In The News
Carriers try to keep on trucking as turnover soars
NEW YORK — It’s hard to be a trucker these days, as high fuel prices threaten layoffs and drive some carriers out of business. But new initiatives are starting to take shape as companies look to attract and retain good drivers.
Green Bay, Wis.-based Schneider National, one of the nation’s largest trucking companies, last week signed a deal with the Army Reserve that gives reservists a chance for employment after they complete military occupational training.
Schneider National’s Vice President of Maintenance Operations Rob Reich said the Employer Partnership gives the company a “prescreened†group of applicants who are interested in entering the trucking industry.
“We know over the next few years, the shortage of qualified truck drivers and mechanics is only going to get worse,†Reich said. “So we are looking to put the opportunities with our company in front of the reserve.â€
Although the company has similar program with active-duty military, Reich said the Reserve alliance offers a unique relationship because it is a much quicker process, since most Reserve soldiers go through training and then return home.
“We see them as a strong candidate immediately for a job,†he said. “Clearly, with their military training, they have a little bit of a head start with the competition.â€
Schneider is the second trucking company to launch a partnership with the Army Reserve. Ann Arbor, Mich.-based Con-way Freight, a subsidiary of Con-way Inc., signed a deal in July. The sector’s main trade group, the American Trucking Associations, is also part of the program.
The program’s creator, U.S. Army Reserve Chief Lt. Gen. Jack Stultz, said the program was born out of a renewed focus to man and sustain the force, but also as a way to ease the burden on soldiers’ families and employers.
Stultz noted that partnership is successful with the trucking industry because of the need for drivers and mechanics in the Reserve. And the training individuals receive in the Reserve “translates very nicely into employers skill sets,†he said.
Stultz said there is a “laundry list†of companies that have also agreed to the partnership, including Bank of America Corp., FedEx Corp. and Wal-Mart Stores Inc.
Another way the trucking industry is trying to reverse its driver shortage is through relationships with other industries.
The American Trucking Associations recently participated in job fairs for laid-off workers from Ford Motor Co. There, the ATA was one of 120 employers, colleges and organizations looking to recruit hourly employees from southeastern Michigan and northeast Ohio plants who are considering buyouts.
The ATA also maintains a recruiting Web site, GetTrucking.com, which provides information on driving schools and potential employers.
But in addition to recruiting new employees into the industry, employers are also looking at ways to trim the industry’s high turnover rate, which among long-haul truckers is typically above 100 percent.
Driver retention is especially low among long-haul carriers or truckload carriers, where a driver can be on the road for two or more weeks at a time — not to mention the tough working conditions and slumping salaries for independent drivers who see their paychecks eaten up by the high price of diesel.
San Mateo, Calif.-based Con-way Inc., which has both short-haul and long-haul divisions, became the first company earlier this year to launch a program that bridges the gap between its two units in an attempt to keep drivers.
The “driver career choice†initiative allows a trucker to leave a grueling, time-intensive job for a less demanding one that favors shorter routes and more normal hours.
While allowing a trucker to choose a more steady route to their paycheck, Con-way keeps more drivers and cuts its recruiting and hiring costs.
“This program provides a great path for Con-way Truckload drivers who work well with us over a period of years to increase their earning power and move into a driving job that consistently allows them to be home every day,†said Con-way Truckload president Herb Schmidt.