Northbound and Down
One of my favorite movies is Smokey and the Bandit. In that movie, Jerry Reed played Snowman, a trucker who the Bandit played by Burt Reynolds ran as blocker while they bootlegged a load of Coors to Georgia from Texas. Reed also wrote a song called Eastbound and Down that was featured in Smokey and the Bandit about what else? Truck driving.
The trucking industry is near to my heart. My grandfather was a OTR trucker with Smith Transportation in Louisville, KY and then ran local for a company in Effingham, IL. He started driving truck shortly after exiting the Army after WWII and drove truck until about 1995/6 before he finally retired. I also know many, many truck drivers because of work and I have had plenty of conversations with them about issues facing the trucking industry and as truck drivers.
Drivers seem to be under attack at every turn whether it's DOT regulations or at weigh stations. I just recently talked with a driver that got hit up crossing the California border who was forced to pay $75 for a piece of tubing (along with every other truck in line) during a check, and when he asked for a receipt he was told that would cost him another $75. Other drivers have been fined thousands of dollars for loads that were just slightly overweight - despite having nothing to do with loading the trailer.
Since the economy took a hit, drivers have seen their expenses go up but independent drivers are seeing loads pay less today than a few years ago doing the same run. The repairs alone on a big rig will set you back thousands of dollars, which in itself could be considered highway robbery.
Now, drivers have to contend with Mexican truck drivers being allowed to enter deep in the US because of that wonderful treaty (sarcasm) NAFTA. I understand the benefits of free trade, but I believe free trade only works with countries with similar economies and pay scale. Free trade with countries like Mexico only hurt the US worker.
Unfortunately, the US does not really have a choice in the matter of letting Mexican drivers into the US because treaties have the force of law and Mexico has threatened to take us to the World Trade Organization because the US is violating the agreement. If this issue were to go the WTO, we would most likely lose the case and the WTO would force the US to comply or risk facing fines and sanctions against US products with WTO participating countries.
Of course the unions want to make this issue about them as Hoffa Jr has been been trying get this provision of NAFTA stopped at the 11th hour. Hoffa Jr has seen his numbers of members dwindle to about 12% of the trucking and warehouse industry in 2009. The trucking unions have already been taking a hit, especially with the revamping of the auto industry. Union members have had to take concessions to keep their jobs while others have seen their companies go bankrupt completely. However, the Mexican trucker entering the US has more to do with the non-union company driver and the independent than the union drivers.
Right now, the better paid company drivers get between 32 and 40 cents a mile based on experience, company and record. The union drivers that I know get about $1.00 a mile, plus benefits including 100% paid health insurance - and that is down from 5 years ago. The independent driver can earn more or less than the company driver depending on the distance of the load and who their broker is, but having to do their own repairs and pay for gas and lodging. I talked with a driver not too long ago that told me his load paid $1200 but by the time he was done with gas and lodging he was expecting to get $400. Yet another driver told me that after a load he recently took, he would actually be losing money.
Mexican drivers coming into the US will depress the earnings of US drivers as they will be running for much less than what the US driver gets paid. What is stopping shipping companies in the US from contracting with Mexican drivers would will make the runs for much less than a US driver? Nothing. As a result, we may see almost 100,000 drivers lose their jobs as a result of Mexican truckers entering the US.
Because of NAFTA, the US drivers will be forced to do one of two things - find a different line of work or work for less to compete for loads.
In addition, we have to take into consideration the safety of the Mexican driver, the condition of their equipment, and their willingness to follow federal rules regarding the trucking industry (ie mandatory restarts).
I have a further problem of letting foreign nationals en masse into the US. What is to say that we won't see an epidemic of Mexican drivers abandon their loads once they get into the US knowing full well our federal government no has a policy of not deporting illegal aliens? I know it's speculative, but US policy makers have to take this into consideration.
Furthermore, what recourse do US citizens have against Mexican trucking companies if a qualified or unqualified Mexican company driver causes an accident, injury or death on the US highways? There is no incentive or guarantee that a Mexican trucking company would pay damages if held liable in a US court.
While union drivers see themselves under assault, it really is the other 88% of non-union workers within the trucking and warehouse industry that are under assault with this provision of NAFTA.
In a few days, we will have Mexican truck drivers traveling our US highway system within the deep parts of our nation.
Let's check back in a year or so and see how enforcing NAFTA fully has affected the trucking industry. Until then, I guess it's northbound and down instead of eastbound and down.
The trucking industry is near to my heart. My grandfather was a OTR trucker with Smith Transportation in Louisville, KY and then ran local for a company in Effingham, IL. He started driving truck shortly after exiting the Army after WWII and drove truck until about 1995/6 before he finally retired. I also know many, many truck drivers because of work and I have had plenty of conversations with them about issues facing the trucking industry and as truck drivers.
Drivers seem to be under attack at every turn whether it's DOT regulations or at weigh stations. I just recently talked with a driver that got hit up crossing the California border who was forced to pay $75 for a piece of tubing (along with every other truck in line) during a check, and when he asked for a receipt he was told that would cost him another $75. Other drivers have been fined thousands of dollars for loads that were just slightly overweight - despite having nothing to do with loading the trailer.
Since the economy took a hit, drivers have seen their expenses go up but independent drivers are seeing loads pay less today than a few years ago doing the same run. The repairs alone on a big rig will set you back thousands of dollars, which in itself could be considered highway robbery.
Now, drivers have to contend with Mexican truck drivers being allowed to enter deep in the US because of that wonderful treaty (sarcasm) NAFTA. I understand the benefits of free trade, but I believe free trade only works with countries with similar economies and pay scale. Free trade with countries like Mexico only hurt the US worker.
Unfortunately, the US does not really have a choice in the matter of letting Mexican drivers into the US because treaties have the force of law and Mexico has threatened to take us to the World Trade Organization because the US is violating the agreement. If this issue were to go the WTO, we would most likely lose the case and the WTO would force the US to comply or risk facing fines and sanctions against US products with WTO participating countries.
Of course the unions want to make this issue about them as Hoffa Jr has been been trying get this provision of NAFTA stopped at the 11th hour. Hoffa Jr has seen his numbers of members dwindle to about 12% of the trucking and warehouse industry in 2009. The trucking unions have already been taking a hit, especially with the revamping of the auto industry. Union members have had to take concessions to keep their jobs while others have seen their companies go bankrupt completely. However, the Mexican trucker entering the US has more to do with the non-union company driver and the independent than the union drivers.
Right now, the better paid company drivers get between 32 and 40 cents a mile based on experience, company and record. The union drivers that I know get about $1.00 a mile, plus benefits including 100% paid health insurance - and that is down from 5 years ago. The independent driver can earn more or less than the company driver depending on the distance of the load and who their broker is, but having to do their own repairs and pay for gas and lodging. I talked with a driver not too long ago that told me his load paid $1200 but by the time he was done with gas and lodging he was expecting to get $400. Yet another driver told me that after a load he recently took, he would actually be losing money.
Mexican drivers coming into the US will depress the earnings of US drivers as they will be running for much less than what the US driver gets paid. What is stopping shipping companies in the US from contracting with Mexican drivers would will make the runs for much less than a US driver? Nothing. As a result, we may see almost 100,000 drivers lose their jobs as a result of Mexican truckers entering the US.
Because of NAFTA, the US drivers will be forced to do one of two things - find a different line of work or work for less to compete for loads.
In addition, we have to take into consideration the safety of the Mexican driver, the condition of their equipment, and their willingness to follow federal rules regarding the trucking industry (ie mandatory restarts).
I have a further problem of letting foreign nationals en masse into the US. What is to say that we won't see an epidemic of Mexican drivers abandon their loads once they get into the US knowing full well our federal government no has a policy of not deporting illegal aliens? I know it's speculative, but US policy makers have to take this into consideration.
Furthermore, what recourse do US citizens have against Mexican trucking companies if a qualified or unqualified Mexican company driver causes an accident, injury or death on the US highways? There is no incentive or guarantee that a Mexican trucking company would pay damages if held liable in a US court.
While union drivers see themselves under assault, it really is the other 88% of non-union workers within the trucking and warehouse industry that are under assault with this provision of NAFTA.
In a few days, we will have Mexican truck drivers traveling our US highway system within the deep parts of our nation.
Let's check back in a year or so and see how enforcing NAFTA fully has affected the trucking industry. Until then, I guess it's northbound and down instead of eastbound and down.
Posted by downstateiladvocate at 10/20/2011 11:30 PM 
Categories: Economy
Tags: trucking industry NAFTA WTO union non union company driver independent
Categories: Economy
Tags: trucking industry NAFTA WTO union non union company driver independent
Thank You for all of your insights. Keep up the great effort in telling the facts and truth! We enjoy reading your works! Kim & Patrick Keenan
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