Recently, I was sent an email by a reader who suggested that Service Truck Magazine missed out on a reason why there is a shortage of heavy truck technicians—pay.
The reader brings up an interesting thought. Shops—especially those in the US—are offering up larger hourly rates for technicians now… but was a lower rate responsible for being a less encouraging option for people in the recent past?
Certainly, there is a wide chasm in pay rates offered between Canada and the US for truck technicians. And the divide is even wider when one considers the rate of exchange between the stronger American buck and the 25 percent weaker Canadian dollar. On the website www.glassdoor.ca, a site where employees and former employees review companies anonymously, it noted that the national average salary for a Truck and Coach Technician is $84,260 in Canada. Now, before people start tossing their arms in the air in disgust or celebration, note that the salary was in Canadian funds. The US equivalent is $61,652.45. And this is as of December 2022.
Please note that this is an average. There is a high range and a low range.
Is it possible that Canadian shops are paying more than their US counterparts?
Is this a throwback to the 1960s when the Canadian Football League paid players more than the National Football League? Or, is the Canadian remuneration off?
While we have no reason to doubt the findings of glassdoor.ca, we must point out that the average Canadian salary was derived from a total of 18 respondents.
Looking at talent.com, it said that the average truck mechanic salary in Cana- da is $56,550 per year or $29 per hour.
Entry-level positions start at $48,750 per year, while most experienced workers make up to $70,200 per year.
Ahh… that seems more likely.
• CDN $56,550 = ~US $41,357
• CDN $29/hour = ~US $21.21
• CDN $48,750 = ~US $35,650
• CDN $70,200 = ~US $51,330.
But how does it compare to its US counterparts? We looked at the numbers provided by three job search companies (for December 2022):
• www.zippia.com: $44,554 per year on average, or $21.42 per hour
• www.ziprecruiter.com: $53,422 a year
• www.talent.com: $57,518/year.
A fourth report on the industry indicated that the average diesel technician’s salary is between $50,000 and $59,999 per year.
How about we get a straight answer? A difference of $9,999 is a heck of a difference. Either one is more right, or they are all wrong, but two out of three websites agree with the report.
The folks over at Fullbay (www.fullbay. com) noted that the average annual salaries for general auto repair shop owners are estimated in the low to mid-$60,000 range.
But for heavy truck technicians, Fullbay checked in with the US Bureau of Labor Statistics, which said that the median annual heavy-duty diesel mechanic salary is$47,350.
If this annual US salary average is considered official, the average American truck technician is taking home an additional US $6,000/year more. That’s about CDN $8,200.
What could one do with all that extra money, if all Canadian and US truck technician jobs were equal?
In May of 2021, the Bureau of Labor Statistics said the median salary was $46,880—at least the average salary is going up.
According to Payscale, some heavy-duty technicians make as much as $72,000 to $93,000 per year, with an average hourly pay of almost $23.
The hourly rate of pay is the kicker here.
Depending on how busy a shop is, the opportunity to make more money is on the table. Earning $30/hour at a slow shop could mean only making $50,000 a year— but with less physical work needing to be put in (pluses and minuses); while a busy shop paying $20/hr could allow a truck technician to earn more money in the long haul. They would just have to work harder and put in the hours. But, as everyone in this industry knows, that expectation sorta comes with the job.
Of course, a technician making $20/ hour at a busy shop may be making $30/ hour (time-and-a-half ) should overtime be considered.
Both the US and Canada have federal overtime provisions for labor (labour) when working over 40 hours during a work week. Unless on a salary, technicians on an hourly rate are paid at a rate not less than time and one-half their regular rates of pay. Weekend or holiday work does not constitute overtime pay unless it is over 40 hours.
There is no limit on the number of hours employees aged 16 and older may work in any workweek. Note that a work- week is a fixed period of 168 hours, derived from seven consecutive 24-hour periods. A workweek can begin on a Tuesday or a Saturday, any other day of the week, or at any hour of the day.
Not talked about, but equally important, are taxes, which affect how each technician is paid in each state, or in the higher-taxed Canada.
Now, as noted at the beginning of this editorial, a reader suggested that pay was another reason why there is a shortage of truck technicians.
The point being made, however, was that at one point years ago, they were making 30 percent of the rate being charged to the customer, and now they are only making 25 percent of the rate.
So, if a shop charges a customer $100/ hour for repairs or maintenance in Canada or the US, the technician said they were some 25 years ago making $30/hour. But, now he is only making $25/hour.
Of course, this all supposes that the hourly rate charged to the customer remained the same over the past 25 years— it did not. The technician who talked to Service Truck Magazine only wanted to point out that they were no longer being paid the same percentage rate as before, which could have a negative impact on people staying in the field or applying to the field.
Consider, if you are already an experienced truck technician, and the labor short- age continues (it will for the foreseeable future), with the demand high for technicians, companies are going to do their best to entice you to come and work for them.
Whether this is a higher hourly rate, the offer of health benefits, more vacation time, or some combination of all that, a truck technician will be able to hire themselves out to the “highest bidder”.
Right now, the majority of both US and Canadian shops are having a difficult time finding enough technician labor to take on all of the jobs out there. Service Truck Magazine has heard that some companies are being forced to turn away work because they don’t have the personnel to do the job in a required turnaround.
There’s also the issue of parts shortages. It is entirely reasonable to expect the global supply chain issues to eventually resolve themselves, but presently shops simply don’t know when a requested parts order will come in. And it’s not just one type of part. It could be tire rims one month, or sensors another.
To combat this, shops have hoarded some parts and traded them with other shops—or sell to other shops. Those purchasing now have higher costs. And with rising inflation across the board, unless a customer has locked in an hourly repair rate with the shop, a technician’s pay may go down percentage-wise—no longer 30 percent of the rate, but now only 25 percent of the rate.
One other factor re: technician wage to consider is the shop’s location. While Washington, DC may have the highest average automotive technician annual salary in the US at $60,590 (as of May 2021 – per the Bureau of Labor Statistics), and Alaska is No. 2 @ $60,020—which is the more expensive place to live? The cost of food in Alaska might be higher, but there’s the perk of hunting and fishing should that be an enjoyable pastime. What if you like major league sports? One has a plethora, the other a dearth. Which state has a higher cost of living?
Until next time, stay safe. And, please feel free to contact me with any questions or thoughts on the industry via editor@servicetruckmagazine.com
By the way, DC has a higher cost of living expense than Alaska. Mississippi is the least expensive.
This article originally appeared in the February/March 2023 issue of Service Truck Magazine.