P.M. Executive Briefing - May 2
This Afternoon's Headlines:
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Bill to Restrict Trucks to Right Lane Going Nowhere, Sponsor Says
Alabama state Rep. Tim Parker has conceded the failure of his bill to keep trucks on Interstate 59/20 from Birmingham to Tuscaloosa in the right lane, saying the legislative session will soon be over. He says that portion of the highway is the state's "most dangerous stretch of interstate," and that delays can cause road rage and poor behavior by all the drivers on the road.American Trucking Associations vice president of safety David Osiecki says such restrictions are being considered more and more even though the safety angle is not backed up with much research; study results have been mixed. The Virginia Trucking Association wants to keep trucks out of the left lanes of any interstate with at least six lanes, while the Alabama bill would keep trucks in the right lane of a road with four lanes.
Vehicle Makers Call for Sulfur-Free Fuels
The new version of the World-Wide Fuel Charter, which is backed by the Engine Manufacturers' Association and other manufacturing groups, is responding to new regulations and changes in technological requirements by urging that diesel and gasoline be made sulfur-free.Such countries as Sweden and Japan already offer some sulfur-free fuels, defined as fuels with no more than 5 to 10 parts per million of sulfur, and other countries are mulling tax incentives to support them. Increases in fuel efficiency and reduced emissions make worldwide consistency in fuel quality more vital.
The new revision of the charter can be found at www.lowsulfurfuel.com. TruckingInfo.com (05/02/00)
Crisis in the Shop
The shortage of diesel mechanics is affecting everybody in the industry, but fleets more than manufacturers and dealerships. Southeastern Freight Lines' Duke Drinkard says the problem rests more with the lack of experienced mechanics than with the overall mechanic shortage.In addition to competition for workers from other trades, utility firms, and vocational groups, he said, the shortage is caused by diesel mechanics having to work nights, as well as the better offers made by large companies like Ryder System and the higher pay offered by dealers. Other problems are aging mechanics leaving the industry faster than they can be replaced, technical schools abandoning diesel training, and the school system's tendency to push everyone toward college.
Drinkard said the problem may have to be offset by further equipment purchases. Outsourcing takes more time, and it does not offer any better quality of service, he said.
J. Jeb Manufacturing President Jack Sukala suggests representatives of fleets and dealerships recommend the benefits of a diesel program, which for many becomes a career ladder to an executive position, to their local school systems. Drinkard believes the next 10 to 15 years will bring such a shortage of qualified mechanics that it will lead to better conditions and much higher pay. Heavy Duty Trucking Online (04/00); Bendel, John
Logistics Talent Takes Flight
Traditional logistics-related companies are struggling to keep their talented employees as top-level workers are lured away by fledgling e-commerce companies and the tight labor market makes it tougher to find new workers. Some ways to keep good employees are treating them well, improving pay and benefits, opening the lines of communication to identify and solve problems, and offering educational and travel opportunities. Companies can also give promotions to present employees rather than bringing in new talent, and mentoring programs can help in this regard.When it is time to hire, colleagues should get together and talk about the specific requirements of a position, and the people who assisted in creating this list should also review incoming resumes. Human resources staff should be told how to find the right applicants, perhaps through trade magazines or specialty recruiting companies, and applicants should be evaluated based on work backgrounds instead of academic credentials only.
Before interviewing, a specific period of time for interviews should be scheduled, and resumes should be checked to determine what additional information about a candidate should be gathered.
During the interview, candidates should be given questions that demand lengthy responses, and they should be asked to give their own description of the job for which they are applying. The interview should also involve potential coworkers and direct supervisors, who can fill out evaluation forms; interviewers should be cautious about making snap decisions, and psychological testing is not always a good idea.
The chosen employee should be contacted quickly in writing, and starting bonuses are now being offered more often than not. Transportation & Distribution Online (05/00); Metz, Alex; Richardson, Helen
Leading the Way
In an interview, C.R. England CEO Dan England talks about raising driver pay and freight rates, combating the driver shortage, and other issues.After the company hiked pay significantly in August, the number of drivers surged and many trucks were seated, but those numbers are slipping, he says. While he says that large pay hikes are the best way to bring new drivers to the industry, other factors that need to be considered include job conditions, driver treatment, facilities, and equipment.
Trucking deregulation has caused freight rates to drop or stagnate, and consumers have benefited, while driver pay has dropped, England says, leading to a great amount of unseated trucks, and a high rate of inexperienced drivers. With operating ratios as tight as they are the only way to hike driver pay will be to raise freight rates, he says.
England adds that the upcoming changes to hours-of-service rules will reduce productivity, and he predicts that the industry will not be able to get regulators to give in as much as it would like. He says the growth of trucking companies as logistics providers may help make rates more reasonable, since those setting the prices will understand costs, while one of the things causing overcapacity is companies trying to grow at all costs.
Refrigerated carriers have the worst problems due to their higher expenses, he says, as well as driver issues that are especially thorny at reefer fleets; many drivers leave for dry-freight carriers, where drop-and-hook reduces costly delays.
He says his company has long hired truckers from Puerto Rico, as M.S. Carriers is now doing, although he is uncertain about the Truckload Carriers Association's proposal for training drivers at age 18, saying that may be too young. Heavy Duty Trucking Online (04/00); Whistler, Deborah
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