Celadon is steeling itself for another legal battle after a judge ruled that the company had breached the terms of its agreement by failing to pass on fuel rebate savings to its drivers, effectively taking $3.8 million out of their pockets.
Like other large carriers, Celadon has a fuel rebate deal with Pilot Flying J which allows them to buy fuel at a discount. Celadon owner-operators purchase fuel from PFJ with their fuel cards, the money for which is later deducted from their paycheck. According to the lawsuit however, Celadon charges the drivers more per gallon than it actually pays to PFJ, netting them a nice profit. According to court documents, Celadon pays as much as 50 cents less per gallon to PFJ than is charged at the pump.
The judge ruled in favor of the two principal members of the class action suit that brought the case against the carrier, Charles Wilmoth and Kent Vassey, awarding the $3.8 million plus an additional $1.7 million in interest to all class members. Because the total amount of the ruling is over $5 million however, Celadon’s lawyers are petitioning to move the case to a federal court – which has jurisdiction over class-action cases when the damages amount to over $5 million.
In addition, Celadon is filing a counter-suit against Wilmoth and Vassey alleging that they defaulted on their contracts.
Carriers skimming money from their owner-operator’s fuel rebates is far from unheard of. In an interview with the Indianapolis Business Journal, an unnamed “veteran trucking-industry analyst” claimed that it’s standard industry practice for large carriers not to pass on all of their fuel rebate savings to their drivers.
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Source: ibj, classactionnews, vehicleservicepros, gobytrucknews, iupui
Ray says
“… it’s standard industry practice for large carriers not to pass on all of their fuel rebate savings to their drivers.”
One reason I never became an o/o.
Rick Smith says
Like they treat company drivers any better?
Every company I ever worked for treated new drivers like gold.
Then after a few months like silver.
Then after a few more months like brass.
Then … eventually… like …..
Never saw it fail.
Except for the handful of drivers that schmoozed the boss.
Robert says
They are o/o in the suit. If drive for a carrier you should be demanding these rebates. Company drivers would not get rebates.
anthony says
work on that comprehension buddy.
Coffeeclue says
One reason I did become an OO with my own authority. Nobody steals from me.
Chuck says
Good answer ! Clue.
jeff says
That’s Right
Ray says
Well, I think we can all agree that it’s a lot simpler and easier to be a company driver. That naturally makes it easier to keep track of the finances. You don’t need to be an o/o to not accept getting screwed.
ACES says
Except of course the broker skimming the surcharge unless you drive directly under the shipper. Same ripoff, different thief…
mike says
Nothing new here. As usual the driver gets screwed. Its the same with company drivers. When a company wants to save money, they start screaming fuel mileage. But the CEO never cuts back.
Chris says
forget trucking this all of America big business buying Washington paying no taxes and screwing Americans at every turn this is the new normal.
Mike Scott says
Knowingly take what does not belong to you, Go to jail!
If you are lucky enough just to get fired, you have the rest
of your life to learn and feel the guilt of being a low life
piece of garbage. I’ve worked with a few and their every
where around from trying the military to public service.
Their habits are hard to break, don’t hire them and if you
did you better let them go before you get ripped off.
Background checks save loads of money.
jack says
The Pilot lawsuit and settlements set a precedent for Celadon. They’re gonna pay like PFJ did, 87million to settle claim, 14 million to flannel mouths(lawyers) and the the DOJ dinged them for another 110 million. Celadon will pay up.
Bill Hoodq says
I would like to know if the contract stated that if O/O used their fuel card if they would pay actual costs or not. At issue isn’t if they pass all the money back to the O/O but if they are living up to their contract. No law saying that they have to do this. They just have to live up the the agreement that they enter into to.
shawn gherity says
Exactly right! A good lesson to read all contracts you sign. Most contracts say the company deducts the amount it pays out for the contractors benefit. If thats the case here they havent got a defense for charging pump price but the devil is in the details.
anthony says
yeah. i would think someone read through the contract before the suit was filed. and i would guess the judge checked it out too.
Dan says
Celadon is counter suing for breach of contract? What are they doing, making it a school yard fight? ……… Oh yeah Billy? Well I’m telling on you!
Tay says
Hahaha, that’s what I was thinking! ?
Brian says
It seems lately that many carriers and owners/CEO’s etc are getting in trouble .
After 20 years of trucking am I really starting to see punishment for poor bahavior?
If drivers keep up the pressure and fight these people maybe they will change the way they do business. In regards to the comment about witholding part of the fuel discount carries may start giving all.
Corey Jackson says
This is why you never ever ever ever ever drive for or lease on to a super large company like this. How you think companies like sillydon, I mean Celadon got so big? Sure as hell not by quality service, but by bending drivers over.
anthony says
i never understood this as being an owner/operator. if you run their freight, have their logo on your truck and get paychecks(settlements whatever) sounds like all you own is the headaches if they arise.
Ali says
They are already robbing them on the pay for carrying the load and they are skimming from the fuel rebates smh. I’m glad those guys had the balls to stand up to them and make them pay.
Chris says
It’s rather redundant that companies do this to the drivers. What is preposterous? They’re paying their lawyers a hefty amount for their nefarious ways. There should be more investigations being conducted other companies.
Don says
Corruption in the trucking industry? What else is new.
John says
Nothing new here, the crooks that run trucking companies always look to rip off the very people who work for them. The fuel surcharge is purely meant for the person or business buying the fuel.
Discounts on fuel is just a deal between companies and fuel suppliers. If I was not getting 100% of my FSC on a load I would not be working for that company. That is purely stealing from the very pocketbook of the owner operator.
Cherokee says
Every company should be looked into for various reasons, the government spends all that money to rule and control us, start using some of the money we pay you to start protecting us.
Don says
I work for a small tanker out fit, 250 trucks that is forcing us to use pfj for fuel, How can i find out what they are paying for the fuel and what i am paying,
Audrey Carter says
C lead on is just one of MANY that do that.
Chris says
It’s not unheard of for carriers to hold back a few cents per gallon in rebates to help pay for the administrative costs of the people in their fuel departments. However, the article reads like Celadon is holding back everything in most cases.
I guess Celadon could say that these drivers wouldn’t have gotten any substantial rebate at the pump if they were operating independently as individual o/o’s…But it seems so unethical to pocket the rebates. If they really wanted to stand out, they should use the fuel rebates as a driver recruiting/driver retention tool, and actually pass it along to the driver. If you can get and keep a good driver it’s worth a heck of a lot more than the fuel money you can put in your pocket.
anthony says
that last sentence is apparently wrong by a long shot. if that were the case we’d be treated differently.
Peter says
Its up to carrier if he wants to share discounts with owner operator. If you dont like it – get your own fuel card or use your debit card and stop complaining.
steve says
What are you talking about? They’re clearly stealing from people and you want to tell people to quit complaining? What planet are you from? Are you even American? C’mon Man, if you tell me that you’re going to pass on a discounted fuel price to me and I find out later that you’ve been stealing that discount to fill your own pocket, well, I imagine we’re going to have a problem.
You must be one of those Celedon Execs. Pretty Un American. …
Peter says
If they lied – they must pay for it. But if they never told anyone about discounts they get from truckstops – its up to them to share discount.
Gordon A says
As long as the comp[any has a safety dept, a logging dept and answers the requests from the FMCSA, As long as they continue to receive money for training and hiring new student drivers all is good.. . It is like pulling teeth to get information from some girl in the payroll dept to give you information. They get that deer in the head light stare, mouth opens wide and then begin to be busy. hoping you will go away. Far too often it takes a letter from an attorney to get even the littlest bit of information.
Ever notice how some carriers make their settlement sheet hard to read,? Terminology, using minus or plus signs instead of words to describe the money? Just part of the scam. The less you know and understand the paper work, the better the chances they don’t get caught and if you do, You will be terminated for some small reason.
In todays trucking there are some very smart drivers with an education that far exceeds the management teams abilities. They are waking up to these scams..But .. The ripping off the drivers and shippers is not going to end. The perpetrators are just going to get better at it and find other ways to steal. What they do is not much different than holding a gun on you while taking your money. . More like having your pocket picked at the fair. You knowit was done but cant do anything aobut it. Proof.
Tim says
It’s not a choice…and now drivers are riled.
Adonis salazar says
Celadon also cheated me out of pay ,Attended a trucking orentation for 4 days and never got paid for my time in Indiana.
steve says
Pieces of “S*#t!!!!” and that’s all Ihave to say about those big companies that could care less about the little guy. “Move the freight, Driver!!!! We appreciate you helping to fill our fat belly’s and our deep pockets!!!” Sorry Mother F###er’s!!!!
Allen says
The rich get richer and the poor get poorer!!!! As an o/o I stopped using fuel cards period. Its a hassle at times but you learn where to buy fuel and where not to. There are plenty of places that don’t charge you for using a credit card. And if you get a credit card that offers unlimited cash back on fuel purchases you save 9 to 11 cents a gal. on fuel. Then you don’t have to pay for using your company fuel card sometimes as much as 3.00 per use. So in the end you know exactly what you are gaining and you know for sure you are not lining the pockets of these company’s. One draw back is showers are not free, but what I found that works for me is just ask a fellow driver if he has a shower he would like to sell for 5.00? A driver is always willing to sell you a shower and you save 7.00. Most drivers will give you the shower for free. Another bonus is you save because these big companies like petro, flying j, loves, pilot, ta, always are quite a bit high per gal. than like a QT or a shell station, so you really save all the way around a little here a little there it really adds up. And then you just pay your credit card in full every couple of days and you pay no interest on the credit card. That’s how I do it works for me!
Allen says
Also you can write off showers on your taxes @12.00 per day. If you know what I mean!!!!
harddazeknight says
You normally have to have a receipt for whatever you expense… as I recall you don’t get a receipt for a shower earned by purchasing fuel. In reality though, you don’t have to have a receipt for amounts under $25; so just keeping a log showing what, when and where would be sufficient support on a tax return to justify an expense claim.
steve says
I get massive fuel discounts using my carrier’s fuel card. I paid $2.60 a gallon when the pump price was over $3.30. My carrier updates the TA/Petro fuel price on a spreadsheet daily.
Even if you get a rebate of $0.09 to $0.11, you have to subtract the $0.06 per gallon charge for using a credit card. OOIDA has a card that saves you $0.10 at most stops, except Pilot/Flying J. That is a savings of $0.16 per gallon.
IZ says
I have a Fleetone card thru NASTC. I am saving $.35-.80 a gal the last 3 mo.But you have to be an O/O wih your own authority to join NASTC, not just a lease op.
royce says
This is a surprise? Owner Operator -definition-a person (corporation) that is capable of handling all aspects of the trucking industry. Sometimes even producing what they load onto a truck (like a farmer) ie. Someone who has their own tractor , trailer, shop, authority , insurance, fuel tax arrangement, agreements with brokers AND their own brokers insurance.a corporation that is fully capable of acting like a bank in theory and in practice. Why? Because a legitimate owner op can and will play banker to gain contracts with other corporations.( Customers) Also, owner Operators understand the quarterly tax structure and annual tax structure and in most cases have developed a close , honest relationship with the IRS. Someone who buys a tractor from an owner operator is defined as an unschooled rube and really deserves all the bad they get. It is so backwards to buy a truck that way I feel the need to describe the relationship thusly- gee boss, I really like what you are doing. Can I buy a truck from you and with your guidance use what I learn to compete against you and someday destroy you? And the wise old soul in the bosses chair says “why certainly son, (rube) come right in and I will show you how that is done.” I realize this post will be unpopular with many of you rubes, and I dont care.
Kelly says
Roflmao, at someone who make a comment like this. I’ve only been trucking going on eight yrs. Over 6 as an O/O leased to same co this my 6th year. I bought my truck using 20% down and a bank loan. Paid off in 3 yrs. I dont use co card except at terminal where fuel is sometimes less expensive. I buy at places that have good fuel and are .17-50 less than major 4 chains. My credit rebates me 2% on all purchase and I pay off weekly.
Past 5 yrs I avg 188k revenue and 138k expenses of which my salary, my 401k, health ins, dental, vision for me my wife, all software for bookkeeping, taxes, vacation pay, eight paid holidays at 200.00 each. I pay my wife to file my federal, state, and do part of bookeeping. I contribute 18k per year 401k and fund a Roth. Still have 50k profits to pay taxes on and can can reduce by making higher profit sharing to 401. Oh and last year I had 5 weeks vacation and did 194k revenue and was home every weekend but 3. So yep being a rube as you say isnt good.
Im fortunate and loving every minute of it. Thanks to the hst r s and believers both!
robertt says
I work for truckmovers and we are forced to purchase fuel from pfj on international loads. Now i underdtand why.
Cliff Downing says
Now we know where Celedon got the money to make that large purchase of International Lonestar trucks. The type of truck alone should have raised a flag or two.
Jake Tysma says
I was a lease driver for Celadon awhile back and they did the same to me but as a driver there’s not much you can do. Celadon took more from me than just my fuel surcharge they took my home away from my family as well by giving out my information to the wrong people which in turn got me and my family booted out on the streets while I was out on the road with them, we are still trying to recover from that one but I sure hope Celadon gets what they have coming to them. There are far too many chief’s than there are Indians in this company and I am now out of trucking after 25 years of all this bullshit. Good luck you guys that are fighting in this case I hope they finally get what’s coming to them.
TWade says
Same type of theft as is being used against company drivers by not paying hub miles. I know Celedon, like most all other industry leaders, short their drivers pay by not paying hub miles and using their own formula for the distance from point A to point B.
C.N.I. Jack says
Professional drivers I got this treatment from Celadon, DART (Devil’s Alliance Robbing Truckers!), Paschall Truck Lines ( Pass The Lubricant!), CR England, Swift, Western Express… ad naseum! I finally found a good small lease purchase company in Eagan, MN- Minstar Transport Inc & Transport 21! We pay about .75 cents – $1.05 OFF CASH PRICE at T/A & Petro’s that are company locations – about 5% are franchises and are detailed on daily list sent to ALL DRIVERS by Kari and Kyle. I encourage any of u who would like to work for a straight forward company hauling primarily ATV’S and small Kubota tractors in special vans to go online and fill out either Minstar’s or Transport 21’s application. U just say CNI Jack sent u. Call me 205 789-2989 if u like I will and so will Minstar or Transport 21, tell u the exact truth of a fun career that gets better $$$ everyday u work and STAY! U WILL NEVER A PENNY STOLEN FROM YOUR PAY AGAIN!!!
Sincerely trucking in 2014 T700 Kenworth #4946.
CNI Jack
Bilbo Baggins says
Never trust a recruiter, whether talking or typing.
sudon't says
Here’s something I’ve always wondered about – how do companies get away with per diem skimming? You know, where companies like Celadon get you to take your per diem rebate each week, rather than at the end of the year, so it looks like you’re making more money, then skim a couple cents off the top. They’re essentially taking a tax benefit intended for the driver, and sticking it in their own pockets. How is this legal?
RACER says
My memory might wrong, but didn’t celedon get started from remnants of donco? I loved driving and wish it was ’84 again when I started later in life and will never understand the long range plans of companies who have to cheat people to stay in business. Karma is a reeel bitch when she shows up, it just seems their are times she shows up too late.
Infosaur says
I remember USA used to warn that any fuel thefts would be prosecuted.
I don’t work for USA but I have yet to have anyone ask for “a few extra gallons on the next row over”
(At this point if it did happen, I’d assume it was a PI).
Jason says
Do they really think moving it to a federal court is going to gain them anything? They treated their O/Os like garbage and got busted. Shut your mouths and pay up, Celadon.
Peter says
How much money they clear in a week in those companies? Im just curious. I work in local small company, run by european guys. Make around $3000-3500, if I run easy and over $4000 if I run hard. They provide trailer. So, Im happy without any discounts. Plus I believe only huge companies get nice discounts, small carries get 3-6 cents per gallon only
TR says
The only thing people will have to do is actually pull the plug on them. That’s pretty much it. Trust what I’m saying. If you are a company driver then that’s it,nothing else. Period. However get smarter by not standing for it by getting up and leaving them due to some type of arbitration. Stand in their way and they can’t walk into a court room with that attitude. Sometimes that’s what it takes. Do not be afraid of them. Keep in mind they can only go so far. Go over there and physically wreck them royally. What are afraid of?
Look: The world doesn’t change for anyone. I don’t care if your a woman,I don’t care if your a little baby, the world doesn’t change and evil doesn’t change out there. All those things we have to face don’t change:.Okay?
The only way we can teach anybody, is by being real, Alright?
There’s no favorites in it, there’s no women there’s no men, there’s no old people,there’s no young people, you come up for you. Everything’s the same.
Jason says
Just quit them and they still stealing from l/p.they need to be shut down.i left my truck at terminal and because it was after hours it was not considered to be turned in.
Chan Love says
If you are o/o running under someone else authority and pays for fuel out of pocket – Who gets the tax deductions? Is that a business expense if the business it not paying for it?
steve says
I want to know when they are gonna make the companys start paying ACTUAL miles driven . I was just a company driver but it seems to me that when im in Chicago and have to drive 30 miles to the other side of the city and it takes you 2 hrs cause of traffic then when you get your settlement it says Chicago to Chicago 0 mi 0$ you just worked 2 hrs for free. they know exactly how far you drive