During a recent congressional subcommittee hearing, Lewie Pugh, Executive Vice President of the Owner-Operator Independent Drivers Association (OOIDA), stressed the need for more stringent training requirements for new truck drivers.

“In trucking, it’s just a matter of passing a test and getting a CDL, and then you can go anywhere in this country,” Pugh explained to lawmakers. “You take a kid who’s 21 years old. He’s never been out of Florida, and, all of a sudden, he’s heading to the Rocky Mountains in January. We’re probably setting ourselves up for disaster.”

Current Training Standards Lack Depth

Before 2022, entry-level truck drivers weren’t required to meet any formal training standards. Although the introduction of a new rule that year was a step forward, it still falls short. Drivers are not mandated to complete a minimum number of behind-the-wheel training hours.

OOIDA believes that a competent, well-trained driver is the key to improved highway safety. The association has called on Congress to strengthen these training requirements in the upcoming highway bill by introducing a minimum of 30 hours of practical, behind-the-wheel training for new truck drivers.

“We need to make the entry-level driver training program much more aggressive with real hours and real time behind the wheel so that these people are trained and trained correctly to be professional,” Pugh stated. “Until we take the time to invest in our drivers and do all of these things, we are going to continue to lose people from this industry.”

Congressional Support for Safer Roads

Rep. Eleanor Holmes Norton, D-D.C., voiced her agreement with the need for intense training standards. She emphasized how the upcoming highway bill presents an opportunity for Congress to enhance safety across the trucking industry.

“I have long supported strong entry-level truck driver training standards to ensure that truckers are fully prepared to safely operate their vehicles and deliver their freight,” she said. “Providing robust training empowers drivers to be safe and confident on the road.”

Fostering Truck Driving as a Long-Term Career

Cole Scandaglia, transportation policy advisor at the International Brotherhood of Teamsters, noted how more substantial training standards could elevate truck driving from just a job to a respected career.

Congress has a responsibility to ensure that the industry provides adequate preparation for newcomers, said Scandaglia.

“[Congress must ensure] that when drivers enter the industry, they’re entering the industry in a way that is going to ensure that this is a career for them,” he explained. “Unfortunately, there are people who go to fly-by-night CDL schools, and they get their CDL in six weeks. They show up to work, and it turns out they can’t back into a dock. That’s a problem, and that person is not likely to stay in the industry.

“So, from Congress’s perspective, I think there are things that can be done in the training sense. Unfortunately, a piece of what we need here is a private-sector response. We need trucking companies to not look at employees as folks you just churn through the meat grinder and then replace them again when they quit.”

Investing in Training for a Safer Future

A consistent theme emerged throughout the hearing: adequate training for truck drivers isn’t just about meeting minimum standards; it’s about prioritizing safety, professionalism, and career sustainability. By addressing the gaps in current training programs and introducing more robust requirements, Congress and the trucking industry can make meaningful progress toward safer roads and a stronger workforce.

With stakeholder advocacy from organizations like OOIDA and the Teamsters, the push for improved driver training standards could transform trucking into a safer, more sustainable, and more respected profession.

Source: Land Line

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Despite successfully passing the Kentucky House with a 61-31 vote, the bill underwent a significant amendment. This modification introduced a crucial requirement stipulating the presence of a human operator inside any fully autonomous vehicle “for which the declared gross weight of the vehicle and any towed unit is more than 62,000 pounds” until July 31, 2026. The operator would be responsible for “monitoring the performance of the vehicle and intervening if necessary.”

This particular provision garnered opposition from various groups, including members of the Teamsters Union, police officers, firefighters, and others. In response to the amendment, these stakeholders collectively assembled at the state capitol in Frankfort on Thursday, urging Kentucky senators to vote against the bill.

The opposition group, composed of Teamsters union members, police officers, and firefighters, emphasized their concerns about the amended requirement for a human operator within fully autonomous vehicles. They argued that such a mandate could hinder the potential benefits and advancements associated with autonomous technology.

“We cannot let California’s Big Tech write laws for our state. Lawmakers need to pass legislation that’s by and for Kentucky residents,” said Fred Zuckerman, Teamsters general secretary-treasurer. “Senators need to preserve good union jobs, safe streets, and the will of the people by stopping this bill dead in its tracks.”

The gathering at the state capitol served as a unified effort to express dissent and encourage Kentucky senators to reject the bill in its current form. The ongoing debate reflects the complex intersection of technological innovation, regulatory considerations, and the broader societal implications of autonomous vehicle integration.

Source: Commercial Carrier Journal

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A rally in support of the bill took place outside the State Capitol in Sacramento, drawing Teamster leaders and lawmakers, including Assemblymembers Tom Lackey (R-Boron) and Laura Friedman (D-Glendale).

“As autonomous vehicle companies try to push their new, untested technology onto our roads, we need to prioritize legislation that will protect our streets and good-paying driving jobs, and that starts with AB 2286,” said Peter Finn, Teamsters International Western Region Vice President, President of Teamsters Joint Council 7.

This legislation mirrors last year’s AB 316, also co-authored by Aguiar-Curry, with the aim of enhancing safety and job opportunities. Despite receiving strong legislative support, surpassing 90%, Governor Gavin Newsom vetoed the bill in September.

Proponents of AB 2286 highlight notable accidents involving autonomous vehicles, such as a Cruise robotaxi causing incidents in San Francisco, emphasizing the need for improved regulations and safety measures.

Assemblymember Aguiar-Curry stresses the crucial role of the legislature in determining the safety of autonomous trucking and ensuring a concrete plan for the well-being of trucking workers.

“The autonomous trucking industry has cast this bill as a ban on technology when it explicitly states that testing and deployment will happen with a Human Safety Operator,” she said. “Using their logic, they’re the ones who support a ban. A ban on humans in trucks. A ban on working people’s ability to provide for their families and provide safe roadways for Californians. We will not stand by and let them put profits over people.”

Chris Griswold, Teamsters International vice president at-large and president of Teamsters Joint Council 42, clarifies that the bill does not intend to ban self-driving technology but rather seeks to establish comprehensive regulations.

“It is a bipartisan bill that puts safety first by ensuring a trained human operator behind the wheel of autonomous trucks,” he said.

Beyond California, discussions on regulating autonomous trucks persist across the United States. In South Dakota, the Teamsters and the South Dakota Peace Officers Association oppose House Bill 1095, which proposes allowing autonomous trucks on South Dakota roads without human operators. In Florida, Senator Victor Torres (D-Orlando) proposes SB 1580, requiring a licensed human operator in self-driving vehicles. In Indiana, Teamsters advocate for House Bill 1022 in the Road and Transportation Committee, emphasizing the need for human operators in driverless trucks. Similar deliberations are underway in Iowa, Kentucky, and New York, where lawmakers are exploring various issues related to regulating autonomous vehicle trucks.

Source: Commercial Carrier Journal

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According to the agreement, existing workers will see significant wage increases, with full-time employees earning an additional $2.75 per hour in 2023 and a total increase of $7.50 per hour over the course of the contract. Part-time workers will also receive a raise, with current employees immediately earning up to $21 per hour, and new hires starting at $21 per hour and advancing to $23 per hour. This is a significant improvement from the current average floor of $16 per hour for part-timers.

In addition to the wage increases, part-time workers will benefit from double the general wage increases compared to the previous contract, resulting in a 48% average total wage increase over the next five years. Part-time UPS Teamsters will also have priority for seasonal support work and will have a guaranteed eight-hour shift when using their personal vehicles.

Both the Teamsters and UPS have hailed the agreement as historic. The union has praised UPS for committing $30 billion of new money, while UPS CEO Carol B. Tomé believes the contract represents a “win-win-win agreement” that addresses the concerns of all stakeholders.

This tentative contract marks a significant milestone in the relationship between UPS and the Teamsters, ensuring stability, job growth, and improved wages for thousands of workers.

The contract will now be presented to the 340,000 union members for voting and is expected to be concluded by August 22nd.

One notable aspect of the contract is the inclusion of air conditioners in larger delivery vehicles purchased after January 1, 2024, addressing the issue of sweltering heat during deliveries. Additionally, drivers referred to as “22.4s” will be reclassified as Regular Package Car Drivers, putting an end to the unfair two-tier wage system. Another significant change is the introduction of Martin Luther King Jr. Day as a paid Teamsters holiday at UPS for the first time.

Analyst Bascome Majors suggests that UPS and the Teamsters could potentially negotiate 7-day-a-week service without reopening the entire contract; however, it should be noted that UPS does not operate on Sundays.

For the contract to be effective, the master agreement from last Tuesday’s negotiations, along with more than 40 local and regional supplemental agreements, must be ratified through majority votes. It is expected that the rank and file will approve the contract, given that the negotiating committee unanimously approved it with confidence.

UPS’s recent deal with labor unions has raised concerns about the company’s ability to achieve profitable growth in the face of labor cost inflation. While estimates suggest a 7%-8% increase in labor costs in the first year and 4% to 5% in the following years, it is uncertain whether productivity offsets will balance out these figures.

Experts, such as Gordon Glazer from Shipware LLC, believe that the contract heavily favors labor, making it harder for UPS to compete. Glazer emphasizes that simply raising rates won’t be enough for UPS to stay competitive, and the company will need to be strategic to ensure each deal contributes to its profitability.

Looking ahead, shippers are wondering what UPS’s annual general rate increase (GRI) will look like for 2024. Tommy Storch, a transportation procurement expert at Insight Sourcing Group, predicts at least an 8% increase in the GRI when considering fuel surcharges and accessorial fees. FedEx may follow a similar path.

In response to higher labor costs, UPS will focus on reducing its cost per package by taking on more volume. This strategy aims to offset the impact of increased labor expenses.

Source: FreightWaves

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How did Teamsters General President Sean O’Brien respond to this ultimatum? With a resolute message: Go ahead and shut down.

“It is not left for the Teamsters to save this company; we have given enough,” O’Brien said in a June 12 video statement. “What happens next is out of our control.”

Union leaders are often skeptical of companies claiming financial strain. However, O’Brien’s recent statement has shocked those in the trucking industry. Yellow Corp. could actually go bankrupt, resulting in the loss of numerous unionized trucking jobs. This is a company that has narrowly avoided bankruptcy on multiple occasions.

Furthermore, it is unlikely that another union trucking firm will step in to hire the 22,000 affected workers. The number of union jobs in the freight sector has significantly decreased over the years, making them increasingly scarce.

At first glance, it may seem puzzling why O’Brien would let the company shut down without attempting to save the Teamsters jobs. One would assume that any union job is better than none. However, labor experts argue that this decision is not surprising. It signals a shift in the mindset of union leaders like O’Brien and Shawn Fain. They now proudly embrace a more militant approach and refuse to tolerate subpar employment opportunities.

Overall, this shift in union leadership reflects a new era where rhetoric is strong and only jobs that meet the Teamsters’ standards will be accepted.

“There’s a generational shift that’s going on in labor,” said labor and employment lawyer Benjamin Dictor, who counts among his clients Teamsters Local 804, which represents UPS workers and others in the New York City area.

Dictor, emphasized that trucking fleets consider fuel prices as a fixed cost and that labor costs should also be seen as non-negotiable.

“These companies for generations have treated labor as the cost that they can extract their profit from when other costs are more rigid and higher,” Dictor said. “When those costs go up, they look to labor to come down, so that way they can satisfy their investors. One of the things that you’re hearing from Sean O’Brien is that that’s not the case. Some aspects of labor are a fixed cost. If you can’t afford gasoline, you better get the f— out of the trucking business. I think you hear Sean O’Brien saying that if you can’t afford the labor costs, you better get the f— out of the trucking business.”

This summer, it’s not just Yellow that’s clashing with the Teamsters. UPS, one of the largest freight companies in the world, is also engaged in intense negotiations with the union for a new five-year contract. With the current contract set to expire on July 31, UPS employees have even voted to strike if a new agreement can’t be reached.

One key factor that sets Yellow and UPS apart is their financial situations. UPS, with its massive financial resources, has more leverage to secure a favorable contract for its 340,000 employees. In the years 2021 and 2022 alone, UPS reported an impressive net income of $24.3 billion. In contrast, Yellow faced significant losses of around $87.3 million during the same period.

Michael Duff, an expert in labor law, believes that O’Brien would not adopt such a nonchalant attitude if it did not align with the will of the bargaining unit.

“There is a large sense among rank-and-file unionists that they’re simply not going to take it anymore,” Duff said, speaking generally about unionized labor. “Part of what’s going on here is you’ve got people like O’Brien, who are not willing to cooperate in the old way given the urgency of the moment.”

Yellow bankruptcy not set in stone, but more likely without union support

Yellow has overcome various financial challenges in the past 15 years, including a major one in 2009 when they successfully converted a significant amount of debt into company equity. This debt-for-equity swap was approved by the Securities and Exchange Commission and facilitated by the efforts of the Teamsters and lenders.

During the Great Recession, the Teamsters agreed to a 15% wage reduction and waived pension contributions for five years to help Yellow stay afloat. These wage concessions were later extended in the 2014 contract to ensure the company’s survival.

In 2019, Teamsters-represented employees at Yellow secured an 18% wage increase through their contract, a provision that remains in effect today.

The support of both the Teamsters and the federal government played a vital role in Yellow obtaining a $700 million loan from the U.S. Treasury in 2020. However, it seems that Yellow no longer enjoys the same level of support from these entities, which exposes the company to potential bankruptcy.

According to the Teamsters, Yellow has been benefiting from significant wage, pension, and work rule concessions since 2010. If the Teamsters approve the network changes, Yellow employees will receive a $1.77 hourly wage increase, as stated by a Yellow spokesperson.

Neither Jindel nor Chan expect the federal government to intervene and bail out Yellow, nor has the trucking company made any such request. Yellow did, however, reach out to the White House on June 30, urging President Joe Biden to bring the Teamsters to the negotiating table.

“O’Brien does have a point — the Yellow Teamsters have progressively and consistently given up a lot,” Chan said. “At a certain point, it does have to stop. But is a full blown shut down the answer? It’s probably not one that ultimately works out in the best interest of membership.”

Is an imperfect union job better than no union job? That’s the question that’s been on the minds of many in the trucking industry and Dictor suggests that it’s time to reconsider this question.

“It’s like if I told you that the only way that Yellow could stay in business is that they didn’t have brake pads,” Dictor said. “If they couldn’t have those things, should we give up all these trucking jobs simply because they couldn’t operate safely? We would say no, obviously, we need trucks on the road that are operating safely. It’s for our sake, it’s for everybody else’s sake; there are certain costs.

“If that’s what the brake pads cost, that’s what the brake pads cost,” he added. “And if you can’t afford the brake pad, you know, get the f— out of the industry. The same thing is true about labor. We have to stop thinking about labor like it’s something that there can be a compromise on. … If you can’t afford the labor at a cost that allows these human beings behind the wheel of these trucks to live lives where they get to appreciate their families and their life outside of work and be human beings, then get the f— out of the trucking business.”

Source: Yahoo Finance

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June 13’s announcement reveals that the company has agreed to install air conditioning systems, new heat shields, and additional fans on their trucks.

This deal means that all larger delivery vehicles, smaller sprinter vans, and UPS’s brown package cars bought after January 1, 2024, will be equipped with in-cab air conditioning systems, according to the union.

“Air conditioning is coming to UPS, and Teamster members in these vehicles will get the relief and protection they’ve been fighting for,” Teamsters General President Sean O’Brien said in a statement to Transport Topics. “The union’s entire national committee and our rank-and-filers should be commended for staying in this fight and making their priorities known to this company.”

The majority of UPS’s 93,000 vehicle fleet consists of familiar package delivery vehicles. In response to concerns over driver safety and comfort in extreme temperatures, the union has negotiated for the installation of two fans and exhaust heat shields in all package vehicle cabs. Additionally, new and retrofitted package cars will be equipped with air induction vents to improve conditions in cargo compartments.

This initiative comes after UPS’s CEO expressed a commitment to the issue of driver safety.

“We are aligned on several key issues, like solving the staffing needs for weekend deliveries and ways to mitigate the summer heat in our package delivery vehicles,” she said early in the contract negotiations. “While we expect to hear a great deal of noise during the negotiations, I remain confident that a win, win, win contract is very achievable and that UPS and the Teamsters will reach an agreement by the end of July.”

The Teamsters have emphasized the need for this contract to address the lower wage system that weekend drivers at UPS are subjected to. Negotiations between the union and management will resume on June 14 in Virginia, with a five-year agreement as the goal. The workers will not work without a finalized agreement, but there has been progress in recent weeks at the bargaining table.

“We are here to protect more than 340,000 UPS Teamsters and get the best contract in the history of our union with this company. Today’s progress was a significant step towards a stronger new reality for so many workers and their families,” said O’Brien.

The union has made progress in resolving over a dozen issues through subcommittee agreements and is currently developing fresh proposals to present to UPS at the national level. Additionally, union members will be revealing the outcome of a strike authorization vote requested by O’Brien soon. A positive vote will provide the team with more bargaining power. UPS anticipates a favorable outcome and reassures that a contract agreement will be reached before the July 31 deadline.

“This vote is a routine part of the bargaining process and does not mean that there will be a strike,” UPS said in an emailed statement.

The working conditions agreement between UPS and the drivers’ union isn’t the only development on the table. As of June 1st, both parties have also agreed to new contract language regarding a key issue. The union has confirmed that a tentative agreement has been reached to reduce the size of UPS SurePost packages that qualify for delivery by the U.S. Postal Service.

UPS defines SurePost as an economy service geared towards non-urgent, business-to-consumer shipments. According to the current contract, UPS handles the initial shipment pickup with USPS performing the final delivery, seven days a week. For a package to qualify as a SurePost item with USPS, it must fall within specified weight and size limits. Parcels that exceed these limits can be sent back into the UPS system and distributed by a union driver on a UPS truck.

“We’ve reached tentative agreement on the article, subject to ratification of the contract, to reduce the overall size of packages eligible for SurePost delivery, so more existing volume is going back onto Teamster trucks rather than coming off,” the union said in a statement.

Source: Transport Topics

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