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A CHAT WITH THE CHAIRMAN
CHAT, FROM PAGE 26
navigate the nuances of the local laws or local contracts and create
leverage on the motor carrier. The tow company then demands an
inflated fee before they release the equipment or the cargo. A growing
number of cases don’t even involve an accident! More and more
situations involve a tow company seizing vehicles without cause and
then racking up gigantic storage charges. Minimal efforts to contact
the motor carrier are made, and then the motor carrier is left to pay an
outrageous fee or forfeit the equipment. It’s theft. The key for motor
carriers is to actively manage every accident, overcommunicate, and
document everything you do. Waiting for a tow company to send
you a bill is a recipe for disaster. Motor carriers also need to leverage
GPS technology to monitor their fleets and keep storage charges
on vehicle seizures from racking up. The problem is that even if
a motor carrier does all the right things, they still have exposure.
Something needs to change here. This is a
complicated issue that does not appear to
have a simple solution.
u In November, identical bills
were introduced in the U.S. House
and Senate calling for guaranteed
overtime pay for commercial drivers.
The author of the Senate bill told
Truckload Authority that one goal of
the legislation is to compensate drivers
for excessive wait/detention time.
Most drivers are paid on a cents-permile
basis, and detention time has
long been an issue for drivers and
carriers. Can motor carriers legally
be held responsible for delays caused
by shippers and receivers?
“I believe I can safely
speak on behalf of the grand
majority of TCA members
and state that no one
wants to see professional
truck drivers be paid more
appropriately than the motor
carriers that the drivers
work for. Our drivers work
hard; they are the lifeblood
of the supply chain.”
This is a potentially touchy issue, and
a classic case of “gotcha!” in politics. Who
would possibly argue against drivers being
paid more, right? I believe I can safely speak
on behalf of the grand majority of TCA members and state that no
one wants to see professional truck drivers be paid more appropriately
than the motor carriers that the drivers work for. Our drivers work
hard; they are the lifeblood of the supply chain. But just because we
want something doesn’t automatically make it happen. There are
checks and balances throughout the free-market system that require
carriers to make tough decisions on how much they can pay in some
areas of the business and still have enough left over to pay the bills.
The truckload industry is extremely competitive, and sometimes not
very rational. Our deep economic cycles reward and punish carriers
on a regular basis. One significant miscalculation can put a multigenerational
business at risk.
On top of that, this is an industry that has largely been
commoditized. The supply chain rarely accepts higher freight rates
that are not tied to supply and demand imbalances. Raising rates
in order to offset higher driver compensation or any other cost,
simply as a result of an increase in that cost, has proven to be a
difficult thing to do consistently in this industry.
The proposed overtime bill would force additional costs on the carrier,
and hope the carrier finds a way to pass on those costs to the
shipper. The problem is that in a market cycle like the one we are in
right now, the motor carrier would likely be expected to absorb that
cost, which would likely force the carrier to manage its drivers’ time
and not allow them to work past 40 hours (a week). This then becomes
a case of “good intentions with unintended consequences.” Currently,
our drivers have the freedom within the hours-of-service rules to work
harder when they can and rest when they need to. Managing drivers in
a 40-hour week would, in my opinion, not yield the result the authors
of this bill are looking for. It could potentially cause the opposite result.
As for detention, this is a problem that has existed for decades. The
question becomes this: Do we solve the issue through the market, or
do we try to have the government solve the problem? As for the market,
we seem to only make progress when the cycle swings toward the
motor carriers. But as soon as the market
turns towards the shipper, we seem to lose
much of that progress. This is a common
theme on many fronts that has plagued the
truckload industry for many decades.
As for a government solution, there is
always a risk of “over-engineering.” The
“keep it simple” approach would be my
preference. Perhaps setting a universal
standard around acceptable detention periods,
with the shipper/receiver compensating
for any time above that (i.e. any time
greater than one or two hours of waiting)
would be appropriate. Government intervention
beyond something simple like that
leaves the possibility of more unintended
consequences. I firmly believe the market
should solve the majority of its own problems.
We just have not been able to make
lasting progress on this one.
u Speaking of issues regarding
driver pay, in your experience, what
factors other than the amount of a paycheck can impact the
relationship between a driver and motor carrier?
Pay is rightfully one of the most important factors that
drivers consider when they choose who to work for. You cannot
underestimate the impact of pay. At the same time, we have seen
that drivers will often change jobs for an issue unrelated to pay.
What makes this difficult is that each driver values the elements of
a relationship in different ways. Some place a higher value on time
at home, some really want to be respected, others place a high
value on the “family feel” they get within a company — and the
list goes on. I believe most drivers want to be part of something;
they want to make a difference. They want a reason to get up in the
morning, and they want to contribute in a meaningful way. They
want to develop relationships that enrich their lives and grow into
friendships. Pay is important, but there is more to it. The human
side of the relationship goes well beyond dollars and cents. Finding
the right balance of tangible pay and intangible benefits is both an
art and a science. We will need to keep working on it until we get
it right!
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28 Truckload Authority | www.Truckload.org TCA JANUARY/FEBRUARY 2024