Vol. 05, No. 16 | April 19, 2005
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Regulatory Roundup
Real World Recruitment and Retention Basics
Member Spotlight
Stateside
Truckload Happenings
Commerce Committee Approves Senate Version of Highway Bill
On April 14, the U.S. Senate Committee on Commerce, Science and Transportation approved by unanimous consent the "Surface Transportation Safety Improvement Act of 2005," offered by Surface Transportation and Merchant Marine Subcommittee Chairman Trent Lott (R-MS) and Full Committee Co-Chairman Senator Daniel Inouye (D-HI). This legislation includes the following titles:
- Title I: Motor Carrier Safety;
- Title II: Highway and Vehicular Safety;
- Title III: Hazardous Materials Transportation Safety;
- Title IV: Household Goods; and
- Title V: Sportfishing and Recreational Boating Safety.
This Senate version of the bill reauthorizes the truck safety programs administered by the Federal Motor Carrier Safety Administration (FMCSA) and more than doubles the amount of safety funding available to the states through the Motor Carrier Safety Assistance Program (MCSAP) to around $200 million. Furthermore, the bill also provides improvements to the CDL program and establishes a medical review board to recommend standards for the physical examinations of CMV drivers and a registry of qualified medical examiners. The bill will also require Mexican and Canadian CMV drivers transporting hazardous materials (HM) in the U.S. to undergo a background check similar to that given to a driver in the States.
On March 10 of this year, the House version of the six-year $284 billion highway bill - H.R. 3 - "The Transportation Equity Act: A Legacy For Users" (TEA-LU) - was overwhelmingly approved by a vote of 417-9. After the Senate ratifies its own version of the Highway Bill, both Senate and House Committees will negotiate the final legislation. Congress is still looking to reauthorize the Highway Bill before the current one expires on May 31, 2005. Senator Lott said he hopes the Congress will finalize a conference report on the legislation by the end of May. Lott became chairman of the Surface Transportation Subcommittee at the beginning of the 109th Congress, and this bill is the first major legislation to be reported out of that jurisdiction this year.
TCA will keep you posted on this important issue as further developments warrant, and for any further questions or comments, please contact Rich Clemente at (703) 838-8847 or by email: rclemente@truckload.org.
Final Rule on Applicability of the Hazardous Materials Regulations to Loading, Unloading and Storage
The Pipeline and Hazardous Materials Safety Administration (PHMSA), formerly the Research and Special Programs Administration (RSPA) issued a final rule in the April 15, 2005 Federal Register which clarifies the applicability of the hazardous materials regulations (HMR) to functions and activities related to the safe and secure transportation of HM commerce, including loading, unloading, and storage operations. The effective date of this rule is June 1, 2005, which has been delayed a couple of times prior as the agency has had to address a number of appeals submitted by persons affected by the original final rule (issued on 10/30/03). In the April 15 final rule, the PHMSA amends certain regulations and makes some editorial corrections as well. The final rule amends HMR to incorporate the following new definitions and provisions in §171.8 of the HMR:
- "Pre-transportation function" means a function performed by any person that is required to assure the safe transportation of a HM in commerce;
- "Transportation" is defined to mean the movement of property and loading, unloading, or storage incidental to the movement;
- "Movement" is defined to mean the physical transfer of a HM from one geographic location to another by rail car, aircraft, motor vehicle or vessel;
- "Loading incidental to movement" means the loading by carrier personnel or in the presence of carrier personnel of packaged or containerized HM onto a transport vehicle, aircraft, or vessel for the purpose of transporting it;
- "Unloading incidental to movement" means the removal of a packaged or containerized HM from a transport vehicle, aircraft, or vessel or the emptying of a HM from a bulk packaging after a HM has been delivered to a consignee and prior to the delivering carrier's departure from the consignee facility or premises; and
- "Storage incidental to movement" means storage by any person of a transport vehicle, freight container, or package containing a HM between the time that a carrier takes physical possession of the HM for the purpose of transporting it until the package containing the HM is physically delivered to the destination indicated on a shipping document.
In addition, the agency amended §171.1 of the HMR to list regulated and non-regulated functions. Regulated functions include:
- activities related to the design, manufacture, and qualification of packagings represented as qualified for use in the transportation of HM;
- pre-transportation functions; and
- transportation functions (movement of a HM and loading, unloading, and storage incidental to the movement).
Non-regulated functions include:
- rail and motor vehicle movements of a HM solely within a contiguous facility where public access is restricted;
- transportation of a HM in a transport vehicle or conveyance operated by a Federal, state, or local government employee solely for government purposes;
- transportation of a HM by an individual for non-commercial purposes in a private motor vehicle; and
- any matter subject to U.S. postal laws and regulations.
They also amended §171.1 of HMR to indicate that facilities at which functions are performed in accordance with the HMR may be subject to applicable standards and regulations of other Federal agencies or to applicable state or local government laws and regulations (except to the extent that such non-Federal requirements may be preempted under Federal hazmat law).
A copy of the April 15 Federal Register notice can be downloaded by clicking here for an HTML and *clicking here for a PDF. If you have any questions or comments, please contact Rich Clemente at (703) 838-8847 or email: rclemente@truckload.org.
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TCA Attends DOT Regulatory Review Public Meeting
TCA staff attended the Department of Transportation (DOT), Office of the Secretary's (OST's) April 12 regulatory review meeting of its current regulatory agenda. The DOT had published a notice of this regulatory review in the January 26, 2005 Federal Register, and invited public comment on how the agency could:
- improve their rules to be more effective and less costly or burdensome;
- identify rules no longer needed and/or new rules that may be needed, and
- help prioritize their current rulemaking activities as set forth in their semi-annual regulatory agenda (published on December 13, 2004).
The April 12 public meeting agenda was broken up into a number of individual topics, most notably as it relates to the trucking industry were the following breakout sessions:
- hours of service (HOS);
- controlled substances testing requirements;
- commercial motor vehicle (CMV) lighting requirements;
- safety requirements for intermodal equipment providers; and
- dangerous goods/hazardous materials (HM) and safety.
The DOT has stated that they will consider all comments made at the public meeting and those written comments submitted to the docket before publishing a report providing at least a brief response to the comments received, including a description of any further action they intend to take. The comment period for the regulatory review closes on April 29, 2005, and the comments filed to this docket, include those from the April 12 public meeting can be accessed at http://dms.dot.gov -- Docket Number is OST-2005-20112.
Please call or email Rich Clemente at (703) 838-8847 or rclemente@truckload.org if you would like to discuss this meeting further.
Formal Driver Surveys - An Important First Step in Reducing Driver Turnover
Highland Transport is a truckload and container carrier based in Markham, Ontario with a fleet of both owner operators and company owned equipment of approximately 750 units. Highland Transport is an ISO 9001:2000 registered carrier and recently used their quality system to help reduce driver turnover. At the start of this initiative their annual turnover rate was averaging 108%, they have since reduced it to 51% through their ongoing improvement efforts. Prior to this initiative, they conducted a formal driver survey to measure driver satisfaction. Following this survey, and in conjunction with updating their quality system, they set up and trained an improvement team tasked with reducing driver turnover.
This is the first of a two-part article that describes the importance of conducting a formal driver survey as an initial step to reducing turnover (Part 1), and then using quality management principles to act on the results of the survey to improve driver turnover (Part 2).
Part 1: Formal Driver Surveys - An Important First Step in Reducing Driver Turnover
As part of addressing high driver turnover, more carriers are recognizing they need to make substantial changes in their business, such as revising their recruiting and hiring strategy or making adjustments to their overall business model. However, one dilemma associated with this is what changes to make and what effect these changes will actually have on driver turnover. A beneficial first step in addressing this issue involves conducting a formal driver survey to accurately assess the current situation and driver satisfaction levels. Some key benefits of conducting a formal driver survey, as a first step to improvement, are listed below.
Key Benefits of a Driver Survey
- Enables you to be proactive in reducing turnover levels
- Helps you reduce turnover more quickly by effectively diagnosing the root causes of turnover
- Gives you an accurate measure of driver satisfaction as a baseline for improvement
- Gives you more confidence in what actions to take to reduce turnover
- Gives drivers an opportunity to give feedback on how to improve their work environment
The results of a driver survey, if conducted properly, can give carriers a head start on substantially improving driver turnover levels. Some key aspects of a driver survey worth mentioning further includes the proactive approach a survey offers, the enhanced reliability of data using surveys, and the usefulness of the survey as a tool for monitoring ongoing performance.
Offers a Proactive Approach
In addition to recruiting new drivers to replace drivers that have left, also look at what issues have contributed to drivers leaving your employment. Doing so enables you to be proactive in searching out and acting on the reasons drivers are leaving, and thus reduces your dependence on the need to recruit new drivers.
Driver surveys place more emphasis on measuring driver satisfaction - a key indicator and contributor of driver turnover. By understanding driver satisfaction and the causes associated with driver satisfaction, carriers have tangible things to work on that can affect driver turnover.
Generates More Reliable Data on Driver Issues
In an attempt to understand how to address driver turnover, carriers typically collect driver information through exit interviews. While this is certainly one area to collect information, especially for monitoring patterns, or specific driver-related issues, it is generally limited in its usefulness for a couple reasons; firstly, most drivers are not forthcoming on why they quit, and secondly, exit surveys only represent the pool of drivers that are leaving which may only represent a fraction of your driving force.
A formal driver survey would generate more reliable results as to why drivers are leaving which gives managers more confidence in taking a next step. Also, formal surveys, best conducted by a third party, provides more credibility in the survey and generates a greater willingness by drivers to share their input on how the organization can improve.
Provides an Ongoing Measure of Your Performance
Measuring your driver turnover rate is one way to assess how well your process is performing. However, the driver turnover rate is an after-the-fact measure of how the process is performing. It is also important to collect information in-process, and at different stages of a driver's employment with the company to get a real sense of how the process is performing.
Driver surveys are an excellent mechanism for collecting in-process information on how well drivers' needs are being met. A well crafted survey can get at questions relating to drivers' needs and issues at different points in the driver's employment cycle as well as different areas of the business drivers need to interact with. Surveys also provide a baseline of how the process is performing which can be repeated as often as necessary to assess the impact of changes made to the business. Given that many drivers have access to the Internet, it is not a costly venture to continually survey drivers on a monthly or quarterly basis by sampling from the overall pool of drivers.
Some Tips on Conducting a Formal Driver Survey
Here are some tips to consider in conducting a formal driver survey.
- Customize the survey to your company. A survey is only as useful as the objective it is trying to achieve. Customizing the survey to your individual company's objectives and needs gives you valuable information to react to.
- Use outside resources. Most carriers don't have formal Human Resource departments to set up, conduct, collect and analyze the survey and ensure statistically valid results. Even if they do, using outside resources lends credibility to the survey as well as confidentiality. It also helps minimize any bias from having one individual or department conduct the survey.
- Keep the survey simple and easy to complete. The easier it is for a driver to complete a survey, the higher your response rate. Keep the questions well formatted and organized, professional looking, and easy to fill out. Also consider various methods of collecting survey information, such as a mail-in survey with a self-addressed envelop or a drop box, by fax, by email, by telephone or possibly by person-to-person interviews.
- Include questions relating to different areas and levels of the business. Questions relating to different areas of the business helps you uncover gaps or issues relating to driver turnover. Consider asking questions on drivers' interaction with departments and people they deal with such as dispatch, payroll, and maintenance.
- Act on the results of the survey. If you don't act on the results of the survey, then this may be worse than not having conducted the survey in the first place by creating expectations in the mind of drivers and then not fulfilling them. As a minimum, acknowledge that you received feedback from drivers, and share what initial areas you plan to consider further.
- Include open-ended questions. While you may raise many of the issues important to drivers in the survey, give drivers an opportunity to share other concerns that may not have been covered in the survey using open-ended questions like, 'What other issues are important to you?'. Also give drivers an opportunity to elaborate further on issues they are dissatisfied with.
- Get feedback from drivers on the content of the questionnaire. Testing the survey with some initial drivers is also helpful in fine-tuning your questions. You may also consider having drivers participate in the development of the survey from the start.
- Consider incentives for completing the survey. Incentives can substantially improve survey response rates. Consider offering incentives that enable drivers to maintain their anonymity and that don't generate bias in the results.
- Keep the survey anonymous and confidential. Enable drivers to give responses without the fear of exposing their concerns or issues to others by keeping the results anonymous and confidential. Doing so helps improve the reliability of the responses.
- Use a quantifiable scale for more response accuracy. It is best to use a 5-point or 7-point scale when soliciting responses to individual questions and using 'Very Dissatisfied' and 'Very Satisfied' as the end points of the scale. This gives you a quantifiable measure to statistically assess and compare issues important to drivers.
Highland Transport found that conducting a formal driver survey was a very useful first step towards addressing turnover. The results of the survey helped elevate the importance of this issue in the organization, and it provided a clearer scope of the problem. Part 2 of this article will examine the various Quality Management Principles employed by their organization to reduce driver turnover.
By, Ward Warkentin, President of Service Quality Associates Inc. He can be reached at 1-800-313-9923, www.isotruck.com, ward.warkentin@isotruck.com.
Arnold Transportation Rewards Top 66 On-Time Drivers
TCA member Arnold Transportation of Jacksonville, Florida, recently honored 66 drivers who achieved at least two years of 100% on-time service. The award-winning drivers received a bonus check at an awards luncheon.
Arnold Transportation's regional drivers run an average of 400 loads per year, so each of these drivers ran approximately 800 loads on time. Arnold recognized the following drivers: Chris Albright, Jerry Brock, Richard Ross, Dennis Hasse, Robie Petty, Carol Amburn, German Pacheco, Fred Sullivan, Frank Weber, Jules Scuderi, Gino Appleberry, Claude Bennett, Edward Bosket, Frank Cobbs, Ed Congleton, Cleborne Gaskin, Mike Hensley, James Ladson, Bruce Lehman, Charles Lovette, Charles Merine, Davy Powe, Charles Powell, Husher Smith, Robert Whitlock, Robert Benson, Harold Carder, Michael Clark, George Gilbert, Charles Hartwell, James Hoffman, William Kato, Joseph Kidd, Larry Longwell, Robert Lytch, Leonard Martin, Tim McCreary, Samuel Moore, Aldo Myers, Tommy Myers, Daniel Nunnikhoven, Tom Randall, William Spotts, Emanuel Taylor, Gale Verwiebe, Cecil Watkins, Wayne Wheeler, James Ballou, Ed Bearce, Wayne Bruce, Jerry Burrows, Bruce Dissinger, Ralph Gass, Earl Gilkes, Tom Halye, Henry Meade, Kelly Young, Leon Hostetter, James Harris, Jeff Kellar, Thomas Roberts, Alex Krykhtin, Kurt Bush, Laverne Lightfoot, William Unger and Joel Evans.
Iowa Tickets Trucks Without Reflective Tape on Rear Mud Flaps
The Iowa Department of Transportation (IDOT) has begun writing up trucks at scales for having no reflective tape on the tractor mud flaps or brackets. IDOT is basing its action on a federal regulation stating that the rear mud flaps on truck tractors "shall be equipped with retro reflective sheeting in alternating [red and white] colors, each not less than 600 mm long, located as close as practicable to the edges of the rear fenders, mud flaps, or the mud flap support brackets, to make the width of the truck tractor." The standard applies to all truck tractors manufactured on, or after, December 1, 1993.
Human Waste Bill Goes to Colorado Governor
Colorado Bill SB 9 concerning the tossing of human waste from vehicles passed both the Houses of the state's General Assembly and is on its way to the Governor. The Colorado Motor Carriers Association (CMCA) supported this Bill, which will levy a stiff fine of $500 for violators. CMCA worked with CDOT and others to bring the bill forward after hearing numerous complaints of a growing problem of human waste being deposited along our highway. Governor Owens is expected to sign the measure.
Save the Date for TCA's Newest Audio Conference - May 26, 2005
Save the date, TCA's newest audio conference is just around the corner. On May 26, 2005 gather your coworkers and to learn about branding from TCA's expert panel and get your questions answered. Increase your profits and ensure customer loyalty by developing your unique brand. Watch for more information!
Invigorate Your Workforce With TCA's Leadership Program
June 15 - 16, 2005 - Chicago, IL
Make Your Reservations by June 1, 2005
TCA's popular Leadership and Executive Development Program will be offering its last session this year in Chicago, IL on June 15 - 16, 2005. Don't miss this chance to build your company leaders. The Leadership and Executive Development Trucking Academy has been designed specifically for the trucking industry. The goal of this innovative, interactive program is to provide trucking leaders with the tools needed to survive and thrive in today's challenging, fast-paced business environment. Graduates of the program get continuing support through Bill Webb's "Leadership Notes" delivered weekly. Click here for more information and to download a leadership brochure.
Attention Amateur Photographers: Give TCA Your Best Shot and Win $1000!
CONTEST DEADLINE - JUNE 17, 2005
TCA's Truck Driver Photo Contest is open to any truck driver who is currently employed with or leased to a trucking company. Photographs from professional photographers will not be accepted. No more than three photos may be submitted per driver. The photos should capture life on the road and portray trucking in a positive light. Digital photos are accepted as long as you include a print out of the photo and the digital file is 300 dpi or larger to ensure a high enough resolution.
Applicants should clearly label each photo with their name, address, telephone number, and company name, address, and telephone number. Please do not write on the back of the photo, use an address label or separate piece of paper affixed to the back. Any information you can provide on where you took the photo and the subject of the photo is appreciated.
Contest Prizes!
The grand prizewinner will receive $1,000.
The 2nd place winner will receive $750.
The 3rd place winner will receive $500.
4th through 6th place winners will each receive $100.
Honorable mentions will receive $50 each.
Thank you to S-Line, Inc. and American Graphics Group, the generous sponsors of this contest. Visit www.truckload.org/contests/photocontest.htm for more details. E-mail acirucci@truckload.org or call 703-838-8859 with any questions.
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