Paying drivers per hour limits the crashes
LARRY KAHANER published an editorial in the LA Times on why it makes sense to pay truck drivers by the mile, instead of the hour.
He has however found only one carrier in the U.S. that pays by the hour — Dupré Logistics in Lafayette, Louisiana. Started as a tank truck hauler in 1980, the company now employs 1 200 drivers. About 15 years ago, the company realised that even though it was governing drivers’ hours, the drivers often tired and therefore accident prone. “We were compliant, and we were legal, but we weren’t safe,” Reggie Dupré, the company’s chief executive, told Kahaner.
To keep drivers alert, the company moved to a schedule that would allow them shorter stints on the road. And to save drivers from losing income because of the new scheme, the company decided to pay by the hour instead of by the mile.
Dupré reports that the company’s crash rate has since plummeted. Dupré also says the company also attracted experienced, reliable drivers and unlike the rest of the U.S. there is no shortage of drivers. The company’s driver turnover hovers around 17% in an industry where more than 90% is common.