Posts Tagged “Teamsters”
Is the Mexican truck border program falling apart? If so, that would be music 
to the ears of many, if not the majority in the trucking industry. On the other hand, produce shippers and others will not be too happy.
As reported here on August 23rd, a federal audit would be coming soon on the cross-border pilot program involving Mexican based trucking companies being allowed to operate in the USA.
The Federal Motor Carrier Safety Administration estimated that 46 Mexican carriers would participate in the three-year pilot program. The feds were planning to conduct 4,100 inspections during this time. However, only four Mexican trucking companies have participated, involving only four trucks and five drivers. A total of 89 inspections have been conducted by the FMCSA. Ouch!
The controverisal program has created some strange bedfellows in trucking. For example the Owner-Operators Independent Drivers Association (OOIDA) and the International Brotherhood of Teamsters seldom agree on much of anything. However, they’ve tightly held hands fighting this issue based around fears that a flood of Mexican trucks in the USA will drive down freight rates, many of which are not much different from 20 years ago. There also are concerns by owner operators over safety issues with Mexican equipment and lack of training among Mexican drivers.
Meanwhile produce shippers and others favoring Mexican trucking access to USA markets like the idea of greater competition leading to lower freight rates.
If the pilot program falls apart, with few Mexican trucking companies interested in participating, some produce shippers are concerned the Mexican government will re-implement tariffs of everything from apples to pears and potatoes – with some tariffs being as high as 20 percent.
The North American Free Trade Agreement (NAFTA), under which this pilot program is operating, requires the USA to permit cross-border trucking. However, legal challenges over the years by American carrier groups have prevented Mexican trucks from operating north of the border for over 10 years.
Within the next month USA transportation officials anticipate an audit report 
on the trucking pilot program with Mexico. While U.S. produce industry shippers may be anxious because thereport could be negative, they fear it could lead to another round of retaliatory tariffs by Mexico.
At the same time some trucking groups in the USA hope this is exactly what happens. Not necessarily retailitory tariffs by the Mexicans, but they are strongly opposed to Mexican truckers having free access to USA markets with poorly trained drivers and subpar equipment, compared to American standards — not to mentions concerns freights were plummet.
The apple, pear and cherry industries in the Northwest has paid tens of millions of dollars during the three years that Mexico imposed 20% tariffs.
The North American Free Trade Act requires the U.S. to allow cross-border trucking. However, opposition by U.S. trucking unions – including the Teamsters and trade organizations – such as the Owner-Operator Independent Drivers Association, OOIDA, has kept the Mexican trucks out for more than a decade after the act went into effect in 1994. The trucking interests cited safety concerns with Mexican trucking equipment and drivers.
Despite lobbying efforts and some congressional roadblocks, the pilot program finally gained approval from President Obama and his Mexican counterpart Felipe Calderon in July 2011. The first Mexican truck came into the U.S. in October 2011.
However, only six Mexican carriers — each with one truck approved for the program — are participating in the pilot program.
One requirement built into the pilot program is that the DOT be able to document the safety of the Mexican trucks and drivers with “statistically valid” data. Powers said that could be a difficult task because of the low participation numbers.
Even when the recent deadline for a Teamsters strike at the Hunts Point Terminal Wholesale passed and the local’s workers kept right on working, I wasn’t a bit surprised. Not only has there not been a work stoppage over the past 25 years, I’m familiar enough with the wholesalers, and particularly their leaders, to know if it’s at all possible, a strike would be avoided. It was. A new contract was reached.
Nothing is more critical to the tenants on Hunts Point than to keep those 53-foot reefer units rolling into the terminal.
No trucks, means the wholesalers lose customers (retail supermarkets, foodservice, etc.) who decades ago decided to buy directly from produce shippers whenever they could. These customers, as is the case with terminal markets across the United States, often buy 70, 80, 90 percent of their fresh fruits and vegetables direct – primarily because they see cutting out the middlemen as saving money. Of course, wholesalers make good arguments such as a produce market offers wide selections of product, ranges in quality, color, taste, size and even price advantages.
My first visit to Hunts Point was about 25 years ago and I estimate I’ve been back there 50 times since. During this period I always made it a point to visit with as many truckers as possible who were delivering fresh produce on the South Bronx market. I also got to know many of the Hunts Point wholesalers on a first name basis.
Through the years Hunts Point developed a horrible reputation in the trucking industry. Complaints ranged form kicked loads, phoney claims to get reductions in freight rates, to delays in unloading, many times as an excuse for wholesalers to take advantage of free refrigerated warehousing at the expense of the driver. Then there were issues ranging from lack of restroom facilities to restaurant accomodations.
Over the years in my talks with drivers and wholesalers, many of these issues have been addressed. Now when talking with truckers about Hunts Points, there stil complaints, but I also hear a lot more good things than I used to. Driver shortages, refusals to return to deliver to wholesalers who “dump” on you, tend to change things. If these issues do not improve, then trucker is at fault for returning to take another “beating.”
When you get down to it, Hunts Point in some ways is no different than other wholesale terminal markets. Some companies are simply better than others whether talking about their dealings with transportation, or dealing with their suppliers and customers.
One consistency I’ve noticed over the years, is the people who are leaders on Hunts Point such as Matthew D’Arrigo (D’Arrigo Bros. Co. of New York) and Myra Gordon, both of the Hunts Point Terminal Produce Cooperative Market, are first class individuals. I could also say the same about a number of other people at Hunts Point.
When you have people of intergrity in leadership positions, I knew if there was any way a union conflict could be resolved, it would be accomplished. It’s also another reason why some truckers have fewers complaints about Hunts Point.
Union workers at the Hunts Point Terminal Wholsale Market in Bronx, NY have not went on strike in 25 years, but they are threatening to if a labor agreement is not met with market representatives. If you are on your way to the nation’s largest wholesale produce receiving facility just be aware the laborers are saying they’ll strike at 12:01 a.m. on January 17th.
Negotiations are continuing and you can bet Hunts Point wholesalers will do what it takes to stay open even if the strike occurs. How smoothly trucks would move in and out of the market is something to keep an eye on.
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