I read with interest, and some anger, a recent opinion piece in trucknews.com, The Private Fleet Creep: How to turn private trucking from threat to opportunity, by industry veteran Mike McCarron.
I have a ton of respect for McCarron. However, we do not always agree, and this is one of those instances.
There are valid points and truths in the column. It states private fleets have an advantage when it comes to drivers. There are many reasons for this, with the top of the list being the pay package.
Most private fleets pay their drivers by the hour. According to the Private Motor Truck Council of Canada’s (PMTC) benchmarking survey, 89% of private fleets surveyed also offer benefit programs that include dental, medical and driver wellness. More than 70% offer pension plans.
The average driver’s workweek is 54 hours, lower than the 60 to 70 hours that are common in longhaul segments. Although the workweek is shorter, the maximum pay rate average across all fleets was over $108,000 a year, with drivers in their first year making over $70,000.
Recruitment and retention
Of these drivers, 74% are home every night, with only 8% being out more than one night a week.
The pay package, as well as a work environment that allows many drivers to have quality home time, is an advantage many private fleets benefit from in recruitment and retention.
Where I wholeheartedly disagree with the column is the view that most private fleets, or at least the new private fleets, have no real idea of what they are doing, and that many have limited oversight, weak compliance, and mainly started because of vanity, as they love seeing their logo going down the road.
In many cases, nothing could be further from the truth. Yes, there are bad private fleet operators. However, painting with a broad brush and putting all private fleets in the same category is unfair and inaccurate.
Top-notch drivers paid good wages
Private fleets take pride in seeing their logos rolling down the highway. That logo is seen by millions of pairs of eyes. This is one of the best advertising campaigns and promotions a company can have.
This is why most private fleets hire top-notch drivers, pay them good wages, train them thoroughly and consistently, and have monitoring programs to ensure safety programs, company policies, procedures, and best practices are followed.
The logo on the truck can also turn into a nightmare. If truck ABC is in the ditch, no one knows what is in the trailer, and it is not associated with a brand. If a private fleet truck is flopped on the side of the road, cuts you off, drives aggressively, tailgates, or the driver, who in many cases will be in uniform, is rude to you, they are representing a brand.
Brand accountability
The brand is in the public’s eye, and the driver’s actions or the truck’s condition will have an impact on how the brand is viewed. This could decide whether a product will be bought, a store visited, or a service utilized.
Private fleets ensure they have the best equipment and employees because their reputations and businesses depend on it.
Those who participated in PMTC’s benchmarking survey have a turnover rate of 13%, well below the industry average. Of that 13%, 40% was from either retirement or discipline, which make the numbers even more impressive.
Safety on the road
A driver who takes pride in the job is also a safer driver. The survey shows the overall provincial violation rate average across survey fleets was 10.6%.
In today’s tough environment, we need the best of the best in the industry to work together. The views in this column are not meant to be an us-versus-them argument. Just like in the private fleet industry, the for-hire segment has many top-of-class performers who do things right. They pay their drivers well and keep safety and compliance at the top of their playbook.
Let’s all work together to solve the issues we all face in a fragmented industry.
Credit: Source link
