Last week, two of America’s largest trucking companies, Knight Transportation and Swift Transportation, announced a merger to create a $5 billion mega-carrier. In order to entice current Swift and Knight drivers to stick around, both firms have offered a “loyalty bonus” starting in May and lasting until the merger is completed.
The bonus? An extra penny per mile.
The merger is expected to close sometime between July and September — meaning the penny-per-mile loyalty bonus will last for 3-5 months.
“We are offering a ‘Loyalty Bonus” to all eligible drivers in recognition of your commitment to the success of this business. Those eligible will include all drivers who are employed as of May 1, 2017, and who are still employed and working at the close of the common ownership transaction, anticipated to be in the third quarter of 2017,” Swift’s current CEO Richard Stocking said in a press release.
Both Knight and Swift Transportation will continue to be run independently once the transaction closes, but will be owned by a newly-formed parent company called Knight-Swift Transportation holdings.
Executives expect the new company to save $150 million in 2019, due to reduced costs and increased operational efficiency brought about by the merger.
Knight-Swift transportation will have a massive fleet of 23,000 tractors, employ more than 28,000 people, and have combined revenues north of $5 billion.