I recently had a nice chat with Gerry Dowden, president of East Can Transport Services, a Newfoundland-based trucking company that delivers automobiles. We were talking about the industry’s predominantly mileage-based pay structure and how it leaves many drivers feeling shorted, especially on the East Coast where ferry delays – outside the carrier’s control – result in unpredictable and often lengthy delays.

Some of East Can’s top drivers were leaving the company over this, so Gerry got to work devising a new pay scheme that would be better reflect driver productivity, giving drivers the opportunity to earn more and also improving the company’s bottom line by improving asset utilization.

The company hired a consultant to conduct one-on-one interviews with drivers in an effort to better understand what they were looking for. It then came up with a system that pays a premium to drivers who achieve certain mileage thresholds and those who deliver vehicles damage-free.

The resulting system has improved profitability for the company and allowed it to pass on some of those proceeds to the drivers, effectively eliminating turnover, reducing claims costs and even lowering driver injuries. You can read more details about East Can’s reconstructed driver compensation packages here or in the August issue of Truck News.