Vol. 05, No. 49 | December 06, 2005
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Regulatory Roundup
Real World Recruitment and Retention Basics
Member Spotlight
Stateside
Truckload Happenings
Appeals Court Remands Entry Level Driver Training Rule
On December 2, 2005 the United States Court of Appeals for the D.C. Circuit Court decided on the case challenging the adequacy of the final rule addressing "Minimum Training Requirements for Entry-Level Commercial Training" and remanded the rule back to the Federal Motor Carrier Safety Administration (FMCSA) "for further consideration consistent with the opinion".
Additional rulemaking on entry-level driver training can be expected in the future, however, while the final rule had been remanded, it has NOT been vacated and will remain in place until the FMCSA crafts an adequate regulation addressing the training requirements for Entry-Level driver training.
Click here for the court's opinion in which the court found the rule to be arbitrary-and-capricious under the Administrative Procedures Act's standard of review, and click here for the Final Rule, as it appeared in the Federal Register on May 21, 2004.
GAO Says Federal Crash Data Has Improved
The Government Accountability Office said that while the quality of the Federal Motor Carrier Safety Administration's truck crash data has improved, it still has a ways to go.
The GAO, the congressional investigative arm that examines public funding, issued a report in response to a Senate request that it evaluate the FMCSA program for helping states improve truck crash data.
The Senate also requested that the GAO address issues raised in the DOT Inspector General 2004 report on Motor Carrier Safety Status Measurement System or SafeStat. The OIG had noted that the quality of data being fed into the Safety Status Measurement System, or SafeStat was poor. As we reported previously in the Truckload Carrier Report, the FMCSA has removed key data elements from the public Internet site until it improves.
In response to recommendations in that 2004 report, the agency developed the State Safety Data Quality map, considered a tool for rating states' data quality. The GAO stated the FMCSA should develop an assessment and improvement plan for the map's methodology and should furnish a crash specific data rating and limitations of the map on its website.
While the map is useful, the office GAO said the methodology problems could result to false conclusions about the extent of improvements states have made.
The FMCSA's other program to help states improve truck crash reporting also appears beneficial, the GAO said. Through the data improvement program for states, FMCSA has provided nearly $21 million in discretionary grants to states 2002-05 and helped states better their data.
The GAO did not find problems with FMCSA's oversight of the program, but said the agency needs formal guidelines for awarding grants to states.
According to FMCSA, as of fiscal year 2004 almost one-third of truck crashes that states are required to report to federal officials went unreported. Those that were reported were not always accurate, timely, or consistent.
DOT Provides Money for Hurricane-Damaged Highways and Bridges
The U.S. Department of Transportation has provided an additional $40 million to Louisiana and Mississippi as part of the federal government's commitment to help Gulf Coast states rebuild roads and bridges damaged by Hurricane Katrina.
The Federal Highway Administration will immediately advance each state $20 million in emergency relief funds that may be used to repair or rebuild portions of I-10, U.S. 90 and other federally-supported highways and bridges, according to Secretary Mineta.
The announcement represents the second installment of federal funds for highway and bridge repairs since the hurricane struck. In mid-September, Mineta announced $5 million in emergency relief funds to each state as an initial down payment.
"These funds should give the states some financial relief while we wait for action on the next aid package," Mineta said.
The Bush Administration has requested that Congress provide an additional $2.3 billion for repairing and rebuilding Katrina-damaged highways and bridges.
FHWA's emergency relief program reimburses states for certain costs when federal-aid highways and roads on federal lands have suffered serious damage from natural disasters or catastrophic events.
Ontario Trucking Association Calls for Speed Governors
The Ontario Trucking Association adopted a policy requiring all trucks that operate into, out of or within Ontario to use speed limiters, also known as speed governors, on their trucks.
The group approved setting limiters to make the highest speed a truck could go at no more than 105 kph, the equivalent of about 65 mph.
A speed limiter is a built-in microchip that allows a truck engine's top speed to be preset; all trucks built in the last decade come equipped with this technology, OTA said.
OTA said that while truck drivers are the least likely of all drivers to be operating at excessive speed, there are good environmental, safety and economic reasons for making the activation of speed limiters mandatory.
The group said the fuel savings could reach about 2,310 gallons of diesel a year for a typical tractor-trailer, reduce greenhouse gases and improve safety.
OTA President David Bradley said the OTA plan "demonstrates the industry's commitment to ensure all trucks on the highways operate at a safe speed and that incidents of tailgating and improper lane changes are reduced."
Syracuse Post-Standard Includes Veterans Article
The November 27 issue of The Syracuse Post-Standard included an opinion piece by Suzanne Mettler, an associate professor of political science in the College of Arts and Sciences and the Maxwell School of Citizenship and Public Affairs at Syracuse University. In the piece Mettler argued that those who don't serve should do more for veterans and that their benefits, especially those covering education provided by the GI Bill have not kept pace with the rising cost of education. TCA and PTDI are in favor of increased GI Bill funds for those returning veterans who chose to enroll in a truck driving course. Veterans could provide an answer to some of the truck driver shortage that plagues the industry. To view the entire Syracuse Post-Standard article please click here.
Get the Results You Want From Drivers Through The Driver Report Card™
Do your drivers know what you expect from them? You may be surprised to learn that they don't. Dan Baker, renowned trucking expert, says that expectations often fall on deaf ears because we think we are clear, when in reality, we are not. Until you can effectively communicate expectations to your drivers, you will not get the desired performance from them.
HNI created The Driver Report Card™ to address two common concerns in the transportation industry: driver performance and retention. This tool combines objective measurements with effective communication strategies that together create a culture of accountability. The best part is, your drivers will be holding each other accountable and you'll be doing less micro-managing.
This system works best when you involve your employees in the entire process because, in essence, you are creating peer pressure. Your top performers will begin to compete for the best scores and your average performers will begin striving for higher scores. You will then be able to deal more effectively with the non-performers of your fleet.
Initially, you will witness a spike in overall performance or increase in productivity. The scores will begin to plateau, forming a baseline from which you can manage more effectively. After six months of implementing the system, one motor carrier with more than 100 drivers witnessed a 50% increase in the average score per driver. By simply making your drivers aware of how they can better perform and how they rank in your fleet, you will cause an immediate impact.
Although the short-term results will have a positive impact on your culture, it's the long-term increase in productivity that will improve your bottom line. A moving and storage company with more than 90 employees witnessed a 13% increase in overall productivity the first year and 12% the second year.
The following briefly describes the three-step process involved in incorporating The Driver Report Card™ in your company's culture to increase both performance and retention.
- Creating the Objective Scoring System
- Selection of Criteria - Including your team during this process will increase employee buy-in and ultimately enhance performance. Together, determine the most crucial measuring factors. Productivity measurements can include miles, revenue, hours (how your company is paid) and depending on your operation, MPG, out-of-route, idle time, etc. You also want to measure areas such as safety, equipment and possibly recordkeeping. We recommend starting with approximately five categories and adding more as you progress through the process.
- Weigh the measurements - Assigning a weight to each measurement allows you to customize the tool to focus on your priorities. We start with an average score of 100, not zero. This establishes the tool as a positive motivator rather than negative discipline. The goal is for every driver to obtain an average score, and then to be rewarded for achieving higher levels than average.
- Communication - The expectations must be clear for all team members and should be posted in a common location so all employees can review them regularly.
- Monitoring and Improving
Develop a consistent process for working with drivers to improve their performance including setting a regular time to meet. You will achieve optimum results when you not only work with drivers directly, but also develop a mentoring program in which drivers are working with other drivers.
- Rewards and Consequences
Creating a recognition and/or reward system that focuses attention on your best drivers will not only improve morale, but it will keep you focused on your top performers as opposed to spending all your time with those who struggle. For those with below average scores, identify potential problematic areas so they can be addressed immediately. Ensure that each measurement has a specific consequence tied to it when the score for the category is below average or acceptable level.
Just as you included your employees in selecting measurements, it is equally, if not more important to share the results with your entire team. Employees won't change behaviors until they truly understand and realize their individual contributions to the company's success.
For more information on The Driver Report Card™, contact Matt Bucher at HNI Risk Services (800) 236-4464 or mbucher@hni.com.
Kennesaw Gives Its Top Drivers $10,000 Bonus
For the last three years, Kennesaw Transportation has been giving a $10,000-seniority bonus to all of its company drivers with five years of loyal service.
But, how many drivers have actually qualified for this bonus? In the three years the bonus has been available, 70 Kennesaw drivers have qualified.
Twenty-two drivers will have received the bonus this past year alone. That adds up to $220,000 in 2005 Christmas bonuses.
Kennesaw believes the secret for attracting and keeping outstanding drivers is a strong appreciation for truckers who keep the loads moving week after week, home time and plenty of miles. Kennesaw Transportation offers the best non-stop West Coast runs for teams. And when a company team or solo driver meets the five-year requirements, each driver receives $10,000.
Kennesaw Transportation offers owner-operator opportunities for solos and teams, lease purchase opportunities, and company driver opportunities for both solos and teams.
For more information, call Ray at (800) 824-6640, ext. 1221, or Kelley at ext. 1228. Or visit www.kennesawtransportation.com.
Schneider National Named AARP Featured Employer
Schneider National Inc. was recently named an AARP Featured Employer for being committed to aggressively recruiting, hiring and retaining mature workers.
The AARP event, held in Washington, D.C., expands the organization's Featured Employer program from 13 to 24 by recognizing 11 major companies that strive to help Americans ages 50 and over remain in the workforce as desired. Since the program's inception in February, nearly 500 companies have contacted AARP seeking to participate in the program. AARP has limited the program to a select group of 24, which now includes Schneider National.
Schneider National was selected as an AARP Featured Employer based on its hiring practices, benefits and opportunities for mature workers. This year, 14 percent of Schneider's newly hired employees were age 50+, including 15 percent of the company's professional truck drivers. Schneider has a long history of hiring mature Americans, with truck driving becoming an increasingly popular second career choice for thousands, because of company-provided driver training and innovative scheduling programs. In addition to professional truck drivers, Schneider has hired mature workers for roles in operations management, sales, information technology, customer service, maintenance and others.
"One of the reasons Schneider National has been able to consistently grow over the past 70 years is because we've long recognized the skills and life experiences mature employees bring to their jobs," said Christopher Lofgren, president and CEO of Schneider National Inc. "We fully embrace this segment of the workforce. There's no doubt they are critical to our ongoing success."
Indiana Truck Association Opposes Toll Road Increase
The Indiana Motor Truck Association (IMTA) is leading a campaign against a proposed toll increase for the Indiana Toll Road. The increase is part of Gov. Mitch Daniels' $10.6 billion, 10-year transportation plan called "Major Moves: Creating a Top-Tier Econmy Through Top-Tier Transportation" announced in late September.
The Indiana Toll Road runs across the northern most portion of the state from the Ohio border to the Illinois border. The overall weighted increase for commercial trucks would be 113 percent, according to Ken Cragen, president of IMTA.
"Everybody I've talked to is strongly opposed to the increase," Cragen said. "We've met with the governor and Indiana Department of Transportation (INDOT) commissioners to voice our opinion."
A public hearing is scheduled Thursday, Dec. 1, in Conference Room B in the State Government Center in Indianapolis.
The Indiana Department of Transportation is accepting public written comments through December 7.
Comments should be sent to:
Commissioner Tom Sharp
Indiana Department of Transportation
Room N-758
100 North Senate
Indianapolis, IN 46204
TCA Audio Conference: Navigating the Minefield of Insurance Exclusions - How To Be Sure You Are Protected
Thursday, December 15, 2005
12:00 pm – 1: 30 pm ET
How comprehensive is your company's insurance coverage? There is more to purchasing insurance than policy limits and price. Motor carriers and their shippers are targets of plaintiff's lawyers for punitive damages, vicarious liability and negligent entrustment verdicts. Typical provisions in shipper contracts and equipment leases attempt to transfer the risk to motor carriers and their insurers through broadly worded "arising out of" indemnification and onerous "additional insured" warranties for which standard policies do not afford coverage.
By statute, a motor carrier is a virtual insurer of all cargo losses while a shipment is in its possession and control. Yet, most cargo policies exclude coverage for the carrier's greatest risk of loss. Exclusions for rust, moisture or temperature damage vitiate necessary coverage for refrigerated carriers. Flat bed carrier's claims on tarped loads are denied based on packaging and moisture exclusion. Because of target commodity exclusions, attended vehicle requirements and other artfully drafted provisions; billions in truck theft claims go uncovered annually.
Don't leave your company exposed! Let TCA help you navigate the minefield of insurance exclusions with three noted experts. Attend the December 15 audio conference and leave with the piece of mind that your business is protected. Click here for more information and registration form and here for online registration.
Donate to TCA's Second Annual Silent Auction
Every year the TCA Scholarship Fund holds a fundraiser that allows it to continue to award college scholarships to those in the trucking industry and their relatives.
Last year we held our first very successful silent and live auction. From that experience we gained valuable insight and are ready to launch the Second Silent and Live Auction. The Silent Auction will be held again in the Exhibit Hall at the Gaylord Palms Resort in Orlando, Florida, March 12-15, 2006, and the auction item sign-up sheets and item photos will be located in one central location in the Exhibit Hall with a framed photo of the item and the item itself [if small enough] located at each exhibitor's booth. Each participating exhibitor will also have their booth marked in a clear way to show their participation in the Auction.
The Auction is open to both carriers and those associate members who are participating in the exhibition. Click here for a silent auction donation form. If you would like to see sample items that were donated last year, or see who our sponsors and winning bidders click here. Please note, donated items must be of a value of $500 or more. This is an easy and effective way of promoting your business! Show our attendees that you support their industry.
TCA Announces Advanced Leadership Academy - First Time Offered!
January 25-26, 2006 — February 22-23, 2006
Cy Weller Conference Center
TMTA Headquarters
Austin, TX
TCA's innovative leadership and management development program, developed by Bill Webb, President of the Texas Motor Transportation, has provided relevant and trucking-specific information to almost two hundred attendees since 2003. Now, TCA is pleased to announce the expansion of the program with our Advanced Leadership Academy designed for graduates of our basic Leadership program.
Offered for the first time, TCA's Advanced Leadership Academy is a one-of-a-kind executive development program that goes beyond the leadership principles provided through the groundbreaking basic leadership program over the past two and a half years. With a goal of helping grow our own industry leaders, this program helps insure participants are better prepared to handle the unique business challenges facing trucking companies today. Space is limited and this program is sure to fill up fast. Click here for more information and a registration form.
TCA Drivers Contest Final Applications Due December 16
As a reminder to drivers contest finalists and their companies, final applications for TCA's Independent Contractor and Company Driver of the Year Contests are due to TCA Headquarters by the close of business on December 16, 2005. If you have any questions or concerns please contact Aimee Cirucci at acirucci@truckload.org or 703-838-8859.
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