Schneider announces increases in driver compensation

| 12/15/2004

Schneider National announced this week that its company drivers will receive an average increase of $4,000 per year and that its owner-operators would see their linehaul rates increase to 90 cents per mile plus a fuel surcharge.

The new rate is a 4-cent increase over current owner-operators pay of 86 cents a mile for solo drivers, Mike Norder, a company spokesman, said. Team drivers will see an increase of 6 cents per mile.

Company officials said the move – which they said would more than double the company’s 2004 pay increase – was “the largest pay increase for drivers and owner-operators in its 70-year history.”

The new pay rates take effect on Feb. 6, 2005.

In addition to the pay hike, company drivers will receive new short-haul premiums and increased non-driving provisions, such as detention pay.

The company said that in addition to the mileage pay, owner-operators would receive fuel surcharges and “savings opportunities on business expenses.”

The fuel surcharge paid to owner-operators for the week of Dec. 5 was 14.32 cents per mile. Norder said the company made significant changes to its fuel surcharge program in the past year, changing the formula to provide more money to owner-operators.

The “business savings” refers to Schneider’s Purchase Power Program.

“For me, the best way to liken it, it’s much like a super store,” Norder said. “We obviously buy our products at a much discounted cost simply because of our size. We are able to leverage those costs and provide those savings to our owner-operators as well.”

The program includes discounted fuel, tires – “you’d be hard pressed to find someone who buys more Goodyear tires than Schneider National” – maintenance parts and labor and other products and services.

Owner-operators will also receive detention costs.

The compensation ranges from $25 for 2 to 3 hours detention to $125 for 12 to 24 hours.

– By Mark H. Reddig, associate editor