GP Transco is ushering in a fresh approach to keep its drivers on the road with a brand-new per diem pay package set to launch in January 2024. Renowned for its tech innovations aimed at driver satisfaction, the Illinois-based carrier is embracing per diem pay as a strategic move.
“Cost of living is increasing, and this is one of the ways which allows us to maximize how much money our drivers take home,” said Sergey Bort, vice president of marketing and strategic business development. “With the freight market being pretty poor for pretty much all of 2023, it is more important now than ever for us to do everything we can to improve retention and driver turnover, and this will help. We have had a few drivers leave us stating that they are looking for per diem pay and found it elsewhere. Basically, it is one less reason to consider leaving GP Transco as a driver.”
While per diem pay is not groundbreaking in the industry, it’s a novel addition for GP Transco. Bort emphasized that the timing is deliberate and driven by several factors. At GP Transco, drivers can expect to earn between $78,000 and $88,000 annually, backed by benefits such as paid vacation, medical insurance, a 401(k) featuring a 4% company match, and dental, vision, and life insurance.
The carrier, as outlined on its website, ensures that all miles are compensated, whether loaded or empty. Drivers also receive additional pay for layovers, breakdowns, extra stops, driver assistance, border crossings, holidays, and successful inspections. The introduction of per diem, according to Bort, maintains the overall pay scale, but the key advantage is that drivers retain more of their earnings due to tax savings.
Under the per diem program, drivers stand to benefit from $69 per day of non-taxable pay for each night spent away from home.
“These tax savings really do add up,” Bort said. “As a rough example, if a driver works 45 weeks out of the year with six days a week worked, that’s over $18,000 of income that they won’t need to pay tax on.”
The decision to implement this program came from the carrier’s driver advisory board, a group of 10 members who unanimously voted in favor of per diem during the last board meeting. A fleet-wide survey reinforced this support, with over 80% of drivers expressing that per diem pay would significantly enhance their overall compensation.
“The new per diem pay program at GP Transco was initially brought up by our driver advisory board during our last board meeting; every driver on the board stated that it would be a huge benefit for GP Transco drivers, so we made the decision to put it together and roll it out in January of 2024,” said Joe Miller, vice president of finance. “Basically, the per diem program allows our drivers to take home more money by reducing how much tax comes out of each paycheck. Ultimately, this further increases what is already an extremely solid driver pay package.”
As the anticipation builds, Bort shared that the level of excitement among drivers for the upcoming program exceeds the company’s initial expectations. The per diem initiative is set to not only enhance the financial well-being of GP Transco’s drivers but also solidify the company’s commitment to fostering a driver-centric approach.
Source: Commercial Carrier Journal
