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City of Los Angeles Files Lawsuit on Port Trucking Company

Last week, the City of Los Angeles filed three lawsuits against some of the largest port trucking companies in the nation: CMI Transportation, K&R Transportation and California Cartage Transportation Express. All three companies are owned by a New Jersey logistics firm, NFI Industries. The lawsuits were filed after a scathing USA Today report on the abuse surrounding the industry. The litigation demands that the companies halt the systematic exploitation of their contract workers and seeks restitution of the money and property that the companies attained as a result of their practices. The companies also face civil penalties up to $2,500 for each infraction

The companies are accused of misclassifying hundreds of workers as independent contractors instead of employees, although the three companies exert almost complete control over the schedule of the drivers. They do this to avoid federal and state laws that require companies to pay employees minimum wage and offer benefits.

Trucks at the Los Angeles-Long Beach port complex. (Wally Skalij / Los Angeles Times)

This forces the drivers to absorb thousands of dollars in costs while taking home only pennies. In some cases, the drivers make nothing in pay and owe the company money at the end of the pay period. These law suits are the culmination of several long-running disputes between drivers and the trucking companies. Over 1,000 California port truckers have filed labor complaints in civil courts since 2008, and since then, the labor commissioner’s office has awarded over $46 million to port tuckers. Since the beginning of USA Today’s investigation, drivers for these companies have filed three more class-action lawsuits and established 23 more cases with the Labor Commission.

City Attorney Mike Feuer called their practices “disgraceful” and vowed to continue the city’s investigation into unfair labor practices in the ports. One councilman said that port trucking in California is the modern-day equivalent of the exploitative sharecropping industry in the late 1800s. Senators are calling it “brazen disregard.” As a result of the USA Today articles and the lawsuits filed by L.A., goods manufactures, shippers, and six major retailers so far, have launched internal audits of their supply chain. Two of those retailers have discontinued their partnerships with their trucking companies.

For more information, check out the USA Today editorial, or these articles:

http://labusinessjournal.com/news/2018/jan/08/city-attorney-files-lawsuits-against-local-truckin/

http://beta.latimes.com/business/la-fi-port-trucker-lawsuits-20180108-story.html

Written By: Shayla Powers

2017: A Year in Review

2017 has been a big year for the trucking industry, and included a lot of changes. The year started off with a presidential issuance of a regulatory freeze, which stifled a few minor regulations that were in the works under the previous administration. The order also placed the FMCSA’s speed limiter mandate on the back-burner, but did not rescind it outright, which means that they could possibly resume work on it at any time; however, that seems unlikely. We also saw an expansion of how the DOT conducts its on-site compliance reviews with the addition of carrier and employee interviews. The FMCSA also unveiled the Crash Preventability Demonstration Program and extensive ELD exemptions. In addition to new rules, they also withdrew a couple big ones that had been highly critiqued: the Safety Fitness rule and 34-hour restart regulation. Following Hurricane Harvey, the FMCSA temporarily lifted regulations in 26 states to allow truckers to deliver goods and fuel to affected areas. Then there was, of course, the ELD mandate, which has been highly debated since its announcement. In June, the U.S. Supreme court chose not to hear a case against the DOT in regard to the mandate, and upheld the compliance date of December 18^th.

The FMCSA very heavily pushed not only safety, but education as well. To help relieve some of the burden, and give the states more autonomy, they awarded over $70 million dollars in grants for states and educational facilities. These rulings along with the grants are an attempt to keep drivers and the public safe, and improve road conditions nation-wide. Keep in mind, most of the changes that were released or approved this year will not take effect until 2019, or even 2020.

Outside of the DOT, there were even more big changes. Swift and Knight, two giants in the industry, announced a merger that gave Swift shareholder 54% of the company and Knight shareholders the remaining 46%. Walmart instituted fees for both early and late deliveries. The EPA rolled back regulations on glider kit emissions. Tesla unveiled their new semi designs, which many think will revolutionize the industry. 2017 was a year filled with a lot of big changes, and I am sure 2018 will be much the same.

If you want more information about these topics, you can find some of them on our blog or the FMCSA’s website.

Have a happy New Year!

Written by: Shayla Powers

EPA Moves to Ease Emissions Regulations

Recently, the Environmental Protection Agency (EPA) revealed plans to roll back emissions rules that govern gliders (trucks that have been built out of both new and remanufactured parts). These vehicles cost about twenty-five percent less than a new semi, but they are often built with outdated equipment that does not meet EPA standards. The Greenhouse Gas Emissions (GHG) Phase 2 Rule was a product of lengthy negotiations between regulators, car manufacturers, and leaders in the trucking industry. The rule was meant to regulate greenhouse gas emissions from buses and diesel trucks. Because of the practice of equipping gliders with old parts to keep costs down, this rule would phase out the production of such vehicles.

This decision has split the trucking industry– the bigger companies like Mack and Volvo are strictly against the repealing of the rule, while smaller companies are all for it. Large vehicle manufacturers have spent the last decade or so developing new equipment and technology to control and limit truck emissions, and they do not want their investments undercut. Smaller companies, however, are in favor of tossing the rule so they do not have to buy brand new trucks. GHG, Phase 2 was created as a compromise for both bigger and smaller companies, but it appears that they are unwilling to do so.

The EPA estimated that around ten thousand glider kits were produced in 2016, whereas a little over two-hundred and fifty thousand new semis were sold. Perhaps the problem is not with smaller companies being edged out by the bigger manufacturers, but with the rule itself. Many smaller glider manufacturers believe that they are being targeted by the EPA. Others claim that the rule did not discriminate against gliders, but only makes sure that everyone is complying with the rules. Glider companies are able, for the most part, to rebuild semis and make sure that they are compliant with the new rule. They just do not seem to want to because of the higher cost. As the new rules stands now, gliders would not be subjected to regulation because they are not considered “new” vehicles.

Once the final rule is posted, proponents and opponents of the rule will have sixty days to legally challenge it. Meaning that environmental groups can petition to keep the rule, or glider companies could file a lawsuit if they are not exempt. Spokespeople on both sides have expressed their disappointment and almost guaranteed that there will be legal actions taken.

Written by: Shayla Powers

Reactions to ELD Ruling

DRIVER HESITANCY ABOUT ELDs

As we approach the second phase of the three-phase compliance time line, there has been increasing hesitancy and even full-blown refusal from those in the trucking industry. Some of the complaints are reasonable: they are worried about the high costs of the logging systems themselves, as well as the upkeep of the devices draining the resources of smaller companies and ultimately putting them out of business. The ELDs can cost anywhere from $160 to $500 and the upkeep depends on the system. If you want more information about those costs, check out this blog I wrote when the initial ruling was made. Some of the other fears, however, can easily be soothed.

The trucking industry is typically very slow to change, and most major compliance rules are met with a lot of initial push back. One concern that emerged following the ELD mandate that has snowballed within the last few weeks, is the security of the systems themselves in regard an outside person’s ability to hack into them. There are a number of people that are under the belief that because the ELDs are a computer system that monitors the activity of the engine and the brake system, that a hacker can take control of the system from outside of the vehicle. That is not quite true. ELDs, while they do operate on a computer system, do not automate the vehicle, and do not have the capability of doing so. They are completely safe to use. The FMCSA addressed this issue and many others on their FAQ page. There is no current requirement for the automation of truck-tractors, and it is unlikely that there will be any time soon. The nation, or really the world in general, cannot function without the trucking system as it currently stands, and human skills and reasoning in this area are not things that can easily be replaced by a machine. Truckers do not need to worry about ELDs subjecting them to harm or a violation of their safety. If you would like to learn more about ELDs and the FMCSA’s rule, visit their website, or check out our blog.

Written by: Shayla Powers

Tesla’s Effect on the Industry

Last week Tesla announced their redesigned heavy-duty, aerodynamic electric semi truck. While there are already some electric trucks on the road, Musk and his brand tend to be a big influence in the world of vehicles. The new design is sleek and more aerodynamic, with covered wheels and a bullet nose. These changes will allow for faster speeds and more efficient fuel use. The most surprising change, however, is the placement of the driver in the cab– right in the middle. Sitting in the center, rather than all the way to one side, gives the driver more visibility and ultimately more control over the vehicle. It also reduces the amount of space from side to side, decreasing the amount of drag for the wind, and increasing the speed of the vehicle. Musk said in his speech that they specifically designed the truck to resemble a bullet, and considering the infamous bullet trains, it was a smart move if speed was what they were aiming for.

The semis are Class 8 rated, meaning the gross weight of the vehicle is 80,000 pounds. It reaches sixty miles per hour in twenty seconds– that’s about 40 seconds quicker than a diesel. The trucks run on what Musk called megachargers, which are solar powered, and each unit will contain four motors. He did not disclose the capacity of the batteries, nor the horsepower. Fully loaded, the semi can travel around 500 miles at highway speeds. Musk said that the Tesla semis were intended for short-range, regional routes, like port-to-distribution transportation. They do, however, satisfy many of the freight requirements, since the average route is significantly lower than 500 miles. Around eighty percent of the goods transported in the United States moves less than 250 miles. However, he also claimed that a long-haul sleeper cab is being developed.

The design and the driver placement make sense, economically, but will the slow-changing trucking industry accept these changes, or will there be push back? With the capability of much higher speeds, the issue of safety will surely come up, but Musk says safety won’t be an issue. The vehicles are equipped with the top-of-the-line safety and driver assistance systems, to the extent that they will be able to be fully autonomous when, or if, that is made legal. There is no doubt that Tesla and this new design will make a significant impact on the trucking industry, it has all the potential to be revolutionary. The question is, how long will that change take?

For more info, visit:

https://www.tesla.com/semi/

https://www.trucks.com/2017/11/20/trucking-industry-tesla-truck-disruption/

https://www.trucks.com/2017/11/17/elon-musk-unveils-tesla-electric-semi-truck/

Musk’s presentation:

https://youtu.be/nONx_dgr55I

Written by: Shayla Powers

The Problem of Port Trucking

In a recent investigation, USA Today found that port truckers on the eastern coast have been forced to work under inexcusable conditions. There is a growing, consumer-driven interest in the way that our products are made; whether it be a preference for humane manufacturing, American made, Eco-friendly, etc., most Americans care deeply about the products that they buy. But there is almost no attention to the way that they are transported, even amid an escalating problem with the transportation industry. Drivers work longer hours for less pay, and while there is legislation and rules in place to prevent such exploitation, companies are particularly good at evading them. Port drivers are often trapped into abusive labor contracts and lease-to-own agreements without knowing what they are agreeing to beforehand, whether it be from language barriers or threat of job termination.

The USA Today article stated that the Los Angeles and Long Beach ports in southern California account for 37% of container traffic into the United States and drivers at these two ports are subject to some of the worst conditions. The drivers are overworked and underpaid, and have little to no leverage to improve their situation– the article likened their plight to modern indentured servitude. The lease-to-own contracts leave them in debt and their low wage insures that they are unable to leave the position, even if they wanted to. Due to the high amounts of debt, fees, and fines, many drivers end up losing their rigs anyway.

Trucking companies find any and every loophole available to avoid treating their drivers like human beings. Under the Fair Labor Standards Act, the government regulates a minimum wage ($7.25) and maximum number of hours per week (40) for employees, but these trucking companies do not classify their drivers as employees, but independent contractors, which allows them to overwork and underpay them. On the rare chance that legal action is taken against them, companies have been known to shut down and reopen under a new name in order to sidestep paying back wages. Additionally, longshoremen unions are jacking up worker’s wages, which drives up consumer prices. All of these problems fall onto the backs of truck drivers, and while there have been some remedies proposed in Congress, we have seen little progress. It is questionable whether or not governmental pressure would even alleviate these problems, since trucking companies have evaded intervention in the past.

The USA Today investigation into this issue makes a persuasive case for a reform in the trucking industry, particularly on the eastern coast. Consumer interest in the products that they buy should not end with manufacturing, and retailers concerned with image should be more vocal as well.

For more information:

https://www.usatoday.com/story/opinion/2017/06/20/rigged-system-rips-off-port-truckers-editorials-debates/103015290/

https://www.usatoday.com/story/opinion/2017/11/05/protect-port-truckers-exploitation-editorials-debates/811562001/

Written by: Shayla Powers

CDL Regulations Waived for C.R. England

The FMCSA is renewing an exemption for one of the largest refrigerated fleets in the United States, C.R. England. The exemption is for a federal rule requiring a CDL holder to be in the front seat of a truck with a student driver at all times. With the rule exemption, commercial learner’s permit holders that have passed the CDL skills test will be allowed to operate in a team with a licensed driver. There still has to be a CDL holder in the truck, just not necessarily in the front seat, which C. R. England says will allow them to operate more efficiently until they get back to their home state and the permit holder can obtain their CDL card. The exemption was first granted to the company in June of 2015, and ran through June of this year. This renewal will last until June 2022.

C.R. England stated in their renewal application that 3,046 drivers had utilized the exemption since it was granted, and their data showed better safety outcomes than non-exempt drivers. The FMCSA reported 11 accidents involving drivers using the exemption, none of which resulted in a fatality. England said that changes to the CDL issuance rules make it more difficult for drivers to physically get to their home state to receive their actual CDL card. They said that while the intentions of the FMCSA were good (reducing fraud), they did not grant states the power to issue temporary CDLs in order to allow drivers to return to their home state with the legal paperwork. The FMCSA has granted similar exemptions to other companies recently, and allowed the public to give their input before they allowed the renewals. The majority of comments against the exemption stated that the permit holders were too inexperienced and were safer with a CDL holder in the front seat. The FMCSA rebutted, saying that drivers that have passed the CDL skills test would already have their license had they been in their home state and therefore have the necessary skills to drive legally.

For more information about the exemption, checkout www.overdriveonline.com or www.truckersnews.com.

Written By: Shayla Powers

FMCSA Awards More That $70 Million in Grants

At the end of last month, the FMCSA announced that it has awarded over $70 million in grants for both states and educational institutions. These grants are another attempt to increase highway and motor vehicle safety. Of the funds $41.5 million is reserved for High Priority grants meant to enhance commercial motor vehicle safety efforts and advance technological capabilities at the state level.

The other significant portion of the grants is going toward Commercial Driver’s License Program Implementation. The FMCSA has awarded $30.7 million to the states to achieve compliance with regulations and license standards and programs. The CDLPI grant program also provides financial assistance to entities capable of executing national projects that aid states in compliance programs. The goal of these programs is to reduce the number of severity of commercial vehicle crashes by requiring states to conduct knowledge and skill testing before issuing a CDL. It will also require states to maintain an accurate and complete history record for each driver that obtains a CDL and impose disqualifications against any driver that violates certain offenses. This is directly linked to the Crash Preventability Demonstration Program that the FMCSA announced earlier this year.

The final allocation is set to be given to nine educational institutions that provide commercial and bus driving training. These institutions include public and private colleges, vocational schools, truck driver training schools, state and local governments, and recognized Native American tribal governments. Also included in the nine grants for educational institutions are provisions for training U.S. Veterans:

Primary funding priority is given to regional or multi-State educational or not-for-profit associations that recruit and train current and former members of the United States Armed Forces (including National Guard members and Reservists) and their spouses to receive training to transition to the CMV operation industry.

This grant program was established in 2005 as a safety-improvement measure and was amended in 2015 to included the provisions of the FAST act.

For more information on the details of the grants and their recipients, visit:

https://www.fmcsa.dot.gov/mission/grants

https://www.fmcsa.dot.gov/newsroom/fmcsa-awards-more-70-million-grants-enhance-commercial-motor-vehicle-safety

Written by: Shayla Powers

Driver Shortages and Pay Gap

In the United States, the average age of truck drivers is 52, a number that increases every year, and efforts to recruit and retain younger employees have been largely unsuccessful. Some think that the shortage in younger drivers is due to a industry-wide bad image and reputation, and other think that it has to do with a combination of long hours and low pay. However, an increasing majority thinks it’s both. Low fuel prices, a steady economy, and consumer demand for online products has skyrocketed the demand for industry, but the wages are not worth the long hours away from home like they used to be. The younger generation is also passing up the trucking industry for jobs that are less physically demanding and less regulated.

Although the millennial generation has overtaken the baby boomers as the largest group in the workforce, the number of 25- 34 year-olds in the trucking industry has dropped by 50 percent. Issuance of CDLs is up by 10 percent in 38 states, but the retention rate is less than half, with a third leaving in the first 90 days. Licensing fees add up, tickets can be fatal, and for most, the pay just isn’t worth the money that they need to shell out before they can even operate.

This labor shortage is no new complication– the industry has essentially been short of drivers since the 80s, when deregulation caused a jump in the number of trucking companies and therefore the need for drivers. It doesn’t seem likely that this shortage will end anytime soon, either. The American Trucking Association estimates that the industry will need around 890,000 new drivers by 2025 to meet the rising demand for online goods. Along with lower pay, drivers feel an increasing disconnect with their companies, stating that they feel like “throwaways,” although the shortage of drivers suggest otherwise. So while the solution seems simple (i.e. higher pay) there’s more to the issue than what meets the eye.

Written By: Shayla Powers

For more info, visit:

www.trucks.com

fleetowner.com

www.truckinginfo.com

Crash Preventability Demonstration Program

The FMCSA has unveiled yet another plan to help improve highway and road safety: the Crash Preventability Demonstration Program. This program is designed to assess the preventability of the most common types of motor carrier involved crashes, and is expected to run a minimum of two years, starting August 1, 2017. If you were involved in a crash on or after June 1st and would like to report it, go to https://dataqs.fmcsa.dot.gov.

The program allows motor carriers and drivers to submit Requests for Data Review through a FMCSA system; the data will then be looked over and the crash will be determined either Preventable, Not Preventable, or Undecided. Their preliminary decisions will be posted on the DataQ system and will make enforcers, as well as carriers, aware of the evaluations so that they can provide further documentation if available. For crashes found Not Preventable, the notice will provide the crash report number, DOT number, carrier name, date of the crash, the state the crash occurred in, and the crash type (i.e. infrastructure failure, being struck by a motorist/another carrier, etc.). However, before they issue their final decision, the general public can provide input in cases labeled Not Preventable, which provides insight from people that experience these problems first-hand. The final determinations will be located on the Safety Measurement System (SMS).

The FMCSA will use the data obtained from this program, along with others, to improve the agency’s ability to identify risks imposed by motor carriers and institute measurements to help combat truck-trailer involved accidents in the future, as well as examine the costs and benefits of further testing. These crash ratings will not retroactively pardon carriers for violations, nor will they impact other systems within the FMCSA. They will be used to reduce the frequency of accidents in the future. The list of eligible crashes can be found here, and a step-by-step video on how to submit a request is available here.

Written by: Shayla Powers