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The Roemer Report On-Line, October , 2004
AN OPTIMISTIC OUTLOOK: Despite the economic hardships currently facing the trucking industry, some industry insiders paint a rosy picture of the future. At last month’s Great American Trucking Show in Dallas, a Schneider spokesman said, “We’re pretty bullish about how the economy will turn out. We’ve put so much time, energy, and money on growing the fleet [that] we anticipate the freight to be there for all the drivers we’re adding.” Another executive noted that freight has been at “record levels” and predicted the upcoming holiday season to be a real challenge. While some observers have contended that smaller fleets and owner-operators are being forced out of business, Schneider’s Mike Norder predicts that more owner-operators will enter trucking as carriers increase pay. Also optimistic was Mark Lampert of Freightliner Trucks, noting that sales of Class 8 trucks is “extremely strong right now.” Lampert expects sales to be even stronger next year and to peak in 2006, when Freightliner will likely reach its “top manufacturing level.”
IN A HOLDING PATTERN: Motor carriers are eagerly awaiting a court decision on whether the current hours-of-service rules will remain in effect until the government can enact revised HOS regulations. In mid-July a court ruling knocked down new HOS rules that took effect in January. If the court grants a stay, the new rules would remain in effect for the time being. A judicial stay appears to be popular with both carriers and shippers. Supporters say it would offer some clarity to a confusing situation. The Federal Motor Carrier Safety Administration (FMCSA) has yet to estimate how long new rules would take to develop and implement. Meanwhile, some carriers say they are in a holding pattern as they wait to see what happens. The president of one motor carrier said he was determined to make sure that any productivity losses would be passed on to the shipper, not the company or drivers. “Whatever the cost ends up being, we’re not having the drivers bear the brunt of that, and nor will we,” he said. “Ultimately, you and I pay for it in the stores—that’s what it all boils down to.” Whether the court decides to keep the existing HOS rules for the time being or return to the old rules, one thing’s for sure: the FMCSA will go back to the drawing board to try to come up with new rules that last longer than seven months.
SAFER BRAKES ON THE WAY: This summer, the driver of a water-filled tanker truck swerved and turned quickly at speeds of 35 mph without ever touching the brakes. Was there a lunatic behind the wheel? No, just a bunch of engineers testing a new type of brake system. The new anti-lock brake system passed the test. The system’s sensors detected the danger before the driver did, and applied the brakes accordingly. This new advancement in brakes comes at a time when the federal government is encouraging the development of better truck brakes to reduce roadway accidents. At least two companies are working to develop computerized, anti-lock brake systems, but no price announcements have yet been made. The director of maintenance at one motor carrier said, “I can safely say that we’re going to have some type of system like this on the next line of trucks we order.” The investment may well be worthwhile, since one rollover can cost a company thousands of dollars in insurance and other expenses. What makes these brake systems unique is that a computer ultimately controls the brakes. Strategically placed sensors determine if a truck is in danger of jackknifing or rolling over. The system applies the brakes to individual wheels on the truck or trailer, even if the driver continues to accelerate. Too often, say safety experts, drivers don’t know the wheels leave the ground until it’s too late.
RAILROADERS AND TRUCKERS BURY THE HATCHET: “We Love Truckers” day, recently sponsored by the Burlington Northern Santa Fe Railway, would have shocked those in transportation just a few years ago, but now the former rival industries say that working together is good for both businesses. More and more long-haul freight—especially retail products that sell in stores like Target and Wal-Mart—requires two trips. The first trip is a long one by rail to intermodal terminals, where trucks then pick them up for the second, shorter leg of the trip to warehouses and stores. Shorter hauls require less fuel for trucks, yet still provide shippers with the door-to-door service that they want. One trucker noted another advantage: “I did cross-country hauling for years, and I can tell you that’s hard on marriage and family life. This way, I do all my hauling locally, in and out of the terminal here, and I can be home every night.” Trucking companies want to keep their drivers happy, and considering the driver shortage, the combined trips make sense. Rail can haul freight for long distances more cheaply than trucks (although not as quickly). With only a two-person crew, a 100-car train with double-stacked containers can move the freight equivalent of more than 200 trucks. Currently, there is plenty of freight to keep both industries hustling. Large, new Chinese ships typically can handle 2,400 or more containers of Asian imports—that’s enough to fill 12 100-car trains.
A TREACHEROUS ROAD: U.S. 395, a scenic two-lane road that runs through California’s Mojave Desert, is also one of the state’s deadliest roads. Since 1992, the first year the state began keeping records, 2,000 crashes have occurred on the road, resulting in 1,500 injuries and 150 deaths. Like a roller coaster, the road sharply zigzags uphill and then plunges downhill over blind dips. Some stretches have little or no shoulder. U.S. 395 is not the most dangerous road in the country, nor is it even the most dangerous in California. But the two-lane road is perhaps representative of many rural routes across the country: It was built years ago as a link between small towns. Now, however, those small towns are bursting with development. While the population around the road has exploded, the road itself has seen no significant improvements since it was built. In fact, more than twice as many vehicles use the road today as they did 20 years ago, and the state is having a hard time coming up with the funds to make it safer. Highway safety advocates say that two-lane roads have eight times the accident rates of interstates. Certainly, human error can be a factor in accidents along roads like U.S. 395, but, say experts, if these roads were wider or had more of a shoulder, the consequences of human errors might not be so severe. “The basic premise is that if you make a mistake, you shouldn’t have to pay with your life,” says one highway safety advocate. However, with so many roads needing repair and with highway construction and repair costs having risen 24.5 percent since 1992, it may be some time before U.S. roads get the attention they so desperately need.
FIGHTING SEXUAL HARASSMENT: The newly formed Women’s Trucking Association (WTA) is promoting a petition for a government study on sexual harassment within the trucking industry, according to Kicka Pocan, WTA president. “Companies do keep statistics on female drivers who are sexually harassed and/or assaulted,” said Pocan. Men are also assaulted, she said, but since they are more reluctant to report it, fewer records are kept on male victims. Pocan said she believes most company statistics are “kept hidden for liability reasons and merely for the sake of the company’s reputation. No company wants to be seen as one that ignores sexual assault or harassment.” There are many steps companies can take to prevent sexual harassment, including: (1) Establish a sexual harassment/discrimination policy that communicates “zero tolerance” and have an attorney review it. Be sure every employee signs the policy, indicating they have read it. (2) Make it easy for employees to file complaints, and be sure to document them. (3) Conduct sexual harassment prevention training, even if it consists of only reading material or watching a video. (4) Conduct yearly meetings with supervisors to review sexual harassment policy. (5) Conduct annual, anonymous surveys among employees. Surveys will tell a court that your company is actively engaged in preventing and correcting sexual harassment. (6) Conduct and document investigations promptly and thoroughly, and follow up to ensure no one suffers retaliation. In 1998, the Supreme Court ruled that employers are liable for incidents of sexual harassment at the workplace, even when they are unaware of them. To view WTA’s petition, go to www.thepetitionsite.com/takeaction.
TIPS FOR OFFERING PRAISE: One study found that of 65 potential incentives in the workplace, the most effective, according to employees, was a manager who personally congratulated an employee on a job well done. So how exactly should a manager go about offering congratulations? Here are some tips: (1) Make it timely. Offer praise immediately after you spot the desired behavior. This creates the strongest association between behavior and reward. Waiting too long can actually have a negative effect. If you congratulate a person two weeks after the fact, your message is this: “Your achievement slipped my mind (i.e. it wasn’t important)” or “I am out of touch with your department.” Late praise can come across as an insult. (2) Be sincere. Praise only works when it’s sincere. If you just go through the motions, your words of praise will ring hollow. On the other hand, don’t worry if you feel awkward offering praise. If you are sincere, employees will see this and appreciate your words all the more. (3) Make it personal. When you take a break from your busy schedule to offer words of praise or hand write a note, you are underscoring the importance of the employee’s achievement. Your effort will not be lost on the employee! (4) Stay positive. If you say, “That report looked great, but you sure need to work on your spelling,” do you think the employee will interpret that as praise? All he’ll hear is that he’s a lousy speller. (5) Don’t be stingy. Offer praise whenever it is merited, not just during performance reviews.