KAG develops pay increase program to combat driver shortage

The Kenan Advantage Group (KAG), a bulk transportation and logistics provider, has a pay increase strategy to address trucking industry driver shortages.

The program calls for guaranteed pay increases for the next three years to elevate driver pay to levels that would attract new drivers required to meet the capacity and growing needs of KAG's customers.

"As the flagship carrier in the tank truck segment, it is important that we boldly assume the responsibility of protecting our customers from the painful impacts of the driver shortages," said Dennis Nash, CEO of KAG. “A potential tsunami is building now that presents serious consequences if not addressed.”

KAG will be contacting its customers over the next 30-45 days to secure the additional funding needed to support the program.

"The perfect storm is upon us," said Bruce Blaise, president of KAG. "Developing factors include the coming industry-wide driver capacity impacts of the ELD Mandate, an economy near full employment and an aging workforce. Estimates indicate that as many as 20%-25% of current drivers will be retiring over the next five years. We simply have to make the adjustments needed to attract new drivers to our company and industry."

Nash said "new equipment, advanced technology, safety support, respect and appreciation from management" are among the elements KAG is using to create an attractive work experience.

"We’ve spent an enormous amount of time and energy enhancing all of these as part of our 'Employer of Choice' promise," he said. “But ultimately, we have to provide a compensation package that can compete effectively with other industries for what is a shrinking pool of available candidates. This move provides drivers with the certainty that they will experience an improving personal financial situation well into the future."

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