The Senate voted Tuesday to ban Mexican trucks from U.S. roadways, rekindling a more than decade-old trade dispute with Mexico.
By a 74-24 vote, the Senate approved a proposal by Sen. Byron Dorgan, D-N.D., prohibiting the Transportation Department from spending money on a North American Free Trade Agreement pilot program giving Mexican trucks greater access to U.S. highways.
The proposal is part of a $106 billion transportation and housing spending bill that the Senate hopes to vote on later this week. The House approved a similar provision to Dorgan's in July as part of its version of the transportation spending bill.
Supporters of Dorgan's amendment argued the trucks are not yet proven safe. Opponents said the U.S. is applying tougher standards to Mexican trucks than to Canadian trucks and failing to live up to its NAFTA obligations.
Until last week, Mexican trucks were restricted to a commercial border zone stretching about 20 miles inside the United States, except in Arizona, where it extended 75 miles. One truck has traveled deep into the U.S. interior as part of the pilot program.
Blocking the trucks would help Democrats curry favor with organized labor, an important ally for the 2008 presidential elections.
"Why the urgency? Why not stand up for the (truck) standards that we've created and developed in this country?" Dorgan asked.
Sen. John Cornyn, R-Texas, who drafted a Republican alternative to Dorgan's amendment, said the attempt to block the trucks appeared to be about limiting competition and may amount to discrimination against Mexico.
"I would never allow an unsafe truck on our highways, particularly Texas highways," said Cornyn, whose amendment failed.
Under NAFTA, Mexico can seek retaliation against the U.S. for failing to adhere to the treaty's requirements, including retaining tariffs on goods that the treaty eliminates, said Sidney Weintraub, a professor emeritus at the University of Texas LBJ School of Public Affairs in Austin.
John Hill, head of the Federal Motor Carrier Safety Administration, decried the vote saying it is "a sad victory for the politics of fear and protectionism."
But Teamsters general president Jim Hoffa, whose union has sued to stop the trucks, cheered the decision. "We don't want to share our highways with dangerous trucks from Mexico," Hoffa said.
The trucking program allows up to 100 Mexican carriers to send their trucks on U.S. roadways for delivery and pickup of cargo. None can carry hazardous material or haul cargo between U.S. points.
So far, the Department of Transportation has granted a single Mexican carrier, Transportes Olympic, access to U.S. roads after a more than decade-long dispute over the NAFTA provision opening up the roadways.
One of the carrier's trucks crossed the border in Laredo, Texas last week and delivered its cargo in North Carolina on Monday and was expected to return to Mexico late this week after a stop in Decatur, Ala.
The transportation bill is S. 1789.
Tuesday, September 11, 2007
Monday, September 10, 2007
Senate Expected to Vote on Unsafe Mexican Truck Program
Vote Follows Mexican Truck Explosion That Killed 34 People, Injured 150
WASHINGTON, Sept. 10 /PRNewswire-USNewswire/ -- Teamsters General
President Jim Hoffa today urged the Senate to act swiftly and decisively to
block funding for the Bush administration's illegal Mexican truck program
that is endangering the lives of American drivers.
Hoffa said the program threatens highway safety and national security.
The danger posed by trucks from Mexico was made clear by the truck
explosion late yesterday that killed at least 34 people and injured 150 in
Northern Mexico.
A vote to block funding for the pilot program is expected to take place
in the Senate on Monday afternoon of Sept. 10 or Tuesday, Sept. 11.
"Tomorrow will be the sixth anniversary of the worst terrorist attack
on U.S. soil," Hoffa said. "I don't see how any patriotic American could
vote to allow these dangerous trucks to cross our borders and travel freely
throughout our country."
"We don't know who's driving these trucks and we don't know what
they're carrying," Hoffa said. "Weapons that could be used in a terrorist
attack might be in the backs of these trucks."
According to news reports, the first Mexican truck allowed beyond the
safety zone crossed the border at Laredo at 12:51 a.m. Saturday. The truck
traveled through Louisiana, Mississippi, Alabama and South Carolina to
North Carolina, where it was to deliver a load of steel.
"Haven't the people of North Carolina suffered enough from the effects
of free trade agreements?" Hoffa said. "To be the first state to receive a
delivery directly from Mexico just adds a whole lot of insult to a whole
lot of injury."
The Transportation Department's inspector general reported last week
that five states said they aren't ready to enforce safety rules for the
pilot project. Those five states are Montana, Nebraska, Nevada, Rhode
Island and Utah, while Maryland did not respond.
The inspector general also reported that seven states don't have
procedures in place for enforcing restrictions on point-to-point deliveries
within the United States, a practice known as cabotage. Those are the
District of Columbia, Florida, Georgia, Louisiana, New Mexico, Utah and
Washington.
The Senate is expected to vote on an amendment to the 2008
Transportation Appropriations bill offered by Sen. Byron Dorgan, D-N.D. The
amendment will mirror language passed by the House that blocks funding for
the program.
Note: Legal documents filed in the case and other documents related to
this issue can be found at http://www.teamster.org.
Acquisition of Shanghai Jiayu Logistics to cost between $40M and $50M
The president and chief executive of trucking company YRC Worldwide Inc. on Monday said he expects the acquisition of Shanghai Jiayu Logistics Ltd., one of the largest less-than-truckload carriers in China, to cost between $40 million and $50 million.
Speaking at the Wachovia Global Transportation and Packaging Conference, Bill Zollars said the exact cost and other factors of the deal are still being negotiated. He expects the acquisition to close by the end of the year. The transaction was announced in late June.
Zollars said he expects the acquisition to be a key part of the company's growth strategy, because it allows the company to gain more exposure to the booming Asian market.
On the homefront, however, he is not as optimistic.
Zollars said he continues to believe the U.S. economy is worse that people realize, and reiterated his plea for the Federal Reserve to cut interest rates to avoid further deterioration.
Current economic conditions are affecting demand, Zollars said. He noted the pre-holiday peak in business has yet to materialize. And he doesn't expect things to get better soon.
"We're not going to plan for the economy to recover," Zollars said. "We're going to assume that things are going to continue as they are...It doesn't feel like we've hit the bottom right now."
Zollars said the outlook for the U.S. economy, although dim, is aiding the relationship between YRC and the Teamsters union, which represents a large majority of the company's employees.
"The economic environment has helped because they see us as really the only game in town as far as growth is concerned," he said.
Zollars said the company plans to begin contract negotiations with the union in the next few weeks, although the Teamster's contract doesn't expire until April 2008. He expects negotiations to be completed by the end of the year.
Shares of YRC fell 58 cents, or 2 percent, to $27.81 in midday trading. Earlier, shares hit a new 52-week low of $27.66. They have ranged from $28.18 to $47.09 over the past year.
Speaking at the Wachovia Global Transportation and Packaging Conference, Bill Zollars said the exact cost and other factors of the deal are still being negotiated. He expects the acquisition to close by the end of the year. The transaction was announced in late June.
Zollars said he expects the acquisition to be a key part of the company's growth strategy, because it allows the company to gain more exposure to the booming Asian market.
On the homefront, however, he is not as optimistic.
Zollars said he continues to believe the U.S. economy is worse that people realize, and reiterated his plea for the Federal Reserve to cut interest rates to avoid further deterioration.
Current economic conditions are affecting demand, Zollars said. He noted the pre-holiday peak in business has yet to materialize. And he doesn't expect things to get better soon.
"We're not going to plan for the economy to recover," Zollars said. "We're going to assume that things are going to continue as they are...It doesn't feel like we've hit the bottom right now."
Zollars said the outlook for the U.S. economy, although dim, is aiding the relationship between YRC and the Teamsters union, which represents a large majority of the company's employees.
"The economic environment has helped because they see us as really the only game in town as far as growth is concerned," he said.
Zollars said the company plans to begin contract negotiations with the union in the next few weeks, although the Teamster's contract doesn't expire until April 2008. He expects negotiations to be completed by the end of the year.
Shares of YRC fell 58 cents, or 2 percent, to $27.81 in midday trading. Earlier, shares hit a new 52-week low of $27.66. They have ranged from $28.18 to $47.09 over the past year.
Saturday, September 08, 2007
Mexican truck program 'sucker-punches' U.S.
Telling a women's conference in Houston that the effort is dangerous, leader vows Teamsters will fight funding
Calling a new pilot program opening the border to Mexican trucks dangerous, Teamsters President Jim Hoffa said today in Houston the union will lobby to cut its funding.
Hoffa said money for the new program came from somewhere and the union will press Congress to stop it.
"We can do that," he said.
In prepared remarks, the union president said the Bush administration has "sucker-punched" American workers by opening highways to Mexican trucks.
Under the year-long pilot program, up to 100 Mexican carriers can get permission to go beyond a 25-mile buffer zone in the U.S. There are also provisions for U.S. carriers to go into Mexico.
The program comes under the North American Free Trade Agreement.
Hoffa told the annual Teamsters Women's Conference at the Hilton Americas hotel that drugs could come in the U.S. across the border in the trucks. He said that although the Bush administration says it is concerned about national security, the program will threaten safety.
The union, along with groups including the Sierra Club and Public Citizen, argues it endangers highways because safety issues aren't resolved. A new report by the Department of Transportation's inspector general strengthens that argument, Hoffa said.
That report concluded the Department of Transportation's Federal Motor Carrier Safety Administration hasn't developed and implemented complete, coordinated plans for checking trucks and drivers in the demonstration project as they cross the border.
"It's a disaster waiting to happen," the Teamsters president said.
But the safety administration says the inspector general affirmed its plans to go beyond statutory requirements and to check every truck crossing the border.
John H. Hill, administrator of the Motor Carrier Safety Administration, said today every audit the inspector general has done since 2002 found the department made substantial compliance in meeting requirements laid out by Congress.
"Any time a government program is put in place, there are always ways to improve it," he said.
Hill added that the pilot program's safety protocols are more rigorous for Mexican carriers than they are for U.S. carriers. And he questioned why Hoffa is concerned that U.S. trucking companies can't compete with Mexican trucking companies.
"We believe they can," Hill said. "I think this is about issues unrelated to the safety agenda."
The administrator also said some of the comments being made are unduly alarming to the public. He stressed last week that the program meets all public safety requirements.
Thursday night, transportation officials said one Mexican carrier and two U.S. carriers had been certified under the program. Friday evening, the Mexican carrier sent a truck loaded with steel bound for Wilson Hills, N.C.
A lawsuit by the Teamsters and other groups aimed at blocking the program is pending in court.
Calling a new pilot program opening the border to Mexican trucks dangerous, Teamsters President Jim Hoffa said today in Houston the union will lobby to cut its funding.
Hoffa said money for the new program came from somewhere and the union will press Congress to stop it.
"We can do that," he said.
In prepared remarks, the union president said the Bush administration has "sucker-punched" American workers by opening highways to Mexican trucks.
Under the year-long pilot program, up to 100 Mexican carriers can get permission to go beyond a 25-mile buffer zone in the U.S. There are also provisions for U.S. carriers to go into Mexico.
The program comes under the North American Free Trade Agreement.
Hoffa told the annual Teamsters Women's Conference at the Hilton Americas hotel that drugs could come in the U.S. across the border in the trucks. He said that although the Bush administration says it is concerned about national security, the program will threaten safety.
The union, along with groups including the Sierra Club and Public Citizen, argues it endangers highways because safety issues aren't resolved. A new report by the Department of Transportation's inspector general strengthens that argument, Hoffa said.
That report concluded the Department of Transportation's Federal Motor Carrier Safety Administration hasn't developed and implemented complete, coordinated plans for checking trucks and drivers in the demonstration project as they cross the border.
"It's a disaster waiting to happen," the Teamsters president said.
But the safety administration says the inspector general affirmed its plans to go beyond statutory requirements and to check every truck crossing the border.
John H. Hill, administrator of the Motor Carrier Safety Administration, said today every audit the inspector general has done since 2002 found the department made substantial compliance in meeting requirements laid out by Congress.
"Any time a government program is put in place, there are always ways to improve it," he said.
Hill added that the pilot program's safety protocols are more rigorous for Mexican carriers than they are for U.S. carriers. And he questioned why Hoffa is concerned that U.S. trucking companies can't compete with Mexican trucking companies.
"We believe they can," Hill said. "I think this is about issues unrelated to the safety agenda."
The administrator also said some of the comments being made are unduly alarming to the public. He stressed last week that the program meets all public safety requirements.
Thursday night, transportation officials said one Mexican carrier and two U.S. carriers had been certified under the program. Friday evening, the Mexican carrier sent a truck loaded with steel bound for Wilson Hills, N.C.
A lawsuit by the Teamsters and other groups aimed at blocking the program is pending in court.
Thursday, September 06, 2007
Truckers protest trial plan to permit Mexican trucks in US
Dozens of truckers waved signs and American flags at a border crossing Thursday to protest a program that will allow up to 100 Mexican trucking companies to freely haul their cargo anywhere in the United States.
The U.S. Transportation Department was expected to begin issuing operating permits in the pilot program as early as Thursday.
The Teamsters union, Sierra Club and nonprofit group Public Citizen sued to try to stop the program, arguing that there won't be enough oversight of the drivers coming into the U.S. from Mexico and public safety would be endangered.
A federal appeals court ruled Friday, though, that the Bush administration could move ahead.
Government lawyers said the program was a necessary part of the North American Free Trade Agreement and the trucks enrolled in the program would meet U.S. regulations.
NAFTA requires that all roads in the United States, Mexico and Canada be opened to carriers from all three countries. Canadian trucking companies already have full access to U.S. roads, but Mexican trucks can travel only about 20 miles inside the country at certain border crossings.
The current pilot program is designed to study whether opening the U.S.-Mexico border to all trucks could be done safely.
The U.S. Transportation Department was expected to begin issuing operating permits in the pilot program as early as Thursday.
The Teamsters union, Sierra Club and nonprofit group Public Citizen sued to try to stop the program, arguing that there won't be enough oversight of the drivers coming into the U.S. from Mexico and public safety would be endangered.
A federal appeals court ruled Friday, though, that the Bush administration could move ahead.
Government lawyers said the program was a necessary part of the North American Free Trade Agreement and the trucks enrolled in the program would meet U.S. regulations.
NAFTA requires that all roads in the United States, Mexico and Canada be opened to carriers from all three countries. Canadian trucking companies already have full access to U.S. roads, but Mexican trucks can travel only about 20 miles inside the country at certain border crossings.
The current pilot program is designed to study whether opening the U.S.-Mexico border to all trucks could be done safely.
Monday, September 03, 2007
Teamsters continue to battle Mexican trucks
The plan to let Mexican trucks operate throughout the United States has prompted a war of words and legal papers between the Bush administration and Jim Hoffa, the president of the International Brotherhood of Teamsters.
Hoffa and his allies at the Sierra Club and Public Citizen have sued in federal court to stop the government from issuing permits to Mexican freight haulers. Their lawyers argued in court that Mexican trucks pose a danger on the roads and threaten increased human and drug smuggling.
"Dangerous trucks should not be driving all the way from Mexico to Maine and Minnesota," said Hoffa in a prepared statement. "What is it about safety and national security that George Bush doesn't understand?"
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The government argued that stopping the trucks would unsettle a key trading partner in Mexico and delay U.S.trucks from operating south of the border. Officials insist that a lengthy pre-inspection of Mexican firms has resulted in strict safety standards and compliance with congressional mandates.
"We chose to do this incrementally and cautiously," said John Hill, who runs the Federal Motor Carrier Safety Administration, which regulates truck safety and is responsible for the cross-border trucking plan. "These carriers are going to be safe."
He has 254 inspectors along the border. Only 16 of the 188 firms inspected have failed. Just over 100 withdrew, signaling the inspections are rigorous, Hill said.The 9th Circuit Court of Appeals in San Francisco on Friday denied an emergency injunction to halt the program. The union will continue its lawsuit.
Nothing can happen until the inspector general of the Department of Transportation blesses the one-year experiment and until the Mexican government issues permits to U.S. trucking companies.
That all could happen as early as Thursday.
The heated rhetoric has melted into obscurity the fact that very few firms on either side of the border are interested. To date, 31 Mexican firms - with a maximum of 151 trucks - are poised for U.S. permits, and two-thirds of the firms are in Baja California. Two Mexican border states have no firms cleared to operate in the U.S. interior, including Sonora, across the border from Arizona.
In the United States, only 14 firms are awaiting permits from the Mexican government, Hill said.
Teamsters accuse the government of cherry-picking Mexican firms to skew the results of the imminent experiment.
"You can't take the 151 safest trucks in Mexico and let them drive all over the United States for a year and then say your entire program is safe," Teamsters spokeswoman Leslie Miller said.
Hill says follow-up reviews by the inspector general, plus one independent technical panel that includes former Arizona Congressman Jim Kolbe, will assure the results' validity.
Opening the border to trucks was a key part of the North American Free Trade Agreement inked in 1994. The trucks were supposed to be delivering international cargo seven years ago. Under the trade pact, certified Mexican trucks can carry loads anywhere in the United States but can pick up loads only if they are bound for Mexico. The converse applies to U.S. trucks.
That was the arrangement before 1982. Since then, Mexican trucks have operated within a 25-mile commercial zone along the border. There, they transfer loads to U.S. trucks. Last year, 4.5 million trucks crossed north over the border, mostly through Texas.
Hoffa and his allies at the Sierra Club and Public Citizen have sued in federal court to stop the government from issuing permits to Mexican freight haulers. Their lawyers argued in court that Mexican trucks pose a danger on the roads and threaten increased human and drug smuggling.
"Dangerous trucks should not be driving all the way from Mexico to Maine and Minnesota," said Hoffa in a prepared statement. "What is it about safety and national security that George Bush doesn't understand?"
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The government argued that stopping the trucks would unsettle a key trading partner in Mexico and delay U.S.trucks from operating south of the border. Officials insist that a lengthy pre-inspection of Mexican firms has resulted in strict safety standards and compliance with congressional mandates.
"We chose to do this incrementally and cautiously," said John Hill, who runs the Federal Motor Carrier Safety Administration, which regulates truck safety and is responsible for the cross-border trucking plan. "These carriers are going to be safe."
He has 254 inspectors along the border. Only 16 of the 188 firms inspected have failed. Just over 100 withdrew, signaling the inspections are rigorous, Hill said.The 9th Circuit Court of Appeals in San Francisco on Friday denied an emergency injunction to halt the program. The union will continue its lawsuit.
Nothing can happen until the inspector general of the Department of Transportation blesses the one-year experiment and until the Mexican government issues permits to U.S. trucking companies.
That all could happen as early as Thursday.
The heated rhetoric has melted into obscurity the fact that very few firms on either side of the border are interested. To date, 31 Mexican firms - with a maximum of 151 trucks - are poised for U.S. permits, and two-thirds of the firms are in Baja California. Two Mexican border states have no firms cleared to operate in the U.S. interior, including Sonora, across the border from Arizona.
In the United States, only 14 firms are awaiting permits from the Mexican government, Hill said.
Teamsters accuse the government of cherry-picking Mexican firms to skew the results of the imminent experiment.
"You can't take the 151 safest trucks in Mexico and let them drive all over the United States for a year and then say your entire program is safe," Teamsters spokeswoman Leslie Miller said.
Hill says follow-up reviews by the inspector general, plus one independent technical panel that includes former Arizona Congressman Jim Kolbe, will assure the results' validity.
Opening the border to trucks was a key part of the North American Free Trade Agreement inked in 1994. The trucks were supposed to be delivering international cargo seven years ago. Under the trade pact, certified Mexican trucks can carry loads anywhere in the United States but can pick up loads only if they are bound for Mexico. The converse applies to U.S. trucks.
That was the arrangement before 1982. Since then, Mexican trucks have operated within a 25-mile commercial zone along the border. There, they transfer loads to U.S. trucks. Last year, 4.5 million trucks crossed north over the border, mostly through Texas.
Sunday, September 02, 2007
Teamster Negotiators Return to Indianapolis
Progress Continues As Stewards Take Active Role
With momentum on their side, Teamster negotiators returned to the table with UPS Freight during the week of August 27 in Indianapolis, and rank-and-file members played a key role in the talks. The co-chairman of the union’s negotiating committee expects a tentative agreement very soon.
“I fully expect that we will have an agreement for the Indianapolis workers to vote on by the end of September,” said Ken Hall, Director of the Teamsters Parcel and Small Package Division who is Co-Chairman of the union’s UPS Freight negotiating committee.
Three stewards—a city driver, a road driver and a hostler—all participated in the talks.
“It’s exciting and I’m proud to be participating in these negotiations,” said David Osborn, a 21-year employee of UPS Freight and its predecessor, Overnite Transportation, who is a city driver. “We’re making history here.”
“The union’s leadership is including us and that makes us feel good,” said UPS Freight road driver Jesse Nicholson, a 19-year employee. “They care about what we have to say at the table—our opinions count. We’re making headway and things are going good.”
Neal Hylton, a hostler and 21-year employee, agreed.
“We’ve made a lot of progress,” he said. “I’m looking at the big picture. I’m looking beyond myself. I’m looking to negotiate protections that could affect UPS Freight workers in other cities if they choose to become Teamsters.”
The rank-and-file members’ help was praised.
“Having our members take an active role in the negotiations is very beneficial to our entire committee,” Hall said.
“Our rank-and-file members are the people who are on the front lines every day, who know the issues better than anyone else,” said Greg Alden, an International Union Representative with the Teamsters National Freight Division, who attended talks this week. “We can’t do our jobs without them.”
The committee continues to make solid progress in its hard push to reach a tentative agreement as soon as possible. Progress continues to be made on the non-economic issues, and work has begun on economic issues.
“No group of UPS Freight workers are as anxious as the Teamster members here in Indianapolis,” said Brian Buhle, Secretary-Treasurer of Local 135 in Indianapolis. “But we are moving ahead well and we will negotiate a very strong contract that will benefit the 125 members in Indianapolis. We also hope that it serves as a model contract for the thousands of other UPS Freight workers nationwide. There’s light at the end of the tunnel.”
Dates are currently being set for final bargaining sessions in the coming weeks.
With momentum on their side, Teamster negotiators returned to the table with UPS Freight during the week of August 27 in Indianapolis, and rank-and-file members played a key role in the talks. The co-chairman of the union’s negotiating committee expects a tentative agreement very soon.
“I fully expect that we will have an agreement for the Indianapolis workers to vote on by the end of September,” said Ken Hall, Director of the Teamsters Parcel and Small Package Division who is Co-Chairman of the union’s UPS Freight negotiating committee.
Three stewards—a city driver, a road driver and a hostler—all participated in the talks.
“It’s exciting and I’m proud to be participating in these negotiations,” said David Osborn, a 21-year employee of UPS Freight and its predecessor, Overnite Transportation, who is a city driver. “We’re making history here.”
“The union’s leadership is including us and that makes us feel good,” said UPS Freight road driver Jesse Nicholson, a 19-year employee. “They care about what we have to say at the table—our opinions count. We’re making headway and things are going good.”
Neal Hylton, a hostler and 21-year employee, agreed.
“We’ve made a lot of progress,” he said. “I’m looking at the big picture. I’m looking beyond myself. I’m looking to negotiate protections that could affect UPS Freight workers in other cities if they choose to become Teamsters.”
The rank-and-file members’ help was praised.
“Having our members take an active role in the negotiations is very beneficial to our entire committee,” Hall said.
“Our rank-and-file members are the people who are on the front lines every day, who know the issues better than anyone else,” said Greg Alden, an International Union Representative with the Teamsters National Freight Division, who attended talks this week. “We can’t do our jobs without them.”
The committee continues to make solid progress in its hard push to reach a tentative agreement as soon as possible. Progress continues to be made on the non-economic issues, and work has begun on economic issues.
“No group of UPS Freight workers are as anxious as the Teamster members here in Indianapolis,” said Brian Buhle, Secretary-Treasurer of Local 135 in Indianapolis. “But we are moving ahead well and we will negotiate a very strong contract that will benefit the 125 members in Indianapolis. We also hope that it serves as a model contract for the thousands of other UPS Freight workers nationwide. There’s light at the end of the tunnel.”
Dates are currently being set for final bargaining sessions in the coming weeks.
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