Steve I have no doubt about the honesty of your posts or your good intentions and here it comes BUT…
Unlike the other posters I wonder if you have other problems because I’m concerned even the departure of all your louts now may not make your life any better in 6 months time.
Most of your drivers and TM seem poorly motivated to do a descent job Why??
Statistically 80% cannot be incapable as your hiring eye cannot be that bad.
You now have too many slackers in your yard for that to be purely by chance. Likewise you say the guys knocking on your door are from the bottom of the barrel too so does that mean the word on the street is not great?
You say the wages and the gear are good so if the type of work is not too objectionable there is only one other area I can think of.
That is the area of morale, attitude, pride and general happiness on the job which seems to to be in very short supply.
I would be asking all staff including the guy who walked what they think would make the job better.
Drivers need to be motivated, respected and managed ocassionally.
Are they all treated equally or is there some favourites?
If they do a good job or go out of their way some day is that recognised with a word of thanks or a pat on the back?
Drivers egos and self esteem are very important but get battered by customers, authorities and the public every day.
If the boss doesn’t indicate to them that he appreciates what they have to do sometimes to get the job done then who will so why bother trying?
Who is their boss really?
I sense you are involved in many things and suspect you are not the face they deal with all the time.
Do they have a proper boss who ensures equity of workload?
A boss who can tell a slacker to smarten up or fire him because watching slackers getting away with things can really demoralise a group of workers.
A boss who can say thanks when credit is due?
If you otherwise like the business and if it makes you money I would go about saving it if you have the time and energy
I would ask the questions, get the feedback and address the issues.
I would get rid of the small minority that cannot be turned around.
I would make sure they have a boss that they recognise as their boss and who has his finger on the pulse.
A boss who treats the workload fairly, promptly ‘manages’ anyone who needs to be ‘managed’, and gives credit where credit is due.
Whether that boss will be be a mature competent TM or you backing up a junior TM/planner would depend on the time you can put in.
I would also invest in the youth. I would take on newbies and train them up. Pay them a little less for the time with a mentor driver and pay the mentor a little extra when mentoring. Win,Win.
If I knew young lads working on their class 1 or just after getting it I would have him around the yard to practice picking and dropping trailers, reversing and so on.
Then put the better ones in your hiring pool ready for when a vacancy comes up or holiday cover or whatever.
Personally I would not even bother with all that quasi-legal contract stuff as it will probably make matters worse. You cannot turn these guys around with their signitature on a dozen new documents of responsibilities.
All sticks and no carrots means you remain at war. What good is that?
Personally I would not do my dirty laundry in the TC’s office. It may appear you did not have control and are vindictive.
My 2 cents worth but I’m not an employer or business owner and I hope you get peace one way or the other sooner rather than later.