A.M. Executive Briefing - Feb. 16
This Morning's Headlines:
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Trucker: Own Boss or Direct Employee?
A new issue may be emerging among harbor truck drivers who are currently the target of a national organizing effort from the Teamsters.Attorneys for the drivers have been examining their contracts with trucking companies and have found that many drivers, particularly those on the East Coast, have exclusivity clauses that prevent them from doing business with other companies. Under such an agreement, courts and the National Labor Relations Board may view drivers as direct employees of trucking companies rather than independent contractors, attorneys now believe.
Unions may attempt to organize employees, but when workers are considered to be independent contractors, antitrust concerns generally prohibit any union involvement. Journal of Commerce Online (02/16/00); Mongelluzzo, Bill
Money Can't Solve Everything; Thinking That the Labor Problem Can Be Solved Only by Throwing More Money at People Is Flawed
The motor carrier industry is like many industries today in that it is facing a shortage of qualified workers. Annual turnover rates for trucking companies is now at 200%. And like most other companies, trucking companies may be tempted to offer huge raises during the largest economic expanison in history.While it appears large salaries are the way to lure needed workers, experts now believe that there are other things that potential employees want as they seek to have a more balanced, fulfilling lifestyle. For example, new research by Ray Moody & Associates asked today's workers to rank what they want from their jobs. While more money was more important to managers, higher salaries ranked fifth behind "softer" factors for workers themselves.
Such research shows that companies may not have to spend more money in order to make the work experience of their employees more enjoyable. Modern Materials Handling (02/29/00) P. 120; Mac Donald, Mitch
STB Wants Shipper Involvement in Rate Classification
Trucking firms are being pushed by the Surface Transportation Board to include shippers' input in deciding the rate categories that cover their shipments. The National Classification Committee has up to now resisted STB's prodding to open its procedures to greater shipping participation. Journal of Commerce Online (02/16/00); Kaufman, LawrenceNavistar Picks up Speed
Navistar reported a 15% increase in earnings yesterday, easing concerns about the company's performance. Solid sales gains caused the increase, thanks to an order backlog for new heavy trucks. Investors reacted to the news positively, as shares in Navistar rose $0.50 to $36.00. (02/16/00) Financial Times; P. 22Partnering: The New Buzzword
Partnerships between trucking-related companies were a topic of discussion at the Heavy Duty Dialogue 2000 in Atlanta, where several company presidents and CEOs offered their advice.Schneider National CEO Don Schneider said that successful partnerships are long term with clearly understood objectives, while Caterpillar Vice President Daniel Murphy said partnerships can improve financial performance, provide technology leadership, and enhance customer satisfaction.
In addition, Jerry Erlich, chairman and CEO of the top U.S. trailer manufacturer Wabash National, said partnerships can allow pricing based on costs, a single supply source, and lower sales and administrative costs.
A group of experts at the conference suggested that undercapitalization of independent distributors has necessitated consolidation in the aftermarket distribution system, but suppliers and original equipment manufacturers did not agree with that assessment. TruckingInfo.com (02/15/00); Condra, Doug
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