Walmart is raising wages for long-distance drivers, a hard job that is increasingly difficult for the company to fill.
Walmart (WMT), one of the few retail chains with its own fleet of trucks, said it will increase the average starting salary for drivers to between $95,000 and $110,000 in the first year from about $88,000.
Walmart needs drivers to deliver goods to stores and e-commerce warehouses to meet growing customer demand for online orders. Walmart hired more than 4,500 drivers last year in a record hiring spree for the company, which employs about 12,000 truck drivers.
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A Walmart spokesperson said in an email that the latest raise will “help us continue to aggressively recruit to meet our unprecedentedly high customer demand.”
Walmart is also trying to recruit new drivers internally. It launched a three-month development program for its supply chain employees in select regions to obtain their commercial driver’s licenses and become Walmart truck drivers.
A shortage of truck drivers during the pandemic has put pressure on supply chains. About 70% of all cargo in the United States is transported by truck, The trucking industry has high turnover and the job is notorious for long hours, weeks away from home and low wages. Physical strength is also required.
According to the most recent data from the U.S. Bureau of Labor Statistics, the median wage for heavy-duty truck and semitrailer drivers in 2020 is $47,000.
Businesses have been raising wages to hire drivers and stay competitive, but the transport industry said last year it was still short of 80,000 drivers.
“We will continue to hire employees as needed to support the growth of the company,” a Walmart spokesperson told CBS MoneyWatch. She added that the company will also pay drivers to obtain commercial driver licenses, which range from $4,000 to $5,000.
Walmart’s hiring surge comes as the country faces a shortage of truck drivers, intensifying supply chain problems and making it harder for products to get on the shelves. President Biden on Monday announced a plan to hire more veterans and women in the trucking industry.
Walmart said people can apply for jobs by visiting drive4walmart.com.
“These recent investments mean that Walmart drivers can earn up to $110,000 in their first year with the company,” said Fernando Cortez, senior vice president of transportation and Karisa Sprague, senior vice president of supply chain personnel at Walmart. company .
By comparison, the median wage for heavy-duty truck and semi-truck drivers in 2020 is $47,130 per year, according to the U.S. Bureau of Labor Statistics. The industry was short of a record 80,000 drivers last year, according to the American Trucking Association, a trade group.
To become a Walmart driver, applicants must have certain qualifications. The company requires drivers to have an interstate (Class A) commercial driver’s license with a HAZMAT endorsement, or receive a HAZMAT endorsement within 120 days of hiring. Job seekers must also have a clean driving record and no serious traffic or traffic violations within the past three years.
Walmart screens for DUI, DWI, OUI (operating under the influence) or reckless driving with alcohol or drug convictions within the past 10 years, and preventable road accidents.
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