How Trucking Went From One of the Best Jobs in America to One of the Worst

[Nittersing]

I would welcome our DU truck drivers reaction to this article.

https://money.com/trucking-worst-job/

"In 1980, the average trucker in America was making an annual salary, adjusted for inflation, equal to more than $110,000 today. Twenty-five years later, truckers make on average about $40,000 a year, working harder, longer hours, and with less job security.

Sociologist Steve Viscelli, in an article published Tuesday in the Atlantic, describes how truck driving—once a blue-collar job with good benefits, relatively high wages, and considerable political clout—today is just the opposite. Following deregulation of the trucking industry in the late 1970s, during the Jimmy Carter administration, competition among truckers increased and compensation fell as commonly set rates went by the wayside. At the same time, the once legendary clout of truckers' unions (the Teamsters, a name synonymous with union power, was originally a truckers' union) began to disintegrate along with the political influence of unions throughout the country.

Viscelli blames the decline of trucker fortunes on the rise of independent contracting—an arrangement wherein trucking companies outsource many of the risks and costs of trucking to truckers themselves while declining to pay for benefits, all while advertising the arrangement as one that empowers truckers as small business owners. But the reality can be anything but empowering. Viscelli notes that some contracts in which truckers lease their vehicles from companies bind them in an kind of indentured servitude until the full cost of the lease is paid. In some cases, a trucker who wants to switch companies or leave the job might be hit with a bill of as much as $65,000.

With long hours (many of them unaccounted for labor, since truckers get compensated primarily for driving time but not time spent on paperwork, filling up a gas tank etc.) and extended stays away from home with little human contact, all for an income that tends to hover at or even below minimum wage, trucking is a particularly difficult industry. But many of the challenges faced by truckers are shared by the growing segment of the labor force classified similarly as independent contractors. Most notably of late, Uber drivers have been organizing and suing the taxi company over what workers claim are unfair labor practices."

[panader0]

1. Didn't TFG's great "middle class" tax bill hit truckers pretty hard?

Something about not being able to have certain deductions they used to have.

[imanamerican63]

13. Not just some deductions, everyone of them!

I only get the standard deduction which in return cost me several dollars. I get a 9 cent per diem from my employer which helps but doesn’t cover everything. I am single and make a good wage. So it isn’t has hard on me as other drivers with families.

[Diamond_Dog]

2. Was the trucking industry de-regulated

Under Carter, as the article states, or was it under Reagan (The Great De-regulator)?
Does anyone know?

[House of Roberts]

5. Actually, according to this Wiki page

https://en.wikipedia.org/wiki/Motor_Carrier_Act_of_1980

"The deregulation of the trucking industry began with the Motor Carrier Act of 1980, which was signed into law by President Carter on July 1, 1980."

[Diamond_Dog]

7. Thank you.

[Hassin Bin Sober]

8. Yes, Carter and the Democratic controlled congress.

Deregulation and tax cuts were all the rage from our older boomer friends. They benefitted the most from higher tax rate paid programs and Union benefits before they pulled the ladder up behind themselves.

The 1980s was the “greed decade.” Alex Keaton was popular and Reagan Democrats went along for the ride.

https://en.wikipedia.org/wiki/Motor_Carrier_Act_of_1980

The Motor Carrier Regulatory Reform and Modernization Act, more commonly known as the Motor Carrier Act of 1980 (MCA) is a United States federal law which deregulated the trucking industry.[1]

Motor carrier deregulation was a part of a sweeping reduction in price controls, entry controls, and collective vendor price setting in United States transportation, begun in 1970-71 with initiatives in the Richard Nixon Administration, carried out through the Gerald Ford and Jimmy Carter Administrations, and continued into the 1980s, collectively seen as a part of deregulation in the United States.

Since the passage of the Interstate Commerce Act of 1887, the federal government had regulated various transportation modes, starting with the railroad industry, and later the trucking and airline industries. Increasing public interest in deregulation led to a series of federal laws beginning in 1976 with the Railroad Revitalization and Regulatory Reform Act. The deregulation of the trucking industry began with the Motor Carrier Act of 1980, which was signed into law by President Carter on July 1, 1980.

Studies of the legislative process leading up to passage of the MCA indicate that the Act resulted from a concert of action by the Carter Administration, Congressional leaders, including Senator Ted Kennedy, an extensive coalition of "civil society" organizations which was a follow-on to coalitions created for rail and air transport regulatory reforms, and Interstate Commerce Commissioners appointed by Presidents Nixon and Carter who supported the pro-competition objectives of the legislative initiatives of 1971 to 1980 (notably A. Daniel O'Neal and Darius Gaskins).[citation needed]

The MCA was envisioned to be a sweeping de-regulation of the trucking industry. When President Carter signed the bill, he proclaimed:

This is historic legislation. It will remove 45 years of excessive and inflationary Government restrictions and redtape. It will have a powerful anti-inflationary effect, reducing consumer costs by as much as $8 billion each year. And by ending wasteful practices, it will conserve annually hundreds of millions of gallons of precious fuel. All the citizens of our Nation will benefit from this legislation. Consumers will benefit, because almost every product we purchase has been shipped by truck, and outmoded regulations have inflated the prices that each one of us must pay. The shippers who use trucking will benefit as new service and price options appear. Labor will benefit from increased job opportunities. And the trucking industry itself will benefit from greater flexibility and new opportunities for innovation.[2]

[Jose Garcia]

9. The Motor Carrier Act of 1980 was signed by President Carter

https://en.m.wikipedia.org/wiki/Motor_Carrier_Act_of_1980#:~:text=The%20deregulation%20of%20the%20trucking,Carter%20on%20July%201%2C%201980.&text=The%20MCA%20was%20envisioned%20to,This%20is%20historic%20legislation.

Here is what he said at the bill signing:

This is historic legislation. It will remove 45 years of excessive and inflationary Government restrictions and redtape. It will have a powerful anti-inflationary effect, reducing consumer costs by as much as $8 billion each year. And by ending wasteful practices, it will conserve annually hundreds of millions of gallons of precious fuel. All the citizens of our Nation will benefit from this legislation. Consumers will benefit, because almost every product we purchase has been shipped by truck, and outmoded regulations have inflated the prices that each one of us must pay. The shippers who use trucking will benefit as new service and price options appear. Labor will benefit from increased job opportunities. And the trucking industry itself will benefit from greater flexibility and new opportunities for innovation.[

He also signed legislation to deregulate the airline industry.

[2naSalit]

31. It put many owner operators out of business.

Trashed my husband's company and made corporate trucking outfits kazillions while they worked to kill the teamsters.

[Jose Garcia]

34. And it saved American consumers a lot of money

[2naSalit]

35. I doubt that.

[hlthe2b]

3. A lot of truckstops have become dangerous places and some of the truckers on the road...

intermixed with some very bad characters. I remember always trusting truckers growing up to stop and help stranded drivers if they were really in need. They would likewise finger-wag (or report) the irresponsible drivers of cars speeding by, setting a very good example, themselves. I know these kinds of drivers are still out there, but no longer free of the worst infiltrating their ranks. If I were a woman truck driver, I'd sure as hell lock myself in my rig at night and be reluctant to trust anyone at some of those stops. As it is, I'd never stop at some of those late at night, driving alone, unless I had no choice.

Sad situation.

[A HERETIC I AM]

23. I beg to differ

Unless if by “a lot” you mean “a sparse few”.

Speaking as someone who is in one almost once a day, the truck stop industry has transformed itself from the truck stop of old, complete with greasy spoon type eateries and parking areas frequented by “Lot Lizards” to Travel Centers that cater to the RV’er as well as the regular motorist, along with truck diesel fuel islands.

Your perception of the facilities that make up the majority of this type of business seems to be rooted in the 1970’s.


As far as the demise of the Knights of the Road persona, that went away with the advent of deregulation and was furthered by the widespread use of cellular phones.

[hlthe2b]

24. Just following crime statistics.

I agree most truckers are great. Most truck stops police the activity. That said, just as methamphetamine production and other drugs infiltrated the vast mid-west rural communities, so too did it follow the interstate highways. That makes all-night truck stops a big target. And, yes, I have a distant cousin who drives these routes--more than 25 years now.

[2naSalit]

32. +1

[Johnny2X2X]

4. There's been an all out assault on the really good blue collar jobs

Trucking was once a great way to support your family, had an uncle who was a ling haul trucker and his family wanted for nothing, he gave them a great life with that work. Same thing has happened with auto workers, the skilled trades, and a lot of construction jobs.

My father was a die maker at GM for most of my life, he retired about 15 years ago now. He made close to $100K a year with OT for decades, now the people in those jobs are making much less despite inflation.

And skill trades like electrician, pip fitter, or plumber aren't what they used to be either, Right wingers have gutted unions, have colluded with builders to limit the skilled trade wages and jobs. Virtually every skilled tradesman takes side jobs on the weekends now to make ends meets.

It's about the value labor creates and the rights of workers to share in that value. We gone away from rewarding workers with a fair share of the value their work creates in favor of managers and owners getting more of that value.

[Buckeye_Democrat]

10. It's become more like feudalism.

With kings and queens at the top (owners), surrounded by their privileged dukes and earls (managers) to help collect the spoils of the serfs.

[Johnny2X2X]

15. What Biden and the Dems get is wage pressure starts at the bottom

We're seeing record wage growth right now because the entry level jobs are being forced to pay more. And this has an effect on all labor compensation. If Costco is paying $18 an hour, the factory worker down the road isn't going to break his back for $19 an hour when he can get a job at Costco. He'll need $24 an hour to do that work. And if the factory worker is now demanding $24 an hour, the electrician in that factory isn't going to do their job for less than $30 an hour, otherwise why go through all that trouble of learning a skill when $24 an hour was available for anyone.

What we're seeing right now is great for the working class, it's the first time in my lifetime employers had to compete for labor to this degree. Workers are finally seeing real gains. These gains are why the ruling class is screaming about inflation that is still not even 5% for the year, they want workers to think they're the cause because they got a raise.

[appalachiablue]

16. ++ Relatives were associated with a large trucking co.

in Md. and a friend worked for another major line in Ohio when workers had decent security and were doing well.

Jobs in many other trades have also been hit as you say, the sad rollback since 1980. Deregulation, killing unions and more via Uncle Miltie and Reagan. Carter got brought into the start of the demise.

[BannonsLiver]

6. It was never one of the best jobs in America.

[Demsrule86]

12. It was a good job for a working guy without college just like working for Ford or GM....and the

losses of those sorts of jobs that built the middle class are why we won't have a middle class moving forward. Also, a country that makes nothing in terms of manufacturing creates a security risk as well as an economic risk and will be poor in a few decades...Look at the UK. They gave away all their manufacturing so the greedy in their country could make more money and now they can barely feed themselves. And consider what the chip shortage would mean if we were at war.

[appalachiablue]

20. Well said, good summary of the realities.

[A HERETIC I AM]

11. First, I'm not sure where he got the $110,000 figure.

Last edited Wed Nov 17, 2021, 11:57 AM - Edit history (1)

The author's premise, that trucker pay "adjusted for inflation, (is) equal to more than $110,000 today" means that if a driver averaged 125,000 miles a year (Which works out to be around 2400 miles a week, perfectly doable) then he would have had to have been making around $0.26 per mile.

Twenty six cents per mile times 125,000 = $32,500. Plugged into an inflation adjustment calculator gives just under $110K

The going rate for an experienced driver when I started OTR in 1987 was $0.25, so I'm not sure I agree with the salary premise at all.

The rest of the article makes some good points, however. Deregulation, just as it was in the airline industry, is/was a double edged sword. It made way for the likes of the JB Hunt's and Schneider's and Swifts of the of the industry to flourish, while killing many of the legacy, "Common Carriers" that used to dominate the roadways. When was the last time you saw a "Preston, the 151 Line" truck? Or Carolina? Or Consolidated Freightways? Granted, the demise of CF is a story of union busting unto itself. Yellow and Roadway have merged, and with only a handful of others, they remain the only major Teamster firms in existence.

The conservative economic doctrine has been to bad mouth Unions and they have been very successful in convincing a large number of the American workforce that unions are bad for them.

Trucking is no different.

I live in Florida and you can literally count the number of Teamster trucking firms in this state on one hand. I am fortunate to be working for one of them, but even then, my salary this year will only JUST equal the inflation adjusted pay I was making in 1987.

[LeftInTX]

22. I dated a guy in 1970 whose dad was a trucker

They were kinda poor and earned less than some factory workers
He worked for this company which was Teamsters.
https://www.joc.com/trucking-logistics/failed-buy-out-slams-doors-shut-cw-transport_19880215.html

[2naSalit]

33. +100000000000000000000!!!

I started in the mid 70s, and that's what happened, I saw it.

[ProfessorGAC]

36. My Dad Was A Teamster, Truck Driver

Not OTR. Drove a semi delivering milk to 7 supermarkets in Chicago's south suburbs.
I know for a fact he made a pinch over $30k in 1973, which is when i started college.
That income was why i didn't qualify for most grants or assistance. (Got some scholarship money anyway, but not based on need.)

[A HERETIC I AM]

37. I remember you mentioning your fathers union job in the past.....

And I don't doubt he was making that money, particularly in northern Illinois. I understand that the wages in the upper midwest and the northeast have been higher than in the south by contract, because of the supposed lower cost of living down here. The cents per mile figures I was giving were pretty much what the Truck load, 48 state carriers were offering back then, as opposed to local or LTL freight carriers.

I worked for a Teamster (Local 299 - Old Man Hoffa's local! ) Car Haul firm in the Detroit area for about 3 years in the late 90's (DU'er "Snotcicles" worked for the same firm!) and their base scale was pretty much what my scale is now, 23 years later!

One of the dumbest things I ever did was leave them. I would have had my 20 in a couple years ago and could have retired with a $2,000/month pension. Every year over 20 was another $100 a month.

[ProfessorGAC]

39. I Guess We All Have Some "Ifidas"

He stayed until they took him off the truck to be a customer liaison. Drove a Chevy instead of an IH.
Helped out drivers on heavy days, a day a week or so. Still drove the company car.
Did that until the dairy shuttered, but he had a solid pension locked after being there 40 years & being a major food corps.
I stayed in one spot for a really long time, too. Probably got it from him.
No regrets, but an "ifida" is wondering if I'd been willing to move to run tha place in North Carolina.

[A HERETIC I AM]

40. LOL @ "Ifidas" !!

My list of Ifidas is way too long, I'm ashamed to say!

But this gig is good enough, frankly. I don't ever want to have to look for another job, anyway. It will be 8 years this coming January (I was a Christmas Temp hire in December of 2013 and was told I was permanent on 1/12/14. Longest time I've worked for the same company in my entire life.

Shit... Ifida;

If I had only stayed out of a city park after dark with 2 weeks to go before I was to head off to Army Basic on my way to Warrant Officer Helicopter Flight school. Stopped to take a toke with a friend and got popped. Early 80's

If I had only taken the gig with a well known, world class motorsports entity at the salary they offered, instead of being a dick and wanting a mere 5 grand a year more. What a dumbass. Suffice to say, this entity is one that people don't ever leave. The only way out is death or committing some major crime. Mid 90's.

Several others that were life changing. I realize most people have them, so I'm not special, by any means.

But I'll be fine. This gig will keep me well clothed, well housed, well fed and well transported! (Gonna put a $500 place holder deposit to get me in line so I can order a new, 2023 C-8 Vette soon)

Until they decide to replace me with an autonomous truck, anyway!

[Aristus]

14. The same way so many other jobs went from best to worst.

Employers decided to stop paying competitive wages with benefits all for the sake of a few more dollars for their precious shareholders.

Now the United States is basically a Third World country, only with aircraft carriers and a nuclear arsenal.

Worshippers at the altar of St. Ronnie still suck down the shitty communion of 'more wealth for the wealthy means someday wealth for me, maybe, possibly, if only I wait long enough and believe hard enough'.

[appalachiablue]

17. K/R. I can x-post this to the Omaha Steve

Labor Group unless you want to. Tx.

[Nittersing]

18. Go right ahead!! nt

[appalachiablue]

19. Will do!

[Nittersing]

21. This article looks at retention as the issue... or at least part of the problem

https://www.npr.org/sections/money/2021/05/25/999784202/is-there-really-a-truck-driver-shortage

"There is no shortage," says Todd Spencer, the president of the Owner-Operator Independent Drivers Association. His organization represents more than 150,000 mostly self-employed truck drivers around the United States. Their interest in improving the pay and livelihoods of their trucker members has long come into conflict with the interests of the ATA, which represents the big trucking companies.

The big trucking companies want to secure a steady supply of cheap labor, and the ATA has spent years lobbying the federal government to loosen regulations in the industry. It's now pushing for the DRIVE-Safe Act in Congress, which would allow 18-year-olds to begin driving trucks across state lines. Right now, drivers must be at least 21.

"The driver shortage has been a persistent issue in our industry for many years," says Bob Costello, chief economist of the ATA. "We have numerous examples of fleets of all sizes raising pay, increasing bonuses and increasing benefits, like time at home, in response to the shortage." Costello says the "shortage" has been exacerbated by the coronavirus pandemic and new regulations that require better drug testing of drivers (which the ATA supports). And, he says, this issue will get worse in coming years as truck drivers begin to retire. The average age of American truck drivers is 48.

While truckers skew older, trucking is one of the largest occupations in America, with more than 2 million heavy and tractor-trailer truck drivers. The ATA says the real shortage is in "long-haul trucking," which refers to truck drivers who have to travel long distances across state lines. The government estimates that there are between 300,000 and 500,000 long-haul truckers in America. And according to the American Association of Motor Vehicle Administrators, state governments issue more than 450,000 new commercial driver's licenses every year. A large fraction of those drivers enter the long-haul trucking industry.

[A HERETIC I AM]

38. The new "Drug and Alcohol Clearinghouse" is having a dramatic effect

https://clearinghouse.fmcsa.dot.gov/

This is a new program that I and all current CDL holders have had to register with, and it is hurting some drivers and their ability to find work.

We have a really stupid perspective in this country regarding Cannabis use vs alcohol. I could get completely shit faced drunk tonight, wake up with a hangover, take some aspirin and go get behind the wheel with no legal issues, but if I took one toke from a joint 6 days ago, and had to take a drug screen today, it could cost me my job.

It's absurd. I saw an article the other day that suggested over 75,000 drivers have been sidelined nationwide because of past failed drug screens, and failing a pre-hire drug screen keeps out thousands more.

Why this industry insists that if you got high in the past, you are either still high or such a greater risk that you should not be allowed to drive, yet the alcohol example I gave above is tolerated, is beyond me. And beyond stupid.

And before anyone jumps down my throat, I am not for one second suggesting impaired drivers be allowed to drive. But no one that got high yesterday is still high 24 hours later. We have a totally backward and outdated perspective on drug use in the US.

[questionseverything]

41. Well said

[Sherman A1]

25. K&R

[cbabe]

26. Curious what effect NAFTA revisions under the t guy

has on truckers from Mexico.

Violations of B-1 visas and cabotage rules were common driving down wages for US drivers. Still the case?

[A HERETIC I AM]

42. Where do you get that from?

Violations of B-1 visas and cabotage rules were common driving down wages for US drivers

Really?

Where is Cabotage allowed for either Mexican or Canadian drivers allowed in this country? Under what circumstances? And what is your source for the comment about wages being driven down being "common"?

I don't buy it.

[cbabe]

43. Easily researched. And you're right cabotage is not allowed but was being done.

[soryang]

27. most employee OTR drivers get paid by the mile

Not driving time. Big difference. Driver's driving time is regulated but basically irrelevant to pay. If you are stuck in traffic, detained in a yard waiting for a load, or suffer a breakdown or other delay, all that is a loss to the driver.

[NowISeetheLight]

28. I drove OTR in the 90s

I worked for one of the major companies that was in Omaha. It was a good job for me at the time and I made something like $.32 a mile. I became a trainer after a year and made around $60k after that. I got tired of it and moved into the office as a fleet manager. Made less money but I slept in my bed every night. Eventually became a load planner for another company in Phoenix.

I enjoyed the job and the travel plus I’m very isolated as a person so being alone was OK with me. Other posters are right though there is a lot of unpaid work. Sitting at a dock while you’re loading and unloading isn’t paid. If you did a “shag run” (short local trip) it was $20 and could take you hours to do. If you had to unload the trailer it was $40 yet if you hired a lumper to do it the company was OK paying $200 or more. I never unloaded a trailer. It was an expensive job too. Eating out at the truck stop even once a day would cost you. I had a portable refrigerator and an inverter setup so I could have a small microwave.

I agree about the shady characters. Don’t even get me started on some of the stuff I saw and heard. You always had to watch your step, often literally, so you didn’t trip over some idiots piss jug. Disgusting. It’s like I view the Navy…. A good experience that I wouldn’t want to do again.

[Xolodno]

29. What they don't mention, the reason for deregulation.

Inflation, the rate was 13.5%. There was a lot of desperation to stop it and deregulation seemed the way to do it.

It also kick started the transition of half-assed Keynes Economics to Milton Friedman Economics. If we fully implemented Keynes, it may have stopped the inflation, but that would result in a more equitable economy.

Ultimately to stop the inflation, Allan Greenspan knew exactly what to do. He pulled the plug on the economy and triggered a nasty recession. Fairly sure Reagan wasn't happy about that as it could have made him a one termer. But the economy recovered quite quickly and ended up helping him.

With current inflation, the hope is that its temporary. If it isn't? They will pull the plug again.

[Omaha Steve]

30. K&R!