The Roemer Report On-Line, December, 2002

SAFETY PAYS: When it comes to safety, some trucking segments do better than others. The federal government, in the midst of a large study, has found that produce haulers and cold food fleets have the worst safety records. The safest on average were found to be less-than-truckload and tank haulers. Why the disparity? A key factor determining safety is driver pay, say safety experts. Produce haulers are some of the lowest paid in the industry, while LTL truckers are some of the highest paid, says transportation expert Michael Belzer. In his own studies, Belzer found that companies with higher pay scales tend to have lower incident rates because they are better able to attract and keep good drivers. “Higher pay reduces turnover and increases age and experience,” says Belzer. “It becomes worth driving more carefully for many drivers because the job is better than it was before.” Conversely, drivers who earn little and are paid by the mile must drive farther to make more money and may feel the need to speed or drive over their hours. But “those companies that don’t pay as much can still be safe,” contends one expert. “They just have to have much better management in place.” Meanwhile, Belzer is wrapping up a study, which suggests that a 10 percent increase in base pay can reduce a fleet’s crash probability by as much as 34 percent. Pay increases have other benefits. Belzer says drivers become more efficient, logging more miles per driver, turnover rates drop, and fleets attract drivers who are married, older, and more stable.

CARGO THEFT RISING: Cargo theft costs the transportation industry
$10 billion to $15 billion or more each year, compared to just $1 billion in 1977. Trucks are one of the favorite targets of organized cargo crime rings because cargo theft is lucrative with a low risk of violence and jail time. One group estimates that motor carriers experience 85 percent of all cargo theft. Most theft occurs in terminals, transfer facilities, and consolidation areas. Criminal activity is especially high around cities and ports, with Los Angeles, Miami, New York, and New Jersey being hit especially hard. An estimated 80 percent or more of theft involves inside collaborators—truck drivers, dock workers, private security guards—who identify trucks carrying preferred cargo, which typically includes electronic goods, designer clothes, and cigarettes. Other criminals target any truck and then demand money from the company that owns the truck. If the company doesn’t pay, the thief torches the rig. Police, insurers, and those in the trucking industry say the problem is growing and may be even bigger than estimated since losses frequently go unreported. Carriers worry about losing business and increased insurance rates if their actual losses are known. One FBI agent says law enforcement can do only so much to stop the problem; the transportation industry itself must do more. Large companies can afford to hire former FBI agents and to purchase electronic communication equipment to monitor trucks in transit. But small companies typically lack the resources for these costly measures. As for shippers, they try to limit their losses by contracting with carriers that have security measures in place. They also insist the carriers assume responsibility for any loss.

TRACKING PACKAGES FOR SECURITY: Existing technology for tracking packages someday may be used to minimize the threat of terrorists tampering with containers. Recently, law enforcement agencies monitored and tracked a container from Slovakia through Europe, via ship to Montreal, then by truck to New Hampshire. The experiment set out to show that containers can be loaded in trusted locations overseas and remain sealed until reaching their final destination. “We want to arrive at some standards about how we can develop security within the supply chain,” said an expert working on the experiment. “The goal is to identify standards that can be applied (with) minimal disruption and in some cases can enhance security.” The test involves outfitting a container with a computerized tracking system similar to one used by express-mail providers. The system allows border officials and companies to compare the distance traveled with the amount of time elapsed. Discrepancies could suggest the container was diverted by unauthorized people. Another sensor monitors light and temperature levels inside the container. Any changes in the data would suggest someone had tampered with the in-transit package. To date, the system is bulky and energy inefficient, but a California laboratory in conjunction with the Transportation Security Administration are working on a more efficient version that they hope may soon be used routinely.

HIGH COURT SIDES WITH YELLOW: Yellow Transportation Inc. won its Supreme Court case against the state of Michigan relating to Single State Registration System (SSRS) fees. Yellow argued that the state was overcharging truckers who use state roads. The justices unanimously agreed with Yellow and overturned a previous decision by the Michigan Supreme Court. Justice Sandra Day O’Connor said that the state of Michigan had violated the 1991 U.S. law requiring SSRS fees to be frozen at the 1991 level. Michigan argued that it did not increase its fees, rather it changed its agreements with other states to determine how fees were set. The Court found that allowing Michigan or any other state to ignore preexisting agreements could “substantially increase the financial burden on interstate motor carriers.” Critics of Michigan’s fee system said that it could have cost the trucking industry an extra $150 million in annual fees had it been adopted by other states.

TRUCKERS NOT AT GREATER RISK FOR SLEEP APNEA: A 1995 study reported that truckers were at a far greater risk for sleep apnea than the general population. And since then, those in trucking considered it a universal truth. But that long-held belief has been debunked by a new federal study that finds the percentage of CDL holders with sleep apnea actually reflects percentages among the general population. The study found that of truckers surveyed, 17.6 percent had mild sleep apnea, 5.8 percent had moderate sleep apnea, and 4.7 percent had severe apnea. These results do not vary from the general population. The 1995 study erroneously reported that 78 percent of CDL holders suffer from mild sleep apnea. Sleep apnea occurs when the throat’s upper airway passages narrow or close, causing the sleeper to stop breathing momentarily and switch to a less restful stage of sleep. The person usually snores loudly, experiences labored breathing, and feels tired and worn out upon waking.

R-E-S-P-E-C-T: A little respect can go a long way in the workforce, particularly when it comes to employee lawsuits. In fact, lack of respect is the underlying cause for most discrimination lawsuits filed by employees today. While the five most common grounds for discrimination lawsuits are race, gender, disability, sexual harassment, and age, lack of respect underscores most of these complaints. Experts say constant praise and ideas for work improvement can go a long way toward reducing the number of discrimination lawsuits. To avoid having employees feeling blindsided at annual reviews, managers should offer daily feedback. By offering continuous feedback, management reduces the risk of an employee arguing that no one told him that his performance was below par. To further avoid discrimination lawsuits, businesses should thoroughly train their supervisors and managers on how to document incident reports. The training should emphasize the need to respond to employees within 24 to 48 hours after an initial complaint has been made. All conversations should be documented for possible discrimination cases in the future. And if you must terminate a worker, be honest about your reasons. For example, don’t tell an employee her position has been eliminated due to downsizing if you plan to hire someone in her place. Doing so could be grounds for a future lawsuit. Experts say organizations should concentrate on compensating productive employees, rather than compensating unproductive employees in a discrimination lawsuit.

JOYFUL WORK: How many people wake up each morning begrudgingly, less than anxious to begin a new workday? Unfortunately, the answer is probably millions. Yet work does not have to equal stress, boredom, and burnout. Here are some simple ways you can bring joy into everyday work: (1) Make it playful. Our jobs may be serious, but that doesn’t mean each moment must be spent without a smile. Make the workplace more livable by being more playful and fun. (2) Brighten someone’s day. Some of the greatest joy comes from doing good for others. Whether it’s your coworkers or your customers, take time each day to make their day more joyful. It can be a simple thank you, a bouquet of flowers, or donuts for the entire department. The end result will be the same—both you and the recipient will feel more joyful. (3) Choose to be happy. If we can choose to be disgruntled or angry, we can also choose to be happy. It may sound overly simplistic, but choosing to begin your workday with a positive attitude will go a long way to making everyone’s day more enjoyable. (4) Commit yourself. Are you committed to a paycheck or to the vision and mission of those you work with? Share your mission and visions with others. It will help others feel inspired as well.

Wishing you a safe and joyful holiday season and a prosperous New Year—From all of us at Roemer Insurance