Press Release

For Immediate Release

Truck driver shortage narrative exposed as myth

Freight conference debate and recent study show turnover the real issue

The Owner-Operator Independent Drivers Association (OOIDA), representing over 150,000 small-business truckers and professional drivers, took center stage at FreightWaves’ Future of Freight Festival (F3) to debunk the long-standing myth of a truck driver shortage. The “debate” quickly became a discussion highlighting driver retention as the trucking industry’s real challenge.

Lewie Pugh, OOIDA’s Executive Vice President, firmly dispelled the notion of a driver shortage, emphasizing systemic issues like poor working conditions, low pay, and exorbitant turnover rates. “If there’s a shortage, how do you explain over 400,000 new CDLs issued annually? It’s not a shortage; it’s a turnover crisis,” Pugh stated.

In addition, a recent study looking at the impacts of pay and working conditions on long-distance truck and bus drivers has also called into question claims of a persistent driver shortage. The study, “Pay and Working Conditions in the Long-Distance Truck and Bus Industries: Assessing for Effects on Driver Safety and Retention,” by the National Academies of Sciences, Engineering, and Medicine (NASEM) was conducted on behalf of the Federal Motor Carrier Safety Administration.

John Larkin, Strategic Advisor at Clarendon Capital, was the only voice defending the driver shortage narrative. Yet, he echoed many of OOIDA’s longstanding arguments, admitting the industry’s retention challenges stem from inadequate pay, lack of respect for drivers, and subpar working conditions.

Driver Retention: The Root of the Issue

Instead of a genuine shortage, both participants acknowledged the industry’s excessive turnover rates, with some carriers seeing rates over 100%. Pugh pointed to the structural exploitation of drivers as the primary cause, stating:“Trucking companies perpetuate this turnover cycle because it keeps wages low and costs down. But it’s unsustainable and harmful to the drivers who bear the brunt of it.”

A Flawed Business Model

In the 1990s, Pugh highlighted, J.B. Hunt experimented with increasing driver pay by 35%, leading to reduced turnover and accident rates. However, the practice was abandoned, revealing an industry preference for replacing drivers rather than addressing underlying retention issues.

“It’s cheaper to hire and train new drivers than pay experienced ones what they’re worth. That speaks volumes about how drivers are valued,” Pugh said.

ATA’s Role in the Driver Shortage Myth

Pugh criticized the American Trucking Associations (ATA) for using the driver shortage narrative to push agendas such as heavier trucks, younger drivers, and other regulatory changes. Despite repeated public challenges to defend their data, the ATA declined to participate in the debate, even when FreightWaves offered to donate $50,000 to a charity of their choice.

“ATA’s absence speaks volumes. They know they can’t defend the myth they’ve perpetuated for decades,” Pugh asserted.

The Path Forward

OOIDA maintains that improving driver pay, benefits, and working conditions is the key to addressing turnover and ensuring a sustainable workforce. Larkin himself acknowledged, “It’s going to take treating drivers like human beings instead of objects. Once companies figure that out, turnover rates will drop, which is economically advantageous in the long run.”

About OOIDA

The Owner-Operator Independent Drivers Association is the largest national trade association representing the interests of small-business trucking professionals and professional truck drivers. The Association currently has approximately 150,000 members nationwide. OOIDA was established in 1973 and is headquartered in the Greater Kansas City, Mo., area.

LAND LINE MEDIA ARTICLE: https://landline.media/driver-shortage-debate-turns-into-driver-turnover-agreement/

RECENT PRESS RELEASES:
OOIDA calls for stronger broker transparency regs to protect small-business truckers
OOIDA supports Truck Leasing Task Force for calling lease-purchase programs ‘irredeemable tools of fraud’
OOIDA urges small-business truckers to participate in broker transparency reform process