2016

Compensation Indices for Logging and Trucking Occupations

FINAL REPORT SUBMITTED TO THE WOOD SUPPLY RESEARCH INSTITUTE

SHAWN BAKER BROOKS MENDELL

September 2, 2016

www.forisk.com 770.725.8447 Executive Summary In response to concerns about the sustainability of logging production and the trucking workforce, the Wood Supply Research Institute (WSRI) commissioned research into the compensation for logging occupations compared to occupations competing for the same employee pools. This report investigates logging employee wages and benefits in four U.S. regions: the South, Northeast, Lake States, and West. Equipment operators in the woods and truck drivers employed by logging businesses are compared against competing industries in each region. This study can inform WSRI members on potential compensation-related factors affecting perceived shortages within the logging and trucking workforce and outline potential strategies for attracting and retaining employees. Key findings: Logging industry competitiveness for equipment operator and truck driver total compensation varies by region. In the South and West, logging equipment operator occupations are competitive with other industries. Log truck driver compensation for the logging industry is most competitive in the West, followed by the South. Compensation is not as competitive with other occupations in the Northeast and Lake States. A limited pool of heavy truck drivers are available and willing to work in the logging industry. o Truck driver compensation increased at a faster pace over the past four years in every region than did equipment operator compensation. Driver compensation increased 8- 16% regionally compared to 4-14% for equipment operators. Increased compensation aligned with a 3% increase in log truck drivers nationally. The more moderate gains in equipment operator salaries corresponded with an 8% increase in logging equipment operators over the same span. o Thus, over the past four years, an equal increase in salaries for truck drivers and equipment operators would result in greater recruitment of operators than truck drivers. The pool of drivers that is available to work in the logging industry is interested in local jobs that are close to home. The log trucking industry can utilize compensation schemes that tie more directly to performance in trucking to offer greater pay to the most valuable drivers (e.g. safest, most efficient, productive, etc.). o Recruitment and retention of drivers challenges all industries. Large, national trucking fleets averaged 93% turnover in 2015 (Costello 2016). Smaller fleets averaged 79%. o Cement-mixer truck drivers primarily leave their jobs to work in a local trucking job for a different industry (NRMCA 2015). o Only 28% of departing drivers leave for long-haul trucking jobs. Contract drivers, who represent 40% or more of the wood hauled in some regions of the country, may hold jobs providing less competitive compensation than those of other drivers. o Contract drivers are not well-represented in our data on the logging industry. o Contract drivers remain independent and must provide their own benefits. o While some companies aggregate log truck drivers to operate on a contract basis for multiple logging companies, this is not yet the standard practice. o The health and stability of the contract driver workforce remains a concern as they haul a substantial percentage of the wood moved in the U.S.

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Logging firms can strengthen benefits packages to retain equipment operator and truck driver employees. o National surveys of employee retention strategies list adequate benefits as the top strategy to retain qualified employees. Above-market salary is the fifth most commonly cited strategy. o A recent strategy to increase employee satisfaction has been schedule flexibility. Logging does not offer many opportunities here due to the inter-related nature of many jobs on active logging operations. o The top strategy for filling new positions is employee referrals, highlighting the importance of maintaining a strong relationship with employees (BLR 2015). Study Summary: Based on data from the Bureau of Labor Statistics (BLS), truck driver salaries in the logging sector appear most competitive relative to other industries in the South and West regions of the country. The logging industry is less competitive for equipment operators; the construction industry maintains a salary premium for excavator and backhoe operators. Many construction jobs are likely located in urban areas, and a higher cost of living might explain some of the salary premium. National trucking companies are also more competitive than the local trucking industries we considered. Given the size of the general freight trucking industry, it remains the strongest competitor for truck driver labor based on salaries.

While salary is the largest component of compensation, non-wage benefits are important as well. Since data on benefits offered in logging is not readily available, we surveyed the logging industry to estimate the benefits available to logging employees throughout the U.S. by region. We received responses from 76 contractors (19% response rate). Availability of benefits for logging companies differed between the three regions covered (Table A1). Individual responding companies provided from 0-29% additional value above salary from benefits, averaging 10% across all regions.

Table A1. Regional summary of employee benefits offered by responding logging firms. Percentages represent percent of total responding firms in a region that offer the stated benefit. Benefit South West Lake States Medical Insurance 42% 67% 18% Life Insurance 12% 22% 0% Short-term Disability 12% 22% 5% Long-term Disability 7% 11% 0% Paid Vacation 72% 56% 73% Paid Holidays (#) 5 4 5 Paid Sick Days (#) 2 4 1 Paid Overtime 63% 100% 55% Production Bonus 60% 67% 45% Retirement Plan 26% 56% 27%

We combined data on benefits and salary to estimate total employee compensation. Using publicly available data, we structured compensation estimates to be easily updated as new salary and benefit data become available. Historical estimates of compensation assume the level of benefits provided historically was the same as those reported in the survey results. Over the past four years,

2 | Page compensation for logging equipment operators increased less than did log truck driver compensation in every region. Despite lesser compensation gains, the number of equipment operators increased by a larger percentage (8%) than did log truck drivers (3%). This supports the idea that recruiting log truck drivers is more difficult and the pool of drivers able and willing to work in the logging industry is limited.

We also gathered benefits data from competing industries to compare estimates of total compensation (Calculation details are available on pages 18-23). In the South and West, logging occupations are at their most competitive (Figure A1, A2). Salaries are the main source of variation for most equipment operators. Benefit levels are less variable across industries considered for this occupation. The construction industry offers the highest total compensation in each region for equipment operators.

Figure A1. Total compensation for equipment operators in three industries regionally. Values indexed to the average 2015 salary for logging equipment operators in the U.S.

The logging industry is least competitive for truck drivers in the Northeast and Lake States. The general freight trucking industry has superior benefits in every region, but log truck driver wages in the West are high enough that logging has the region’s highest total compensation. In the South, log truck driver compensation is higher than cement/concrete drivers, but not as high as general freight.

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Figure A2. Total compensation for truck drivers in three industries regionally. Values indexed to the average 2015 salary for logging equipment operators in the U.S.

Our estimates of benefits for log truck drivers are exclusively for drivers who work for a logging company, not as independent contract drivers. While some companies organize log truck drivers to operate on a contract basis for multiple logging companies, this is not yet the standard practice. Salaries for log truck drivers in our survey were near the top 25% of the salary data reported by the BLS. This implies either that our survey participants are among the more well-compensated drivers in their region or that the BLS salary data captures a different or broader sample of drivers. In either case, if contract drivers are on the lower end of the salary distribution and provide their own benefits, these jobs are likely less competitive. Since contract drivers represent 40% or more of wood hauled in some U.S. regions, the health and stability of this workforce remains a concern.

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Table of Contents Executive Summary ...... 1 Table of Contents ...... 5 List of Tables and Figures ...... 6 Introduction ...... 8 Salary Comparisons with Competing Industries ...... 9 Data ...... 9 Equipment Operators ...... 9 Truck Drivers ...... 12 Cost of Living Differences ...... 15 Non-Wage Benefits in Logging ...... 16 Estimation Methods ...... 16 Results ...... 17 Total Compensation Calculations ...... 19 Health Benefits ...... 19 Holidays, Leave, and Sick days ...... 20 Insurance ...... 20 Bonus Income...... 20 Retirement Accounts ...... 20 Total Benefits ...... 20 Index Structure ...... 21 Compensation Comparison with Competing Industries ...... 24 Discussion...... 27 Literature Cited ...... 30 Appendix A: Survey Questionnaire and Insert ...... 32

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List of Tables and Figures Table A1. Regional summary of employee benefits offered by responding logging firms. Percentages represent percent of total responding firms in a region that offer the stated benefit...... 2 Figure A1. Total compensation for equipment operators in three industries regionally. Values indexed to the average 2015 salary for logging equipment operators in the U.S...... 3 Figure A2. Total compensation for truck drivers in three industries regionally. Values indexed to the average 2015 salary for logging equipment operators in the U.S...... 4 Figure 1. Regions included in compensation comparison ...... 8 Figure 2. Average annual salary of logging equipment operators regionally in the U.S., 2000-2015. Source: Bureau of Labor Statistics ...... 10 Table 1. Average occupational salaries of workers in the logging industry by region, 2015. Source: Bureau of Labor Statistics ...... 10 Figure 3. Average regional salaries of heavy equipment operators, 2000-2015. Source: Bureau of Labor Statistics ...... 11 Figure 4. Average annual salary of heavy truck drivers in the U.S. by industry. Source: Bureau of Labor Statistics ...... 12 Figure 5. Regional average log truck driver salaries, 2012-2015. Source: Bureau of Labor Statistics ...... 13 Figure 6. Average regional salaries of truck drivers by industry, 2012-2015. Some regions had insignificant numbers of drivers in the oil and gas extraction industry. Source: Bureau of Labor Statistics ...... 14 Figure 7. Average regional salaries of general freight truck drivers, 2012-2015. Source: Bureau of Labor Statistics ...... 15 Table 2. Average 2015 cost of living regionally in the U.S. weighted by the number of logging employees in each region, and average 2015 salary of log truck drivers and logging equipment operators both unadjusted and adjusted to account for cost of living differences...... 16 Through the rest of this project, we use salary data which has not been adjusted for cost of living differences. The values in Table 2 allow calculation of a cost of living adjustment for any regional logging salary data presented in the remainder of this report...... 16 Figure 8. Survey and instructional insert distributed to logging contractors...... 17 Table 3. Survey responses and respondent information...... 18 Table 4. Average annual salary paid for each operator type on logging operations regionally in the U.S. 18 Table 5. Regional summary of employee benefits offered by responding logging firms. Percentages represent percent of total responding firms in a region which offer the stated benefit...... 19 Table 6. Timing of bonuses offered by logging survey respondents...... 19 Figure 9. Combined logging industry benefits as a percent of annual salary, grouped by benefit type. ... 21

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Table 7. Inflation ratios for Quarterly Census of Employment and Wages Logging salaries (NAICS: 1133) and Health Insurance premiums...... 22 Figure 10. Example use of Table 7 for calculation of new compensation estimates. Example salary and insurance premium increases are for illustrative purposes only...... 23 Figure 11. Logging equipment operator total compensation estimate, 2012-2015...... 23 Figure 12. Log truck driver total compensation estimate, 2012-2015...... 24 Table 8. Average regional truck driver salaries for local pickup and delivery of less-than-truckloads, long distance van trailers, and local log trucks. Source: American Trucking Associations ...... 25 Table 9. Percent of establishments offering employee benefits by industry...... 25 Figure 13. Equipment operator compensation index for three industries by region in the U.S...... 26 Figure 14. Truck driver compensation index for three industries by region in the U.S...... 27 Figure 15. Employment by occupation in the logging industry, 2015-2015...... 28

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Introduction The 2008-2009 U.S. recession impacted the forest industry largely through its exposure to housing markets. Declining housing starts drastically reduced the total demand for wood products. This translated into a 23% decline in total logging employment between Q1 2006 and Q1 2012. As the U.S. economy strengthened and forest products demand began recovering, concerns over future logging capacity shortages surfaced. The slower-than-expected recovery alleviated many fears as gradual employment growth and labor productivity gains proved sufficient to match the growth of wood demand. Instead, concerns over the ability to match in-woods trucking capacity to logging capacity became more pressing as demand for truck drivers nationally increased across all freight types.

In response to these concerns, the Wood Supply Research Institute (WSRI) commissioned research into the compensation in logging occupations compared to occupations competing for the same employee pools in rural locations. This report investigates logging employee wages and benefits in four U.S. regions (Figure 1). Production workers in the woods and truck drivers employed by logging businesses are compared against competing industries in each region. We develop a series of regional compensation indices specific to the logging sector for both woods workers and truck drivers.

Figure 1. Regions included in compensation comparison

The purpose of this analysis and set of indices is to support efforts by the forest industry to recruit, retain and support a competitive and productive workforce. The findings of this research inform WSRI members on potential compensation-related factors affecting the perceived shortage within the logging

8 | Page and trucking workforce and outline potential strategies for attracting and retaining employees. The report starts with an analysis of salaries using publicly available data. We then detail employee non- wage benefits in the logging industry as estimated by a survey of logging contractors. Salaries and benefits are then combined into an estimate of total compensation regionally for logging employees and log truck drivers. In addition, we provide a brief discussion of benefits and compensation in other industries and how they compare with those in the logging industry. The final section is a discussion of our interpretation of the findings and some recommendations.

Salary Comparisons with Competing Industries The logging industry traditionally competes for employees with industries reliant on heavy equipment operators, e.g. construction, mining, farming. The primary competitors vary by region based on which industries are most active locally. Competition for truck drivers occurs with over-the-road freight hauling companies nationally and local industries such as concrete and oil/gas. Employment trends and compensation levels give clues to the regional competition. The salaries for a given occupation may vary based on cost of living differences between locations, but the relative level of that salary compared against other competing industries in the area offers insight into the local competitiveness of the industry. In this section, we profile the regional competitiveness of the logging industry for equipment operators and truck drivers using publicly available data. Data Employment levels and wage data were compiled from two sources from the Bureau of Labor Statistics (BLS). The Quarterly Census of Employment and Wages (QCEW) offers a relatively timely (5-6 month lag) snapshot of employment trends within a given industry. To examine trends for specific occupations in that industry (e.g. truck drivers or equipment operators), we used data from the Occupational Employment Statistics (OES). The OES data are updated semiannually from a survey of businesses each May and November, and have a roughly 10 month lag. Estimates of individual occupations within a small industry, such as logging, can have high levels of uncertainty as values rely on smaller samples of employees. While salary estimates may have high variance, they still help compare trends over time. Data from the QCEW are derived from unemployment filings of companies and have greater levels of certainty, generally, but may misclassify some businesses that perform logging but identify themselves as another industry (for example, sawmilling or tree care).

For competing industries, we used backhoe/excavator operators and agricultural equipment operators as our construction and farming industry benchmarks for logging equipment operators. We focused on industries that employ truck drivers for local hauling, specifically cement, poultry, agriculture, and oil and gas, as they represent direct competition with log truck driver jobs. We also considered long-haul general freight transportation because of the size of that industry and their demand for qualified, commercial drivers. Equipment Operators Logging equipment operator wages are similar in the South, the Lake States, and the Northeast (Figure 2). Wages are substantially higher in the West. At the occupational level, woods workers earn marginally less on average than truck drivers; administrative staff earn substantially less in all regions (Table 1).

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Figure 2. Average annual salary of logging equipment operators regionally in the U.S., 2000-2015. Source: Bureau of Labor Statistics

Table 1. Average occupational salaries of workers in the logging industry by region, 2015. Source: Bureau of Labor Statistics Lake Northeast South West States Office/Admin Staff $29,400 $24,800 $25,200 $34,100 Equipment Operators $33,200 $33,900 $35,500 $45,100 Truck Drivers $36,300 $34,800 $37,400 $46,400

Logging equipment operators are qualified to operate heavy equipment for a variety of industries. Road paving, general construction, mining and farming all rely on employees with proficiency in operating heavy equipment, and all represent potential sources of (and competition for) workers. Many of these industries do not compete in all regions (e.g. mining and gas). Farming and general construction are in all regions, and provide a benchmark to gauge the competitiveness of the logging industry.

Excavator and backhoe operators earn a premium over logging equipment operators (Figure 3). In the South and West the premium is smaller, 11% and 10% respectively in 2015, than in the Northeast (29%) and the Lake States (35%). Many excavator operator jobs will be associated with construction in urban areas. There is likely a cost of living difference included in the salary premium over logging jobs.

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South Northeast

West Lake States

Figure 3. Average regional salaries of heavy equipment operators, 2000-2015. Source: Bureau of Labor Statistics

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Agricultural equipment operators earn a similar salary to logging equipment operators in the Northeast and Lake States. Logging employees earned 8% more than agricultural operators in the Northeast and 1% more in the Lake States in 2015. Logging jobs earn a more competitive salary by comparison in the South and West. Logging equipment operators earn a substantial premium over agricultural equipment operators in both regions. Truck Drivers Competition for truck drivers in all industries has been strong across the U.S. The American Trucking Associations estimated a shortage of 48,000 qualified drivers in 2015 with the shortage growing to 175,000 by 2024. Factors include regulatory restrictions on hours-of-service, crackdowns on health restrictions tied to commercial driver’s license qualifications, and insurance company reticence surrounding driver safety records. Like concerns in logging, the trucking industry struggles to attract younger workers and females, limiting the growth potential of the industry.

Industries competing for qualified heavy truck drivers span the economy. Most goods in the U.S. move by truck at some point in their lifetime. General freight drivers operating for trucking companies on regional and national hauling routes are the largest competitors for drivers. Local freight pickup and delivery drivers are also a source of competition. For local routes, specific industries may employ their own drivers, as in logging. These jobs offer a close comparison to log truck drivers as they typically offer drivers the benefit of coming home every evening after driving shorter distance routes. Oil and gas, poultry, and cement are among the industries with local driver fleets in rural areas.

The trend in annual driver salaries for these industries was similar through the early 2000’s (Figure 4). Logging and the oil and gas industry were the lowest paid local truck driving jobs available. In 2008, salaries for oil and gas truck drivers increased; they remained the highest since. This corresponds to the fracking boom in the petroleum industry, which spurred employment for petroleum related occupations (Ferree and Smith 2013). Logging was the lowest paying industry for drivers from 2008-2013.

Figure 4. Average annual salary of truck drivers in the U.S. by industry. Source: Bureau of Labor Statistics

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Differences in regional pay for log truck drivers relate, in part, to cost of living (Table 2). Increases in average salaries for log truck drivers after 2013 (Figure 4) were uneven across the country. The South and West drove the majority of the increase, with a small rise in the Lake States as well (Figure 5).

Figure 5. Regional average log truck driver salaries, 2012-2015. Source: Bureau of Labor Statistics

The regional competitiveness of log truck driver pay compared to other industries further demonstrates the impact of regional variations in compensation adjustments (Figure 6). In the South and West logging has been more competitive for truck drivers based on salary than indicated by the national averages in Figure 4. Salary increases in 2014 and 2015 improved the competitiveness of logging further relative to other industries. In the Northeast and Lake States, however, gains were less pronounced, and logging lost ground to other trucking industries. In the Northeast, salaries actually declined to the lowest of the five industries examined. In the Lake States, moderate salary increases lagged other industries.

Competitiveness varies regionally. Oil and gas extraction are a minor employer of truck drivers in every region but the South. In the South, it is the strongest local market competition for driver salaries of the industries considered, but even here it is likely to be a strong competitor only in certain states. Log truck driver salary growth over the four years brought salaries near the level of the oil and gas industry. In the West, logging is the most competitive of the local industries beyond the small number of occasional oil and gas drivers, with cement truck drivers the next closest competitors. In the Northeast, livestock and agricultural truck drivers are most competitive.

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Figure 6. Average regional salaries of truck drivers by industry, 2012-2015. Some regions had insignificant numbers of drivers in the oil and gas extraction industry. Source: Bureau of Labor Statistics

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Demand for national and regional truck drivers of general freight (not industry specific) represents a larger pool of workers. The total number of log truck drivers in the country is an order of magnitude lower than the number of general freight drivers in any one region. Average salaries for general freight drivers are more uniform regionally than the competing industries discussed (Figure 7). Only in the West is log truck driver pay commensurate with general freight drivers. Salary increases in 2014 are noticeable in all regions; an increase in 2015 appears in three of the five regions.

Figure 7. Average regional salaries of general freight truck drivers, 2012-2015. Source: Bureau of Labor Statistics

Cost of Living Differences Correcting for differences in cost of living by region provides additional context (Table 2). Cost of living adjustments weight state level cost of living indices by the number of logging employees in a state (MERIC 2016). Relative to the cost of living in each region, southern wages are the highest, and western wages are in line with other regions. Most Western logging employees work in the higher cost, coastal region, which likely puts additional pressure on wages. The unadjusted wage similarity in the rest of the country is surprising. The Northeast overall is a higher cost region. However, most logging employees work in the less heavily populated areas of Maine and New Hampshire. Seasonal variation in operations may also drag annual salaries lower as spring and fall breakup will limit wages in those periods.

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Table 2. Average 2015 cost of living regionally in the U.S. weighted by the number of logging employees in each region, and average 2015 salary of log truck drivers and logging equipment operators both unadjusted and adjusted to account for cost of living differences. Cost of Living Log Truck Cost- Adjusted Logging Cost-Adjusted Index Driver Driver Equipment Operator Operator Lake States 95 $36,400 $38,200 $34,700 $36,400 Northeast 116 $34,700 $29,800 $35,000 $30,100 South 93 $38,200 $41,200 $35,600 $38,400 West 125 $46,000 $36,700 $45,100 $35,900

Through the rest of this project, we use salary data which has not been adjusted for cost of living differences. The values in Table 2 allow calculation of a cost of living adjustment for any regional logging salary data presented in the remainder of this report.

Based on this study of BLS data, it appears that salaries in the logging sector are most competitive for truck drivers in the South and West regions, relative to other industries. The logging industry is marginally less competitive for equipment operators. The construction industry maintains a salary premium for excavator and backhoe operators. The potential for more of these jobs to be located in urban areas might explain some of the salary premium. National trucking companies are also more competitive than the local industries considered. Given the size of the general freight trucking industry, it remains the strongest competitor for labor based on salaries. It is incumbent on the drivers to determine if the premium is sufficient to compensate for the time spent away from home.

Non-Wage Benefits in Logging Non-wage benefits are an important component of compensation. Examining the benefits offered in logging completes a picture for total compensation. Data on the prevalence of benefits in logging is not readily available and needed to be estimated for this project. Here we describe our survey of the logging industry to estimate the types of benefits available to logging employees regionally throughout the U.S. Estimation Methods We designed a survey to distribute in-person to logging contractors and truck drivers. The survey was printed on the inside of a self-addressed, stamped donation envelope (Figure 8). When sealed for mailing, all responses were hidden from view. Completion instructions were included in the envelope pocket. Appendix A includes a copy of the survey and instruction form.

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Figure 8. Survey and instructional insert distributed to logging contractors.

The survey gathered data on benefits offered to employees. These included health, life, and disability insurance, retirement plans, overtime and bonus pay, and paid time off. Average annual salaries of workers from 2015 were also collected. We requested information on the state in which the business operated, the number of logging or trucking employees, and the company’s 2015 production, reported in tons, cords, MBF, or miles driven. Cords were converted to tons assuming 2.25 tons per cord and MBF were converted assuming 4.8 tons per MBF. Participants were asked to include a business card in the pocket of the envelope to receive a copy of the survey results. There was no means to identify individual participants other than through their intentional disclosure of identity.

We compiled lists of contacts in four U.S. regions for help distributing surveys. WSRI member companies in each region were considered first, followed by Forisk industry contacts and active relationships with supplier contractors. We called contacts to gauge their willingness to distribute surveys to loggers and truckers. Bundles of surveys were sent to willing contacts. Field foresters were typically sent 4-8 surveys. Larger numbers were sent to procurement managers and others with greater numbers of potential participants. We requested all surveys to be returned by the first week of June 2016. Results We distributed 397 surveys, with the most surveys sent to the South and the fewest to the Northeast (Table 3). Our two-phase distribution precludes an accurate estimate of how many surveys were actually given to truck drivers or loggers. We received 76 completed surveys from contractors across 12 states. The most responses came from Wisconsin (20), Georgia (15) and South Carolina (11). The number of responses and response rates were highest in regions that received the greatest number of surveys. Unfortunately, no surveys were received from the Northeast. We received two surveys from independent truck driving contractors, making an analysis of contract log truck driver compensation challenging. The data below represents employee log truck drivers of logging companies.

Western contractors had the largest number of employees, while Southern firms had the highest average production. Lake States contractors were smaller, on average than the other two regions.

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Production per employee was highest in the South (9,370 tons), followed by the Lake States (6,680 tons) and the West (5,260 tons).

Table 3. Survey responses and respondent information. Region Number Number Response Avg. No. of Avg. 2015 Sent Received Rate Employees Production (Tons) Lake States 110 23 21% 9 68,600 Northeast 68 0 0% n/a n/a South 130 44 34% 23 204,000 West 89 9 10% 35 116,200 Total 397 76 19% 20 163,300

Salary data from responding companies varied across operators (Table 4). Skidder/forwarder operators earned less than feller-buncher/harvester operators in all regions. Loader/delimber operators were the highest paid employees in the Lake States and earned roughly the same as loader/delimber and feller- buncher operators in the South. Reported log truck driver salaries from the survey were 15-25% higher than those reported by the BLS. This may indicate that our sample of contractors is from the higher percentiles of companies in each region. When compared to the BLS 75th percentile of salaries regionally, the survey results are between 6% higher and 6% lower, offering more evidence that the respondents are among the more competitive in their respective regions.

Table 4. Average annual salary paid for each operator type on logging operations regionally in the U.S. Felling Machine Skidding/Forwarding Loader/Delimber Log Truck Lake States $43,100 $39,900 $48,700 $44,000 South $49,400 $43,500 $49,700 $44,100 West $81,300 $57,600 $66,200 $57,200

Reported benefits for logging companies differed between the three regions (Table 5). The West offered access to the highest percentage of all benefits except paid vacation. Southern and Lake States contractors offered similar benefits. Between the South and Lake States, a marked higher percentage of firms offer access to medical and life insurance, and production bonuses, in the South.

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Table 5. Regional summary of employee benefits offered by responding logging firms. Percentages represent percent of total responding firms in a region which offer the stated benefit. Benefit South West Lake States Medical Insurance 42% 67% 18% Life Insurance 12% 22% 0% Short-term Disability 12% 22% 5% Long-term Disability 7% 11% 0% Paid Vacation 72% 56% 73% Paid Holidays (#) 5 4 5 Paid Sick Days (#) 2 4 1 Paid Overtime 63% 100% 55% Production Bonus 60% 67% 45% Retirement Plan 26% 56% 27%

The magnitude of benefits offered between companies varied. Some reported as many as 15 paid holidays. Of the 68% of companies offering vacation, 83% started with one week. Employees needed to work for one year to qualify for vacation at 75% of these firms. Roughly 25% of companies offering paid vacation restricted the timing of when employees could schedule their leave. While only 29% of companies offered access to a retirement plan, 86% of those that did offered a matching contribution. Access to bonuses varied, with some offering weekly, monthly and/or annual bonuses (Table 6). Weekly bonuses were most prevalent in the South, while annual bonuses were more common in other regions. The Lake States was the only region in which a majority of respondents did not offer a bonus.

Table 6. Timing of bonuses offered by logging survey respondents. No Bonus Weekly Monthly Annual South 40% 47% 2% 14% West 33% 22% 11% 33% Lake States 55% 9% 5% 32% * Values may not sum to 100% as some companies offered bonuses in multiple periods

Total Compensation Calculations The survey provides estimates of the prevalence of non-wage benefits for three U.S. regions. We still need to value these benefits. To estimate total compensation, it helps to estimate the value of benefits as a percentage of annual salary. Survey respondents reported higher average salaries than the BLS data. We scaled the BLS salary data to match the information gathered from logging contractors. This likely places our total compensation estimates close to the highest quartile of logging companies; however, we feel it is better to match our estimates to the data directly reported by logging companies.

Below we detail how we value each class of benefit relative to the annual salary data provided by BLS. Health Benefits Medical insurance premiums were estimated regionally based on “Average Single Premium for Employer-Based Health Insurance Plans” from the Insurance component of the Medical Expenditure

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Panel Survey (Kaiser Family Foundation 2016). State-level premiums were averaged to estimate regional premiums. These premiums are likely higher than an employee would pay if required to purchase health care outside of their job. The compensation value of health care benefits was calculated as the average employer contribution towards health insurance reported from the logger surveys multiplied times the average premium. We did not estimate any tax savings. Holidays, Leave, and Sick days For purposes of compensation comparison, paid leave (vacation, holiday, and sick leave) was a direct addition to annual pay. To calculate these values, annual salaries from the surveys were divided by 260 days (52 weeks, 5 work days) to determine the average daily wages. All paid leave was considered time the employee was given, with the equivalent value of their time estimated by their wages. While wages already include direct compensation for these days, this valuation accounts for the time spent away from work that is still paid. The value of these benefits is apparent when comparing total wages to pay for time worked. If Worker A and Worker B both received $50,000 in wages last year, but worker A received no paid time off while worker B received three weeks, worker B received $25.51 per hour worked while worker A received only $24.04 (assuming a 40 hour work week). Insurance Long-term and short-term disability insurance were assumed to cost 2% of gross income each. Life insurance was estimated at 1.5% of gross income. Bonus Income Bonus income was assumed to be 3% added to annual salary. Monthly or weekly bonuses were considered more valuable than annual bonuses due to the time value of money. When comparing the value of investing bonus income on a monthly or weekly basis, the total dollar value was assumed to be worth 2% more than a year-end bonus. For example, a 3% bonus given at year-end on $50,000 is $1,500. On a monthly basis, that is $125 per month. If reinvested each month at 5% interest, the total bonus would be worth $1,534 at year-end, roughly 2% more than a one-time bonus. A higher reinvestment rate would increase this value; a lower rate decreases this value. Retirement Accounts Access to an employer-sponsored retirement plan involves two key benefits. First is the opportunity to invest income pre-tax, increasing investible income. The second is reduced taxable income, thus a tax benefit. $1,000 invested in a company 401(k) directly reduces taxable income for that tax year and adds $1,000 to the retirement account. The same $1,000 of gross salary invested into a Roth IRA is $750 after taxes (at the 25% marginal tax rate), thus there is a direct value both in terms of reducing the tax burden in the present year and increasing the investment basis of pre-tax retirement accounts. For this analysis, we value the benefit as a reduction in present taxable basis, assuming the income is withdrawn from the 25% marginal tax bracket (adjusted gross income above $37,451 in 2015). The assumed contribution is 5% of annual wages. In addition, companies that offered a company match on contributions were assumed to provide a direct 2% addition to wage compensation. Total Benefits We calculated the total value of non-wage benefits provided to employees as a percentage of their annual wage by combining the proportion of companies offering benefits with their estimated value (Figure 9). For example, a production bonus in the South would add 3% of annual salary to an

20 | Page employee’s total benefits. In Figure 9, however, bonuses represent slightly less than 2% of additional benefit in the South because only 60% of companies offer bonuses.

Figure 9. Combined logging industry benefits as a percent of annual salary, grouped by benefit type.

Total benefits for logging company employees (drivers and equipment operators) ranged from an additional 8-16% of annual salaries. For comparison, individual responding companies varied from 0- 29% additional value from benefits, averaging 10% nationally. In the Lake States and the South, paid time off (sick leave, vacation, and holidays) represented a slightly more value than financial benefits (retirement, overtime, and bonus pay). In the West, health and financial benefits had the greatest value. Medical insurance was the largest individual benefit in the South and West while paid vacations had the greatest value in the Lake States. The relatively low availability of medical insurance in the Lake States kept its value low.

Index Structure To examine changes over time and compare compensation between industries, we combined the data into an index format than can be updated quarterly with new, publicly-available data. The compensation indices are calculated from the Quarterly Census of Employment and Wages, which tracks wage levels for U.S. industries. This simplifies updating of compensation trends over time. The QCEW reports on a six-month lag. For this study, we use a different multiplier for four regions (Lakes, Northeast, South, and West) to adjust the reported wages to represent total compensation. Base wages are inflated from the

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QCEW data to better represent the reported wages of equipment operators and truck drivers from the mailed benefits survey (Table 7). The QCEW does not differentiate between employee types within a given industry, so a different wage multiplier is used to generate log truck driver and logging equipment operator wages. The West region has a higher multiplier because most respondents to the mailed survey were in the Pacific Northwest, while the base QCEW wages are a weighted average salary of logging employees across the western region. Pacific Northwest wages are typically higher than the rest of the western region.

Table 7. Inflation ratios for Quarterly Census of Employment and Wages Logging salaries (NAICS: 1133) and Health Insurance premiums. Region Starting 2015 Equipment Truck Driver Ratio Addition per 1% Logging Salaries Operator Ratio change in health premium Lake States $38,400 1.2643 1.2894 0.0001 Northeast $39,300 1.2643* 1.2894* 0.0001* South $39,900 1.3078 1.2558 0.00025 West $48,600 1.6108 1.5032 0.0004 *No data available, ratio from Lake States respondents used as an estimate

Salaries from the QCEW adjusted to each occupation are the starting point of the compensation index. Most benefits are calculated as a percentage of salaries, thus using salaries to drive the index is rational. The aggregate value of benefits reported in the mailed survey for 2015 was compared against the reported salaries to determine the ratio of benefits value to wages. We assumed the ratio is fixed in the short term, with the exception of the contribution tied to health insurance. Health insurance premiums are not tied to wages so a separate adjustment accounts for changes in premiums. The sensitivity of total compensation to health premium changes was calculated by region and incorporated into the index formulation based on the annual percent change in premium values. Annual change in health premiums are estimated from the Kaiser Family Foundation’s Employer Health Benefits Survey (2016b), using the average agriculture, construction, and mining employment sponsored premiums.

When new salary data is available for a region from the Quarterly Census of Employment and Wages, multiply it times that region’s inflation ratio for either equipment operators or truck drivers to estimate the new total compensation value. As new data on health insurance premiums become available each year, an additional correction can be made to the operator and truck driver ratios. If, for example, premiums increase 10% in 2016 from 2015, add 10 times the value in the final column of Table 7 to each ratio to estimate the total compensation inflation in 2016. See Figure 10 for a sample of this calculation.

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Example of total compensation calculation for U.S. South

New salary data for Q1 2016 in U.S. South: $40,500

Health insurance premium increase in 2016 over 2015: 8%

Starting inflation ratio operators: 1.3078

Starting inflation ratio truckers: 1.2558

Health insurance adjustment: 8 * 0.00025 = 0.002

Estimated 2016 operator compensation = $40,500 * (1.3078 + 0.002) = $53,047

Estimated 2016 driver compensation = $40,500 * (1.2558 + 0.002) = $50,941 Figure 10. Example use of Table 7 for calculation of new compensation estimates. Example salary and insurance premium increases are for illustrative purposes only.

We can use this approach to calculate historical values of total compensation assuming the 2015 estimate of benefit availability has been consistent over time. Weighted average annual salary data from the logging sector and annual percent changes in health insurance premiums from Kaiser Family Foundation’s Employer Health Benefits Survey data provide a starting point. Total compensation for equipment operators and drivers dipped noticeably in the Northeast between 2013 and 2014 (Figures 11 and 12). Trends in Southern and Lake States compensation have been similar. Western compensation increased substantially between 2012 and 2013 before leveling off and declining slightly in 2015. The pace of compensation increases for drivers is greater than that of equipment operators.

Figure 11. Logging equipment operator total compensation estimate, 2012-2015.

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Figure 12. Log truck driver total compensation estimate, 2012-2015.

The indices generated in this report use our data on benefit availability as a fixed assumption over time. In their current structure, they can estimate changes in quarterly compensation based on the fixed assumption of benefit availability, reported data on the percent change in health insurance premiums, and quarterly changes in reported logging industry wages. To accurately update the indices, new data on benefits will be needed, which will require additional survey work. The values in Table 7 will allow updating of the indexed values on a periodic basis until another survey is deemed necessary.

Compensation Comparison with Competing Industries The American Trucking Associations provide a comprehensive summary of salary and benefits available for drivers at private, for-hire truck transportation firms based on a survey of 130 trucking companies. Data from their survey are similar in scope to the data we gathered in our logging survey and serve as a comparable estimate of salary and benefits. Competition for all CDL drivers is significant, and over-the- road jobs are, by their nature, not geographically limited. There are many classes of drivers, with the largest group driving national routes hauling box vans full of product for one customer at a time (termed “truckload” carriers). Drivers who haul products from multiple customers simultaneously (termed “less- than-truckload” carriers) on local routes offer a sizeable salary premium over truckload drivers but are also a much smaller portion of the industry (Table 8). Local log truck salaries are competitive with over- the-road (truckload) salaries nationally, but are supported by strong salaries in the West. In the South and Lake States, truckload driver salaries provided an 8-10% salary premium. Log truck driver salaries lag behind less-than-truckload salaries in all regions but the West. The salary premium for general freight drivers in these surveys are slightly greater than those indicated by BLS data (Figures 5 and 7).

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Table 8. Average regional truck driver salaries for local less-than-truckload carriers, long distance van trailers, and local log trucks. Source: American Trucking Associations Less-than-truckload Truckload Logging1 Lake States $60,600 $47,400 $44,000 South $50,600 $48,700 $44,100 West $55,100 -- $57,200 National Avg. -- $46,600 $45,300 1From our regional survey results

While salary levels are comparable for over-the-road and logging drivers, the trucking industry generally offers superior access to benefits for employees (Table 9). Nearly all trucking companies offer health insurance, paid leave and access to retirement accounts. By comparison, logging companies are far less competitive from the standpoint of benefits. Construction is similar to logging in terms of benefit access. If construction is considered a primary competitor for equipment operators, the logging industry should be relatively competitive, though there appears to be a salary premium for some construction equipment occupations, as noted earlier.

Table 9. Percent of establishments offering employee benefits by industry. Logging1 Trucking2 Construction3 National Average3 Retirement plan 30% 97% 34% 48% Health Insurance 38% 100% 46% 60% Paid Leave 70% 98% 75% 77% Bonus Pay4 57% 59% 33% 39% Signing Bonus - 48% - - 1From our regional survey results 2Over-the-road drivers from 2014 American Trucking Associations Compensation Survey 3From BLS 2015 National Compensation Survey 4Bonus pay may include production bonus for Logging, all others are non-production bonuses

Using the data in Table 9, we calculated an index of total compensation for competing industries. All values were indexed relative to the 2015 national average salary of logging industry workers from the BLS QCEW. Because data on benefits accessibility is not as comprehensive as the information gathered in our targeted survey, we value the level of benefits in logging occupations in the same manner as occupations in other industries for an equitable comparison. We assumed employer-provided medical insurance covered 50% of the region-specific healthcare premium. Retirement plans were valued as 3.25% of annual salaries. We assumed 10 days of paid leave at the value of one day’s wage. Bonuses were 3% of annual salary. Overtime, paid holidays and sick leave were not included. Benefit levels for the construction industry were used to calculate total compensation for cement/concrete mixer truck drivers and for excavator/backhoe operators. We lacked benefits data for agricultural equipment operators. We estimated benefit values using the national averages, which appear to be favorable based on state-level surveys of farm workers that suggest retirement plan access is closer to 15-17% and health insurance is provided to less than 40% of workers (Edwards et al. 2012, Ward and Zoller 2011).

In the South and West, logging occupations are most competitive with other industries (Figure 13, 14). Salaries drive the variation for most equipment operators, as benefit levels vary less across industries. The construction industry (excavator and backhoe operators) has the highest total compensation in each

25 | Page region. Logging equipment operators have the lowest compensation in the Lake States. Logging is the least competitive industry for truck drivers in the Northeast and Lake States as well. The general freight trucking industry has superior benefits in every region, but log truck driver wages in the West are high enough that logging has the highest total compensation in that region. In the South, log truck driver compensation is higher than cement/concrete drivers, but not as high as general freight.

*All values are indexed. Value of 100 is the 2015 national average salary (without benefits) for logging equipment operators.

Figure 13. Equipment operator compensation index for three industries by region in the U.S.

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*All values are indexed. Value of 100 is the 2015 national average salary (without benefits) for logging equipment operators. Figure 14. Truck driver compensation index for three industries by region in the U.S.

Salaries for equipment operators and truck drivers increased as the forest industry continued to grow. Salaries lag behind occupations heavily represented in urban locations, but the pace of salary growth suggests continued competitiveness. In the South and West, driver salaries also appear relatively competitive with other rural trucking industries and long-haul general freight jobs. Local pickup and delivery jobs still provide a much higher salary, but are also more common in urban areas. Non-wage benefits lag significantly behind large-fleet transportation companies. Total compensation is not as competitive for truck drivers given this disadvantage.

Discussion This report highlights the competitive nature of rural, skilled employment. The logging industry values employees capable of operating heavy equipment and trucks and willing to work in forest conditions. Compensation has trended upwards. Truck driver compensation increased at a faster pace over the past four years in every region than did equipment operator compensation. Driver compensation increased 8-16% regionally compared to 4-14% for equipment operators. Increased compensation aligned with a 3% increase in log truck drivers nationally (Figure 15). The more moderate gains in equipment operator salaries corresponded with an 8% increase in logging equipment operators over the same span. Thus, over the past four years, an equal increase in salaries for truck drivers and equipment

27 | Page operators would result in greater recruitment of operators than truck drivers. This seems to validate the concerns that a limited pool of drivers are available and willing to work in the logging industry.

Figure 15. Employment by occupation in the logging industry, 2015-2015.

Our estimates of benefits for log truck drivers are for drivers who work for a logging company. We lack the data to definitively state that independent, contract truck drivers are less well-compensated than their colleagues employed by logging companies. The contract driver force hauls a substantial percentage of wood harvested around the country (Baker, et al. 2013). While some companies aggregate log truck drivers to operate on a contract basis for multiple logging companies, this is not yet the standard practice. Most contract drivers remain independent. Salaries for log truck drivers in our surveys were near the 75th percentile regionally of the salary data gathered by the BLS. If contract drivers are on the lower end of the salary distribution and need to provide their own benefits, these jobs are likely far less competitive. Because contract drivers represent 40% or more of wood hauled in some regions of the country, the health and stability of this workforce remains a concern.

In a recent survey of the trucking industry, the driver shortage was the most frequently cited top concern (ATRI 2015). Retention of drivers was number four. Other top concerns included the hours-of- service restart provision, which is currently suspended pending further research, and the Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability (CSA) program. Driver recruitment and retention are just as important for large fleets. In 2015, large, truckload fleets averaged 93% driver turnover (Costello 2016). Smaller fleets averaged 79%. Companies are investigating driver compensation, work/life balance, and incentive programs to reduce turnover in long-haul jobs. Key areas of interest are the relationship between productivity and compensation (what determines wage rates) and incentives tied to safety, fuel efficiency, and productivity. The logging industry could benefit from better understanding and incorporating improvements in these.

There are additional challenges in log truck driver recruitment. Typically, insurance companies require two years of driving experience before covering a driver under most logging company’s liability plans. Drivers must be 21 years of age to obtain a commercial driver’s license for interstate travel. Thus, direct

28 | Page recruitment of prospective drivers or those coming out of driving school is not viable. Drivers must be recruited from existing jobs, between jobs, or after leaving the trucking industry. Drivers with unsafe driving records or any drug use problems will have difficulty getting insured. These further restrict the pool of qualified applicants for potential log truck driver openings. So the importance of competitive compensation grows. One of the few competitive advantages logging offers against over-the-road jobs is the ability to go home each evening and to work primarily in rural areas.

The work conditions can also be more challenging. Loaded log trailers have a higher center of gravity than cargo vans hauled by most over-the-road drivers. Loads can vary significantly based on the type of product hauled (plantation pulpwood vs. sawlogs). Off road hauling conditions can have low traction, challenging slopes, and may require precise maneuvering both forwards and in reverse. There may be greater safety hazards. Active log landings require awareness to watch for heavy machinery moving forest products. Exiting a log truck in the woods requires care, as the footing can be uneven and slick. In some operations, drivers are expected to trim vines or limbs with pole saws before exiting the woods. All of the above could be viewed as negatives for potential drivers. For some, though, a diverse work environment that requires a bit of skill may be more desirable than hours of interstate highways and inner-city traffic. The challenge remains to locate these drivers and share the message.

This is a similar challenge facing other trucking industries. A 2014 survey of cement/concrete mixing companies found that the greatest hiring challenges were (1) finding qualified drivers, (2) finding drivers with experience driving mixer trucks, and (3) a small pool of employee candidates (NRMCA 2015). The top three reasons drivers left their jobs were (1) an offer of better pay, (2) better benefits, and (3) a desire for a stable income. Of note, nearly 50% of departing drivers took local, short-haul driving jobs in a different industry. Long-haul trucking attracted 28%.

Employee turnover is costly, particularly for a small business such as logging where each employee contributes directly to the total production of the company. National surveys of employee retention strategies list adequate benefits as the top strategy to retain qualified employees (BLR 2015). Above- market salary is the fifth most commonly cited strategy. Quality of the work environment and an open, respectful relationship between employer and employee were also top issues. Satisfied employees tend to be more loyal, productive, and less likely to seek alternative employment (ICW 2007). Maintaining an effective work environment is tied to higher employee satisfaction. Logging companies can improve workplace effectiveness by keeping employees engaged in management decisions and offering opportunities for training and personal growth. A recent strategy to increase employee satisfaction has been schedule flexibility. Logging does not offer many opportunities here due to the inter-related nature of many jobs on active logging operations.

The top strategy for filling new positions is employee referrals, highlighting the importance of maintaining a strong relationship with employees (BLR 2015). Online options are second most common, but word-of-mouth and print ads are still top strategies. Unfortunately, small businesses struggle most with employee recruitment (ICW 2007).

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Literature Cited American Transportation Research Institute. 2015. Critical issues in the trucking industry – 2015. ATRI, Arlington, VA. 18 pp.

Baker, S., D. Greene, T. Harris, and B. Mei. 2013. Regional cost analysis and indices for conventional timber harvesting operations. Wood Supply Research Institute Final Report, Athens, GA. 39 pp.

Bureau of Labor Statistics. 2016a. National Compensation Survey: Employee Benefits in the United States, March 2015. Accessed at: http://www.bls.gov/ncs/ebs/ U.S. Department of Labor. Last accessed on: July 26, 2016.

Bureau of Labor Statistics. 2016b. Occupational Employment Statistics. Accessed at: http://www.bls.gov/oes/home.htm U.S. Department of Labor. Last accessed on: July 19, 2016.

Bureau of Labor Statistics. 2016c. Quarterly Census of Employment and Wages. Accessed at: http://www.bls.gov/cew/home.htm U.S. Department of Labor. Last accessed on: June 22, 2016.

Business and Labor Resources (BLR). 2015. Recruiting best practices: Finding and attracting talent in 2015’s challenging business climate. HR Daily Advisor Research. Brentwood, TN. 31 pp.

Costello, B. 2016. Driver turnover at truckload carriers falls in first quarter. Press release. American Trucking Associations. July 6, 2016. Accessed at: http://www.trucking.org/article/Driver- Turnover-at-Truckload-Carriers-Falls-in-First-Quarter

Costello, B. and R. Suarez. 2015. Truck driver shortage analysis 2015. American Trucking Associations. Arlington, VA. Accessed at: http://www.trucking.org/ATA%20Docs/News%20and%20Information/Reports%20Trends%20an d%20Statistics/10%206%2015%20ATAs%20Driver%20Shortage%20Report%202015.pdf 12 pp.

Edwards, W., A. Chamra, and A. Johanns. 2012. Wages and Benefits for Farm Employees. Iowa State Extension and Outreach File C1-60. 8pp. Accessed at: https://www.extension.iastate.edu/agdm/wholefarm/pdf/c1-60.pdf

Ferree, P. and P. W. Smith. 2013. “Employment and wage changes in oil-producing counties in the Bakken Formation, 2007–2011,” U.S. Bureau of Labor Statistics. Beyond the Numbers: Employment & Unemployment, vol. 2, no. 11 (April 2013). Accessed at: http://www.bls.gov/opub/btn/volume-2/employment-wages-bakken-shale-region.htm

Institute for a Competitive Workforce (ICW). 2007. Recruitment and retention of the frontline and hourly wage worker: A business perspective. Washington, DC. Publication #0511. 12 pp.

Kaiser Family Foundation. 2016a. Average single premium per enrolled employee for employer-based health insurance. Summary of data from: Agency for Healthcare Research and Quality, Center for Financing, Access and Cost Trends. 2014 Medical Expenditure Panel Survey (MEPS)- Insurance Component; Tables II.C.1, II.C.2, II.C.3. Accessed at: http://kff.org/other/state- indicator/single-coverage/

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Kaiser Family Foundation 2016b. Premiums and worker contributions among workers covered by employer-sponsored coverage, 1999-2015. Accessed at: http://kff.org/interactive/premiums- and-worker-contributions/

Leitner, L. and B. Costello. 2014. ATA 2014 Driver Compensation Study. American Trucking Associations. Arlington, VA. 74 pp.

Missouri Economic Research and Information Center (MERIC). 2016. Cost of living data series: First quarter 2016. Missouri Department of Economic Development. Accessed at: https://www.missourieconomy.org/indicators/cost_of_living/index.stm Last accessed on: July 19, 2016.

National Ready Mixed Concrete Association (NRMCA). 2015. 2015 Mixer Driver Recruitment and Retention Survey: Executive Summary. Accessed at: http://www.nrmca.org/operations/Documents/ExSummary_NRMCA2015MixerDriverRecruitme ntRetentionSurvey.pdf 12 pp.

Ward, B. and C. Zoller. 2011. Wages and benefits for farm employees, 2009. Ohio State University Extension Fact Sheet AEDE-RP-0126. Accessed at: http://ohioline.osu.edu/factsheet/AEDE-RP- 0126-10

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Appendix A: Survey Questionnaire and Insert

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Wood Supply Research Institute Logging and Trucking Benefits Survey

Recruiting skilled operators and truck drivers is a challenge for logging businesses in the U.S. To see how competitive the logging industry is versus other rural jobs, the Wood Supply Research Institute funded this study. Our goal is to compare the total compensation (pay and benefits) in logging jobs to other industries. And to do this, we need your help. The enclosed survey is ENTIRELY ANONYMOUS. We have no way to identify participants. Individual responses will not be reported to anyone outside our firm. Below, we explain how to answer survey questions if you employ truckers or logging workers, as well as if you are an independent contractor. Thank you for your assistance. If you have any questions, please contact us at 770-725-8447.

Shawn Baker, Director of Forest Operations Research, Forisk Consulting

Survey Instructions for Each Question:

FEEL FREE TO SKIP ANY QUESTION YOU ARE UNCOMFORTABLE ANSWERING.

If your company has more than one person, please check “Logging/Trucking Employer.” If you have no employees and work independently as a truck driver or logging operator, please check “Independent Operator.”

Provide the State where your business is located.

If you selected “Logging/Trucking Employer,” note the total employees in your firm.

If you work primarily in trucking, please estimate the total miles driven last year hauling forest products. If you are primarily a logging company, estimate your total harvest volume in the units (tons or cords or MBF) you typically use.

Select the type of medical insurance offered to truck drivers and equipment operators in your company. If an independent operator, please select the type of health insurance you have. If your plan type is not listed, please write it in.

For employers: Estimate the % of the total plan cost paid for employees by your company. If the cost for dependents are also covered, please estimate the % of the total plan cost paid by the company for family medical plans.

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For independent operators: Estimate the total amount spent on a medical insurance plan (if any) in 2015.

If you offer additional insurance plans for truck drivers or equipment operators, please select the type of plans for which the company pays some portion of the cost.

If you pay truck drivers and/or equipment operators for national holidays (4th of July, Christmas, etc.), please indicate the number of days per year.

If you offer truck drivers and/or equipment operators paid leave for illnesses, please provide the maximum days per year your company will pay.

Describe your company’s policy for paid vacation of truck drivers and/or equipment operators.

If paid vacation is limited to certain times (for example, if everyone must take leave at the same time such as July 4th week or Christmas week), please indicate this.

Describe your overtime policy. Check all that apply. If you pay when exceeding, for example, 40 hours worked per week, check this box. If you pay overtime for hours worked on weekends (regardless of the total hours worked during the week), please check this box.

If you pay bonuses for exceeding a production target, select the proper timeframes (weekly and/or monthly). Check all that apply. If an additional year-end bonus is offered based on the total production of the company, also select “Annual.”

If you offer truck drivers and/or equipment operators access to a retirement plan, indicate this. Note if your company contributes matching funds for employees.

For independent operators: Please provide an estimate of your 2015 annual gross pay (before taxes) in the space most closely associated with whichever type of equipment you operate (log truck, forwarder, etc.).

For employers: Please estimate the 2015 salary paid to each type of operator you employ.

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