Pay for drivers and some other information

The Authority

Expert Expediter
As a fleet owner, I would like everyone opinions on these few items:
If a driver is paying for the fuel, percentage of pay at or above 60% to the driver is fair, correct?
The driver should get the fuel surcharge and load/unload pay, correct?
The driver and the owner should split the down time pay, correct?
Are there any other payments that should be spilt between the driver and owner?
Are there any other payments that should be paid in full to the driver?
Who pays the Quallcomm fees?
Who pays for the insurance?

Your opinions are greatly appreciated.

The Authority Has Spoken!
 

ATeam

Senior Member
Retired Expediter
Your statements are not unreasonable, but they are negotiable, unless you choose to not make them so. If a good team comes your way and one or more of the issues you raise comes into question, it is up to you and your prospective team to work out a deal.

We just left one fleet owner for another that offered us a better deal, and one that as a top-producing team we could reasonably seek. We'd fulfilled our committment to the previous fleet owner and shopped around a bit out of curiosity and a desire to drive a better truck than the one we were in. The previous fleet owner was then willing to match the offer, but he could not match the truck, so off we went. We remain friends with the previous owner.

I'd hope "The Authority" is a flexible authority. It would be a shame if the desire to be right got in the way of the desire to be profitable. Don't get too wedded to your opinions. They may turn out to be the difference between letting a dream team slip away or successfully bringing them on board.
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
>As a fleet owner, I would like everyone opinions on these
>few items:
>If a driver is paying for the fuel, percentage of pay at or
>above 60% to the driver is fair, correct?
>The driver should get the fuel surcharge and load/unload
>pay, correct?
>The driver and the owner should split the down time pay,
>correct?
>Are there any other payments that should be spilt between
>the driver and owner?
>Are there any other payments that should be paid in full to
>the driver?
>Who pays the Quallcomm fees?
>Who pays for the insurance?

As a fleet owner you would naturally want to maximize your your profit from the relationship you develop with a driver. A driver would feel the same way. As ATeam mentioned, everthing is negotiable, but I believe that in these trying times, you should endeavor to give the maximum to your driver in order to ensure your success as a fleet owner.

We assume that you would want the driver to be an independent contractor, subleasing your truck and equipment. Since this is your truck, I think you should pay all carrier required expenses including: Qualcomm, insurance, signage, escrow, trippak. You should also pay for repairs due to normal wear and tear including: lamp replacement, oil change, tune-ups, worn/failed parts. I think you should also cover any accident deductables proven to not be the fault of the driver.

As a driver, I'd like the owner to pay for the fuel but at a reasonable 60% of the gross to the truck, it's more appropriate and normal for the driver to cover the fuel cost. The driver should get 100% of any fuel surcharges. The driver should help mitigate some of your expenses by changing the headlamps, windshield wipers or other simple labor for which you provide parts reimbursement. Should the driver have an accident which is clearly his fault, such as peeling back the roof of your box on a low overpass, the driver should cover your deductable.

I'd find it reasonable for an owner to hold back a few dollars a week for deposit in an escrow account to help ensure return of the vehicle to an agreed upon location or other satisfaction of the owner/driver agreement. The escrow would, of course, have a cap at an amount at least equal to that which the owners carrier requires.

You'll find it too complicated to nickle-dime the driver with the "who gets what" so give the driver 60% of everything except the FSC. After all, when the driver is delayed so are you; when deadheading, your truck is being used; other accessorial charges are paid because of your equipment. Finally, put it all in writing.

Terry
 

davekc

Senior Moderator
Staff member
Fleet Owner
Terry is right on target with his post. This is essentially the same model I use within my own operation.

I agree also that when damage is done to the vehicle(hitting low overpasses) it should be the responsibility of the driver to cover the cost or the deductible. That is more than reasonable.
What driver would think that is unreasonable and not cover the damages? Hopefully none.

Davekc
owner
21 years
 
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