The DC's require lumpers for one reason: profits. It's an accounting shell game that looks good to the stockholders. In any operation, payroll is one of the highest expenses; in warehousing it's the highest. DC's found that they could cut their personnel by 75% by merely requiring truckers to unload their own trucks. They still pay for unloading, but using the roundabout way it shows up invisibly in product cost, instead of the in-your-face warehouse expenditure. In the old days, if you wanted to hire a lumper, there was generally a crowd of 20-30 people outside the gate that would swarm your truck as you pulled in, wanting you to hire them; you could take your choice at a competitive price. But insurance wouldn't cover them, and some trucking companies and brokers wouldn't reimburse for that type of lumping provider. Add the crackdown on paperwork requirements for hiring casual labor, and the liability for doing so that nobody wants, you can see why grabbing anybody off the street went the way of the dodo. So now most DC's contract with a lumper service company, who provides documented, insured workers, who work for a wage paid by the lumper company. Naturally, because now you have a middleman, costs go up. The DC's generally only allow one company on their dock, limiting competition and keeping profits high for the lumper companies, who generally pay low wages and a stipend for use of the dock and equipment owned by the DC, pocketing the rest. Nice racket. Personally, I applaud the high lumper costs. I don't have to pay them myself, I just call and get a Comchek. The shippers bear the final cost, which they simply factor into the prices they charge the receiver. Yeah, bread will eventually be $14 a loaf, but it's ok because I arrange my own cost of living increases. It all works.
Lumpers - are they needed
Discussion in 'Shippers & Receivers - Good or Bad' started by Aussie, Jul 18, 2006.
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OK....I know I am new. In fact haven't even started driving yet. Start with Roehl in May. If I am way off base i know you all will be more then happy to correct me, but how did this Lumper BS ever get started?
I am company A.....I need materials to run MY business and make ME MONEY. I buy materials from company B. I don't have a way to get the materials from company B so I hire a trucking company to trasport MY materials to ME so I can make MONEY. The trucking company delivers the Materials. Now this is where I get lost.....The Driver has to pay someone to unload My materials that I need to make ME MONEY. Even though I hired a "shipping and Receiving Crew" to ship and RECEIVE.
I know it would never happen, but i would love for it to go more like this....... We fullfilled our commitment to get you..... your stuff on time PAY US!!! You have two hours to get your materials to make you money off MY TRUCK or I take it with me when I leave. -
Large warehouses such as Food Lion, Giant, CVS, etc. have no desire to hire additional workers and pay for benefits, overtime, workers comp etc. It is extremely competitive now a days and these companies elected to eliminate as much dead weight as possible (meaning employees). So what you have now is an understaffed receiving dock and require the truck driver to unload the freight themselves or hire an "independant contractor" (re lumper).
In many cases the truck drivers have no desire to unload the product so the "lumper service" steps in. The lumper service will sign a contract with the trucker to unload the trailer for a set fee. The trucker either agrees or does the job himself (years ago it was negotiable but this is no longer the case).
Since OSHA stepped in and insurance companies have cracked down on potential lawsuits from drivers hurting themselves on the receiving dock, drivers are not permitted to use any of the power equipment such as electric pallet jacks, hi/lo's for trucks, clamp trucks, etc. Instead they are permitted to use a manual handjack and thats it. Of course the "lumpers" have all been trained on the company equipment and have the requisite certification to operate those (complicated) machines! (LOL)
In many cases company drivers only get 50 to 75 dollars to unload a trailer themselves while the drivers employer will actually pay that lumper 3 or 4 times that amount.
At least you will not get injured (as in dropping a pallet on your foot, or straining a muscle) and will be able to drive after you are empty without being all sweaty and irritable. If you were smart you got a nap while waiting. -
Sometimes, like in the case of some large food warehouses, it is written in the contract that the carrier will unload their own load (driver) or use a lumper service at their discretion. This is not true of all the contracts that particular warehouse has, in some situations the warehouse will unload the freight. It all comes down to money and time.
Sometime times the warehouse specifies a certain lumper service, and only that service can be used. -
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I currently work in shipping and receiving soon to be truck driver if everything works out for me. I have to agree above about us being over worked and low on man power. We receive maybe 20-25 trucks a day from 1 pallet on the truck to 24 pallets on the truck. We have 3 people total. We had lumpers but we sneaked them in but the VP of operations found out and we no longer have them so we ask the drivers to help out or expect a longer wait time. I hate doing this. I know some pallets need broken down just for the simple fact that its impossible to count. But my company wants thing seperated by department location. This to me is the companys problem not the drivers problem but they make me make the drivers do it. I hate to ask them and most will come in and help and others dont. I dont really blame them. 7 out of 10 times I break down the pallets myself and get #####ed at instead of asking the drivers BECAUSE when it comes down to it its not their problem. I tryed telling my manager that but he doesnt understand. But alot of companys including the one like mine cheat the truck drivers in making them break down pallets like it is there responsibility when its not thats where lumper scam comes in if you ask me. Its basically one big scam.
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Personally, I think the Mafia started it. I consider it to be extortion, but then I'm a company driver so I'm only indirectly affected by it.
A couple of years ago I ordered a Lincoln welder, and they charged me $75 for a lift-gate truck (on top of normal shipping) to offload it from the trailer. I should have charged them a lumper fee to offset that charge. -
Walmart charged me $50 to unload a DROP N HOOK trl last week. explain that one!! lol
they would not give me an empty untill I gave them $50, that was a first for me. lus is was only 8 pallets and all gallon jugs of apple juice, there was no hand work needed -
Next I suppose they'll be charging an "Air Displacement Fee" based upon the size of the trailer. I understand there are some yards (such as Hunt's Point) at which you have to PAY TO ENTER THE YARD. Talk about a racket.
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Years ago, grocery warehouses that required drivers to unload had lumpers that waited outside the gate to unload trailers. Some were very cut throat, outsiders were run off or charged a percentage of the work they got from drivers. Now most of these warehouses have a lumper service, some are regular employees working on their own time for extra money, most are a lumper service that has a deal with the warehouse. For a fee the service will unload your trailer, usually with a fork lift and clamp truck, break down and secregate the product.
Most places that are not grocery warehouses will unload the product themselves.
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