FedEx Freight | Low Starting Pay

[SwampRatt]

In my area, Saia, Pitt, XPO, OD, and Estes all have a higher starting pay, at least 1 on the list is almost 3 an hour more and most are closer to 2. There is not as much of a gap between starting pay and top out. Pitt pays their insurance 100%. I left a failing ltl when I came to fedex and know guys who went to all of them. The last pay raise, only the those at top pay got the full amount, which widened the gap. If they would bump all 3 levels up they could actually attract more people from others LTLs allowing them to hire the most qualified drivers, while also hurting the competition

Thanks for the info.

I can't disagree with the edge FXFE would gain in attracting experience. I still think my idea above (post 19) would/could help significantly.

The company that can dominate the market for (quality) drivers, can dominate market share, in terms of available capacity. It's my understanding that we turn away freight in certain lanes, due to inability to handle it.

 

[BIG R GUY]

True. But...

What happens when you start offering THE top rate to new hires with experience? Current veterans will be a little disgruntled, since they had to do their time to make top rate.

Thinking out side the box, perhaps more than 5 years could qualify a start at the 2nd tier rate. 10 or more could start at the 3rd tier rate, meaning only 1 year away from top scale. This might attract experienced drivers who, it could be argued, deserve more than a guy with only the current minimum 1 year experience. Just an idea for a solution to the current challenge...

The difference this would make is pretty clear in this chart, copied from another thread:

Ram

I look at also that anyone with much LTL experience, probably paid their dues where they were first hired. These companies can cry no applicants and whatever, but none offer to pay for experience. Their answer is train a new hire off the dock,or the street,in a company run program..

 

[No F-bdy Bs]

I'd have zero issues with an experienced new hire to hire on at the top rate.
No other profession forces new hires with experience to "climb up" a pay scale
Try hiring a experienced electrician, plumber, mechanic, ect at a "starting rate" and see where that gets you

 

[truckingBORED]

I'd have zero issues with an experienced new hire to hire on at the top rate.
No other profession forces new hires with experience to "climb up" a pay scale
Try hiring a experienced electrician, plumber, mechanic, ect at a "starting rate" and see where that gets you

"Senior drivers" would still have their pick of runs, vacations, trucks, whatever... New hires should come in at full compensation. May the best company win!

 

[BIG R GUY]

C

"Senior drivers" would still have their pick of runs, vacations, trucks, whatever... New hires should come in at full compensation. May the best company win!

Coop D, is the only Iowa carrier that pays a 15 percent premium on driver wages....

 

[Big Dave]

C

Coop D, is the only Iowa carrier that pays a 15 percent premium on driver wages....

That’s our insurance premium on wrecked boardwalks and bridges.
We dont cover CRST equipment. They are just happy with all our completed trips with no issues...

 

[No F-bdy Bs]

"Senior drivers" would still have their pick of runs, vacations, trucks, whatever... New hires should come in at full compensation. May the best company win!

Agree on all points.

 

[dalesr]

I seem to recall OD being said to start you at your current rate. This would work out to a dovetail of sorts, since their rate is higher than many. Not bad method of smoothing the transition.

I was offered a linehaul position at OD recently. I have 14 years experience. They were going to start me at the one year rate with top mileage pay after two years, three for hourly. The cpm difference was only two cpm (.63-.65). Hourly a couple bucks more at top rate. It was better then nothing but I was hoping to start at top rate.

 

[rugrunner]

 

[screweddaily]

Thanks for the info.

I can't disagree with the edge FXFE would gain in attracting experience. I still think my idea above (post 19) would/could help significantly.

The company that can dominate the market for (quality) drivers, can dominate market share, in terms of available capacity. It's my understanding that we turn away freight in certain lanes, due to inability to handle it.

I know that's true, we have even seen contract loads to cover the volume. Personally I just want to see the company to make the moves necessary to come out on top. We need a lot more drivers and equipment if the economy keeps picking up the way it has. Also looking at the age of some of the drivers, there's going to be a lot of people retirement in the next several years; so it's time to get very competitive for good labor before they get caught with their pants down.

 

[SwampRatt]

I was offered a linehaul position at OD recently. I have 14 years experience. They were going to start me at the one year rate with top mileage pay after two years, three for hourly. The cpm difference was only two cpm (.63-.65). Hourly a couple bucks more at top rate. It was better then nothing but I was hoping to start at top rate.

Thanks for sharing that. Sound like you've debunked one of those myths/rumors that turns out to be not quite accurate.

 

[SwampRatt]

Interesting move by ABF. Who want's to volunteer to apply, so we can learn what the fine print is?

 

[Freight Crusher]

Up until now, the fine print reads Chicago Heights, Il. Only. There are a couple who already responded to this question thinking it includes a couple, or even a few, other locations but seem unsure. Maybe Rugrunner can clear that up.
Either way, I hope the trend continues.

 

[rugrunner]

Top rate is when you start. But benefits vary from local to local. Richmond Virginia. You have to wait 2 months before benefits kick in. You get two months of insurance after you leave.

 

[BIG R GUY]

Thanks for sharing that. Sound like you've debunked one of those myths/rumors that turns out to be not quite accurate.

But still did not offer him top rate to start. A bone somewhere in between. I still maintain if these LTL’s offered current top pay,and no progression to get there,they would get plenty of applicants.

 

[SwampRatt]

But still did not offer him top rate to start. A bone somewhere in between. I still maintain if these LTL’s offered current top pay,and no progression to get there,they would get plenty of applicants.

How might they handle those already on board and in the progression process? Do those with enough experience get bumped too?

At FedEx that would increase the cost significantly. NOT sure that is do-able, considering the massive hiring already done over the past year or so.

 

[BIG R GUY]

How might they handle those already on board and in the progression process? Do those with enough experience get bumped too?

At FedEx that would increase the cost significantly. NOT sure that is do-able, considering the massive hiring already done over the past year or so.

Of course you raise everyone to the top pay. I also believe that once the word is out, FedEx would see savings from hiring experienced drivers.
Cost of in house driver training.
A more experienced driver, should help lower accident frequency.
Savings on recruiting costs, media advertising, and training.
An experienced employee can help lower workman’s comp costs.
Most experienced drivers,with good driving skills,can save you money on equipment maintenance.
Experienced LTL people, for the most part are more efficient on the street peddling, and picking up freight, and load picked up freight damage free, which is probably a huge savings.
I still believe wages, and benefits are the top priority that drivers look at,Swamp. Just my opinion...

 

[dalesr]

For my offer with OD (which I had to turn down), it was a combination of things that kept me where I am. The biggest issues were the $25k pay cut and the fact that they didn’t have any big mileage runs out of this particular terminal, so I didn’t see myself making up that deficit down the road. Add in the pto, no health insurance for two months, starting over at 50 years old. As unhappy as I am now, I couldn’t make this work with two kids in college. If I jump, I think it will be out of LTL.
We had a meeting last night (XPO) and new hires will start at $23/hr, no probation, all benefits from day one. Insurance, 401k, PTO accrual. A step in the right direction if you ask me.

 

[Richard Cranium]

How might they handle those already on board and in the progression process? Do those with enough experience get bumped too?

At FedEx that would increase the cost significantly. NOT sure that is do-able, considering the massive hiring already done over the past year or so.

Having just read the book that came with the annual report, if each of the “named board members” gave up 10% of their wages, they could give us a a $.10 raise!
$300,000 a year each in wages and stock for a few meetings a year. SMH

 

[Redracer3136]

Having just read the book that came with the annual report, if each of the “named board members” gave up 10% of their wages, they could give us a a $.10 raise!
$300,000 a year each in wages and stock for a few meetings a year. SMH

Damn, I knew I should’ve went to college!!