KAG Proactively Addresses Driver Shortage–Implementing Driver Pay Initiative
The Kenan Advantage Group, Inc. (KAG), North America’s largest bulk transportation and logistics provider, is implementing a pay increase strategy designed to proactively address the rapidly worsening driver shortage issue facing the entire trucking industry. The program calls for guaranteed pay increases for the next three years to help significantly elevate driver pay to levels that successfully attract new drivers required to meet the capacity and growth needs of the organization’s blue chip customer base.
“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,” states Dennis Nash, CEO. “A potential tsunami is building now that presents serious consequences if not addressed.”
“The perfect storm is upon us,” says Bruce Blaise, President. “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.”
“There are many elements to creating a highly attractive work experience such as new equipment, advanced technology, safety support, respect and appreciation from management, and many more. We’ve spent an enormous amount of time and energy enhancing all of these as part of our ‘Employer of Choice’ promise”, says Nash. “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.”
KAG will be contacting its customers over the next 30-45 days to secure the additional funding needed to support the program.
The Kenan Advantage Group, Inc.(www.thekag.com) operates through its five groups consisting of Fuels Delivery, Specialty Products (chemicals and liquid food), Merchant Gas, KAG Canada and Logistics. The company has terminal and satellite locations in 40 states and five Canadian provinces and territories, with the ability to deliver within all 48 contiguous states, Canada and Mexico. KAG also provides specialized supply chain logistics services through KAG Logistics (www.kaglogistics.com).