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large financial resources.

Some companies, with big bankrolls,

which were given nationwide authority by the Commission, decided

to buy their way into the new markets with rate discounts ranging

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further on this vital issue because I know the carrier witnesses

intend to do so.


The Commission has refused to enforce the obligation of

a carrier to provide service to all shippers covered by its

operating authority.

In fact, the Commission has insisted on

granting carriers authority which applicants did not ask for and

which they do not have the ability or intention to serve.


you want service

particularly competitive service

for the

shippers and communities in your District, you had better tell

the ICC to enforce the common carrier obligation. Otherwise, the

carriers will provide only that service that is the most profitable

In passing the 1980 Act, you did not change the fitness test.


did not change the common carrier obligation.

But the ICC,

nevertheless has ignored both.

It has not been making and doesn't

intend to make carriers provide service to all who reasonably

demand it.

Our Union is convinced that the ten actions set forth below

are required to comply with the letter and the spirit of the Motor

Carrier Act of 1980.

The first eight points are to be taken by

the Commission; the ninth must be taken by the Secretary of

Transportation; and the tenth by Congress.

1. Before issuing a certificate authorizing motor carrier

service, the Commission should be certain that the applicant is

physically and financially able to provide service coextensive with the certificate of authority and has not violated the Commission's rules or DOT's safety and insurance regulations. The Commission should also require evidence that the proposed

service will serve a useful public service responsive to a public

demand or need.

In all of its actions, the Commission should

comply with the National Transportation Policy (Section 10101),

including its requirements to encourage fair wages and working

conditions; to enable carriers to earn adequate profits, attract

capital and maintain fair wages and working conditions.


The Commission should adopt a policy that carriers shall

be required to provide service on demand, coextensive with their certificate. As a corollary, the Commission should not issue a certificate to a carrier which exceeds the scope of that applied

for or which exceeds the applicant's ability to serve within

90 days after issuance of the certificate.


The Commission should commence and continue to monitor

the operations of carriers to make certain they are fulfilling

their common carrier obligation and are providing service to small


shippers and small communities in their service area. proceedings are needed as sanctions.

4. The Commission should adopt a policy statement requiring that rates published by carriers (a) must be at or above fully

distributed costs; and (b) shall not discriminate against any shipper within the scope of the carriers' certificate by affording

shippers in one area lower rates than those available to shippers

in another area.


Every decision of the Commission implementing the Motor

Carrier Act of 1980 explicitly shall consider and comply with

the admonition in Section 3 (a) that the Act is to be implemented

with the least amount of disruption to the transportation system.


The Commission should promptly ascertain and maintain on

a current basis the total costs of owner-operators whose se: vices

are used by regulated carriers in providing service to shippers.

These costs are required by Section 10701 to be included by the

Commission in determining adequate revenue levels and by the
National Transportation Policy (Section 10101). The Department

of Agriculture publishes such costs on a monthly basis for

owner-operators engaged in hauling agricultural commodities.


The Commission should implement Section 10527 by requiring

written contracts for the movement of exempt commodities.


Commission has declined to require such contracts even though it

has recognized in its fuel reimbursement program that owneroperators "are in a weak financial position and lack the bargaining

power to improve this position."

It was congressional recognition

of owner-operators' "weak bargaining position" that led to the

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The ICC and the Supreme Court held for more than 20 years

that single source leasing of an owner-operator and his equipment

constituted for-hire transportation requiring ICC authorization.

By a policy statement in February of this year, the Commission

overturned these decisions, stating that single source leasing

is now private carriage.

It assigned the Motor Carrier Act of 1980

as the reason for this radical departure from historic practice,

despite the fact that the 1980 Act did not change the definition

of private and for-hire carriage.

The Act thus provides no

authority for single source leasing.

The Commission action

transforming for-hire carriage to private carriage is contrary

to the Congressional Findings (Section 3(a) of the 1980 Act),

which direct the ICC not to exceed the power vested in it by the

Interstate Commerce Act and to implement the Act with the least

amount of disruption to the industry.

At a minimum, consistent

with its findings regarding the lack of bargaining power of owner-operators, the Commission should have required that single

source leasing contracts should be in writing so that shippers'

ability to exploit the "weak financial position" of owner-operators

would be thereby reduced.


The Secretary of Transportation should increase the amount

of insurance required for any vehicle to $750,000 and coordinate

with the ICC to see that there is strict compliance with this

reguirement prior to the issuance of a certificate or permit.


Department of Agriculture reported recently that owner-operators

are driving on an average between 15 and 16 hours per day.


Secretary is thus not adequately enforcing his regulation limiting


10 hours without rest.

Excessive driving hours and

accompanying fatigue are recognized as a primary cause of highway


Adequate insurance coverage and effective enforcement

of existing safety regulations, including checking of logs which

drivers must maintain, are minimum protections the Secretary can

afford the driving public.


The Teamsters Union requested inclusion in the 1980 Act

of an employee protection program.

The program was rejected with

the assurance that the Act would be so implemented that no dis

location of employees would result.

The Chairman of the House

Committee pointed out that oversight hearings are required each

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"If there is a lot of trouble, this Subcommittee

will respond as it has in the past."

Our studies show that

approximately 28 percent of our members engaged in general freight

In the light of these layoffs, the Congress should

are on layoff.

accord displaced employees income protection and priority re

employment status.

With me here today are Local Union and regional representatives

and our Economist, Norman Weintraub, who will address areas of

specific concern to the Union.

All of us will be pleased to

respond to any questions from the Subcommittee.


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