P.M. Executive Briefing - Mar. 15
This Afternoon's Headlines:
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ILA, Teamsters Pledge Cooperation to Improve Worker Condition
The Teamsters union and International Longshoremen's Association agreed last week to cooperate for better working conditions for port truckers and dock employees.The ILA, whose members work on the East Coast and Gulf Coast, will back the Teamsters' drayage owner-operator unionization activities, while the Teamsters will not allow port employers to pit the two unions against each other during negotiations. The Teamsters want a similar deal with the West Coast labor group, the International Longshore and Warehouse Union. Journal of Commerce Online (03/15/00)
Bill Allows Longer Truck Combinations on Maine Roads
The Maine Senate on Tuesday gave preliminary approval to a bill that would allow up to four feet more than the current 70-foot maximum vehicle length in the state, so as to give space for newer sleeper compartments. According to an official at the Maine Transportation Department, the bill would improve safety by improving driver rest conditions, making up for safety issues posed by increased trailer length. Associated Press (03/15/00)VW Has Liquidity for an Acquisition 'Any Time' - Division Chairman
Asked about the possibility of Volkswagen mulling an acquisition of Scania, Bernd Wiedemann, chairman of VW's commercial-vehicle division, said the division has sufficient liquidity to make a purchase at any time. Scania is "an interesting business case" because the investment capital would earn its interest, he said. Acquisitions would have to be considered by the parent firm, not only the commercial-vehicle division, he said. AFX European Focus (03/15/00)Sweet Bait
Carriers are tempting owner-operators with higher bonuses, added fuel pay, orientation pay, and other fees and reimbursements in order to combat the increasing driver shortage. They are also being less demanding of performance bonds or escrow payments. However, certain incentives, such as referral and sign-on bonuses, can be more of a turnoff to drivers because they are usually paid in installments and can make the driver wonder what problems the company has that it is trying to mitigate with the bonuses.Some of the most important factors for owner-operators are guaranteed miles, home time, and the attitude of the management. Sitton Motor Lines has managed to reduce its owner-operator turnover to 62% by adding owner-operators to the payroll and leasing their trucks. "The owner of the truck determines the pay scale for the driver ... if the owner wants to pay himself 22 cents a mile, off the scale he gets 55 cents a mile for the truck," company President Dick Sitton said.
With wages expected to keep increasing, and with the glut of very good deals being offered to owner operators, Chris Kane, head of the recruiting firm Team Leader, said carriers need to communicate the details of their compensation packages to drivers in a better way. Overdrive Online (03/00); Heine, Max
CTA Board to Vote on UPS Express Bus
United Parcel Service would pay close to $500 a day to the Chicago Transit Authority in a proposed deal in which four express buses would run each day between an elevated-train stop in the city and Hodgkins, Ill., a suburb where a UPS processing site is located. The arrangement, if approved by CTA, could lead to further partnerships with private employers to subsidize transportation from the inner city to suburbs. Crain's Chicago Business (03/06/00) Vol. 23, No. 10; P. 1© copyright 2000 INFORMATION, INC. Terms of Service
