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The Roemer Report On-Line, Aug 2001

WAGES FLAT BUT DRIVERS STAY PUT: For the third quarter in a row, driver wages showed little movement, according to a recent study. The National Survey of Driver Wages found that few carriers are increasing wages and, for the first time in the survey's history, some drivers are even taking home less pay. The survey found that dry van fleets raised wages 1.8 percent and refrigerated fleets raised them 1.9 percent. Flatbed carriers, however, reported a drop in driver wages. This happened, according to survey editor David Goodson, because of the increase in the amount drivers pay for health insurance. There were no other changes to the flatbed segment to offset this dip in earnings. According to Goodson, a slowing economy and an increase in trucking company failures have eased driver shortages in every segment of the industry. "The driver environment today is 180 degrees different than it was last year," said the senior vice president of one carrier. "We're not even considering a driver pay increase at this time. With unemployment rising and people not growing their fleets, I don't know anyone whose trucks aren't full." Goodson reports that most fleets are able to attract drivers without raising wages. In addition, more drivers working at sound companies are opting to stay there rather than risk working at a company that could go under, according to Goodson.

HAND-HELD CELL PHONES BANNED FOR NEW YORK DRIVERS: New York has become the first state to prohibit drivers from using hand-held cell phones. The only instances when drivers can use cell phones are when they use phones that can be operated in a hands-free manner, when they pull over to make or take calls, or when an emergency requires them to contact public safety or rescue personnel. The law, which goes into effect November 1, has been lauded by many highway safety advocates, including New York policymaker Felix Ortiz, who declared, "This is a great moment for the people of New York." Trucking interests are not so sure, however. Many feel lawmakers should focus on other factors that cause driver distraction, and that the new law won't have much impact on safety anyway. Trucking is also concerned about the far-reaching ramifications of the new law. Ortiz, for instance, says he wants to work to ban all cell phone use on the road. Other states have watched New York's example closely. Currently, 40 other states are considering implementing a similar ban on cell phone use, and at least a dozen localities have imposed such bans. Those in favor of the ban point to a 1997 study finding that hand-held phones pose as much risk as drunk driving. But opponents back up their position with a study too: Of the 15 percent of drivers who crashed because of a distraction, only 1.5 percent said the distraction was a cell phone. Meanwhile, 91 percent of over-the-road truckers say they use cell phones, primarily to communicate with customers or dispatchers, according to a recent survey. When traveling through New York, those drivers now will have to use hands-free equipment or face a fine of up to $100.

GETTING RATES YOU DESERVE: What's the biggest frustration carriers have with shippers? Their refusal to pay a fair rate, according to a recent survey. With competition at every corner, carriers often offer discounted rates to lure customers. But as soon as another carrier comes along promising even cheaper rates, the shipper is ready to jump board unless the carrier can further cut rates. Some carriers, however, have figured out how to get a fair price and raise rates when necessary. To negotiate a fair deal, they first must understand their costs. One Michigan carrier, for example, calculates weekly profit-and-loss statements for each tractor in the fleet. The chief operating officer spends about two hours a week entering costs in a customized spreadsheet program. By understanding the fleet's financial picture, he can easily identify where he's losing money. Shippers are far more likely to respond favorably to rate increases when the carrier can explain precisely what the increase is for. It's easier to point to problem lanes and explain why a rate increase is needed there, for example, than it is to ask for an across-the-board rate increase. Some carriers handle fluctuations in market prices by stipulating in their contracts that rates will be raised according to the inflation rate recorded in the Consumer Price Index. Still, many shippers won't be impressed with a request for increased rates unless they have a good working relationship with the carrier. Shippers who view their carrier as a partner, rather than a replaceable commodity, are much more willing to accept rate increases. That's why it's important to form a solid partnership with shippers. Listen to complaints about your service and about the shipper's business in general and work to come up with solutions.

NEW RULES FOR DRUG AND ALCOHOL TESTING: Starting this month, the Department of Transportation's (DOT's) new requirements for drug and alcohol testing take effect. According to DOT, the new rules are easier to comply with and will make the transportation industry safer. In general, the trucking industry is pleased with the changes. "The process has been improved and strengthened," says Mike Russell of the American Trucking Associations. "It has been made clearer and standardized to a degree that means fewer errors." Among other items, the new Part 40 regulations cover the return-to-duty process. Under the new rules, drivers who fail a drug and alcohol test must receive some type of education or treatment before they begin performing safety-sensitive functions again. Also, drivers must undergo mandatory follow-up testing. Before the Part 40 regulations took effect, education or treatment was optional, and testing could be forgone if education/treatment was not prescribed. For more detailed information on the Part 40 regulations, visit the DOT web site or go to Transportation Equipment News Online at www.vulcanpub.com/ten/article.asp?article_id=58979.

TOO YOUNG TO DRIVE? Should drivers under the age of 21 be allowed to obtain a Commercial Driver's License (CDL)? The pros and cons of putting younger drivers in charge of big rigs is the subject of much debate today. Currently, individuals must be 21 years old to obtain a CDL. However, with an estimated shortage of 80,000 truck drivers, some organizations believe allowing individuals under age 21 to obtain a CDL would help alleviate the driver deficit tremendously. In particular, the Truckload Carrier's Association (TCA) has proposed a special pilot driver training program for 18- to 20-year-olds. The drivers would be required to complete at least 22 weeks of truck driver training school, as well as 8 weeks of a motor carrier's "driver finishing" program. After completing this training, the drivers would team up with an older, more experienced driver for 18 weeks. Opponents of this program say there are too many safety concerns with younger drivers. The Advocates for Highway and Auto Safety say studies of young commercial motor vehicle drivers indicate safety would be seriously compromised. The group points to a study by the University of Michigan, which finds that "large truck fatal crash involvement rates predictably and steadily increase with decreasing driver age." If the minimum age for obtaining a CDL were lowered to age 19, 19- and 20-year-old drivers would have up to three times as many fatal crashes as all other truck drivers. The TCA said those safety concerns are exactly the reason they proposed such an extensive training program for young drivers.

MORE HEALTH RISKS FOR TRUCKERS: First came a study showing that U.S. truckers had a significantly lower life expectancy (61 years old) than the average U.S. male (75 years old). Then came news that truckers who smoke inhale even more toxins than the average smoker by breathing in their own second-hand smoke in the cab. Now, Dr. Robert McBane of the Mayo Clinic warns that long-haul truck drivers may be especially prone to developing blood clots in their legs, a potentially fatal condition. Dubbed "economy class syndrome" because of its occurrence among airline passengers seated during long flights, the condition occurs when a blood clot in the legs breaks loose and lodges in the lung's arteries, blocking blood flow to the lungs and reducing the amount of oxygen in the blood. While some sufferers experience shortness of breath, sharp chest pains, or dizziness, others have no symptoms, making the pulmonary embolism hard to detect. The Mayo Clinic cites these risk factors for developing blood clots in the legs: cramped conditions while traveling; trauma to the legs from an accident; obesity; advanced age; long trips; and eating large amounts of food before a trip. The clinic urges drivers who think they may have a blood clot to get tested immediately. A variety of treatments are available. Meanwhile, a separate study by the makers of Excedrin surveyed professionals to determine who was most likely to develop headaches. The top professions? Forty-nine percent of accountants reported suffering from on-the-job headaches. Next were librarians (43 percent), followed by truck and bus drivers (42 percent).

TAKING THE FALL: How serious can a fall from a short distance be? A lot more serious than many employers realize. While we often think of falls from great heights as those that cause serious or fatal injuries, falls from heights of less than 20 feet can be equally dangerous. According to a study by the National Traumatic Occupational Fatalities surveillance system, over 97 percent of fatal falls occurred among males. In addition, the study indicated that older workers are more likely to suffer a fatal fall. Fall fatality rates increase most noticeably among workers aged 55 to 64, and even more dramatically for workers over age 65. Fatal falls are also more likely among workers who have been working for their current employer for less than 12 months. Over half of the fatal falls studied occurred in the construction industry, followed by the manufacturing, service, and transportation industries.

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