Skip to main content

You may have heard that the “International Brotherhood of Teamsters” is a 1.3-million member labor union that focuses on professional drivers. But you may not have known that only 20% of the commercial trucks you see on U.S. roads have a teamster driver behind the wheel. The number used to be a lot higher, though the Department of Transportation insists things are better this way.

Throughout the 20th century trucking was big business, and got steadily bigger. According to the Freight Waves site, by 1980 50% of all commercial trucks had union drivers. But many thought the trucking industry was over-regulated by the government. This supposedly made it hard for small companies to start up and for the entire industry to react. Presidents Reagon, Ford, and Carter all had a hand in dramatically reducing regulations on the industry.

President Jimmy Carter passed the 1980 Motor Carrier Act. He promised that abolishing the “excessive and inflationary Government restrictions and red tape” would help consumers. How? By “reducing consumer costs by as much as $8 billion each year.”

Red semi truck towing a refrigerated trailer down the highway.
Red semi truck towing reefer trailer | vitpho via iStockPhoto

Today, the Department of Transportation admits that all product prices may not have come down. But that we consumers are benefiting from efficient and cheaper shipping–at least in getting our products quicker. This supposedly helps businesses reduce inventories and be more responsive to market trends.

This progress has come at a cost. Since 1980, the number of small trucking companies has skyrocketed. And few of the smaller companies have unionized. They are each too small for the teamsters to worry about. But altogether, they have put most of the big unionized companies out of business. While 50% of the drivers once belonged to a union, that number has plummeted to 20%.

The economist Michael Belzer calculates that truck driver salaries have dropped 50% since 1980 (adjusted for inflation). Obviously it’s difficult to compare a 1970s trucking job with one today. But Freight Wavesfound at least one semi truck owner/operator who started work in 1981 and claimed he watched his rate for runs (like a long paint haul from Michigan to Dallas) get sliced in half in less than a decade. While growing up in the 1950s and 60s, he saw hard working truckers making an excellent wage for men without a degree. Today many consider it a stop-gap job.