CRST Expedited to Spend $10 Mln. on Driver Pay Increases
CRST Expedited Inc. announced plans to spend more than $10 million over the next year for pay increases to attract new drivers, compensate drivers for recent productivity losses and provide performance-based bonuses for top drivers.
The pay increase, which takes effect Oct. 15, is the largest in the 58-year history of Cedar Rapids, Iowa-based CRST International, the company’s statement said. The Expedited unit is its largest subsidiary, counting $520 million of revenue last year.
“The new government regulations that have gone into effect since July 1 have decreased our drivers’ income,” CRST Expedited President Cameron Holzer told TT, referring to hours-of-service rule changes. “We felt we needed to put more funds back into the hands of the drivers, who are the heart and soul of our organization.”
In addition to countering HOS effects that have reduced pay because drivers are operating about 5% fewer miles, Holzer told TT the increase has other dimensions. Pay is being raised for new drivers as well as lead drivers who train them on the road.
Expedited also established a pay-for-performance program that can raise experienced drivers’ pay 6 cents per mile or more, Holzer said.
CRST International is ranked No. 20 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
