Money for driver training, retention center of Wisconsin effort to address supply chain issues

Wisconsin lawmakers are taking action to address supply chain issues in their state by attracting more applicants for commercial driver’s licenses through CDL training.

In a bill introduced on Feb. 1, AB941, Republican lawmakers are calling on the Wisconsin Department of Transportation to establish three programs intended to increase the number of residents with CDLs and reward companies for hiring and retaining new drivers.

The first proposed program, the commercial driver scholarship program, would provide scholarships to those enrolling in driver education courses. The CDL training scholarship would cover 50% of the student’s cost for courses in the operation of a commercial vehicle. Courses can be taken at a technical college or any WIDOT-licensed driver school.

Additionally, through the employer training grant program, the WIDOT would issue grants to companies that provide training that leads to an employee obtaining a CDL. Grants will be for 50% of the cost of the training up to $3000.00.

Rep. Treig E. Pronschinske, R-Mondovi, co-author of the bill, called the proposed legislation an important step for a supply chain looking to recover through an ongoing pandemic.

“This bill seeks to provide a stepping stone to help improve these staggering statistics and incentivize people to obtain a CDL. This critical piece of legislation is needed now, not a year from now,” Pronschinske told fellow lawmakers at a Feb. 8 hearing. “As can be seen across the country, including here in Madison, there have been shortages on everything from chicken to car parts. As we attempt to remedy the damage of COVID-19 and its after effects on our society, an essential step forward is getting drivers back on the road.”

As conversations about supply chain issues and perceived driver shortages continue to dominate headlines, more and more states are turning to programs designed to put drivers behind the wheel of a commercial vehicle. Neal Kedzie, president of the Wisconsin Motor Carriers Association, said that proposed legislation such as this could help in solving long-running problems within the industry.

“It’s important for the fact that it addresses an issue that we in the trucking industry have realized for some time and that is the need to bring in additional drivers. We have had issues with trying to recruit younger drivers and there has been a number of drivers that have retired from the industry in recent years – COVID has helped to exacerbate that issue,” Kedzie said. “It’s both on the incoming side and the outgoing side that we need to increase those numbers and get a reliable source of drivers for the future.”

While the Owner-Operator Independent Drivers Association sees some good news in the CDL training legislation, it’s far from perfect.

OOIDA Executive Vice President Lewie Pugh said that programs like those proposed need expectations and limits put on the participating schools and motor carriers to help ensure the success of the students.

“These programs always sound good and helpful,” he said, “but what they do time after time is subsidize the model of larger carriers that hire these folks and work them to death for low pay until they get fed up and leave the company or even the industry.”

Pugh contends that more needs to be done to ensure that carriers are holding up their end of the bargain when it comes to training, hiring, and retaining qualified drivers.

“These grants to carriers should have a retention provision in them so that the carrier that hires and trains them has to retain them for at least 18 months or before they are eligible for the 50% grant up to $3,000,” Pugh said. “Anything short of this is just corporate welfare. Driver shortage is an easy drum to beat when you don’t want to address the real issue of retention.”

The commercial driver recruitment grant program, the third program in the CDL training proposed bill, seeks to address driver retention. The program would issue a $500 grant to new drivers who recently obtained a CDL and maintained employment operating a commercial motor vehicle for at least one year. This grant will also be extended to companies that employ a new CDL holder for one year.

According to the American Trucking Associations, turnover rates for large long-haul carriers are more than 90% and about 72% for small carriers. Furthermore, the average time that a new driver remains in the industry is six months. What may seem like a small reward for simple task may actually help address the larger issue of driver retention in the trucking industry.

However, with many carriers offering large sign-on bonuses, it’s fair to wonder if $500 is enough to help drivers resist the lure of a bigger payday and leaving for another employer. While addressing driver retention is an important issue, Kedzie said that isn’t the main goal of the proposed legislation.

“I don’t necessarily know if $500 is enough to incentivize drivers to stay on with a carrier or stay on in the industry. But you have to look at what the legislation is proposing,” Kedzie said. “It’s helping to address the cost of CDLs for new drivers. It’s looking to help offset some of the cost of the carriers for hiring and training those drivers. I think anything we can do to help sweeten the pot certainly doesn’t hurt. Whether we’re talking scholarships – as this legislation offers to new CDLS – or grants to both the drivers and employers. I think that’s a positive thing, and I think you add these all together it helps to move the needle in the right direction.”

For those outside of the industry, it may be easy to take a “just hurry up and fix it” approach to current supply chain issues. Kedzie says this type of legislation takes a more long-term approach to solving an ultimately larger issue.

“The legislation isn’t meant as an immediate fix,” he said. “I think it’s really focused more toward the long term and making sure that we have a steady flow of drivers to meet consumer demands.” LL

More news from Wisconsin is available here.