What do you think mandatory detention pay would do to owner operators

Discussion in 'Ask An Owner Operator' started by BAYOU, May 30, 2014.

  1. BAYOU

    BAYOU Road Train Member

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    Just got through reading this article and my blood pressure went through the roof!!!! Though the provision for reforming driver compensation practices by requiring carriers to pay a minimum hourly wage for driver detention was not included in the first Congressional draft of a highway bill out of the chute, following the Obama administration’s nod to the notion in its own draft bill language, debate has intensified among owner-operators and small fleet owners over just whether the federal government ought to be involved in detention at all. Commenting over on the Overdrive’s Trucking Pro LinkedIn group and highlighted in part in this piece, owner-operator William McKelvie worried that a mandate for a minimum wage for detention would cut down the considerably higher rates he’s already getting, as did others like Chattanooga, Tenn.-based small fleet owner Michael Goodman. “ I suggest that any carrier who continually allows shippers to use their trucks to sit without proper compensation should stop doing business with those shippers,” Goodman wrote. ”That would have more impact than anything the feds can do. I don’t need or want the government to get more involved in my business. All it would do is cost carriers revenue and expand an already bloated government agency. That will result in yet another tax to pay for the oversight.


    In some ways mirroring such viewpoints over on the Team Run Smart site was Overdrive 2007 Owner-Operator of the Year Henry Albert, longtime independent and former small fleet owner. In this blog post, Albert makes a nuanced argument for detention’s current status as a business decision. He describes, like Goodman, making the decision to not do business with a shipper after getting hit by long, inadquately compensated load/unload periods:

    He was responding there in part to owner-operator Jeff Clark, who is on the contrary passionate about the need for a mandated minimum in detention pay, regardless of market forces. Read his full “Case for mandatory detention pay” here, which in part stems from the notion that “when something of value is free it will eventually be wasted. When anything of value is wasted, overall efficiency is sacrificed.”
    Asked to respond to criticism from other operators on grounds that putting the mandate for detention pay on carriers just adds another stress to small businesses in an already over-regulated/stressed environment, Clark acknowledges the “controversial” nature of his stand. “It is the nature of the trucker to want to be left alone,” he says, to see “all government regulation” as a negative. “We are used to government regulating against us.”


    But, he adds, the current state of affairs on detention “harms small-business truckers more than the mega-carriers. The small-business trucker is more apt to deal with a shipper one time. If that shipper detains that driver a long time it is difficult for that driver to collect detention. Making it a civil penalty to not pay detention would make it easier to collect. The small-business trucker may never go back [to the shipper] again. I wouldn’t. The problem for us small-business truckers is the number of small-business truckers. A bad shipper has enough carriers to use a different carrier every day for eternity.”

    I'm sorry but I get $50 $75or even $100/ hour some times depending on the customer, I will not sit in a pipe yard for $7.50 an hour I burn that in fuel alone. Here we go again one size fits all approach! Could you imagine sitting at a customer for 10 hours only to be compensated $75.... What about potential? What about layover pay? I get $350-$500 just for that but customers are going to say why should we pay that much when you can sit here all day long for $75? This is just crazy I don't know what to say......




    ....... http://www.overdriveonline.com/the-...05-30-2014&utm_campaign=OVD&ust_id=6698c59a10
     
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  3. chalupa

    chalupa Road Train Member

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    This would apply to the driver or the truck? I make like you do but give 2 free on the front end. Truck gets 48.75 with 2 free because it's not billable. ( contract )

    tks..
     
  4. gokiddogo

    gokiddogo Road Train Member

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    What business does the government have telling ANY customer how they are going to pay YOU THE CARRIER as to freight rates?? Maybe the gov can demand THE CARRIER pay THE DRIVER ... but then we have the exact same argument, if the driver finds he is wasting his time and the carrier isn't paying for it, he will either demand payment or not work for the carrier anymore. It will sort itself out.

    Why can't the US government just F.O. already????
     
  5. BAYOU

    BAYOU Road Train Member

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    I do the same thing two hours on each end even brokers I charge $50/hour over two some will pay I t some won't but if they don't pay I will never fall for them again.
     
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  6. EZX1100

    EZX1100 Road Train Member

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    well, the solution is communication

    if there were some kiind of "angies list" for drivers, it would help

    but communication without organization is a waste of time and unfortunately, drivers refuse to be organized

    so these shippers can screw over 10 drivers a day and with an unlimited supply of drivers it wont affect them at all

    but.............having the government involved is like inviting dracula into your home
     
  7. thelushlarry

    thelushlarry Road Train Member

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  8. Stile

    Stile Heavy Load Member

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    This is an easy problem to fix... make a service similar to DAC, but for shippers/receivers.

    Make reputation mean something again.
     
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  9. Stile

    Stile Heavy Load Member

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    If there was an "O/O DAC", it'd be easy to tell which owner ops used it and which ones didn't by comparing their bottom lines.

    Let the idiots weed themselves out, and the savvy business people will thrive.
     
  10. blessedman

    blessedman Light Load Member

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    I do NOT want the government getting involved more than they already are.

    If shippers and receivers are required by law to pay detention then all loads will be required to deliver by appointment only. This would slow down things a lot.

    I try to book loads that do not require appointments when possible. Most of the time I am in and out of the shipper/receiver in one to two hours, sometimes less.

    I can arrive when it works best for maximizing my schedule without wasting time waiting for my appointment.

    Of course I call the receiver well beforehand to let them know when I will arrive and work with them if there is a need for scheduling.

    This works much better than appointments. Most of my loads are direct with the shipper. It gets to be a lot more of a problem when dealing with a broker. Many times they will tell me there is no appointment needed when there is or require an appointment when the shipper/receiver does not.
     
  11. Foxcover

    Foxcover Medium Load Member

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    We charge $100 per hour after the first two at loading or unloading. If it's a local short distance load it's after the first hour at both ends. I have started to make brokers put these conditions on their rate conformation. After agreeing this on the phone, brokers will still usually send the rate conformation without the detention terms but I simply call or email them back and tell them that without ALL terms on the rate conformation I can't secure the truck for them. Some return the rate confirmation right away with the detention terms on it and others will play dumb and call my office at the last minute saying "I didn't receive the signed rate confirmation back from you, please send ASAP", hoping someone at our office will send it without checking. I simply tell them sorry, I made my terms clear, I may need to re-evaluate the original price as I'm spending too much time playing your game at this point. That gets their attention real fast!
    Some would say that I shouldn't be as harsh on a broker incase they didn't use me again but I don't see it this way. I say, don't sell yourself short, a trucker can survive and in most cases do better without a broker, the broker on the other hand has nothing if they don't have a trucker willing to haul for them! Brokers don't move America, Truckers do! Too many truckers out there don't realize that.

     
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