In addition to pay increases, carriers are becoming more creative in the ways they compensate drivers as the industry deals with labor headwinds.
Dry van truckload carrier Cargo Transporters announced Wednesday an “all-in” pay package for new and current drivers. The new pay structure combines base rate mileage pay, productivity bonuses and paid time off, minimizing fluctuations in pay and providing drivers higher per-mile rates.
The Claremont, North-Carolina-based company will pay drivers a prorated, per-mile amount for time off and productivity in addition to the base pay rate. Drivers can choose to receive those amounts upfront instead of in a lump sum.
“Our new all-in pay package provides simplicity and transparency for new drivers considering a career at Cargo Transporters and gives all of our new and existing drivers a choice in how they are paid,” said COO Jerry Sigmon Jr. “It allows our drivers to count on higher pay per mile without the need to account for fluctuations in productivity or time off.”
The carrier will still offer its standard mileage pay program, which pays drivers holiday, vacation and productivity bonus payments separately in a lump sum.
Starting pay for the all-in structure begins at 55 cents per mile for single drivers. Additional adjustments are made for team drivers and drivers with more than 1 million miles that have been with the company for 10 years. The company also offers 401(k) and insurance benefits.
Cargo Transporters previously raised driver pay at the beginning of the year.
The asset-based carrier runs a fleet of more than 500 trucks and 1,700 trailers, specializing in expedited and time-definite delivery east of the Rocky Mountains. Cargo Transporters uses only company drivers, employing over 650 people.
The industry’s driver pool is estimated to have shrunk by 200,000 last year as driver schools operated at roughly half capacity and the Drug & Alcohol Clearinghouse sidelined operators. Also, many drivers parked their trucks over fears of contracting COVID.