The first in-person Heavy Duty Aftermarket Dialogue in two years concluded with an engaging fleet discussion Monday in Grapevine, Texas. As expected, the ongoing parts shortage created and exacerbated by the pandemic led to most of the conversation. Following the day’s theme, Monday’s fleet panelists reiterated the value of transparency in the current circumstances. Carriers understand there are few product lines today that can be ordered and shipped without delay and they say have learned to accept that. Where they become frustrated is when suppliers fail to update them that a product’s availability has suddenly shifted or is about to change. “The minute you know you have a shortage, I want you to call us,” says Mike McDonald with Benore Logistics. Adds Forward Air’s Tom DePorter to Monday’s supplier audience, “We know right now that you guys are in the same boat as we are; that there are surprises around every corner,” he says. “I want to the know bad news as soon as you know it so we can react.” The panelists say most suppliers have been good in that regard — particularly over the last six months. Each panelist admitted to increasing their inventory levels at their terminal locations throughout 2021 and have been quick to purchase in bulk when informed of high-volume components that may soon become unavailable. Carriers also say vendors shouldn’t be offended if a customer looks elsewhere for a product it needs to get a truck on the road. The current parts shortage is so extreme that carriers can’t wait around for a part to arrive from one vendor if another viable aftermarket option is available from someone else. [RELATED: HDAD session reviews D.C. movement on issues affecting the industry] PAM Transport’s Shane Barnes says his company has even removed parts from new trucks it just received to keep existing trucks moving. He says the company’s OEM partner approved the move and replenished those new trucks with the necessary components once they again became available. “We’d never done that before,” he says. “We’d pulled from wrecked trucks and such, but not that.” Yet despite the current predicament, Monday’s fleets remain optimistic about trucking’s supply chain, the general economy and their businesses. All three panelists said fortunately their maintenance and service requirements haven’t shifted dramatically since the pandemic began, which has kept their service shops from being overrun. They also noted their workforces have become more efficient and productive after surviving 2020 and 2021, which bodes well for the future. The next year won’t be an easy one for anyone, but cooperation and coordination will go a long way toward making the year a positive one. https://ift.tt/2ytPsnD
0 Comments
Trucking news and briefs for Wednesday, Jan. 26, 2022: Fuel prices surge to 7-year highA 5.5-cent gain during the most recent week ending Jan. 24 has the national average for diesel prices at its highest since September 2014, according to the Department of Energy’s weekly report. The U.S.’ average for a gallon of on-highway diesel is now $3.78, surpassing the 2021 high of $3.734 set during the week ending Nov. 15. The last time the national average for diesel was higher was the week ending Sept. 15, 2014, when prices stood at $3.801 per gallon. Prices increased in all regions across the country last week, with the most significant increase being seen in New England, where prices jumped 7.9 cents. The nation’s most expensive diesel can be found in California at $4.824 per gallon, followed by the West Coast less California at $4.11 per gallon. The cheapest fuel can be found in the Gulf Coast region at $3.531 per gallon, followed by Midwest at $3.656 per gallon. Prices in other regions, according to DOE, are:
ProMiles’ numbers during the same week saw fuel prices increase by 6.1 cents, bringing its national average to $3.612 per gallon. According to ProMiles’ Fuel Surcharge Index, the most expensive diesel can be found in California at $4.715 per gallon, and the cheapest can be found in the Gulf Coast region at $3.435 per gallon. Predictive cruise now standard on Mack Anthem, Pinnacle modelsMack Trucks announced Tuesday that its Predictive Cruise Control with Econo-Roll is now standard on Mack Anthem and Mack Pinnacle models. Mack Predictive Cruise combines the Mack mDrive automated manual transmission (AMT) with GPS, monitoring driver speed, engine load and road topography, memorizing those conditions when cruise control is set. The next time the driver travels the same route, Mack Predictive Cruise will communicate to the transmission to ensure the optimal gear for fuel efficiency is chosen. The company says its system can increase fuel efficiency by up to 1% and does not require a constant GPS connection. After a short connection to GPS, Mack Predictive Cruise recognizes the hill, sends the communication to mDrive, which automatically knows the optimal speed and gear strategy for the upcoming terrain. Mack Predictive Cruise constantly monitors speed, engine load, weight and the road gradient in order to select the best gear for the road ahead. When approaching a hill, Predictive Cruise allows slightly more speed. The mDrive AMT then maintains the highest gear possible, remaining in that gear and preventing downshifts if unnecessary to crest the hill. Econo-Roll, which temporarily disengages the driveline before the downhill descent, allows the truck to roll, reducing fuel consumption. When traveling downhill, Mack Predictive Cruise maintains vehicle speed, utilizing kinetic energy and softly applying the engine brake. Because the hill is stored in the vehicle’s memory, Predictive Cruise recognizes it and knows when the gradient will even out, allowing the truck to maintain its speed for the next incline. https://ift.tt/2ytPsnD The Occupational Safety and Health Administration (OSHA) on Tuesday said it is withdrawing its vaccine-or-test emergency temporary standard, which the U.S. Supreme Court effectively shelved Jan. 13. OSHA was seeking mandatory COVID-19 vaccines or weekly testing for companies with 100 or more employees, but earlier this month SCOTUS ruled the Secretary of Labor lacked the authority to issue such a mandate, even through the OSH Act’s emergency temporary standard exemption. "We successfully challenged this misguided mandate all the way to the U.S. Supreme Court, because it was a clear overstep of OSHA’s authority, and because it would have had disastrous consequences for an already-overstressed supply chain," American Trucking Associations President and CEO Chris Spear said via statement Tuesday. "The Supreme Court bounced it, and we are pleased to see the agency has now formally withdrawn it, sending this ETS to the dustbin where it belongs." Notwithstanding the withdrawal of its Vaccination and Testing ETS, OSHA said it continues to strongly encourage the vaccination of workers against the continuing dangers posed by COVID-19 in the workplace. OSHA on Nov. 5 adopted the emergency temporary standard to protect unvaccinated employees of large employers (100 or more employees) from the risk of contracting COVID-19 by strongly encouraging vaccination. The ETS required covered employers to develop, implement and enforce a mandatory COVID-19 vaccination policy, with an exception for employers that instead adopted a policy requiring employees to either get vaccinated or elect to undergo regular COVID-19 testing and wear a face covering at work in lieu of vaccination. The ETS was challenged almost immediately with the Fifth Circuit Court of Appeals granting a stay, essentially pausing implementation. The Sixth Circuit in December overturned the Fifth Circuit and re-implemented the ETS, setting it on a path to the Supreme Court. While SCOTUS's ruling was a blow to the mandate, it wasn't a death blow. However, OSHA's formal withdrawal of its ETS effectively put the issue to bed. Just before the Supreme Court’s ruling, OSHA had already amended its FAQ to clarify that the majority of truck drivers would not be covered by the mandate. In the new section posted in the FAQ, OSHA clarified that while there is no specific exemption for truck drivers, the ETS does “not apply to employees ’who do not report to a workplace where other individuals such as coworkers or customers are present’ or employees ‘who work exclusively outdoors.’” The FAQ goes on to say that truck drivers who do not work in a team operation with another driver in the cab and who only encounter other individuals in outdoor environments are not included in the ETS. Additionally, OSHA noted that minimal use of indoor facilities where other people may be present, such as using a multi-stall bathroom or entering an administrative office to drop off paperwork “does not preclude an employee from being covered by these exemptions, as long as time spent indoors is brief.” https://ift.tt/2ytPsnD
Autonomous driving technology startup TuSimple has reached an agreement with one of the largest industrial and commercial real estate developers in the country that expands the TuSimple Autonomous Freight Network
Hillwood, an acquirer and developer of industrial properties, will integrate TuSimple's infrastructure specifications into current and future industrial and commercial properties, starting with a million square foot state-of-the-art facility built within its 27,000-square-acre AllianceTexas development. The AllianceTexas Mobility Innovation Zone (MIZ) provides partner companies access to a testing and commercialization ecosystem, freight-critical resources, and partnerships to comprehensively adopt, integrate and scale L4 autonomous trucking operations. Hillwood Chairman Ross Perot, Jr., said his company chose to partner with TuSimple, "to provide the guidance and technical parameters required to prepare this new facility for the rapid adoption and expansion of autonomous trucking operations throughout the region and beyond. The on-demand economy is driving a technological transformation within the logistics industry, and through our partnership with TuSimple, the MIZ will be ready to meet that demand." This new facility will be designed and upfitted to meet TuSimple's operational and technical requirements that accommodate their Operational Design Domain (ODD) and are compatible with the current and future expansion of the TuSimple Autonomous Freight Network. This facility is intended to serve as an origin and destination facility for L4 autonomous trucks utilizing TuSimple's Autonomous Driving System (ADS). Located just off Interstate 35 near Fort Worth Alliance Airport and near TuSimple's major freight-partner facilities (UPS and DHL), the MIZ is also in close proximity to a major distribution hub and the largest freight market in the United States. Home to the MIZ and one of the nation's largest inland ports, the AllianceTexas submarket encompasses 68 million square feet of industrial facilities. "We're seeing unprecedented demand for autonomous trucking capacity as the logistics industry looks for ways to become safer, more efficient and more environmentally friendly," said TuSimple President and CEO Cheng Lu. "Hillwood's investment in these properties today will make it easier for companies to adopt, integrate and scale autonomous trucking operations." https://ift.tt/2ytPsnD Greenville, South Carolina-based Dedicated Transport Solutions (DTS) has been acquired by Atlanta-based trucking company Ascend. Ascend, a dryvan full truckload carrier, earlier this month acquired Jackson, Tennessee-based Milan Supply Chain Solutions and its subsidiary J&B Services. The acquisition of DTS expands Ascend's dedicated contract carriage business and further broadens the company’s coverage of the southeastern seaboard in North Carolina, South Carolina, Georgia, Florida, and into Louisiana, Texas and Ohio. Given the challenging nature and headwinds of the supply chain for shippers, DTS President and Founder Scott Stowers said DTS’s customers "will enjoy the expanded capacity and capabilities of the combined company" post-acquisition. Dedicated Transportation Solutions was established in 2004 to provide shippers with a fleet outsourcing option, and the company’s dedicated contract carriage offering enables shippers to entrust driver recruitment and retention, regulatory compliance, liability management, vehicle procurement and maintenance, and operational management with experts in those fields. DTS has grown from a single Greenville location to 24 independently operating and geographic locations, servicing local and national customers along the southeastern seaboard plus Louisiana, Texas, and Ohio. The DTS acquisition increases Ascend’s assets – a company that was initially formed by the merger and integration of Milan Supply Chain Solutions (CCJ Top 250, No. 145) and J&B Services – to more than 1,000 tractors and more than 3,000 trailers. https://ift.tt/2ytPsnD With the challenges facing the trucking’s supply chain so well known, the opening supplier panel at Monday’s Heavy Duty Aftermarket Dialogue in Grapevine, Texas, didn’t spend much time dwelling on the obstacles their businesses are facing each day. In giving attendees “A Real-World View of the Aftermarket,” executives from Allison Transmission, Bendix and Haldex say most of their work these days focuses on the future — adapting to the current reality to fulfill as many orders as possible from OEMs, aftermarket distributors and service providers. “This is the hardest problem I’ve ever tried to solve professionally because there’s no good answer,” says Mike Hawthorne, Bendix Commercial Vehicle Systems president and CEO. “We can’t make everyone happy.” Hawthorne says Bendix’s order fulfillment strategy has prioritized unit down orders, with production lines and aftermarket stock orders following. “The wrestling match between OE and aftermarket has leaned toward OE to keep production lines going,” he adds. Monday’s other panelists have used similar strategies. Allison Transmission’s John Coll, senior vice president, global marketing, sales and services, says unit down orders remain his company’s top priority but its fulfillment rates for OEM lines and aftermarket customers have been fairly close in recent months. At Haldex, where aftermarket represents a majority of its North American sales, Americas President Walt Frankiewicz says Haldex is fulfilling unit down orders as quickly as possible and meeting its OEM obligations where it has a standard position. It also has been able to support the aftermarket with other components where its OEM position isn’t required. The trio say none of their solutions are ideal, but in such unique circumstances, they are proving to be the best short-term bandages to a substantial market rupture. Additionally, suppliers state they are doing everything they can to communicate every decision they make (and why they make it) to their customer bases so everyone understands how they are attempting to manage the current crisis. With no easy way out of their current predicaments, Frankiewicz says transparency is proving to be the best option for suppliers to alleviate customer concerns and maintain strong business relationships. [RELATED: Key indicators remain intact for truck production] “The one thing that separates us from the automotive industry — which is a bloodbath now — is the mutual trust and integrity between customers and suppliers,” he says. “Those relationships remain paramount moving forward.” Hawthorne says transparency has been the biggest change in customer expectations over the last year. He says today’s customers demand explanations for price increases and insight into how suppliers are developing their new rates. Fortunately, he says most customers are accepting of those prices increases once informed of their origins. Coll agrees. “What’s been really positive has been the maturity of everyone.” Monday’s panel discussion, moderated by Chris Patterson, also touched on how the supply chain may continue to evolve in the next year. Monday’s panelists said they believe their raw material levels (save for semiconductors) are likely to normalize before their logistics challenges are solved. On logistics, Frankiewicz says Haldex has stopped shipping through the Port of Long Beach and Hawthorne jokes, “we cannot go out and just clear the Port of Los Angeles.” Regarding semiconductors, Frankiewicz says the aftermarket is at a fulfillment disadvantage because the chips it requires are basic transistors and many existing production lines are prioritizing more advanced microprocessor chips that sell for substantially more. “No one wants to make the transistor because they can make a microprocessor for 100 times more,” he says. The suppliers also note new onshore semiconductor facilities are likely to be used to develop 5G technology that is more advanced than the trucking industry needs. “Most of what we use are legacy chips; most of the recent investment is for new technology chips,” adds Coll. As for when the market will return to some semblance of normal? The panelists freely admit they don’t know that. “I have been wrong on this every time I’ve been asked the question for the last 18 months,” Hawthorne says. “I don’t have a magic silver bullet to shoot and kill the monster.” Coll says Allison doesn’t either, but the company is working hard to evaluate real market demand (OE and aftermarket) and use that in its market forecasting. He says the best thing suppliers can do now is acquire as much market information as possible and make educated decisions moving forward. He says if everyone acts accordingly, eventually, the trucking industry will put today’s challenges behind it. “The resiliency of the [commercial vehicle] industry is helping us. We’ve been in tough situations before — though maybe not exactly like this — and everybody works together and we get through it.” https://ift.tt/2ytPsnD Trucking news and briefs for Tuesday, Jan. 25, 2022: Trucking conditions bounced back in November after October slideFTR’s Trucking Conditions Index (TCI) for November rebounded from October’s 7.75 to a 10.0 reading for the month, primarily due to steadier diesel prices. Slightly firmer freight volume and rates also contributed to the gain. Diesel prices could continue to introduce some volatility into the TCI, FTR says, as prices declined in December but have risen sharply more recently. Even so, FTR’s outlook is for the TCI to remain in the same range as November through the first quarter of 2022 and then settle into high single digit positive readings for the remainder of 2022. “Although we continue to forecast a quite gradual easing of trucking companies’ robust market conditions beginning in the second half of the year, we certainly are seeing no signs of that happening yet,” said Avery Vise, FTR’s vice president of trucking. “Freight rates continue to strengthen at least marginally as the spot market shows unprecedented resilience. Solid consumer spending and industrial demand should maintain a high floor on trucking conditions even if we see some modest gains in capacity and productivity.” The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel price, and financing. The individual metrics are combined into a single index indicating the industry’s overall health. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. FMCSA adds alternative vision standard for certain truck driversThe Federal Motor Carrier Safety Administration has published a final rule that, when it takes effect March 22, will allow truck drivers who do not satisfy certain vision requirements with one eye or the other to still be physically qualified to drive a truck without an exemption. The new rule applies to drivers who do not satisfy, with their worse eye, either the existing distant visual acuity standard with corrective lenses or the field of vision standard, or both. Currently, these drivers cannot operate in interstate commerce without an exemption from FMCSA. The new alternative vision standard replaces the current vision exemption program as the basis for determining the physical qualification of these drivers. Drivers who physically qualify under the new alternative standard for the first time will be required to complete a road test administered by their employer before driving interstate. Drivers are exempt from the road test requirement if they have three years of intrastate or exempted interstate trucking experience with the vision deficiency, hold a valid federal vision exemption, or are medically certified under the previously administered vision waiver study program. Before being medically certified under the new alternative vision standard, a driver must have a vision evaluation conducted by an ophthalmologist or optometrist, then a medical examiner performs a physical exam and determines whether the driver meets the alternative vision standard, as well as FMCSA’s other physical qualification standards. To be physically qualified, a driver must have at least 20/40 vision in the better eye and a field of vision of at least 70 degrees in the horizontal meridian, be able to recognize the colors of traffic signals, have a stable vision deficiency, and have had sufficient time pass since the vision deficiency became stable to adapt to and compensate for the change in vision. FMCSA proposes 27% decrease in UCR feesThe Federal Motor Carrier Safety Administration is proposing reductions in the annual registration fees states collect from trucking companies, brokers, freight forwarders and leasing companies for the Unified Carrier Registration Plan and Agreement for 2023 and subsequent registration years. The proposed fees for the 2023 registration year would be reduced below the fees for 2022 by approximately 27%, which would translate to a reduction between $16 and $15,350, depending on the number of vehicles owned or operated by the company. In accordance with U.S. Code, UCR fee adjustments must be requested by the UCR Plan when annual revenues exceed the maximum allowed. As seen in the graphic above, FMCSA proposes to reduce the fee for independent owner-operators with one or two trucks from $59 to $43, with reductions for each fleet size up to 1,001 or more trucks, which would see a reduction from $56,977 to $41,627. https://ift.tt/2ytPsnD Rarely does a one-size fits all approach work. This is especially true when it comes to transportation. No two fleets are alike. Every network has its own needs and the way deliveries are made, how involved drivers are in the deliveries, the scheduling of deliveries, what the delivery windows are, etc. varies from fleet to fleet. When a company is looking for someone to take over its transportation function, it is best to avoid anything that smacks of one solution for everyone. The right solution can include equipment, drivers, maintenance, fuel, tax reporting, licensing, etc. Data analysis is a key part when making the decision of what to outsource and to which provider. It is best to look at data over at least a six-month period when making your assessment, as that will give you a more realistic view into your operation. This analysis should include a list of the equipment you currently have, delivery history, fuel costs and other miscellaneous costs. A transportation solution provider will be able to look at all the data to see any recommendations resulting in a reduction of assets and resources needed or change routing to optimize deliveries, thereby reducing the cost of transportation. Dedicated contract carriage is one customized fleet solution that can help many businesses where transportation is a cost center rather than a revenue generator. When executed properly, a dedicated contract carriage solution is basically the same as operating a private fleet but without the risks because the contract carriage provider takes on all the liability. When considering a solution for your transportation function, maintenance is one area to look at very closely. Today’s vehicles are technological wonders, and it is nearly impossible for a private fleet to keep up with the tools, equipment and technician training needed to keep trucks on the road. Given supply chain issues resulting from material shortages that are hampering OEMs’ abilities to produce new trucks, most fleets are having to hang on to their older equipment for longer than they had planned. As we all know, older equipment needs more maintenance so fleet managers will have to spend extra time and money to ensure their existing assets are in good operating condition. Moving to a dedicated contract carriage model shifts the maintenance burden away from the private fleet to the contract carriage provider. There are a number of companies out there offering customized fleet solutions. Choosing the right one can be tricky. Here are some questions to ask potential service providers: How was your on-time delivery rate with other customers?; Do you have some examples of process improvements that you made for other customers to help with efficiency and productivity?; What is your safety rating?; How were you able to streamline the delivery process? What is your renewal rate with your existing customers? Choosing a dedicated contract carriage solution can actually give the private fleet more control over its transportation function. The contract carriage provider has to break every cost down to a granular level, going beyond cost per mile to include cost per delivery, cost per hour or whatever other metric the company wants tracked. Dedicated contract carriage takes away the liability, headaches and anxiety of having your own trucks on the road and provides you the assurance that your customers are being taken of in the way you desire. Doug Adamson is Senior Vice President of Sales and Marketing at Transervice. He is an industry veteran having spent nearly 25 years with an industry leader in sales and sales management in all aspects of transportation, logistics and logistics design. https://ift.tt/2ytPsnD In 2021, we saw increased attention on the opportunity for more women to join the trucking industry, which continues to face driver shortages despite being one of the largest occupational groups in the U.S. The latest American Transportation Research Institute survey released in October 2021 confirmed that driver shortage remains the number one concern facing the industry, with the number two issue being driver retention. Some progress is being made to diversify the trucking workforce and attract new talent. The American Trucking Associations (ATA) reported that the number of professional female truck drivers in the U.S. rose by 68% between 2010 and 2018. And according to a Women in Trucking Association (WIT) survey from 2019 – a more accurate depiction than recent Department of Labor statistics – women represent more than 10% of U.S. truck drivers. This year, the U.S. will continue to look at the vital role of truck drivers in the larger supply chain as it advances measures to promote women in trucking through the bipartisan infrastructure bill and Biden-Harris Trucking Action Plan. As carriers ramp up efforts to recruit women, it is critical to understand the physical and mental health challenges encountered by female drivers pursuing careers in the field. More than just physical challengesThe long hours on the road and time spent away from home and family presents difficulties for female drivers. Women traditionally have more domestic responsibilities that impact their valuation of trucking careers, such as childcare and ease of returning home for emergencies. These constraints contribute to additional stress and anxiety for female drivers.The nature of truck driving contributes to rates of obesity at nearly twice the national level. Drivers experience high levels of physical inactivity and sedentary behavior, with the CDC determining that only 20% of female truck drivers achieve the minimum recommended amount of 2.5 hours of vigorous exercise a week. These factors may contribute to elevated rates of hypertension, cholesterol, and blood glucose levels. Female drivers also grapple with bias, harassment, discrimination, and physical safety issues in the workplace. One study found that over 60% of female respondents reported feeling like they were treated with less dignity and respect because they were women. In a WIT survey, women gave an average score of 4.4 when asked to use a 1-10 scale for ranking how safe they felt on the job. Additional occupational stress from time pressures and limited social support contributes to significant anxiety, depression, fatigue, and sleep deprivation among drivers. Cigarette smoking is also three times higher among female drivers than other women in the U.S. workforce, putting them at greater risk for chronic obstructive pulmonary disease (COPD). Related costsThese lifestyle behaviors and health conditions alone pose serious health risks and expenses, but they also represent risk factors for developing chronic diseases, such as type 2 diabetes and pre-diabetes. The cost of diabetes care can be enormous: the average annual medical expense for a diabetic is over $16,750 – more than twice the amount for an individual without diabetes.Like other chronic diseases, these conditions impact a driver’s Commercial Driver’s License, which requires an examination and clearance from a Certified Medical Examiner. Together with the other stressors, these factors may contribute to the ongoing turnover rates that hinder fleets. Turnover-associated expenses facing fleets are considerable, with the average cost being about $8,200 per driver, which includes recruitment, equipment, lost profit, drug testing, background checks, and new hire orientation. Health promotion and chronic disease intervention through lifestyle changeTraditional employer benefit strategies for disease prevention historically cater to office-based employees and fail to generate results for a labor force of lone drivers working on the road. Achieving meaningful health changes becomes even more of a challenge for hard-to-reach, medically underserved employee populations like professional truck drivers, whose daily lives lack the support structures and scheduling consistency that other occupations have.Within the trucking industry, several organizations are leading the charge to make improved health more attainable, with trade organizations like the ATA and WIT shining a spotlight on the importance of driver safety and health. Health and wellbeing resources have demonstrated the potential to positively impact driver physical and mental health, directly benefiting employers with increased employee retention, reduced healthcare costs, improved safety, and job desirability. More broadly, the Centers for Disease Control’s National Diabetes Prevention Program canimprove health and reduce the risk of type 2 diabetes. Several studies demonstrate that a 5% to 7% reduction in bodyweight can help lower the risk of developing type 2 diabetes by 58% in adults with prediabetes. If the trucking industry hopes to continue the trend of increased female representation, they need to mirror the top-down efforts proposed in the bipartisan infrastructure bill and Trucking Action Plan to identify and eliminate barriers and industry trends that discourage women from entering the industry. This effort should be paired with a shift in culture by employers and a sincere commitment to creating a culture of wellbeing that accounts for the total health, both physical and mental, of female drivers. Roberta Wachtelhausen is president of WellSpark Health, a national wellbeing, disease prevention and management company that moves disparate, long-tenured employee populations along a path toward a more enduring well. https://ift.tt/2ytPsnD Around 250 independent contractor drivers for XPO Logistics in Southern California, serving mostly ports in the area, on Wednesday evening filed for an election to form a union in what the Teamsters are calling an "historic first" for "misclassified port and rail truck drivers." The drivers, in a statement, said they are pushing for "benefits including health insurance, paid sick leave, a guaranteed minimum wage and overtime pay." The move follows an October 2021 settlement in which XPO paid contractors $30 million but did not reclassify them as employees. “My fellow drivers and I are proud of the work we do every day to keep the supply chain moving and provide for our communities. Today, we’re proud to take the next step in forming a union to give us a voice on the job and fight for better pay and benefits,” XPO driver Domingo Avalos said in the Teamsters statement. “Our company, XPO Logistics, tries to silence us by ignoring our demand for a union and by keeping us misclassified as independent contractors. But when we win our union, we will force XPO to listen — because we know together our voice is more powerful than any big corporation.” XPO Logistics spokesman Joe Checkler said Wednesday that any contractor who wants to be an XPO employee can apply for full employment, but that the company would likely place them in LTL rather than drayage. Checkler said that of the company's 12,000-plus employees, only 200 or so had joined a union. "Many independent business owners who contract with XPO prefer the contractor work model, given the flexibility it provides to set their own schedule and choose their work," Checkler said. "They're able to grow their own business by hiring others and running multiple trucks and the freedom to offer their services to multiple companies. We believe we adhere to all federal, state and local laws, and we believe we properly classify all individuals and businesses that perform work on behalf of XPO. In addition, any independent contractor with a commercial driver’s license who wants to work for XPO as a full-time employee is welcome to apply for any number of truck driver openings offered by XPO. We currently employ approximately 12,000 full-time truck drivers and we're recruiting more." But Julie Gutman Dickinson, a lawyer representing the XPO port drivers, said that the NLRB did rule that the XPO drivers were employees as part of the case that resulted in the October 2021 settlement. "They are already employees, they don't have to apply," she said. "The bottom line is that these XPO drivers who haul goods at ports in Southern California are clearly employees who have been misclassified," she said. "The majority have clearly expressed their desire to unionize, which they're entitled under federal labor law." Gutman Dickinson continued that she had personally seen drivers get negative paychecks from XPO after a week of work. "These workers are deprived of a fair day’s pay for a fair day’s work," she said. "They deduct payment for truck leases, fuel, repairs, parking, their tablets, and administration fees. During the pandemic they didn't have sick leave or OSHA protections." Gutman Dickinson said that "as of mid-2021, approximately 80 out of 130 trucks in use at the Commerce facility were initially purchased by XPO. Then XPO moved to 'independent' leasing companies that are still closely aligned with XPO and essentially served the same purpose of giving XPO control without XPO officially purchasing the vehicles or directly leasing the vehicles to employees." She added that there has been more "open market" leasing recently with XPO, but credited that to an effort to continue classifying the drivers as contractors. https://ift.tt/2ytPsnD |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
April 2023
Categories |