Drivers want to go to 18% from 20%

Bruno

Veteran Expediter
Fleet Owner
US Marines
I have had about 8 of the 10 drivers we have want to change thier pay from 20% of the gross of the truck each, minus the FSC to 18% of everything. Our one driver made a program up for our fleet and it keeps the numbers both ways and it comes out almost the same but just a few more dollars to the drivers each week. The drivers want to change it to this way because when a load come over the c-link they know what thier pay is based- on the the load offer. By doing it this way they don't have to call in on every load to see what the FSC pay is and what the tolls being paid are. Just want some thought's on this 1st. I think its great for both the owner and the driver's because it's less paperwork. Plus it's easier to do everyones settlement this way too.

Note the 2 drivers that hasn't said anything about this we haven't talked to them about this.
 

cheri1122

Veteran Expediter
Driver
What I think is: if you are an owner who encourages drivers to approach you with what they feel may be a better way to do something, and you give it a fair hearing, then you're an owner who will keep the good drivers, and be successful - good job!:)
 

LDB

Veteran Expediter
Retired Expediter
I'm all for anything that makes it easier to do payroll or anything else.

Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.
 

Bruno

Veteran Expediter
Fleet Owner
US Marines
Thanks Leo and Cheril

We try to listen to the people who drive for us. Sometimes not everyone agrees on everything but for the most part we have some great driver's in our fleet.
 

LDB

Veteran Expediter
Retired Expediter
>Sometimes not everyone agrees on everything...

That statement suggests the conclusion that often everyone agrees on everything. Where did you get these alien lifeforms that are capable of driving while being so agreeable? I need to get a few of those.

Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.
 

davekc

Senior Moderator
Staff member
Fleet Owner
Why would you pay a percentage of the FSC to the drivers if you are paying for the fuel? Did I understand that right?







Davekc
owner
22 years
PantherII
EO moderator
 

Bruno

Veteran Expediter
Fleet Owner
US Marines
>Why would you pay a percentage of the FSC to the drivers if
>you are paying for the fuel? Did I understand that right?

Yes we pay the fuel and tolls, the drivers pay the work accident insurance. Each driver gets 20% of the gross of the truck minus the FSC and tolls money. By doing it this way the drivers say they can do easier now. the money comes out about the same either way.

Here is a really great week that our one truck did.


For the week $6956.54
Minus FSC toll $ 751.54
20% based on $6205.00

Drivers pay is $1240.00

Now do it based on 18% of everything.

$6956.54 X 18% = $1252.17 for each driver and their is not alot of time doing settlement checks anymore, plus the drivers get some extra money to boot. It's just few extra dollars more but if it makes them happy i'm all for it.
 

ATeam

Senior Member
Retired Expediter
>For the week $6956.54
>Minus FSC toll $ 751.54
>20% based on $6205.00
>
>Drivers pay is $1240.00

------------------------------

I must be missing something here. Compare the above numbers with two previous deals we had with two different fleet owners:

>For the week $6956.54
>Minus FSC $ 751.54
>45% based on $6205.00

Drivers pay is $2972.25

Fleet owner pays all fuel and retains FSC.
Fleet owner reimburses all tolls if we are in service over 80%.
Drivers pay workers accident insurance.

--------

>For the week $6956.54
>60% based on $6956.54

Drivers pay is $4173.92

Drivers pay for all fuel
FSC in included in 60/40 split
Drivers pay workers accident insurance

I'm not suggesting your package is not competitive with other fleet owners. In fact, I believe your package must be competitive. Otherwise you would be hard pressed to recruit and retain drivers. What am I missing?
 

LDB

Veteran Expediter
Retired Expediter
With a very quick glance I'd say it's $1252.17 twice or $2504.34 compared to your $2900. Certainly a difference but not what the first glance of $2900 to $1250 looks like.

Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.
 

marvinkwagner

Not a Member
I agree simpler is better

How ever when I first started in the Business I got 20% off the top
there was no worrie about FS Tolls ect.

The man said he made enough it didnt matter
 

Bruno

Veteran Expediter
Fleet Owner
US Marines
Yes Marvin you was paid that way, but I'm sure your 1st owner had his reason and we have our reason's. But you also had to buy a bus ticket to his house everytime too. That's why he gave you 20% of everything.
 

x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
C'mon, if they're makeing a grand a week who cares about ten or twelve bucks either way?? If tho, on average they are making five hundred, then, ten or twelve might be an issue. I guess I don't understand why the discussion if, all things are as typed. Giv'em 18% and everybodys happy. Right?? Myself, we don't even get into the FSC game, we charge a flat rate, and everyone knows whats going on. Makes it easy. I like it easy!!!
 

davekc

Senior Moderator
Staff member
Fleet Owner
This whole thread is rather confusing?






Davekc
owner
22 years
PantherII
EO moderator
 

Tennesseahawk

Veteran Expediter
I basically do the same thing as Bruno's suggesting. Owner gets 35% of everything the truck makes. His reasoning is that it's easier to figure out. I make a few bucks less, but in the long run it all evens out. He pays tolls, and recently even paid the fuel tax which I expected to pay. I would gladly run for someone like who I run for now, than be given a large percentage but be nickel and dimed to death. The guy I used to run for did that, and now has at least one truck up for sale. Oh... he didn't take care of his trucks either.

Bruno... I would say if it works for you and the drivers, go for it. Helluva lot easier that going % of total than (total-fsc)x %. Also, they basically get a free meal out of the deal. Kudos for not nickel and diming them.

"If I claim to be a wise man, it surely means that I don't know." - Kansas
 

Bruno

Veteran Expediter
Fleet Owner
US Marines
>This whole thread is rather confusing.

Dave if you seen the way FedEx settlement sheets are now you would understand what we are talking about. Since the new FSC program rolled out it takes us about 1 hr and 1/2 longer to do drivers settlements. It's just easier on everyone in the long run for the drivers and us.
 

nightcreacher

Veteran Expediter
I've run the numbers too,18% of all is equal to almost 21% before fsc and tolls,and as stated,takes about 1/2 hour less time to figure pays.
 

Bruno

Veteran Expediter
Fleet Owner
US Marines
Thanks Steve. I just think it's a win/win for everyone. I put this out on the table about 2 months ago for the drivers and then they came back to us because they thought it would be better for all of them. We gave them a choice.
 

Tweetie

Seasoned Expediter
FedEx CC O/O 22 years
We try to be very fair with our contractors. We pay them 20% of the gross, no fcc, work accident and no tolls detucted. Just a flat 20% of the total goss of the truck. It's easy for them and us. They make a decent buck and we make a little and everybodys happy. P.S. plus they get some extra's thru out the year.
MERRY CHRISTMAS AND HAPPY NEW YEAR TO ALL AND BE SAFE OUT THERE ON THE HIGHWAY
 

Bruno

Veteran Expediter
Fleet Owner
US Marines
George, not telling you how to run your trucks because you do a great of that and your one of the best owners at FedEx/Roberts Express that I have known over the years. By not making your drivers pay Work Accident Insurance that makes them employee's not contractors. I ran into this at the court house their in Cuy Falls where you live before I started with Roberts Express in 1995. If you want send me and e-mail and I will tell you about the case. Don't want to see you have to go back and pay the IRS income tax for your drivers.

Merry Christmas
 

nightcreacher

Veteran Expediter
thats easy then,show 20% of gross for pay,minus 2% for the work accident insurance,equals same 18%,then they are still getting almost 21% of the revenue,when you figure it with out the fuel surcharge.
it's only numbers,and besides,as contract labor,if you just tell them to call in everyday,makes them an employee,very gray line here.


HOPE ALL ARE HAVEING A VERY MERRY CHRISTMAS,AND GOD BLESS ALL OUR TROOPS THAT ARE FIGHTING FOR OUR SAFETY
 
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