The Source for Trucking News, Opinions and Trucking Jobs | Interview with CEO of Yellow

Time asks Mr. Zollar about the economy

TIME.com: Road Warrior — Nov. 08, 2004

Big-rig truck drivers have never been in greater demand. There are 40,000 positions available today, by some estimates — a sign, perhaps, of a coming surge in the economy. Often the transportation industry is a leading indicator for other businesses, from manufacturing to retail. So TIME senior writer DANIEL KADLEC sat down with Bill Zollars, chairman and CEO of Yellow Roadway, the nation’s biggest trucking firm, to discuss driver shortages — and what kind of demand he is seeing across the country.

This interview says that Mr. Zollars thinks the economy is still going strong and he mentions the difference between union and non-union drivers. I only want to highlight one thing -

ZOLLARS There’s been continuous upward pressure on wages and benefits. Our average driver makes $70,000 a year and has good benefits. Wages are going up 5% a year for union drivers and twice that fast on the nonunion side.

TIME That must hurt profits.

ZOLLARS First of all, rail service generally has deteriorated, and as demand has picked up for all transportation services, it has forced even more onto the roads. So capacity is getting tight. Fuel costs have gone up, and so have insurance costs. But the law of supply and demand works pretty well. We’re able to charge more. Where possible, our customers are passing through those costs. So the consumer ends up paying more.

Let me repeat that for the idiots on strike for lower fuel prices - We’re able to charge more!!!