P.M. Executive Summary - Jan. 19
This Afternoon's Headlines:
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Harbor Drivers Independent, Panel Says
Ruling on a class-action lawsuit brought on behalf of hundreds of Los Angeles port truckers, a private three-judge panel decided that the drivers are independent contractors and not employees.The suit claimed that Intermodal Container Service, Interstate Consolidation, and Cartage Service evaded paying state benefits by improperly putting the drivers in the category of outside contractors. Also alleged was that the companies charged the truckers too much for insurance.
Fred Kumetz, the attorney who filed the suit on the truckers' behalf, pointed to conflicting Workers' Compensation Appeals Board and National Labor Relations Board rulings and said "a published opinion from the Court of Appeals or the California Supreme Court" is needed to clarify the law. He will likely appeal.
Although the companies' lawyer said the ruling will probably chill efforts to unionize drayage drivers, Teamsters organizer Ed Burk said he would continue to meet with drivers at ports around the country. Los Angeles Times (01/19/00) P. 2C; Cleeland, Nancy
Caterpillar Is Found to Have Defrauded Ex-Partner Over Clean-Fuel Technology
Arbitrator Edward J. Costello ruled that Caterpillar defrauded onetime joint-venture partner A-55 Inc. by patenting and attempting to market A-55's clean-diesel technology. Costello wrote that Caterpillar "misappropriated" nitrogen oxide-cutting technology from A-55 "under the guise" of a joint venture.Caterpillar received six patents, with 12 pending, in recent years, and A-55 claims that Caterpillar applied for some of the patents while the joint venture with A-55 was still going on. A spokeswoman for Caterpillar expressed disappointment, saying the company "upheld the terms of the joint venture and at all times acted in good faith."
Costello also decided that a joint venture Caterpillar entered into with Lubrizol in August was pursuing technology A-55 owns. He said Caterpillar should give A-55 its patent files, not sell or use the technology in the future, and account for its profits from the technology.
The joint venture between Caterpillar and A-55, dubbed Alternative Fuels, concerned aqueous fuel technology. The joint venture with Lubrizol is backing the PuriNox fuel blend, intended to cut nitrogen oxide and particulate emissions, and aimed at truck fleets in places like California that will come under tough pollution restrictions.
The arbitrator's decision makes it unclear how Caterpillar will meet the tougher diesel emissions standards coming in 2002. Caterpillar or A-55 could challenge Costello's ruling, although they agreed to arbitration "to the extent possible" at first and gave up some appeal rights, Costello wrote. Wall Street Journal (01/19/00) P. A3; Pasztor, Andy; Tatge, Mark
Drivers Say It's the Little Things that Make Them Stay With A Carrier
At the annual California Trucking Association meeting last week, three truckers – one Teamster, one nonunion, and one owner-operator – suggested ways for employers to keep drivers on board. Some things contribute to driver displeasure even more than low wages, benefits, and home time, they indicated.Margaret Peterson of the Teamsters-organized Roadway Express said the attitude and behavior of dispatchers is very important, since the dispatcher is the driver's main link to the company. She also said chief executives should make it easy for workers to come to them with grievances, and that the CEOs should also show good attitudes about their companies and their drivers.
John Morris of nonunion Viking Freight said companies should help employees with career growth, as Viking did when it trained him to move from a dock position to the driver's seat and on to a driver-training job.
Owner-operator Fred Case, a driver for RPS Package Delivery Systems, said companies should provide owner-operators with group purchase plans to help them save on fuel and maintenance. He also said RPS gets around the problem of long-distance drivers having little family time by allowing drivers from two different places to meet halfway and trade loads, then go back to their starting locations.
But he had little advice for the problem of drayage truckers stuck with long lines and low wages, calling that "a completely different ball game." Journal of Commerce (01/19/00) P. 20; Mongelluzzo, Bill
Cop Training Session a Drug-Seizure Lesson
Illinois State Police Master Sgt. Jeff Gaither and eight officers went to a truck stop in Bolingbrook Jan. 11 to survey the stop for a drug-seizure training exercise and ended up finding $14 million worth of marijuana in a truck.Gaither, who was described by police Capt. Kevin Shaughnessy as one of the top U.S. authorities on drug seizure, found the drugs in the truck after he first noticed a missing mudflap and an evasive driver. Authorities gained the driver's cooperation and watched the truck for a week as it continued on its way to a Chicago warehouse, where ten people, including the driver, were arrested. All were charged with conspiracy to possess and intent to distribute marijuana.
The training exercise that Gaither was scheduled to head Jan. 12 was part of a seminar sponsored by the state police, U.S. Transportation Department, and Customs Service. Also involved in the exercise and bust were the Drug Enforcement Administration, the Metropolitan Area Narcotics Squad, and the Will County Cooperative Police Assistance Team. Chicago Tribune (01/19/00) P. 1, Metro Southwest Section; Donato, Marla
Feinstein Pushes for Southern Crossing
A southern San Francisco Bay crossing, intended to alleviate growing Bay Area traffic congestion, was backed by U.S. Sen. Dianne Feinstein (D-Calif.) in a letter sent to California Gov. Gray Davis.After Feinstein met with the mayors of San Francisco and Oakland, who wanted her to join them in opposing the planned new eastern Bay Bridge span, she decided what was needed was an alternative crossing in addition to a safe retrofit of the Bay Bridge's eastern span. The eastern span was damaged in the Loma Prieta earthquake. A safe Bay Bridge ought to be the top priority, she said Wednesday. The governor's press secretary said a rebuilt Bay Bridge was a short-term requirement, after which other ideas can be explored.
The Sierra Club opposed the idea of the southern crossing, as it has before, saying it would just add traffic to Highways 101 and 280. The Metropolitan Transportation Commission's Steve Heminger was cautiously supportive of the southern crossing. But he said the tough opposition to replacing the Bay Bridge span, as well as the high projected cost of a southern crossing, will make it tough to get a southern crossing built.
Although a proposed southern road or rail crossing of the bay went down to opposition a decade ago, the earthquake damage, exploding Silicon Valley job growth, and increasing traffic congestion since then could change the outlook now. San Francisco Chronicle (01/19/00) P. A1; Matier, Phillip; Ross, Andrew
Old Dominion Freight Line Inc.
Old Dominion Freight Line said it expects to beat analysts' poll estimate of 32 cents a share for the fourth quarter, coming in at an anticipated 38 cents to 40 cents per diluted share. Chairman and CEO Earl Congdon anticipated revenue to grow between 10% and 15% in 2000, with higher growth in earnings. Wall Street Journal (01/19/00) P. C18© copyright 2000 INFORMATION, INC. Terms of Service