Another boost for driver pay CFI, which was one of the first truckload carriers out of the gate last year to boost driver pay, is at it again. The Joplin, Mo.-based firm has announced a new pay plan at the beginning of 1998 that will reward drivers with longevity at the company. "Service awards will be given at 120,000-mile increments rather than years of service," explains Bruce Stockton, vp-safety. "The base pay per mile will change once the driver accumulates 250,000 miles, and at various levels beyond. Further, the miles are cumulative, meaning that there will be no restart if a driver has a break in service. "Those drivers who have left CFI in good standing are eligible to return and begin accumulating miles from their last date of hire." An estimated 800 of the company's 1,800 drivers will receive a pay increase, Stockton says.
CFI's new pay plan: Mileage Level - -Pay Rate (per mile) 0-249,999 - -32¢ 250,000-499,999 - -32.5¢ 500,000-749,999 - -33¢ 750,000-999,999 - -33.5¢ 1,000,000-1,999,999 - -34¢ 2,000,000-2,999,999 - -35¢ 3,000,000+ - -36¢
For better or worse... for richer... Federal Express Corp. has announced plans to acquire Caliber System. FDX Corp., a new holding company to be formed as part of the transaction, will also take on Caliber's subsidiaries, including small-package carrier RPS Inc., expedited carrier Roberts Express, and California-based LTL carrier Viking Freight. The deal is subject to a number of conditions, including approval by the stockholders of both Federal Express and Caliber System, as well as the U.S. government. One of Caliber's former sister companies, Roadway Express, has teamed with The Alliance Group to offer customers transportation service between the U.K. and the U.S. Likewise, U.S. Freightways Corp., Rosemont, Ill., has acquired SEKO Worldwide, a domestic and international air freight forwarder.
In other marriages, Covenant Transport, a $236-million truckload carrier based in Chattanooga, has agreed to purchase Bud Meyer Truck Lines, a temperature-controlled carrier based in Lake City, Minn., with 1996 revenues of $45 million. Terms of the cash purchase weren't disclosed. Dynamex Inc., Dallas, has picked up four affiliated same-day package delivery companies in the Atlanta metropolitan area. The four companies are D.D.S. Courier Services (dba Express Delivery), Elite Courier Service, Time Courier, and Consolidated Transportation Services (dba Roltime Courier Service). Each company had separate but overlapping ownership and shared certain administrative functions. Combined annual revenues were about $5 million.Speaking of parcel delivery, Consolidated Freightways has formed a new di vision to serve the growing domestic and international expedited freight market -- CF PrimeTime Air. Also, Transit Group of Atlanta, after deep-sixing an earlier bid to sell its parcel delivery business to Western Parcel Express, sold the parcel business to a company controlled by its chairman, T. Wayne Davis. In a bid to refocus its business, Transit has begun acquiring a number of truckload carriers, most notably Capital Warehouse of Louisville, and Service Express, based in Tuscaloosa, Ala. Beech Trucking Co., a regional truckload carrier in North Little Rock, Ark., bought Midway Transportation, also of North Little Rock. The acquisition of Midway gives Beech longhaul capability.
Montgomery Tank Lines has signed a letter of intent with Union Carbide Corp. to build a bulk liquid chemical terminal facility in Chester, S.C. The new facility will be used for the distribution of Union Carbide's industrial performance chemicals and solvents. MTL will act as general contractor for the construction and will operate the terminal's inbound rail and outbound truck shipments for the first 20 years.
Sleep on it Driver fatigue is recognized as a serious safety problem and public policy issue for today's drivers and fleets. To help teach both new and experienced drivers how to better identify and manage fatigue, the Professional Truck Driver Institute of America is going on the road with a special seminar on fatigue. For a list of upcoming meetings, contact the Truckload Carriers Assn. at 703-838-1950.
