New law prompting companies to move full-time to part-time?

Discussion in 'Trucking Industry Regulations' started by windsmith, Mar 23, 2013.

  1. Roadmedic

    Roadmedic Road Train Member

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    This is bordering on political issues.

    I cannot respond without crossing the line.
     
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  3. SheepDog

    SheepDog Road Train Member

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    I hear you Roadmedic... have a great night and be safe out there...
     
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  4. snafu

    snafu Light Load Member

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    Ya and Jesus was a healer, a provider of universal health care, a man of compassion who treated those with preexisting medical conditions....

    What was it he said.... "Come unto me all that are weary and heavy laden and I will refresh you..." or something like that.....

    How dare he provide universal health care to all.... didn't he know those lazy peasants back then should be healing themselves...



    #### him too eh?


    /sarcasm
     
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  5. Roadmedic

    Roadmedic Road Train Member

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  6. Trade50

    Trade50 Bobtail Member

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    The "part-time" designation is 28hrs per week. Drivers will always work more then the 28hrs, however, there will be a big push by the companies to go lease. The lease makes the owner-operator responsible for all benefits(health,life, dental, etc.) Ex. DHE advertised in the Sacramento Bee almost every week for owner-operators as well as company drivers. Now the add only refers to owner operators. This started about a month ago, there have been no adds for company drivers. Bottom line: due to Obama-scare many companies will want owner-operators.
     
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  7. Roadmedic

    Roadmedic Road Train Member

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    Spend some time and review the history of the lease owners.

    This has been a growing industry for many years.

    It passes the cost of the truck operating out of their hands to others.
    It removes the employee from their operating expense.
    It removes employee benefits.

    It has not been the result of recent health care rulings. This has been a goal of many business entities for years.

    In the private sector, non trucking, they do the same. One of the reasons the IRS is now targeting 1099 earnings for any worker. This includes the owner of a truck that is leased to the company.
     
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  8. windsmith

    windsmith Road Train Member

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    The way I envision that a lease should be structured is that the lessor should guarantee the lessee a flat rate 'floor' that covers their fixed expenses plus a fair wage and profit margin for their business. THEN a per-mile rate should be established that covers running expenses.

    The company gets the benefit of not having employees on the books, but still requires them to assume the business risks - as it should be, since they will also be enjoying any rewards.
     
  9. volvodriver01

    volvodriver01 Road Train Member

    Maybe it will thin the herd eventually by companies pushing to get rid of company drivers and make them all lease ops. With today's crop of steering wheel holders they would fail miserably and then the real professional owner ops could reap the rewards. Company's are happy as they are pocketing the money instead of paying for Bennies and owner ops are happy with better paying freight with the less business minded drivers out. :biggrin_25525: I know its a little wishful thinking on my behalf. :biggrin_25526:
     
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  10. Trade50

    Trade50 Bobtail Member

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    Your entire post is correct.

    The trucking industry in particular has not provided or contributed to the employee benefits for drivers as the majority of employer's in this country. The health care act places the responsibility for those employer's who have 50 employees or more to contribute the majority of the cost for the employee (I think 60% of the monthly cost) or pay a "tax/fine" of $2000.00 to the IRS per employee per year.


    Since the trucking companies are not currently contributing the majority of the cost and in some cases none of the cost as soon as 1/1/ 14
    arrives those companies will have much more to pay then currently (this is also the situation for many medium to large employeers).

    It appears that the only way for a medium to large employeer to escape the cost (especially trucking companies) is to hire employee's that will work part-time (28hrs or less per week).

    Leasing/owner-operators has been a trend in the trucking industry for years. The patient care act places Leasing/Owner-operator in the fore-front of priorities regarding benefits.

    The trend in the near future could be that trucking companies move to a "per diem" payment where the driver is paid by the day or load and become a 1099 contractor. The "per diem" would be a somewhat easy fix (for the trucking company) to Obamacare. I would hope this is not the case; however, the warning to the drivers is to be aware of this potential practice.
     
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  11. chalupa

    chalupa Road Train Member

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    I thought P/T was 38 hrs..........anybody?
     
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