Will the ABC test cause over capacity?

Discussion in 'Ask An Owner Operator' started by Regional, Apr 7, 2021.

  1. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    ABC test legality has not yet been ruled on by the Ninth Circuit. Not holding my breath on them doing something right but they do surprise me every now and then.
     
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  3. Wespipes

    Wespipes Road Train Member

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    I agree with this. Most won't want to get their own authority or won't have the money for the insurance. So more freight will hit the spot market. Which will tighten capacity even more then it is now
     
  4. wore out

    wore out Numbered Classic

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    The pipeline companies I have worked for always gave the mechanics and welders 2 checks. 1 for the employee and 1 for the truck. We had to supply our own rig and tools. The truck check wasn’t taxed. The payroll check was. No reason this same system would not work for leased on trucks. Lease purchase may be different
     
  5. jamespmack

    jamespmack Road Train Member

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    Thats how it used to be. With reputable companies.
     
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  6. sealevel

    sealevel Road Train Member

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    I understand the thought process but it's dream land stuff. The government will never let capacity get so tight that prices of goods soar. They will just allow megas to import overseas drivers. Just look at the farming industry.
    It's a tax grab. You own a truck, should be able to put it to use how you see fit. There is enough over regulation to deal with already.
    If you want to crunch capacity mandate hair testing. At least that wouldn't be a money grab.
     
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  7. roadtech

    roadtech Medium Load Member

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    I think this is being pushed by the big unions like the teamsters. It’s no secret the teamsters are in bed with the Democrats and it’s pay back to the unions to push out more independents , 1099 companies out of Chicago , lease purchase etc . This will help level the playing field for all the union carriers like YRC , New Penn , UPS etc. Eliminating the independents flying under the authority of other carriers , 1099, lease purchase etc . It forces companies to have a more orthodox employee structures and make them more ripe for union organizing by big unions to increase their membership and increase the freight to union carriers by making the playing field more fair to them economically.
    This is what it looks like to me. I’m not anti union , I grew up in a union family , my fathers a retired teamster and I was a teamster many years ago . It has its good and bad like anything else , it just seems like this is a big part of what’s behind this.
     
  8. PoleCrusher

    PoleCrusher Road Train Member

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    Exactly. It's all about money. The tax code is so complex because it's about control. The more government can control the citizens, the more power it has. It controls through the tax code.

    More control = more power = more taxes = more control.

    Although, last I read, at the federal level it was decided not to use the ABC test. That was last year though, maybe something has changed?

    AFAIK, only CA and NJ are pushing the ABC test, and CA is stuck in judicial limbo.
     
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  9. Cattleman84

    Cattleman84 Road Train Member

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    But unions are not prevelant in many areas of the country... I believe there are even a few states where unions are either illegal or severely limited.
     
  10. PoleCrusher

    PoleCrusher Road Train Member

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    L/P is easy. Set up a different company which owns and leases the trucks. Some companies have already done so. Its a slightly better situation, because separation can be created between the l/p company, and the trucking company, even though they're still under the same roof. Then the contract with the carrier is the same as with any other leased on o/o.

    This whole thing got started imo because a bunch of guys in CA went and bought trucks when they had no money, signed on to haul the cheapest freight there is, in one of the most expensive regions in the country to operate in. Then when they fell on their face, they cried to the labor board in CA about how they'd been mistreated. No way was it a series of stupid moves on their part, it had to be those evil trucking companies taking advantage.
     
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  11. roadtech

    roadtech Medium Load Member

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    There’s unions in every state in the country , more so in some states , but in every state. It’s illegal to stop people from unionizing. Some states are “ right to work states. “ . That means you do not have to join a particular union to be able to work in a particular trade or profession , but every state has unions. As I said , I’m not pro or anti union , there’s good and bad in everything.
     
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