[130918.EN.BIZ] Walmart Doubles Spending to Lure Trucks Amid 'Serious' US Labour Shortage

WALMART plans to double its spending on attracting and retaining truck drivers by the end of the year, to operate its 6,500 trucks by improving the image of long-haul driving as a career amid a tight labour market.

The retailer will offer referral bonuses of up to US$1,500, shorten the on-boarding process for new hires by one month and broadcast its first national TV ad focused on its 7,500 truckers in order to fill vacancies, reported Bloomberg.

"Right now I could hire a few hundred drivers," said vice president Tracy Rosser. "It is getting tougher and tougher to find qualified drivers. It's a really serious situation right now."

The shortage of drivers in the US swelled to a record 296,311 in the second quarter, according to researcher FTR Transportation Intelligence. Combine that with wage hikes, rising diesel-fuel prices and higher freight demand, and the result was that June saw the biggest monthly uptick in long-distance trucking costs in a decade, denting Walmart's profit margins for three straight quarters.

Walmart's truckers take goods from massive distribution centres around the US and deliver them to its 4,700 stores in a hub-and-spoke system that allows it to replenish goods quickly.

Walmart only enlists seasoned drivers - with at least 30 months experience over the prior three years - and new hires can earn $86,000 a year with as many as 21 paid vacation days. That has kept driver turnover at the company as low as seven per cent historically. That compares to a turnover rate of 90 per cent for long-haul truckers, according to the American Trucking Associations.

The average age of a Walmart driver is 55, so the company is also losing many to retirement. Over the next decade, the trucking industry will need to hire 898,000 new drivers, or an average of 90,000 per year.

"Trucking is not just a job, it's a lifestyle - but it does not work for everyone," said Gary Mars, a 15-year veteran of Walmart's fleet. "Quite honestly, nobody wants to drive a truck anymore. But we have to have 'em. Without trucks, America stops."

Source : HKSG.