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February 28, 2006
Incentives Matter: Trucker Perks Edition
From today's NYTimes: "Why pull $7 an hour cutting hair when you can make $19 an hour driving an 18-wheeler?" Ms. Cromer said, handing the men a pamphlet in Spanish explaining the requirements for a federal commercial driver's license. "Seriously guys, don't you want to get a job with a future and get out of this neighborhood to see the country?" Faced with what trucking experts describe as the worst labor shortage in the industry's history, recruiters like Ms. Cromer are canvassing cities and holding job fairs. Fueled mostly by retirements, the driver shortage grew dire, industry economists say, starting in 2000 when average wages in construction and other blue-collar jobs surpassed those of long-haul drivers. "Guys figured, why be out on the road for three weeks when they could swing a hammer during the day, make more money and sleep in their own bed each night?" said Bob Costello, chief economist for the American Trucking Association. With predictions from the association that the current shortage of 20,000 drivers will grow nearly fivefold within a decade, trucking companies are offering generous 401(k), stock option and health care packages to new recruits and cash bonuses and prizes to drivers who refer viable candidates. In hope of stealing drivers from competitors, companies have begun outfitting more of their cabs with satellite radio and television and introducing policies to allow drivers to bring pets and spouses on the road. Posted by E. Frank Stephenson at 10:31 AM in Economics
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