Heartland Express Inc. Announces Increase to Driver Pay Package With 5th Driver Pay Increase in Last 6 Years

Rhea-AI Summary

Heartland Express, Inc. (HTLD) announced significant driver pay enhancements, reflecting a commitment to its workforce amid challenging times. The new package includes up to 12.2% rate increases depending on region, with an average rise of 6% across the fleet. New hires can earn between $0.56 and $0.60 per mile based on experience, while current drivers may receive rates as high as $0.65 per mile. The company recognizes up to 10 years of experience for new hires and offers annual safety bonuses. This initiative underscores the company's appreciation for drivers' dedication during the pandemic.

Positive

• Driver pay increases of up to 12.2% based on region.
• Average pay increase of approximately 6% across driver fleet.
• Attractive new hire rates starting at $0.56 per mile.
• Recognition of up to 10 years of verifiable experience for new drivers.

Negative

• None.

NORTH LIBERTY, Iowa, Nov. 04, 2020 (GLOBE NEWSWIRE) -- Heartland Express, Inc. (www.heartlandexpress.com) (Nasdaq: HTLD), an industry leader in financial performance within the dry van truckload industry and delivering premium customer service to its customers, is pleased to announce substantial enhancements to its driver pay offerings. The announced increases will impact Heartland Express, Inc. of Iowa, a wholly owned subsidiary of Heartland Express, Inc. The specifics of the driver pay package are as follows:

• Rate increases to drivers as high as 12.2%, depending on driving region and related home time,
• An average increase of approximately 6% across the current driver fleet,
• New hire rates starting as high as $0.56 per mile (1 year of qualified experience, depending on driving region and related home time) to $0.60 per mile (10 years of qualified experience, depending on driving region and related home time),
• Continue to recognize up to 10 years of verifiable experience for new drivers joining the Company which we believe is in excess of the industry average of approximately 5 years for new hires,
• Current Company driver rates as high as $0.65 per mile based on longevity with the Company, driving region and related home time,
• Continue to pay drivers fixed wage increases, for up to 20 years of combined driving experience,
• Continue to pay drivers an annual safety bonus of up to $0.03 on all miles driven plus and an additional $0.05 per mile, for all miles driven in Northeast United States “Green Zone” and Canadian miles. Both of these rates are in addition to a driver’s base rate of pay.
  

Heartland Express Chief Executive Officer Mike Gerdin, commented on the driver pay increase and ongoing initiatives of the Company, “As we reflected back on what has transpired over the course of 2020, and what our drivers have been through, this pay increase is a sign of appreciation for everything they have overcome. Their dedication to keep America moving and maintaining Heartland Express as an industry leader has been outstanding. With this latest driver pay package, we also wanted to extend our gratitude to other professional drivers within our industry should they choose to join the Heartland Express team. Throughout the volatile times of 2020, our drivers have weathered the effects of an ongoing global pandemic, numerous natural disasters, and political unrest to keep America moving in times of need. Often the unsung hero, but a critical component to America’s supply chain, our drivers have continued to perform at their very best throughout these challenging times. Their service is the underlying cornerstone to our ability to provide premium service to our customers and maintain our history of financial success over the long haul. Our customers expect us to deliver and our drivers have done exactly that through the many obstacles they have faced this year.”

Heartland Express is an irregular route truckload carrier based in North Liberty, Iowa. The Company operates 20 terminals serving customers with shipping lanes throughout the United States. Heartland focuses on medium to short haul regional freight, offering shippers industry leading on-time service so they can achieve their strategic goals for their customers. More information about Heartland Express can be found on the company website at www.heartlandexpress.com.

Contact: Heartland Express, Inc. (319-626-3600)
Mike Gerdin, Chief Executive Officer
Chris Strain, Chief Financial Officer

FAQ

What are the new driver pay rates for Heartland Express (HTLD)?

Heartland Express has announced driver pay increases of up to 12.2%, with an average increase of approximately 6% across the driver fleet.

When was the driver pay enhancement announced for Heartland Express (HTLD)?

The driver pay enhancements were announced on November 4, 2020.

How much can new drivers earn with Heartland Express (HTLD)?

New hire rates for drivers start as high as $0.56 per mile, depending on experience and region, going up to $0.60 per mile for those with 10 years of experience.

What benefits are included in the new driver pay package at Heartland Express (HTLD)?

The new pay package includes fixed wage increases for up to 20 years of experience and an annual safety bonus of up to $0.03 on all miles driven.

Why did Heartland Express (HTLD) increase driver pay?

The increase is a recognition of the dedication and challenges faced by drivers during the COVID-19 pandemic and other hardships.