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The Roemer Report On-Line, June, 2004

TRUCK-ONLY LANES GAIN SUPPORT: If major highways had toll lanes strictly for trucks, a whole host of benefits would be likely, according to a report by the Reason Foundation. Here are a few: (1) Increased safety . Four-wheelers are responsible for 75 percent of accidents each year. If trucks ran in lanes separated by concrete jersey barriers, they would no longer have to worry about passenger vehicles that dart in and around trucks or stop suddenly in front of them. (2) Reduced shipping costs . Since higher-capacity longer combination vehicles would be acceptable on truck-only lanes, shipping costs would be reduced and efficiency would be increased. (3) Fewer bottlenecks . Truck-only lanes could dramatically reduce bottlenecks on interstates, according to the Reason Foundation. (4) Reduced emissions . Using multiple trailers would require less fuel, thereby reducing emissions. The idea of truck-only toll lanes has gained support from the National Safety Council, the American Trucking Associations, and American Road & Transportation Builders Association. Candidates for the toll lanes include I-90 between Cleveland and the state of New York; certain stretches of I-80, including the area from Chicago through Iowa; and I-75 from Toledo to Detroit. A Congressional committee is reviewing options to determine whether to launch a test program.

NEW RULE FOR REVIEWING DRIVER RECORDS: New legislation requires motor carriers to review safety records of drivers before hiring them. The new rule also requires past employers to make safety records available. “Carriers must be able to obtain the information they need to hire and place the safest possible drivers behind the wheel,” said Annette M. Sandberg, administrator of the Federal Motor Carrier Safety Administration (FMCSA). “Truck and bus drivers are among this country's safest drivers, and we want to do everything possible to keep it that way.” The rule requires past employers to respond within 30 days to questions by prospective employers, providing information about any accidents, alcohol and drug violations, and rehabilitation efforts . Prospective employers must advise driver applicants that they have the right to review their safety records from past employers and that they can request corrections or refute information in their records. The FMCSA says that penalties may apply to motor carriers not complying with the new rule. The purpose of the new legislation, said the FMCSA, is to help employers better assess the potential safety risks of prospective drivers.

FUEL COSTS WIPE OUT PROFITS: With the economy picking up steam, some analysts predict trucking rates will go up 8 to 10 percent this year. But that doesn't mean fleets will be making money again. High diesel fuel prices could wipe out any profits. Diesel fuel prices are averaging about 20 cents per gallon higher than this time last year. Next to labor, fuel costs are a fleet's highest operating expense, typically accounting for 10 to 20 percent of expenses. Only a fraction of fuel costs can be recovered in surcharges, since surcharges do not cover empty or out-of-route miles. “While most carriers are adjusting to persistently high diesel fuel costs, any rapid spike in prices is particularly detrimental to earnings,” says Rick Todd, president of the South Carolina Trucking Association. “And as households see their purchasing power chipped away by rising gasoline costs for their passenger vehicles, our industry is seeing the possibility for less goods hauling demand, which is bad for the economy and particularly bad for truckers.” Truckload carriers could lose up to 5 percent of expected earnings this year because of skyrocketing fuel prices, according to trucking analysts. Energy Secretary Spencer Abraham said fuel prices were likely to rise even higher because of growing worldwide demand for fuel.

IT'S TRUCK SAFETY MONTH: For the second consecutive year, the Owner-Operator Independent Drivers Association (OOIDA) has designated June as “Truck Safety Month.” The association is urging drivers to maintain strict compliance to all trucking regulations for the month. “Through this strategy of compliance we believe, with the support of truckers like you, we can affect meaningful change to freight rates, the existing regulations and, maybe most importantly, attitudes and the growing culture of non-compliance,” stated OOIDA's web site. OOIDA hopes to achieve these results with Truck Safety Month: (1) Reveal the true impact of the hours-of-service (HOS) regulations . OOIDA believes that strict HOS compliance would actually slow the movement of commerce, thereby drawing attention to the need for more practical regulations. (2) Reveal the amount of time spent waiting for freight to be loaded and unloaded . “If this time is recorded in strict compliance with the regulations, the burden will no longer be born exclusively by drivers,” says OODIA. Instead, it will be shared by the industry as a whole. (3) Show that truckers can take a stand and unite . “The effects of this demonstrated unity have far-reaching implications in addressing industry problems with lawmakers,” OOIDA says.

SMART CARD ID DEVELOPED: A number of Florida groups are joining forces to create a prototype “smart card” ID, which can be used at all of the state's 14 deep-water ports and will eventually be used by truckers across the country. The ID, which would be issued within 72 hours of applying for it, would contain a trucker's embedded fingerprints and a chip that could be activated for each port . The ID card would be issued only after conducting a thorough background check, which would include sending information such as Social Security number, date of birth, and any criminal background to the FBI. In turn, the FBI would provide relevant information to local officials who would then create and activate the card, unless the driver had committed certain felonies. In 2000, the Sunshine State passed legislation requiring anyone who wanted access to Florida port areas to have an ID card and background check. But when 9/11 happened, said a spokesman of the Florida Trucking Association, the background check “took on new meaning.” The Transportation Security Administration hopes to establish a nationwide card based on the Florida prototype. The card, which would last five years, is expected to cost around $125.

HONESTY IS THE BEST POLICY: Dishonest employees add up to some serious problems in the workplace, particularly when it comes to monetary losses. According to the U.S. Department of Commerce, American businesses lose $50 billion each year due to employee dishonesty . And because 75 percent of these crimes go undetected, businesses simply have no way of recovering stolen assets. The Department of Commerce also reports that in 2000, insurers paid $550 million in claims related to dishonest employees. Handling employee dishonesty can be tricky. In some cases, management is simply reluctant to deal with the issue or denies that it exists. In addition, many businesses in the United States have become complacent about the amount of “shrinkage” or loss of goods. Dishonest employees take advantage of that complacency and work within the system. When managers uncover a loss, they should inform their insurer that they have a situation that might be covered under their employee honesty policy. The burden of proof is on the employer, so management should be prepared to submit a detailed proof of loss regarding the who, what, when, where, and how of the situation. Management should also be careful when making accusations against employees, because a false accusation can result in an expensive lawsuit and judgment against the business.

A LITTLE RESPECT, PLEASE : Companies that practice the golden rule in employee relations are earning a little more respect themselves. While many organizations question the value of focusing on “soft issues” like trust and fairness, employees say these issues really matter to them . In one study, 56 percent of employees said their employers didn't show concern for them and 45 percent said their employers failed to treat them fairly. As a result, in part, only 24 percent of the employees surveyed said they were “truly loyal” to the companies they worked for. Those less-than-loyal employees create real expenses for today's organizations. Replacing an employee eats up about one and a half times his annual salary. Those companies that pay attention to “soft issues” do see a payoff. According to a Watson Wyatt Worldwide study, companies that have highly committed employees have much higher shareholder returns. What exactly do employees expect from employers? Basically, respect, trust, fairness, care, and concern. In fact, according to the Wyatt study, trust in leaders is one of the most powerful factors in retaining committed employees.

Big shots are little shots who kept trying. —Christopher Morley, writer and editor