change I recieved 11.5 cents for miles and 6 cents for Per Diem now it is 8.5cents for miles and 9 cents for Per Diem. Basically I have recieved a 26% pay cut and may be in jeopardy of having to repay a Per Diem overage when filing my taxes in the future.
[Note: this is not a discussion about where I could make more money. However if you would like to provide constructive suggestions based on my needs feel free to PM me, or we can start a new thread.]

[QUOTE/]You may have been sent something in the mail that you over looked notifying you of the change but over looked it. [/QUOTE]

Nope no mail. No msg on the quailcom. And as required I visit all the depts. when in the yard they could have spoken to me then.

[QUOTE/]It seems odd that a company would automatically make changes to your pay without first notifying you.[/QUOTE]

That is understated.

[QUOTE/]Companies are trying to do what they can to stay afloat. This small change will save them about 7.5% of the per diem part of your pay for their contribution.[/QUOTE]

I understand that it's tough times lately. "The company" has reduced the fleet by 20%, stopped bonuses and raises. On the other hand they are staying afloat by drowning me.

I still have many concerns about this. First of which is the effects it will have on my Social Security, credit rating, workers comp benefits, and in this economy, unemployment benefits among others.

Second is the underhanded (no notification) way the change was made.

Third, that this only affects the drivers. The office staff did not recieve a pay reduction. If cost cutting is needed maybe all employees should "pitch in" since in would help to ensure that they also have a job in the future.

Forth, the change in rate vs. Per Diem ratio does not increase the companies cash flow, since the total amount per mile is still the same. It should increase increase the profitability of the company thou.


Does anyone have any other ideas, thanks
Dan
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