Dive Brief:
- Anderson Trucking Service said its 16.7% driver pay rate increase represents one of its largest raises in company history, the carrier announced in a Sept. 8 press release.
- The St. Cloud, Minnesota-based carrier is raising its pay for drivers from 60 cents per mile to 70 cents per mile, per the release. The new rate applies to current employees and new hires, a company spokesperson said in an email to Trucking Dive. Rates also could reach up to 72 cents per mile based on years of service.
- The company said the rate increase was made to align its driver pay with today’s freight market. The raise won’t require current carrier drivers to log additional miles to earn more money while also strengthening the firm’s recruiting and retention efforts.
Dive Insight:
Anderson Trucking Service joins other carriers increasing wages to recruit as well as hold onto drivers in a tightening labor market. LTL carrier Averitt in July announced a new pay structure while companies including J.B. Hunt Transport Services and Knight-Swift Transportation Holdings discussed hiring bonuses and other pay changes for drivers during recent earnings calls.
The shrinking driver pool comes amid government efforts to change process and regulations on the issuance of commercial driver’s licenses. Regulators have also been cracking down on CDL schools over possible violations of Federal Motor Carrier Safety Administration standards.
About 50 Anderson Trucking Service drivers will benefit from the rate increase which was effective Sept. 7, the press release said. The company’s latest compensation change is one of several adjustments it made this year and it intends to continue evaluating driver pay as the freight market evolves, according to the announcement.
Carrier VP of Van Operations Lars Offerdahl noted the driver pay increase “is well deserved.” He added, “it’s important that we continue supporting them with stronger earning opportunities.”
