When did the dream of being a trucker turn sour?
 

This must be the week to write about truckers, with Stephen Labaton's article in the NY Times last Tuesday and now Steve Franklin and Darnell Little's article in the Chicago Tribune yesterday.

Labaton focused primarily on the regulatory cave-in by the Bush administration, which has resisted efforts to reduce the number of hours that truckers spend on the road and working. In fact, Labaton writes, the Bush administration has actually expanded the number of hours truckers can spend driving. His article failed, however, to delve into the deeper structural issues in the industry that are driving truckers to cheat, lie, take drugs and speed.

Franklin, on the other hand, goes more into some of the root causes of truckers' problems than Labaton's article last week -- particularly the fact that most truckers are now paid by the trip instead of a regular salary, making time spend waiting to be loaded or unloaded, or time doing maintenance unpaid. The pace means that counting all their time on the job, some earn as little as $8 an hour. And the fatigue and stress are not only unhealthy for the drivers, but makes the roads more hazardous for everyone. Every year, more than 5,000 people die and 116,000 are injured in truck-related accidents, according to the Federal Motor Carrier Safety Administration.

So what's going on?

When did the dream of being a trucker turn sour?

It began after the government deregulated the industry in 1980, says Mike Belzer, a one-time Chicago trucker and now a Wayne State University professor and trucking industry expert. Ever since, he says, it has been a "race to the bottom."

Before 1980, nearly 9 out of 10 over-the-road drivers were union members, he says. Today, 1 out of 10 carry a union card. That shift ushered in lower pay, fewer benefits and tougher working conditions.

It also made the highways far more dangerous as inexperienced and lower-paid drivers push themselves to earn more, Belzer adds. "You get what you pay for," Belzer explains. It is a matter of choosing between a "skilled professional" and someone "from the soup line," he says.

***

By the late 1990s much of the industry was transformed into a "sweatshop on wheels," Belzer claims. Truckers' income, when adjusted for inflation, dropped steadily as the market was flooded with new companies, new drivers, and pressures from shippers and manufacturers to keep freight costs down.

Figures from the American Trucking Association show that between 1980 and 2005, the number of interstate trucking companies soared from 20,000 to 564,000. But nearly 90 percent operate six trucks or less, according to the industry group.

The result is a highly fragmented industry with "low profit margins," according to an association study.

Out of an estimated 3.3 million truckers, about 1.3 million haul freight. Of these, about 350,000 are independent drivers. Most own their trucks but lease them to companies. Or,... they work for whoever has goods for them to carry.
And for all of the literally back-breaking work, here's what one trucker, Roger Kobernick, ends up with:

Because he cannot afford health care, he relies on state-sponsored coverage for himself and his family. They are qualified to receive food stamps, but pride stops them from doing so. In his best year he earned $40,000, but last year he made only $9,000.

Much has gone wrong for him in the last few years, and he partly blames it on freight rates that have barely gone up while fuel and other costs have soared and eaten away at his profits.

He also has made some financial missteps, among them expecting tax write-offs for his rig to help his bottom line. Instead, he owes $15,000 in state and federal taxes.

And 25 years behind the wheel have taken a toll. Last summer, barely able to bend his back, he had surgery. One doctor had turned him away, saying surgery would be foolish since he would return to truck driving.

The surgery put him out of work for four months. Without savings, he took out a home equity loan to pay bills, then sold his truck's trailer and bought a less costly model.

He also has decided to sell his 2-year-old $140,000 truck because the $2,000 monthly payments are killing him. To attract potential buyers Kobernick has had to steadily lower the asking price.

***

"I haven't had a vacation in 12 years. I have no dental. No pension. No savings," he says as the sun's dying rays filter through pine trees in South Carolina. "Hopefully, I'll catch up one day here down the line. But right now that isn't going to happen any time soon."
The grueling schedule and financial problems also take a toll on truckers mental and physical health, according to John Siebert, an official with the Owner-Operator Independent Drivers Association:

Several years ago, when glancing through members' obituaries, Siebert discovered that their average age at death was 55. In his research, he also found a higher-than-average suicide rate for members and turned his findings over to NIOSH, which has been examining truckers' health for the last few years.

Siebert says he believes such problems are linked to difficult lives and financial stress. He lists organization surveys showing that nearly 9 out of 10 of its members are obese or overweight and nearly two-thirds expect to rely solely upon Social Security when they retire.

He especially worries about produce haulers like Kobernick who have highly unpredictable work schedules. If anything goes wrong, or their schedule is too tight, they lose out financially, and their health often is neglected as they push to work longer hours.

"These guys are working 100 to 120 hours a week, and their sleep patterns are all over the clock," he says.
I wrote quite a bit more in my review of Labaton's article about the structural problems in the trucking industry that lead to these unsafe conditions. Put all of these articles together and you get a pretty frightening picture of America's highways. What are the solutions? An improved regulatory structure to start with, but until the root causes are addressed -- deregulation and the sharp drop in unionized drivers -- we're not going to get very far just attacking the symptoms

Welcome to Deregulation. Glad you could join us. Took you long enough. :wink:

Re: When did the dream of being a trucker turn sour?
 

Hasn't this always been the case? I don't understand why he says NOW paid by the trip. Don't get me wrong, I hate spending two minutes at a dock for free, but I talk with old timers and apparently things like detention time pay is relatively new, so how was it that these guys used to make so much more money? Seems like they were on the same pay scale then as now.

By the way you should post links to the original articles.

Re: When did the dream of being a trucker turn sour?
 

That's part of it. They were on the same pay scale then as now, and say $50,000 a year used to do a lot more for you when you could buy a brand new fairly nice car for $3,000.

Plus they had a chauffeur's license in every state, they ran all kinds of logbooks, they lived on pills. At least my former boss used to run like that. He was extremely strict about drug testing because he used to live on pills, and run 24 hours a day for days on end, which you had to do to make any money in a 200 HP normally aspirated gas job going up big mountains before they built the Interstate system.

Or something. I can only speak for the last 10 years, and what I see is that everything is almost exactly the same now as it was in 1997, except the HOS rules are a bigger pain in the ass now, and more companies have been bought out by JB Hunt and Swift, and Corn Flakes is a bygone memory now. After about three years, I pretty much hit the pay ceiling, and the longer I've stayed in trucking, the closer my wife who has worked at Wal-Mart this whole time has come to making more money than me. She started at $5, and is now making $14, where I started at ~$9, and am now at ~$15.00 (hourly equivalent in my case.)

That's depressing. In the long run, she'll eventually be earning more at Wally World than I will with my class A.

Unfortunately, it is one of the worst periods for the middle class in America. The middle class had it's 'glory' times, i.e. 2nd half of the 20th century.

But now it is time for the destruction of it in the early 21st century. Globalization, massive immigration, and corporate welfare are the main causes of this.

The elite want to destroy the middle class and they are doing a pretty good job of it. Nothing is more threatening to the wealthy than an educated group of people with some money.

One of the worst things to happen to this industry was the hours of service and log books. The more these special interest people tinker with it, the more difficult it is to earn a decent living and the more dangerous the roads become. I see no good use for having hours of service rules and log books other than to make money for the government and make some special interest groups feel better about themselves. Log books force drivers who would otherwise be safe drivers to push harder and longer to beat the clock in order to earn a decent living. It would be better if drivers didn't need to worry about beating the clock. We all have a different body clock. These special interest groups push for regulations that do nothing but increase the cost of doing business for carriers and force drivers to drive when they should be resting. Now they want to push EOBR's and speed limiters supposedly to make roads safer. They will accomplish nothing but to drive experienced drivers out of the industry and cost carriers millions of dollars for compliance. Were it not for compliance rules, carriers could save millions of dollars annually. If these special interest groups continue to push ridiculous regulations in the name of safety down our throats, then you will see roads become much more dangerous in the future. This country was built by individual innovation and entrepreneurship. The large carriers and special interest groups are attempting to stifle competition and innovation through needless and useless regulations.

During the 70's and 80's trucking was at it's peak in relation to power and earnings if compared to cost of living of today. Large carriers have forced rates down and stifled competition where it is difficult for smaller carriers or independents to prosper. The latter part of the 20th century and so far during the 21st century we see massive consolidation of companies which will operate much less efficiently and keep wages low. These companies have exported millions of good paying manufacturing jobs and we now import more than we export in most sectors. Higher wages for manufacturing results in higher earnings for those in the trucking industry. The government and mismanagement of funds have virtually eliminated the power of the Teamsters and other large unions. The large unions have also been responsible for many companies moving manufacturing facilities off shore. The over regulatory climate of the government has also played a part in many companies moving off shore. I have no doubt that were it possible, many of these large trucking companies would also move off shore. They will be able to reduce costs by hiring less experienced foreign drivers and buying Mexican carriers to give themselves an inroad to a pool of cheaper labor. I don't mean to sound like the voice of gloom and doom. I still believe in the American dream. So many have gotten used to the government handouts at the individual and corporate level, that it will be difficult to turn things around. Things can get better, but it will take work. We must go back to becoming more self sufficient. We don't need to look to government to solve all of our problems. We should be able to do that ourselves.

8) Gman, did you ever think of getting into politics? 8) 8)

Great post GMAN, but could you please give an example of how the HOS of today cost us the money. What I mean is from what I understand they have always had HOS rules but people use to run a few log books. From what I understand, except for many many years ago, drivers have been paid by the mile even in the 80's so I don't understand truly what the difference is. Why is it we make less money? I'm talking about a company driver not an O/O. Could you please give like an example like a 3000 mile week what it would look like today and what a 3000 mile week what it would look like in the 80's?.

It would be much easier for a lot of us new to the industry to actually visualize in an example A & B scenario how things have changed.

Thanks as always.

Did you guys read the article? The guy claimed to make a max of 40k... so what does he do.... goes out and buys a BRAND NEW 140K TRUCK...

Hello? Anyone here? My god, this guy lacks serious financial planning.

BTW how does he pay 15k in taxes if he only makes 9k? He really does NOT have a business sense whatsoever.

That doesn't make any sense.

You'd think 25 years of experience and he'd have some business sense

A truck that he shouldn't have bought in the first place.

Maybe he just works for too cheap?

I agree with you in a sense, that the HOSR really dont cater properly to our body clocks. But I have to disagree that you cannot earn a decent living under HOSR.

If you can't, then get out of trucking. There's more then enough hours available. Even under the current HOSR, you can work yourself to death. 70+ hours a week is almost double what the average person works.

If you can't make a decent living under the HOSR, and must run illegal to make ends meet, make that truck payment, etc...

GET THE HELL OUT OF TRUCKING!

(no this isn't directed at you GMAN, but rather anyone that *needs* to run illegal)

Another thing, say they do completely abolish HOSR tomorrow, do you guys honestly think rates will go up? DOWN DOWN DOWN, as guys cut their margins even closer, and start doing 16k miles a month.

I was approached several years ago while I worked in a national campaign. After seeing how some of these politicians work, it can turn you against running. Besides, I think I am too candid to be a good politician.

I will try to explain the way both work and how it can make a difference. With the old hos, we were allowed 10 hours driving without having a 8 hour sleeper berth. Today we have 11 hours driving before taking a 10 hour break. Under the old hos, you can drive 10 hours, take a 8 hour sleeper berth and then log another 10 hours driving. During a 24 hour period you could conceivably drive 16 hours and be compliant. With the new hos, you can drive 11 hours, take a 10 hour sleeper berth and then drive another 11 hours. However, during a 24 hour period you can only log 15 hours driving. Lets assume that you drive 5 days under both hos rules. You will be able to legally log 5 more hours driving under the old hos than with the new. If you average 50 mph each hour, then you would be able to legally log 250 more hours driving for the same period. At 70 mph average you could run an additional 350 miles during the same period. You likely will not be able to average 70 mph, but 50 is conceivable if you log legally. If you multiply 250 miles times 50 weeks, you could legally log 12,500 more miles during the same time period with the only difference being the hos rules. That assumes that my calculations are correct. The one thing I like with the new hos as opposed to the old is that you can restart your 70 hours with a 34 hour break. With the old hos, we would usually only pick up a day, which would usually be about 10 hours or so. I have taken some liberties with the total hours per week, but you could easily drive 5 days a week and be legal.

At 50 mph average driving time, it will take 60 hours to drive 3,000 miles. Under the old hos, it would take about 3 1/2 days. The new hos would take 4 days.

There are ways in which to work with the new hos and make money, but I think it would be better to get rid of the logs and hos rules. It would save everyone money. We could drive more if we felt like it or less if we were tired. We would not be penalized as with the new hos rules. There are other professions just as dangerous or hazardous as driving a truck which do not require the operator to log each work segment of their day.

Very well said, GMAN. :P

I can think of a perfect example, GMAN. Pickups, pulling goosenecks. How many pickups, pulling gooseneck flatbeds, actually have a log book? I have seen some, just every once in a while that actually have a DOT number. Most, dont have squat. :P DOT needs to pass a law on those pickups to run the same HOS as commercial drivers. I dont know how many times that I have seen those guys that are driving half asleep. Tell me, that a pickup, pulling a gooseneck is more safe driving 18 hours a day, than a professional truck driver, driving 11 hours a day.

This was never a "dream" for me. It was a job that I wanted to do after I retired from business ownership. Its just a job for me. A way to make money and have health insurance since I'm still too young for Medicare, which isn't all that great anyway.

One thing I do take exception to is the issue: His article failed, however, to delve into the deeper structural issues in the industry that are driving truckers to cheat, lie, take drugs and speed.

Now granted, there are drivers who cheat and lie in their log books....but then I think that far more operate as legally as possible. I know I do, but then we (people like Cyanide and I) have more "time stamps" on us than most drivers, and much of our pay is tied to our logs. So, it is imperative that we log legally, so we do. Besides, if I can't make a decent living by logging legally.... I need to find another job. But I happen to like what I am doing....so I log legally.

But as far as "drugs and speed".... I have serious doubts about many drivers using them. Federal statistics show that a very, very small percentage of drivers tested come up positive....and it is well noted that since the inception of the CDL program that "drug use" has declined drastically. The mandatory provisions of drug testing make it more than just a gamble to fool with drugs. So, I put articles that ramble on about drivers using drugs as being little more than "sensationalism and hyperbole".

Thank you as always GMAN. If I may, really I could go on an on asking you questions you are so informed, but was there or is there anything else different in the life of the driver of today and the driver of yor. I mean I know the climate is different, that is there was more unity among drivers as far as helping eachother out. But I mean drivers where still not paid for sitting at the docks I assume, back then either. But I guess there were less trucks on the road then too and really probably a lot more shippers as things were manufactured here back then. How has all of that affected the industry? Thanks as always for your insight and sharing your knowledge.


By the way Skywalker, as for drugs, well this isn't really speed, but a friend of mine just came off his third month of training and he kept telling me that he had something to tell me during the last month. Anyway, this guy he was with was smoking weed. I told him he was insane to stay 2 minutes in the truck with him. I mean I'm not the drug police but he could have been inhaling that stuff and got busted himself for drugs in his system. Not to sound naive or anything but I can't believe that someone would be driving and smoking, I mean talk about a quick end to your career.

Why is it you guys want to work more hours and run more miles for more money? Shouldn't you be trying to work LESS hours and run LESS miles for more money?

Do you honestly believe rates would change because of this? You'd just end up working more to get a bigger paycheck, that's all. And accidents involving Class 8 trucks would skyrocket. How many old-skool pro gearjammers are left out there who know when to shut it down? These days, it's a bunch of newbie cowboys hauling for < .40 cpm who would run that truck into the hearafter for a bigger paycheck.

Those other professions aren't working 80+ hour workweeks.

a good read for us younger drivers that where not around during the GOOD OLD DAYS of trucking.

"All a log book does is make an honest man tell a lie"

When did the dream of trucking turn sour? What time is it. Everyday somebodies dream of trucking turns sour. Some company driver is getting a divorce because he has to stay out so long to bring home a decent check or some o/o who has been fighting the rising fuel prices that has been cutting into his profit just had his motor fold up on him. Everyday it turns sour for somebody.

Why did we all get into Truckin'? I think that everyone at 1 time or another loved the business, and I do think that we do need to come together and address all issues.....not gonna happen. I haven't been driving for as long as alot of you out there and only been driving for 7.5 yrs., and have hauled my fair share of various freight, but there are so many people and alittle thing groups out there that dictate and make the rules for an industry they really know nothing about. He?? for all we know the biggest vehicle these people drive is a quad cab S 10. I still enjoy driving for the most part, but like everyone else the bs really leaves a bad taste for the industry. I just wish we could all make this business a great again like I hear so much about it use to be. Keep on truckin' and do it safely every 1[/b][/u]