Swift Transportation’s fortunes rise on the back of driver wage increases

By: Brad Gardner


Retention rates improve after US transporter’s decision to pay its drivers more.

Swift Transportation’s fortunes rise on the back of driver wage increases
Truck drivers working for Swift Transportation are set to receive another pay rise in 2015.

 

US trucking titan Swift Transportation’s decision to boost the pay packets of its drivers has delivered immediate results for the company.

Swift president Richard Stocking says the number of company trucks on the road has increased, the transporter is experiencing record recruiting weeks and driver feedback has been positive since wage increases took effect in August.

Swift decided to increase wages after a rising driver turnover rate hampered its second-quarter earnings.

In announcing its third quarter results, the company told investors the turnover rate improved more than 16 per cent compared to the second quarter and now sits below the industry average.

"We are pleased with the results we have seen thus far but remain hyper vigilant on this front. We need to ensure we continue to provide our drivers with a better quality of life," Stocking says.

He adds that Swift expects drivers to receive another pay increase in 2015.

"We recognise the importance to stay ahead of this curve on these initiatives to fuel additional growth," Stocking says.

The company is also focusing on giving drivers more time at home.

Swift reported a net profit of $50.1 million for the three months to the end of September, up from $40.1 million in the previous quarter.

Read the full story on Owner//Driver

You can also follow our updates by joining our LinkedIn group or liking us on Facebook