Wednesday, July 27, 2011

Transport Management: Bus Falls from Skyway Part 2 . . . How We Pay Truck Drivers & Accidents on the Road

Also similar to the previous post concerning Bus Falls from the Skyway, I want to bring up the situation of Truck Drivers in Manila which should be of concern to for how Logistic managers contract Trucking (or Cargo hauling) services in the Philippines:

1.  Truck drivers (working for Third-party trucking providers or haulers )are usually paid by the trip.

courtesy of AP/Patrick Reddy
2.  Provincial trips are paid a higher per trip rate and may or may not include an allowance for meals depending on umber of days to complete the delivery.

3.  Company-hired drivers are paid by the day or month with overtime pay in excess of 8 hours.  (For 3rd-party drivers, there is no such thing as fixed hours and OT pay.  Benefits are optional)

4.  Most manufacturers use 3rd-party trucking providers (as use of company-hired drivers is more expensive due to higher government-mandated wage rates & benefits as well as OT pay which outside truckers do not have to pay)

5.  Because Logistic managers of manufacturers pay haulers by the case or by the trip, the hauler also pays his driver by the trip.

6.  The hauler cannot pay monthly wages as there is no guarantee that the client-manufacturer or company will give him a daily trip.

7.  During lean months, the hauler will have to contend with idle trucks or trucks that deliver less-than-full truckload meaning his revenue may be at a loss if the number of cases paid for is less than his fuel and wages.

8.  The driver has to complete each trip in one day so that he can earn again the next day's trip.  If his trip takes more than 2 days, the hauler will only pay him once.

9.  Tendency then is for the driver to rush to finish his delivery.

10.  Also, in Manila we observe truck ban periods (no trucks on the road) from 5am to 7am and from 5pm to 9pm.  Hence, a driver that finishes his load has to wait for 9pm before he can go home i.e. maybe 10 to 11pm but has to be on the road again at 2 to 3am to avoid the truck ban at 5am.  Hence, he gets his sleep whenever the truck is waiting to be loaded or unloaded.

11. Drug usage (to keep awake) among drivers is always a problem for the hauler and Logistics manager.


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