Owner Operator vs. Company Drivers
J. Peter Rothe, The Trucker's World, Transaction Publishers, 1991, pp 53-63
by Shaunna Mazza
Here are the instructions for this report.
The author of The Trucker's World, J. Peter Rothe, conducted a study on truck drivers in America and Canada. He conducted his research by riding along with several drivers and observing. On one particular ride, Rothe rides with a driver named Simon. Simon is a company driver who gives a very vivid opinion of owner operators. This report will discuss Rothe's observations while driving with Simon, as well as defining owner operator's and company drivers.
Simon is a Company driver who has been driving professionally for twenty-three years. Like many other truckers, he started out at six on his farm driving the tractor. This was not his intended profession, however, he went to college to become a lawyer. Due to a football injury, his dreams were never fulfilled. He then began his trucking career and has been doing it ever since. Simon is a company driver. A company driver is a driver that works for one particular company and drives their trucks for them. The trucker must abide by the specific rules of the company.
Part 1 : Real Truckers
To Rothe, Simon appeared to be a clean and orderly driver. Simon believes he is a real trucker, which he defines as a teamster, a company driver, and a professional. He is extremely proud of being part of the Teamster's Union. His goal is to stick with the company until he can proudly retire as a teamster. Simon feels there are two distinct types of truckers, the company drivers and the owner operators. Owner operators, privately own their own trucks and take loads from different companies that hire them. The view that Simon gives on o/o's is a negative one. He feels that they are all unprofessional and most are into drugs. A real trucker is not an owner operator.
Rothe soon discovers that Simon has some fundamental and unshakeable views on real truckers. Here's what he defines as a real trucker:
As he talks more on the subject it is obvious to see that Simon feels o/o's are not real truckers.
| Owner Operators (o/o's) | Company Drivers |
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What do I think?
This part explains owner operators and company drivers. It is giving from the viewpoint of a company driver who has been driving for a long time. He describes what it means to be a real trucker. Simon believes that he can be defined as a real trucker. At this point of the report it seems that Simon is brownnosing Rothe and trying to make himself sound good. He feels privileged to be chosen for the research. Rothe is trying to find out the lifestyles and sociology of truck drivers.
Many of the older truckers started out young, usually coming from a family farm or related family business. Most of their training was on the job. Today, truckers are more likely to go to drivers training school where they gain experience before starting. Many will take out a loan to buy their own truck and become owner operators.
According to Simon, owner operators do not have to pass hiring test or employment screening test. Their driving records are not reviewed every year because the company does not pay for insurance or violations. This is why Simon feels they are not safety conscious and as trustworthy.
My comment:
I would think that owner operators would be more safe because they are paying for everything on their own. They would want lower insurance and take care of their truck. I think that Simon has an unfair bias of owner operators and makes wrong judgments of them.
Statistically:
Owner operators experience greater exposure because they tend to drive greater distances. A survey of 1,416 truck and bus drivers illustrated that :
For truckers driving as owner operators averaged more miles (mean = 362.9) than those driving exempt (mean = 348.9), certificated (mean = 343.5) or private (mean = 301.1). p.63
Rothe says that most o/o's were once company drivers who quit to follow a dream of independence. They wanted a freedom from economic advantage. McRae's description mirrors this, he says they are "older family oriented man able to raise money to pay for truck". Simon says it's a bad move to become an o/o, personally, he would never make that move himself, he calls those who do "sell-outs", and he has no sympathy when they fail.
There are many times when owner operators will encourage young drivers not to follow the same path. Here are accounts from two o/o's who feel this way:
1. One man says he's been hauling for twelve years. He feels worn down, he has too much debt, it's too difficult for him to make payments and get on top to buy that new truck. It's living paycheck to paycheck
2. Another suffers from ulcers. He says he works so hard but never gets anywhere. His next option is to go back and work for the farm.
What do I think?
It seems from these accounts that it is harder to own a truck than to work for a company. The dreams of the trucker see far greater than what the reality turns out to be. I don't think it is impossible for a trucker to succeed as an owner operator, but I do believe that it takes a lot more hard work and dedication to get ahead. It might also be impossible to even start if there is no initial money to buy the truck. As with most people, everyone thinks his time will be different, even if these men warn younger drivers, they think it will be different with them, so they still go for it and then learn for themselves.
Part 3 : Loading and unloading
One of the hardest things on a trucker is loading and unloading. Company drivers are able to escape this by hiring dock gypsies and paying the what he would be paid, $16 and hour for a maximum of three hours. When they pay the gypsies, the truckers usually sleep while they unload. The truckers believe that the economic value of sleep is far greater than $48. Because of this, they are able to start earlier and drive longer without being tired. On the other hand, owner operators are responsible for their own unloading. They lose $50 if they subcontract, if they want good sleep, it's $25 for motel because their sleeper in the truck will never provide full rest. Without help of loading, a trucker may have, in a 24 hour period: 5-6 hours of sleep, 10 hours of driving, and 8 hours of physical labor. This can be very taxing on a person. The dispatchers feel no sympathy for this, they only want the job completed. Simon also has no sympathy for the owner operators. He feels that they are the ones responsible for undercutting company driver's contracts by agreeing to load and unload without pay. This, Simon says, creates problems for unionized workers. He feels they are out to destroy company drivers.
What do I think?
Since owner operators do not work for a set company, they need to search for jobs. One way to appeal to the companies is to work more for less money. They have to sacrifice just to keep their head above the water. I don't think that they purposefully seek out to destroy the company drivers, they are only trying to earn a living. I feel that Simon has a negative bias against o/o's and wants to may even feel threatened by them.
Company drivers make 43 cents a mile whereas owner operators make 44. However, o/o's have to pay for their own trucks, repairs, fuel, family insurance, license, etc. while most companies pay their drivers those expenses. Even though the average pay of o/o's is $40-48,000 a year, they usually only net $28,000. Which means they only clear about half the money that they actually make. Simon feels that company drivers make a lot more than o/o's because they do not have to pay for a lot of the things that go along with owning a truck. There is also a high turnover rate from the different companies that the o/o's work for. Simon believes that companies don't mind changing drivers often because of exploitation. Companies are able to take advantage of the o/o's by making them use their repair shops and rentals, at a much higher rate. They also pay o/o's less and don't have to pay for loading and unloading.
Most of these statistics were given from Simon's point of view, which makes me question the credibility. I would think that o/o's would realize this happening and get out. I wonder why there is not a union for o/o's so that they are not exploited by the companies. Owner operator's may also be a problem for company drivers. If companies save money by hiring o/o's, they threaten the jobs of company drivers. I think Simon's resentment shows when he discusses this. This is why I believe that all of his information may not be correct. He feels threatened, so he feels the need to bad-mouth them and look down on them.
At one point in the drive, the road became hazardous, therefore, Simon was forced to drive in the left lane (which is forbidden for trucks). Simon takes the chance on the $32 ticket. He knows where to looks for police, and says he is justified because he can go further faster and there is less chance for his truck to get damaged. He predicted the state of the roads to become far worse over the next two years, if nothing is done. He seemed to be happy of this because he feels it will aid in the disintegration of owner operators. If the conditions are bad, they will have to driver slower, and will not be able to make their loads on time.
In snowy conditions, chains are used. Simon says that he always sees owner operators on the side of the road if there is snow on the road. He thinks they are lazy and lie to dispatchers, saying they are stuck in the snow. Almost any negative stereotype of truckers is attributed to owner operators, or at least, that's what Simon thinks. Simon feels o/o's are the "rotten eggs" of the trucker world. This is why he never goes to truck stops, waves, or talks on the CB to any o/o's. He even believes that 90% of all wrecks are due to o/o's because of which they are on drugs or have been driving too long.
What do I think?
Simon seems even more biased of owner operators when he talks with Rothe about these subjects. I think a lot of it is because he feels threatened by them taking over their jobs. At the beginning of the drive Simon describes himself as a "real trucker" who abides by all the rules and is a good worker. As the drive goes on, he contradicts himself many times. He has obvious animosity towards o/o's, he admits to breaking the laws by driving in the left lane, and he does not even get along with other truckers in his company. I think that Simon aimed at making himself look good and o/o's bad but only succeeded in making himself look bad.
Before reading this report, I did not know there were two basic types of truckers; company drivers and owner operators. I always thought of truckers as truckers, in a separate world of their own, their world of highways and interstates. After reading the report I realized it is a world of their own, however there are different types of citizens that are in it, all making up parts of the whole. The trucker that this chapter focused on was obviously a company driver who had animosity toward all owner operators. Much of the information that I learned about o/o's was conveyed through the eyes of someone that hated them and had a negative attitude towards them. Some of the information might be true, but it makes it hard for me to believe after knowing his attitude. Although I was a little hesitant to believe Simon, I could see how the lives of o/o's might be harder than those of the company drivers. It seems plausible that they are in a constant money struggle because of truck payments and insurance. I can see how they would have to offer better rates and drive longer hours in order to appeal to the comanies to get their business.
I learned that companies have to choose whether or not they want o/o's or their own drivers. If I were a company owner, I think I would hire an o/o because it would save me money, I wouldn't have to worry about hassles from unions, and I wouldn't be restricted to the liabilities such as insurance, repairs for the tucks, etc. There is the issue of exploitation however, having a conscious, I don't know if I would be able to take advantage of them. In most cases, in order to be a successful business tycoon, you need to check your conscious at the door.
Here are some of the questions that my classmates and professor had fro me after hearing my presentation. I answered them according to my opinions and observations from the information that I read. If there are any question that you do not think I have answered or you are wondering about, please feel free to e-mail me and I will attempt to answer them the best that I can.
How do you feel about Simon and his trucking work? Do you agree with Simon's viewpoints?
To me it sounds that Simon is very proud of his work, and enjoys what he is doing. I do not agree with some of his viewpoints on other truckers, especially owner operators. He has a very negative attitude towards them and I think that he unfairly judges them and then isolates himself in doing so.
What is a teamster?
The impression I got of a teamster is person, in this case, truckers, involved with a union, so that they are entitled to many benefits that the union offers. A union helps the worker so that they are not unfairly treated by companies. A union is good for owner operators because they are basically working for the company and can easily be taken advantage of. I believe that they are helpful in cases of unfair treatment and any legal aspects if a problem arises.
What is your opinion of o/o compared to company drivers?
Before reading this book, I did not know that there were two different types of truck drivers. I just thought they were one whole community of drivers, with differences between the companies themselves. After learning about the two types, I realized they had many differences. IN my opinion, I think that company drivers may have it better off than o/o's financially, only because they have the help of the company. If a person would be able to have enough money to start himself off as a o/o and be able to get the jobs, I think that the freedom they would have would be more beneficial and rewarding. However, it seems to me that company drivers have it better off because they are guaranteed the loads and the stability of pay, their trucks are also maintained better because the company takes care of them.
Do you think that o/o's should be regulated as closely as company drivers?
I think that a lot of the reasons that o/o's are not company drivers is that they don't want to be constantly watched like them. They want the freedom to do what they do. However, I believe that they should have some sort of regulation. They should have to abide by the same rules and laws of any trucker. I think the company that hires the o/o's should have certain regulations and stipulations, that they should give to the o/o's before their trip.
Do you think that all drivers must be a company driver before they are allowed a o/o license?
No I don't think they should have to be company driver's first if they are able to afford their own truck and keep it up. I think it is a better idea to gain the experience in a company before venturing off into the trade by himself. In order to get a o/o license I think there should be different stipulations and stricter tests to see if they are ready. A psychological test might also be a good idea to see if they are capable of handling the lifestyle.1
Do you think that o/o's should have a driver training program for them instead of learning on the job?
Yes, I think it is a good idea for o/o's to have driver's training because they need to learn some aspects that may take a fatal mistake to learn otherwise. I am under the impression that o/o's have training classes available to them already, but am not sure if it is mandatory. Just as any driver needs training, I think that with big trucks, it should be even more important.
If you were a company owner, would you use an o/o or a company driver?
As a company owner, I think I might use an o/o, only because it would be cheaper for me. Any owner would want to save a buck or two, so this would be why I picked o/o's. Before I picked the o/o, I would be sure to see his credentials and make sure to call two or three other companies that he worked for to see if they can be trusted and reliable.
Is there a difference between sociology and psychology in the study of truckers?
A. 8
I believe there is a difference between the sociology and the psychology of truckers. This book is written by a sociologist. He focuses more on the truckers role in society, how he is compared within the trucker world and then the greater community of people. If he were to have a psychological viewpoint of the truckers, I believe he would venture more into the minds and drives of them. Although he comments on their background lives, I think his purpose is to show that many come from farms or the same background. I think a psychologist would look into the specific lives, and see how they might be affected are lead into the life of a trucker. When Rothe was discussing the drug aspect of some truckers, he describes it with a more sociological viewpoint, describing stereotypes and viewpoints from other truckers. He also give reasoning for taking the drugs (i.e.. staying up for long drives). It seems to me to be a more descriptive viewpoint than with a psychological one, where a psychologist would look at the reasoning for them to do the drugs, and the effects on the mind.
(This part is not yet completed - it will be finished as soon as the rest of the class has finished their reports.)
_____ 8) **Take a look at how other students in your class have done this report (g12oral.html) (when the drafts are posted). Describe how their g12oral.html file compares with yours in (a) content, (b) approach, and (c) presentation. Resist the temptation to collapse these questions into one answer instead of dealing with each in their own right.
My best advice to you is to stick to the directions. It's easy to do an oral report the way that you want to do it, or may even think is better, but that's not what Dr. James wants. He wants each section looked at the time of reporting it - simple as that. I would also need to say - DO NOT PROCRASTINATE - Ok, ok, maybe I don't always follow this rule either, but it's a good one to have on the mind. Don't do what I did and wait weeks to type up the report - do it right away. I only made it harder on myself because I had to go back and reread some of the stuff that would have been more fresh right after the presentation. It has taken me a lot longer than I expected. I guess that is all the advice I have for you right now, but I think it is good if you can follow it.
