[170511.EN.LAN] Shipper Coalition Blasts California Bill To Ban Independent Harbour Truckers

AMERICA's National Retail Federation, the National Shippers Strategic Transportation Council and the American Association of Exporters and Importers have formed a coalition to oppose a California bill to rid the state of independent truckers by making them employees liable to unionisation and greater taxation.

"This bill reaches too far in eliminating a class of drivers and small businesses that represent the dominant model for the drayage industry. Elimination is a one-size-fits-all approach in a highly variable industry," said the shipper coalition statement.

"To impose an employee driver mandate on the companies who arrange for drayage services is simply not consistent with reality of port activity and places California ports at another financial disadvantage to other North American ports," it said.

The bill would make drayage truck operators employees of the entity or person who arranges for or engages the services of the operator, is now being opposed by 30 shipper organisations.

In a letter, the groups say the law would eliminate a flexible workforce and put California ports at a disadvantage when competing for cargo.

They say Assembly Bill 950, introduced by Assemblymen John Perez and Sandre Swanson in February, "would eliminate the jobs and rights of owner-operators to conduct business at California's ports", reports American Shipper.

The bill, favoured by the trade unions, notably the Teamsters, and environmentalists, particularly, the Coalition for Clean & Safe Ports, has cleared the California state assembly's Labour and Employment Committee and is ready for a full assembly vote.

"Container activity at the ports varies daily by as much as 30 per cent and annually such activity is closely tied to state, national and international economic conditions. Owner-operators provide necessary capacity and flexibility to meet the varying demands of port drayage," the letter said.

The letter also declared that the bill "is pre-empted by federal law. Federal law prohibits states from taking actions that impact the rates, routes, or services of trucking companies absent qualification under a specified 'safety exception.'"

Source : HKSG, 17.05.11.