Walmart Raises Starting Pay to lure Truck Drivers

Walmart Inc us raising the starting pay for in-house truck drivers to as much as $110,000 a year in a bid to keep its supply chain running smoothly. It is also expanding a program that includes a 12-week course to become a certified truck driver and join the company’s internal fleet. 

The push comes after the trucking industry continues to struggle in recruiting drivers even as wages for truck drivers have risen steadily throughout the covid-19 pandemic. Last month the industry lost 4,900 jobs, recording the first monthly decline in nearly two years, according to federal labour statistics. 

Target is also building new regional distribution centres to speed goods through its supply chain. BJ’s Wholesale Club Holdings Inc is buying four distribution centres and trucking fleets tied to the sites from a closely held logistic company.

Jonathan Starks, a chief intelligence officer at FTR Transportation Intelligence, has said that the announcement from Walmart reflected the pressure that has been building over several decades in the market for over the road truckers, with pay lagging other logistics roles.

Walmart has already moved 17 workers from its warehouse operations to its truck driver training program and is aiming to add hundreds of drivers through the program by the end of the year.