Donna Ryun
OOIDA Information Services
Lots of good questions from truckers came across my desk this past year, and I was pleased to be able to answer many of them in this column. I'm looking forward to your questions in 2006, so please keep them coming.
However, in this month's column, I thought it would be helpful to do a review of the most frequently asked questions in 2005, so here's the countdown beginning with ...
No. 10: I'm an OOIDA member, but I don't always get the member's
edition of Land Line Magazine. I get the
regular issue instead. Why?
Answer: The special Member Supplement is only published quarterly,
while Land Line is published nine times a year. So on an annual basis, only
four issues include the Member Supplement.
No. 9: How can I be sure that a broker is paying me the percentage that
was agreed upon?
Answer: Under Title 49 CFR 371.3 "Records to be kept by brokers," subsection C says each party to a brokered transaction has the right to review
the record of the transaction required to be kept by these rules."
Requesting this information after you haul the first load for a new
broker is a strong tool to use. However, note that only the parties involved in
a deal have the right to see the documents. If you are leased to a company, you
are not a party in the deal, and therefore the request for documents must come
from the company.
Whether the load was flat rated or a percentage, the regulation still
gives you the right to review the record.
If the broker refuses to cooperate, it is enforceable under private
right of action, Federal law 49 USC 14704 (a), and 14707. This rule will allow
you to obtain a court order requiring brokers to comply with regulations.
In the event you have to go to court to get this information, private
right of action also allows a court to award reasonable attorney's fees as part
of the costs of the action.
No. 8: I'm an employee driver. Can I join OOIDA?
Answer: We welcome employee drivers. OOIDA represents the interests of
independent owner-operators and professional drivers on all issues that affect
truckers, and we appreciate the support of both groups.
Although we're very pleased to be able to offer all of our members the
programs and services that we've put together, we realize that the need for
them is much greater for those who own their own equipment than for employee
drivers.
However, keep in mind that the
real purpose and benefit of the Association is the representation we provide
before state and federal governments. All drivers can benefit substantially
from OOIDA's representation.
No. 7: Is OOIDA going to organize a strike to protest fuel prices?
Answer: Because of anti-trust laws, OOIDA cannot organize a strike
without risking criminal penalties and/or civil lawsuits.
Although the Association
cannot call for or support a strike or shutdown, individual truckers can
certainly withhold their services when inadequate revenues or other
circumstances make it unprofitable for them to continue to operate. OOIDA's
mission is to support its members, whether they are running or not.
Running compliant and leaving cheap freight sitting on the docks is
more effective than a strike or protest. Truckers should spread the word about
OOIDA and encourage other drivers to join. If we could get more truckers to
join OOIDA, our strength and resources would increase proportionately and so
would our ability to gain the clout we need to make changes for the better.
No. 6: Can the company that I lease to refuse to pay me until they get
paid?
Answer: No. Leasing regulations require motor carriers to pay leased
owner-operators within 15 days after submission of the necessary paperwork,
regardless whether the carrier has been paid. This regulation can be found in
part 376.12 (f) in the FMCSRs.
No. 5: What is OOIDA going to do about lowering fuel prices?
Answer: This is a tough one. We'd like to be able to tell you that we
can quickly end the suffering for all those small-business truckers who are
struggling to stay afloat, but unfortunately, there's no easy fix.
The fact is, the only people who can lower fuel prices are the people
who sell it. And right now they have no incentive to lower prices.
Global demand for diesel has risen substantially, and refiners are
selling to the highest bidders. Developing countries like China have increased
the demand for diesel to run their plants, and even some U.S. refiners are
sending their product there because they can get higher prices.
This, in turn, lowers supplies here in the United States and causes
higher prices for us. The damage to refineries caused by recent hurricanes
along the Gulf Coast has also contributed to the supply problem.
While it's true that oil companies are raking in the dough right now
with reports of obscene profits, they are not necessarily violating any laws.
Truckers must turn their focus toward finding ways to offset increased fuel
costs, and OOIDA will continue to push for legislation that will help them do
this.
Meanwhile, truckers can help themselves by taking back some of the
control they have lost by allowing shippers and brokers to set the rates for
them. Truckers can - and should - set their own rates by knowing their cost of
operation, determining their break-even point, and charging a rate that will
allow them to make a profit for their business.
If a load is not profitable, don't haul it! If all truckers refuse to
haul for low rates, shippers, motor carriers and brokers will be forced to pay
higher prices in order to get their freight moved.
No. 4: What is the per diem rate for meals?
Answer: In 2005, it was 70 percent of $41. In 2006, it will be 75
percent of $52 per day, according to the folks at PBS Tax and Bookkeeping
Services, who write the "Tax Tips" column for Land Line.
No. 3: How can I get a copy of my DAC report?
Answer: You are entitled to request disclosure of the contents of your
DAC file, and DAC is required to respond within 15 days. This includes both
owner-operators and company drivers.
Drivers wishing to obtain a copy of employment information previous
employers have stored on them may send a copy of their driver's license and
Social Security card to:
USIS Transportation Services
Consumer Department
PO Box 33181
Tulsa, OK 74153
Or you can visit usis.com/commercialservices/transportation/ContactUs.htm on the Internet. You'll need to provide your home address and telephone number along with all correspondence. Keep a copy of your request for your own files.
No. 2: Where can I get a copy of the Federal Leasing Regulations?
Answer: Simple. You can obtain a copy of the leasing regulations by
calling OOIDA toll free at 1-800-444-5791, or send requests via e-mail to
leasingregs@ooida.com. Or you can download a PDF version of the regulations by
visiting the Association's Web site at ooida.com and clicking on "Regulatory
Action" on the left-hand side of the Web page. Then click on the document
titled "DOT Leasing Regulations."
And the No. 1 top 10 FAQ for 2005 is .
No. 1: Is there a law that requires companies to pay a fuel surcharge,
and can the company keep a portion of it?
Answer: There is currently no law that requires the payment of fuel
surcharges, and there is no law that requires companies to pass any fuel
surcharges they collect through to the cost bearer.
OOIDA has tried for several years to get such a law passed, but
Congress has not done so. We think it's stealing for any company to retain fuel
surcharges that are meant to help the cost bearer to recoup expenses for the
extra fuel costs, but many do just that.
We encourage truckers to ask
for a fuel surcharge and have the terms of it written into their leases or
contracts. All collected fuel surcharges should go to the person who pays for
the fuel, and truckers should speak up if 100 percent is not being passed
through.
Visit our Web site at
ooida.com for information on how to implement a fuel surcharge. Scroll down to
the bottom of the page under the heading "Swimming with Sharks" and click on
the line that says "More Swimming With Sharks." Then click on the headline that
says "Small business owner-operators: JUST DO IT How to implement a fuel surcharge."
Those readers who do have web access are always welcome to call OOIDA toll-free
at 1-800-444-5791 for assistance.
And there you have it - the top 10 FAQs for 2005.
We're ready for 2006, so if you have questions about doing business as an owner-operator and/or an independent driver, please e-mail them to donna_ryun@ooida.com or send themto PO Box 1000, Grain Valley, MO 64029. We can't publish all of your questions in Land Line, but you will receive a response, even if your letter is not published.