Nussbaum Transportation, an Illinois-based carrier, has announced a significant increase in driver pay, making it the first company to publicly disclose such a move. The announcement comes at a time when the freight industry is experiencing a shift towards higher wages for its employees. This development is expected to have a ripple effect on other carriers, with some already reporting increases in driver compensation.
The news of Nussbaum's pay increase has brought back memories of Schneider National's public announcement of increased driver pay in September 2020. Since then, a wave of announced driver pay increases followed, a trend that continued for months. However, it appears that Nussbaum is the first carrier to publicly disclose its latest move.
Nussbaum's recruiting director, Joseph Anderson, revealed that the higher pay package was actually the second increase implemented by the company in the past two months. The April increase was not publicly disclosed, but it marked a significant shift in the company's compensation policy.
According to Anderson, Nussbaum is not claiming to be the only carrier that has increased pay. He stated that he received at least one call from someone at another carrier who also reported recent increases in driver compensation. However, Nussbaum's public announcement sets it apart from other carriers that have made similar moves.
Nussbaum's president, Leah Shaver of the National Transportation Institute, confirmed that the company is leading the pack in terms of driver pay increases. She stated that there has been a conservative number of reported pay increases from fleets in the last four weeks, focused on base pay increases and ease of transitioning for over-the-road drivers.
The recent surge in driver pay increases can be attributed to the challenges faced by fleets in hiring drivers, particularly during the first quarter and second quarter of this year. The data supporting the lack of driver hiring in the previous quarter has led to an increase in pay as a way to attract and retain talent.
Nussbaum's operations have fluctuated between 540 to 550 drivers in recent years. The company also operates a flatbed operation that was initially staffed by 11 drivers, but has since grown to around 50. With a large orientation group set to arrive next week, Nussbaum hopes to reach its highest driver count yet.
Nussbaum's history dates back to 1945, and the company has largely operated out of one terminal in central Illinois. Currently, about 30% of the company's business is dedicated to serving customers on a dedicated basis.
The recent changes in Nussbaum's pay policy are part of a larger trend towards higher wages in the freight industry. As fleets continue to face challenges in hiring drivers, it is likely that we will see more carriers following suit with similar increases in driver compensation.
The trend of increasing driver pay is expected to continue as fleets face challenges in hiring drivers.
