conway going flat rate?????

[romoore245]

What is going on I just got off the phone with conway now after finding out they are going to a flat rate system, and being told to accept it or quit, is this such a good idea? What does everyone think on flat rate scales? With fuel cost as they are is lowering rates the best idea? Any insight would be helpful.

 

[Glen Rice]

It does not sound pratical. I would recommend to you Conway O/O to voice your concerns if this is true. I hope they are talking about a minimum rate and not a true flat rate. Please keep us posted?

 

[terryandrene]

what is the flat rate for the various sized trucks? If it's not at least the equal to the average pay of your revenue miles now, will any benefits offset a lower payment? I suspect a carrier would only go the flat rate method of payment if they realized a cost avoidance or a cost saving for more profit for the company. Any tariff increases would not necessarily mean an increase for the owner/operator.

Lots of folks prefer the flat rate 'cause they know what every mile will bring them. My suggestion: know exactly what your 2004 average pay per mile is before you make a judgment call on the pros and cons.

 

[romoore245]

this is the Kicker they worded the Addendum as minimum rate then i called for clarifaction and they said it is flat rate i think it was worded this way to get folks to sign easier. We're in a C so this only covers c units here is the Addendum

ADDENDUM TO AGREEMENT FOR LEASED
EQUIPMENT AND INDEPENDENT CONTRACTO
SERVICES

This is an addendum to the Agreement for Leased Equipment and Independent Contracto Services (the "Agreement") between Con-Way Now and__________________(Owner)

Intending to be legally bound by the terms of this Addendum, the parties agree to amend the Agreement as follows:

Section IV, paragraph 4.01 is changed to reflect the new Base Compensation and now reads as follows:

"4.01 Base Compensation. For performance by OWNER of the contractual obligations under this agreement, Con-Way Now shall compensate OWNER as follows:

C unit - $1.20/ mile for all loaded miles on shipments between 1-199 miles (as billed to the customer pursuant to Con-Way Now's mileage determination), and $1.05/mile for all loaded miles on shipment between 200-9999 miles (as billed to the customer pursuant to Con-Way Now's mileage determination). Minimum compensation is set at $105.00 for all shipments billable at Con-Way Now's full tariff, and $75.00 on all discounted shipments

Con-Way Now shall compensate OWNER 58%of the amount of Accessorial charges billed by Con-Way Now, Inc. to its customers (excluding additional insurance) after application of any discounts subject to the deductions authorized in Appendix II and paragraph 3.04 of this Agreement

Section IV, paragraph 4.02 is hereby deleted

 

[davekc]

It does not indicate any fuel surcharge. If you are running at $1.05 per total mile you had better not have any deadhead. One would need to know more information, but on the basis of what you have shown, it doesn't appear to be in the owner/operators favor. Maybe someone from Conway could post what it is exactly that their trying to accomplish and how it will benefit their drivers. Don't want to pass judgement yet without all the facts.
Davekc

 

[Weave]

Yes, at $1.05 a mile, all miles better be paid. I'll bet they aren't, as CWN's D unit rate was never much more than $1.07 based on the 58% of billed charges. Unless they are giving trucks tons of miles, at $1.05 a mile it's gonna be popcorn for dinner every night
Even TS is paying a straight $1.15, why can't CWN?
-Weave-