Teamsters Back Drivers’ Antitrust Proposal

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Stymied in its efforts to organize independent owner-operators that truck most of the freight to and from California’s ports, the International Brotherhood of Teamsters is backing state legislation exempting drivers from anti-trust laws.


Because the truckers are independent operators, any effort to negotiate a common rate could be viewed as collusion.


That would change under a bill authored by state Sen. Joe Dunn, D-Garden Grove. The measure, which was to be introduced Feb. 18, would grant drivers the right to form an association or trade union to collectively bargain for set rates.


Drivers are now paid by the load, not the hour, and would likely negotiate to change that structure. If they succeed, it would prove a windfall to truckers who now spend much of the time stuck in traffic on port access freeways and at marine terminals.


“What (existing laws) have done is prohibit the absolute weakest players in an economic market from welding any effective economic power over the prices they charge,” said Barry Broad, the Teamster’s legislative director for the Western region. “What this bill says is they can get together and have the right to collectively negotiate their rates with motor carriers.”


Trucking companies that contract out to the independent operators have yet to marshal their forces against the bill, believing it faces an uphill battle and could not withstand a legal challenge if passed.


Even if the drivers were to succeed, some believe that the marketplace will still dictate rates. That means companies not affiliated with the Teamsters could wind up charging lower rates.


Teamster officials acknowledged that is one of issues they would have to iron out if the bill passes.


Proponents claim the federal anti-trust laws grant the right make exemptions for the purpose of restoring competition in a market that’s not functioning properly. They also note that vessel lines and terminal operators have had exemptions for nearly a century that allow them to set rates charged to cargo owners.


“(Port truckers) are not what Teddy Roosevelt intended when he was busting up the trusts,” said Broad, of the creation of anti-trust laws.


“The question of anti-trust is really about collusion in the marketplace to set rates to be charged to customers,” said Michael Belzer, associate professor of urban and labor studies at Wayne State University in Detroit. “The owner-operators simply have no bargaining power at all.”


He said many port truckers clear $15,000 to $20,000 a year (with no employer-paid benefits) after fuel, maintenance and other overhead costs are deducted. Drivers make $80 to $250 per round trip, depending on the distance, and often haul only two loads per day because of traffic congestion.


Opponents of the bill claim that hourly wages would increase congestion because the drivers would have no incentive to haul goods quickly. There is also concern that with another union added to the mix at the ports the chances of work stoppage increases.


Backers say the supply chain would actually speed up because terminal operators would be forced to create a system to alleviate congestion so they could move additional cargo for the same money.


“The pollution and lines will be significantly alleviated if the drivers have the ability to negotiate effectively over their compensation and working conditions,” said Broad.


Opponents acknowledged that better conditions could bring more drivers into the industry, which is currently dealing with a severe trucking shortage.


Teamster officials said they would support drivers forming an association or trade union, but they acknowledged they would like to bring them into their union. Broad said he would like to see drivers clearing $40,000 to $50,000 after expenses and have the benefit of a health plan.

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