Tuesday, July 10, 2012

Driver Pay - A Lesson from Cortes and Montezuma

Good Morning and Welcome.

Check out our new Publication "90 Days to 75% Retention" A Real Plan for Driver and Owner Operator Retention

"Out in the West Texas town of El Paso, I fell in love with a Mexican girl..."

In the mid 2000's I acquired an El Paso, TX based trucking operation and spent much of my time early on visiting and getting to know my new customers across the border in Juarez, Mexico.  Juarez is fascinating, hustling, bustling border city, full of all of the good and bad elements that come with the US-Mexico border.  One evening over dinner and drinks at Maria Chuchena's with a customer(highly recommended,  and don't worry about the the chalk body outlines on the sidewalk, the drug cartels only aim at rivals, are relatively good shots, and otherwise employ generally nice people) anyway, he was the GM of a Mequilladora in Juarez, he was discussing hiring and retention issues in his plant with factory workers.   For those unfamiliar with the word, Mequilladora is a generic reference for a manufacturing plant owned by a foreign(non-Mexican) corporation. 

"Jorge" as we'll call him, was explaining his struggle with hiring and retaining factory workers.  There are literally hundreds of large manufacturing plants in Juarez and the competition for workers has become fierce over the years.  Originally chosen as a excellent location for bountiful, low cost labor, the plants were constantly battling the same issues with retention that face trucking companies today. 

Jorge described his plants initial approach to the problem, which was simple, made sense and all the executives were on board with the idea.  Pay them more than anyone else.  A lot more.  Not double, not triple, but quadruple, Yes. 4 times what the other factories were paying.  This will stop the turnover.  This will cut our hiring costs and we can increase much needed production. Why wouldn't this solve the problem? Surely the local labor force would be knocking the door down and lined up to work at the factory.  I agreed, and was impressed with this bold plan, it sounded like an excellent idea.  I was on the edge of my seat as I ordered another round for us as Jorge continued his story... 

So it was announced on a Friday afternoon.  The word spread quickly and echoed across the rolling hills of Chihuahua and they came...And did they ever, not by the hundreds, but, by the thousands, to work at his plant.  When Jorge was driving into work early on Monday morning, he saw the streets lined with people.  His first thoughts were of the late, great Senor Villa and his revolution, and that the good people of Mexico had risen once again to claim their country and his plant...

Jorge's saga continues on Friday with HR Policy recommendations from Cortes and Montezuma...   Subscribe by email so you don't miss and please feel free to share this post.  I have to keep this short as it is a blog.  If I was left unsupervised and to my own devices, I could write a book about retention and trucking.  Wait.  Hold on a minute, I did.  I wrote two!  Check them out below.  Have a good day.

Check out our new Publication "90 Days to 75% Retention" A Real Plan for Driver and Owner Operator Retention

and don't forget... Popular reading for both Brokers and Trucking Companies -

18 Wheels of Justice - Negotiating with Freight Brokers
Book $29 CD $20 Book & CD Set $39


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18 Wheels of Justice Series available on Amazon and at: http://www.18wheelsofjustice.com/