Knight-Swift Transportation Holdings Inc. Announces Additional Driver Pay and Independent Contractor Rate Increases

Rhea-AI Summary

Knight-Swift Transportation Holdings Inc. (NYSE: KNX) has implemented significant pay increases for drivers and Independent Contractors, effective April 2021. Over-the-road company drivers now earn above $0.50 per mile, with some regions exceeding $0.60. Training students saw pay hikes of 40% and can earn over $60,000 annually. Independent Contractors will receive a contract rate increase of $0.03 to $0.05 per mile. Knight-Swift also invested over $250 million in facility enhancements and $500 million annually in new tractors, aiming to improve drivers' overall experience.

Positive

• Increase in pay for over-the-road company drivers to above $0.50 per mile, with some regions starting above $0.60.
• 40% increase in wages for students during post-CDL training, with potential earnings over $60,000 annually.
• Independent Contractors receiving rate increases of $0.03 to $0.05 per mile.
• Over $250 million invested in facility improvements for driver amenities.
• $500 million investment annually in new tractors and trailer fleets.

Negative

• None.

Knight-Swift Transportation Holdings Inc. (NYSE: KNX) ("Knight-Swift" or the "Company"), North America’s largest truckload transportation company, is pleased to announce recent driver pay increases and Independent Contractor contract rate increases along with ongoing enhancements of its driver experience at Knight and Swift.

Highlights of recent changes, which are already in effect, include the following:

Experienced Company Drivers

• In addition to multiple pay increases and incentives over the last six months, effective the first week of April, 2021, over-the-road company drivers at Knight and Swift received another 2 cent per mile pay increase. Depending on individual experience level, experienced drivers can now start above $.50 per mile, and in some regions of the country, certain jobs can start above $.60 per mile.

Students and Training

• Individuals who join Knight-Swift through our industry leading training programs also just received another pay increase. With the significant increase just put in place along with increases during the second half of last year, wages during the post-CDL training period have increase by 40% or more. Students at Knight-Swift now receive industry leading weekly compensation and incentives.
• Over their first year after training to become a professional driver, individuals can choose from multiple paths to earn in excess of $60,000 per year.
• Depending on experience and the frequency of training, drivers who train others to become professional drivers at Knight-Swift can make over $100,000 per year.

Independent Contractors

• Effective the first week of April, Knight-Swift increased contract rates for over-the-road Independent Contractors by $.03 - $.05 per mile, depending on line of business.
• Knight-Swift continues to offer one of the industry’s best cost profiles for those Independent Contractors who choose to take advantage of the multiple product offerings available through Knight-Swift.

Investments in Driver Experience

• Based on projections for 2021 and improvement initiatives in recent years, Knight-Swift has invested over $250 million in facilities improvements, most of which have focused on improving the comfort and accessibility of lounges and driver amenities at company-owned facilities.
• Approximately half a billion dollars are invested by Knight-Swift every year in new tractors and in one of America’s largest and most rapidly growing trailer fleets. This helps keep our drivers operating, safely, productively, and comfortably.

David Jackson, Chief Executive Officer, commented, "I don’t know of another company in our space who has devoted more to professional drivers in recent years than Knight-Swift. While others have attempted to make big splashes with overdue pay changes, the Knight-Swift brands have quietly been increasing pay at an unprecedented pace for several years. Company driver pay increases and Independent Contractor contract rate increases, along with enhancements to bonuses and incentives, have literally put tens of millions more well-deserved dollars into the hard-earned paychecks of our drivers and into the businesses of our Independent Contractor partners. Additionally, we continue to spend hundreds of millions of dollars every year refreshing and advancing our top-of-the-line fleet and in facility enhancements that make our driving jobs safer and more comfortable. These are just a few of the ways we show our appreciation and respect for our professional drivers, and we are far from being done.”

About Knight-Swift

Knight-Swift Transportation Holdings Inc. is a provider of multiple truckload transportation and logistics services using a nationwide network of business units and terminals in the United States and Mexico to serve customers throughout North America. In addition to operating the country's largest tractor fleet, Knight-Swift also contracts with third-party equipment providers to provide a broad range of truckload services to its customers while creating quality driving jobs for our driving associates and successful business opportunities for independent contractors.

This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical or current fact, are statements that could be deemed forward-looking statements, including, without limitation, statements relating to our future performance and growth. Forward-looking statements are based on the current beliefs, assumptions, and expectations of management and current market conditions. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Readers should review and consider the factors that may affect future results and other disclosures in the Risk Factors section of Knight-Swift Transportation Holdings Inc.'s Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and various disclosures in our press releases, stockholder reports, and other filings with the Securities and Exchange Commission. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210407005143/en/

FAQ

What are the recent driver pay increases at Knight-Swift (KNX)?

Effective April 2021, over-the-road drivers at Knight-Swift saw pay increases to above $0.50 per mile, with some regions exceeding $0.60.

How much can training students earn at Knight-Swift (KNX)?

Students at Knight-Swift can now earn over $60,000 in their first year after training, following a 40% increase in wages during the post-CDL training period.

What are the changes for Independent Contractors at Knight-Swift (KNX)?

Independent Contractors received a contract rate increase of $0.03 to $0.05 per mile, effective April 2021.

How much has Knight-Swift (KNX) invested in driver facilities?

Knight-Swift has invested over $250 million in improving driver facilities and amenities.

What is Knight-Swift's annual investment in new equipment?

Knight-Swift invests approximately $500 million annually in new tractors and trailers.