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Trucking Companies, Democrats Working to Provide Bonuses for Truckers During Pandemic

May 11, 2020 by Levinson and Stefani Leave a Comment

While trucker drivers serve on our front lives during this pandemic, many motor carriers, trucking companies, and political leaders are working on devising plans to provide substantial bonuses for these workers.

“All of our employees have gone above and beyond the call to action during this crisis,” said president and CEO of J.B. Hunt Transport Services Inc., John Roberts. “And nearly all of our field-level, front-line employees, and certainly all of our drivers, are required in-person and have upheld the high standards of our company. They have kept pace with the evolving supply chain needs of our customers in the face of great uncertainty.”

J.B. Hunt, one of the country’s largest supply chain solutions providers, announced it would be giving bonus checks of $500 to each of its drivers, field operators, and customer service employees.

Roberts hopes these bonuses will show his and the rest of the company’s appreciation of these workers’ above-and-beyond efforts “during these unprecedented times.” The bonuses will be given to managers and field employees in terminals, maintenance shops, intermodal ramps, Dedicated Contract Service account locations, and Final Mile distribution centers.

Werner Enterprises will also be providing financial bonus packages to employees during these stressful circumstances.

“Our focus on our drivers has been to support them with a comprehensive COVID financial package,” said Werner CEO, Derek Leathers. “We have chosen to not do a fleetwide incentive, but rather focus money where the need arises.”

Leather said the company’s intention for these bonuses is to give drivers needed resources, such as substantial pay for those directly impacted by coronavirus, as well as employee relief funds.

“We set up a COVID fund that will continue drivers’ pay if they were to be quarantined for the two-week quarantine period,” said Leathers. “We pledged a million dollars to our employee relief fund to provide additional assistance above and beyond that to drivers that are in need.”

Roadmaster Group out of Phoenix has also been planning to recognize its drivers’ efforts during the pandemic with a bonus, according to the company’s CEO, John Wilbur.

“For our drivers, this is just a time where, if we can throw them a little bit of extra money to help them and their family, we just wanted to take the opportunity and do that,” Wilbur explained.

With that mindset, Roadmaster is giving drivers an extra 5 cents per mile. Owner-operators will get an additional 2% in revenue share.

“We just came up with a little bit of a boost to their pay while they are out there for this time period,” said Wilbur. “Right now, we’re doing it for the month of April, but we might extend it month-for-month as required.”

Tyson Foods has pledged $60 million in order to give its drivers and support staff–118,000 total workers–$500 bonuses as well.

“Our team members are leading the charge to continue providing food to the nation,” said Noel White, Tyson CEO. “The bonuses are another way we can say ‘thank you’ for their efforts. We’re proud of how our team members have stepped up during this challenging time to make sure we continue fulfilling our critical mission of feeding people across America.”

On top of these company-wide incentives, Democrats have announced a plan to give up to $25,000 in “hazard pay” bonuses to workers on the front lines of this pandemic in the next economic relief package, specifically for doctors, nurses, postal workers, grocery store employees, and truckers. The package would also raise hourly pay to $13 for these workers.

“It all goes to essential workers, not just those in the medical facilities and home care workers, but also truck drivers who deliver supplies, and grocery store clerks who keep food on the shelves, and transit workers,” said Senate Minority Leader Chuck Schumer.

The cost of the pay raise would be provided by big business, and the federal government would cover the funds for smaller companies.

Schumer also called this package a “heroes fund.”

“They deserve it,” said Schumer. “They are risking their lives, [and] they are going through unusual changes in their lives.”

These funds will become available to employees working “from the start of the public health emergency until the end of the year.”

Walmart Hires 150,000 Employees, Readies Parking Lots for COVID-19 Testing

May 8, 2020 by Levinson and Stefani Leave a Comment

Right now, Walmart Inc. is working to hire an additional 150,000 temporary workers while simultaneously preparing its stores’ parking lots to become coronavirus testing sites in the midst of the quickly-progressing pandemic.

“Everything is ready to go,” said executive vice president of corporate affairs, Dan Bartlett. “We have the tents. It should be up and running soon.”

The company has already begun testing around Chicago, with a priority of testing health care workers and emergency responders. These efforts are in collaboration with drugstore chain Walgreens Boots Alliance and other medical officials.

Most of the new employees will work in stores, and many of them are expected to become permanent staff after the outbreak subsides. Walmart has been working with restaurant and hospitality companies to hire workers who may be experiencing furloughs and layoffs.

The hiring announcement was first released soon after Amazon said it would be hiring 100,000 delivery and warehouse workers in order to meet heavier online shopping demands.

Walmart has been experiencing traffic surges lately that it has only ever experienced during holiday peaks. The company is now working on ”catching its breath,” said Bartlett, while its grocery pickup requests have been “slammed.” Although the initial high demand that was emptying store shelves was for paper products and bottled water, the focus is now on food and groceries.

“We’re trying to find where the new normal is,” Bartlett explained. “We’re not sure we’ve hit it yet.” 

As U.S. unemployment benefit filings are expected to surge to new records (as high as 3 million, according to Bank of America), Walmart is not expecting any shortage of qualified applicants. The new hires will be divided across Walmart’s 4,750 American stores as well as throughout its 150 distribution centers.

In addition, Walmart, which employs 1.5 million people across the country, said it would pay cash bonuses totaling $550 million to its hour workers.The company plans to pay a $300 cash bonus to its full-time hourly workers and $150 to its part-timers. It will also be accelerating first-quarter bonuses.

Target Corp. is also boosting its wages, raising them by $2 an hour for its store and distribution center workers until May 2nd. Target will also be giving special bonuses to around 20,000 of its hourly managers and will provide paid leave of up to 30 days for its older and pregnant workers. According to Target, these efforts total about $300 million.

Bartlett says that at Walmart, most of the new workers will either staff the company’s distribution center or work at online fulfillment centers, not necessarily making up for in-store workers unable to appear at work. “It’s not so much about filling a gap, but there is just so much demand,” Bartlett said.

Walmart will give every American hourly worker employed by March 1st a special bonus, with payments expected by April 2nd.

“We felt this was a moment [in which] they needed to be provided some extra merit pay,” Bartlett said. “They are doing herculean work in our stores–serving our customers in, frankly, a tense environment.”

In regards to coronavirus testing, federal and state health officials are initially administering tests while Walmart staffers will observe. Soon, the company’s pharmacies will be able to carry out swab tests, but will not handle the data of patients.

“We don’t want people coming off the street and thinking they can get a test,” said Bartlett “It will be an orderly process.”

Walmart does not plan to shut down any of its U.S. stores, unlike many other department stores. According to Bartlett, Walmart’s leaders in the U.S. are looking to their counterparts overseas. Out of China’s 400 Walmart stores, “maybe two” had to be closed during the beginning of the COVID-19 outbreak. Still, most reduced hours of operation.

The company’s efforts may be impressive, but some labor advocates are critical of the expectations of these workers.

“The expansion of Walmart’s workforce by hiring temporary employees is nothing to celebrate,” said Melissa Love, a Walmart employee and member of United for Respect, a labor advocacy group. “This is a slap in the face: In the midst of a crisis, while associates like me are going above and beyond the call of duty to serve our customers, Walmart is bringing in an army of new hires to do our jobs, and we can’t even get enough hours.”

UPS Called to Help White House in Developing CoronaVirus Testing Sites

May 7, 2020 by Levinson and Stefani Leave a Comment

As coronavirus uncertainty continues to progress, deliveries need more flexibility in order to adhere to social distancing protocols, and upcoming COVID-19 testing sites need immediate support. Therefore, through the Rapid-Response Taskforce for CoronaVirus Testing Sites, the White House has requested the aid of the United Parcel Service in planning and support for community-based coronavirus testing site operations across multiple cities. UPS says they are ready to step up to the challenge.

“UPS is proud to provide logistics and transportation support to assist with the administration’s special Coronavirus multi-city testing program,” said UPS Chairman and CEO, David Abney. “We stand ready to assist to help keep our communities safe. We are mobilizing our air and ground network planning and operations teams and we are prepared to fully support this urgent testing program.”

Currently, the administration is testing drive-up sites as part of its pandemic response, and said it is working along with the private sector to open these sites–which would aim to serve between 2,000 and 4,000 people per day each–in the areas most impacted by the virus.

Most recently, New York, Washington, and California are the states with the highest number of COVID-19 cases. Testing priority will be given to healthcare workers, those suffering from symptoms of the virus, and the elderly.

Private testing sites are already active in more than ten states, including Colorado, Florida, and Texas. These new drive-through sites are an additional effort, made after the administration received heavy criticism for the slow progression of tests across the nation, which has quickly fallen behind other countries. Many health experts have explained that far too many patients showing COVID-19 symptoms are unable to get tested and that the overall testing capacity is extremely inadequate.

Abney explained that UPS is “prepared to fully support this urgent testing program.” The company transports more than three percent of global domestic product, and about six percent of American GDP. 

“We know our customers rely on UPS to maintain the flow of goods throughout their supply chains,” Abney continued. “We are committed to rapidly adjusting our processes to ensure our employees, customers, and communities can maintain normal daily life to the greatest extent possible while we adjust to the new realities of this pandemic.”

So far, UPS has worked to minimize coronavirus risk by changing procedures, such as relaxing signature requirements on deliveries. To minimize contact and allow social distancing between carriers and recipients, UPS drivers will record the recipient’s name instead of a signature when a signature is requested. Recipients must also present identification with proof of age when an adult signature is requested by the shipper.

UPS also gives support to major healthcare companies, including its offering of supply chain management services as well as its shipping and storage of medical devices, pharmaceuticals, and clinical trials specimens.

Additionally, the company was one of the first to provide air cargo shipments to China of face masks and other protective equipment.

“UPS is serving the same role in the United States and in other countries around the world, beyond China, that are grappling with this virus,” said the company on its website.

The UPS Foundation has stated it will be giving $6 million in grants to organizations during this time such as United Way Worldwide, American Red Cross, Salvation Army, Operation Hope, Center for Disaster Philanthropy, Good360, UNICEF, World Food Programme, CARE, United Nations High Commission for Refugees, International Federation of Red Cross/Red Crescent, and NVOAD.

“We know our customers rely on UPS to maintain the flow of goods throughout their supply chains,” Abney said. “We are committed to rapidly adjusting our processes to ensure our employees, customers, and communities can maintain normal daily life to the greatest extent possible while we adjust to the new realities of this pandemic.”

According to UPS Spokesperson Steve Gaut, a timetable for the testing site roll-out can not yet be provided.

“The White House and the Task Force will be discussing the cities at a future time,” said Gaut. “We will be working with them to make sure there are plans in place to ship the test kits for manufacturers to the locations set up in temporary facilities or parking lots in other public spaces. We will also be working to make sure the swabs are able to be picked up on a timely basis and sent to the labs to complete the tests.”

CoronaVirus Causes Cancellation of Trucking Events

May 6, 2020 by Levinson and Stefani Leave a Comment

Because of COVID-19 concerns, the Federal Motor Carrier Safety Administration has decided to postpone its Truck Safety Summit.

After President Donald Trump announced in mid-March that he would be suspending all travel to the United States from Europe for 30 days, the FMCSA decided it would be delaying the summit, which was scheduled to be held on March 19th at the U.S. Department of Transportation headquarters in Washington.

“We will be following changes in the impact of COVID-19 and work to schedule a new date for the summit in the near future,” said FMCSA in the announcement.

The summit’s goal was for the agency to gain new insight into how to best improve the safety of motor carrier operations. Once the formal conference is finally held, stakeholders, motor carriers, truck drivers, federal and state agency partners, safety technology experts, and safety advocacy groups will have a chance to come together and have “an opportunity to share their ideas on improving truck safety.”

The summit also would have been a follow-up to the Transportation Research Board’s recent annual meeting, which took place in January. There, Jim Mullen, FMCSA Administrator, explained that he was urging the agency to implement new methods of reversing the large amount big-rig fatalities that had been occurring over the last four years.

Between 2017 and 2018, for example, deaths in crashes involving large trucks increased from 4,905 to 4,951. The issue of driver fatigue is a growing problem as well, as the National Transportation Safety Board has said it is making efforts to focus on the issue regarding fatigued drivers. The board also named decreasing fatigue-related accidents as one of the safety improvements on its ‘Most Wanted List’ of 2019-2020.

Hours-of-Service disagreements have also been a major issue in the industry, as stakeholders believe the relaxation of regulations will make it possible for drivers to work longer hours on less rest–bringing a possibility for more fatigued drivers and thus, more accidents. 

These topics were all likely to be key discussion points at the summit.

“We are disappointed, but the safety of the attendees is of the utmost importance,” said the FMCSA on its website. “We look forward to setting a new date for the Summit.”

Another event cancelled due to coronavirus worries is 2020’s International Roadcheck, which was originally planned to take place between May 5th and 7th. The Commercial Vehicle Safety Alliance said the rescheduled date has yet to be determined.

“The alliance will monitor the status of the coronavirus pandemic and appropriately select the new dates when it’s safe and reasonable to do so,” said CVSA. “Once the rescheduled dates have been selected, CVSA will notify the commercial motor vehicle enforcement community, the motor carrier industry, the press, and the public.

This 73-hour Roadcheck was to be an amped-up version of the checks that have been running on schedule for the last 32 years. This year, the enforcement effort would focus on driver requirements.

According to CVSA, 944,794 violations out of last year’s 3.36 million inspections were in the category of driver requirements. Of those, nearly 200,000 citations were for out-of-service conditions, according to the Federal Motor Carrier Safety Administration’s data.

Some of the most common requirement violations include: insurance and vehicle registration, proof of medical qualifications, detected substance use, failure to wear a seat belt, and giving a false record-of-duty status.

Because the Roadcheck has run smoothly for over three decades in a row, the decision to postpone was “thoroughly and thoughtfully discussed,” said Delaware State Police sergeant and CVSA president, John Samis.

“As we urgently respond to this time-sensitive crisis, we must remain diligent and committed to ensuring that the commercial motor vehicles and drivers providing essential goods and services to our communities are following motor carrier safety regulations,” Samis explained. “Safety doesn’t take a break. It is always our top priority.”

The CVSA still plans to monitor the COVID-19 outbreak closely, notify membership and industry stakeholders of the new Roadcheck dates, follow guidance from public health experts, and keep the public updated regarding future enforcement and safety campaigns.

“This experience is unprecedented in our modern society,” said Samis, “and we need to do all that we can to help stop the spread of this global pandemic.”

Musk Fights to Keep Tesla Operations Open as Shelter-in-Place Orders are Given

May 5, 2020 by Levinson and Stefani Leave a Comment

Tesla must shut down its global operations epicenter–the famous Fremont factory–due to growing coronavirus concerns, despite Elon Musk’s call to keep business running as usual.

The electric car manufacturer had just released its millionth electric car off the assembly line when the Alameda County Sheriff’s Department deemed the factory not “essential,” and the plant’s employees were told they must adhere to the shelter-in-place mandate that was given on March 17th.

The Fremont Police Department and the Alameda County Public Health Department are responsible for enforcing this order at the plant. This demand will send 10,000 of the Fremont factory’s workers home.

“Tesla can maintain minimum basic operations per the Alameda County Health Order,” said the sheriff’s department.

The mandate’s effect on the factory came one day after Elon Musk severely downplayed the virus and its impact. Musk has been working to keep operations underway in any way possible.

“I’d like to be super clear that if you feel the slightest bit ill or even uncomfortable, please do not feel obligated to come to work,” said Musk in a staff email on March 16th. “I will personally be at work, but that’s just me.”

Musk planned to keep Tesla Inc’s factory and its other operations throughout California open for as long as he could, and the company’s head of human resources explained that Tesla’s manufacturing and energy infrastructure were considered crucial. Both said the factory would continue operations despite the stay-at-home order throughout the Bay Area.

“Tesla and our supplier network will continue operations that directly support factory production, vehicle deliveries, and service,” wrote the company’s North American HR chief, Valerie Capers Workman.

Musk even went so far as to Tweet in early March that “the coronavirus panic is dumb.” The company had, up until that point, said little about how it planned to handle concerns surrounding the virus, although other automakers throughout the country had made much quicker public decisions.

“My frank opinion remains that the harm from the coronavirus panic far exceeds that of the virus itself,” said Musk in his email. “If there is a massive redirection of medical resources out of proportion to the danger, it will result in less available care to those with critical medical needs, which does not serve the greater good.”

From this standpoint, plant manager Justin Kirkland also wrote to employees on March 16th, saying that they should report to work unless otherwise directed from the company. In another email, employees were told that they would need to use their vacation days if they decided to follow the shelter in place order, and, if they were to run out of those days, they would need to contact human resources.

Only businesses deemed essential are supposed to remain operating, such as grocery stores and pharmacies. However, there is currently no exemption for car manufacturers in regards to the orders that were issued on March 16th, and which took full effect after midnight the following day.

“Tesla can maintain minimum basic operations per the Alameda County Health Order,” said the sheriff’s department in a Tweet.

Businesses deemed nonessential–like Tesla–are still able to continue the “minimum necessary activities to maintain the value of the business’ inventory, ensure security, process payroll and employee benefits, or for related functions,” as well as the “minimum necessary activities to facilitate employees of the business being able to continue to work remotely from their residences.”

The order also states that social distancing, or the maintenance of a six-foot separation between individuals at all times–must also take place.

Tesla has not yet released its expected production and delivery numbers for the first quarter. In January, the company stated that its deliveries would most likely “comfortably” exceed 500,000 units for 2020. RBC Capital Markets analysts are now saying that they expect the company to deliver only around 365,000 cars, which would be a decrease from its 2019 total deliveries.

Additionally, Tesla shares fell 7.8% as of March 17th in New York, which eradicated their intraday trading gains for 2020. As of February 19th, Tesla stock was up 119% for the year.

Regardless, Musk continues to reiterate that his main concern is for the lack of medical supplies and care that could come from an unnecessary amount of panic around COVID-19.

“If we over-allocate medical resources to (the) corona(virus),” he Tweeted, “it will come at (the) expense of treating other illnesses.”

AV 4.0 Relies on Public and Stakeholder Opinions

May 5, 2020 by Levinson and Stefani Leave a Comment

WASHINGTON — The U.S. Department of Transportation officials are partnering with trucking industry stakeholders to develop the latest autonomous vehicles guidelines.

The DOT, along with the White House Office of Science and Technology Policy, has been calling for public comments on the most recent federal guideline update regarding autonomous vehicle technology–AV 4.0.

Last month, the Federal Register published the DOT’s comment request after Transportation Secretary Elaine Chao first announced the initiative,  officially titled “Ensuring American Leadership in Automated Vehicle Technologies” at CES 2020.

Public comments are due before April 2nd, and this summer will see further stakeholder work sessions to delve deeper into the future guidelines before they are finally published later in 2020.

“The U.S. DOT and OSTP see AV 4.0 as a method to ensure a consistent [U.S. government] approach to AV technologies and to ensure that the United States continues to lead AV technologies’ research, development, and integration,” said the Federal Register.

AV 4.0 aims to be a set of unifying principles throughout 38 different federal departments and agencies which gives state and local governments, industry representatives, and tech experts guidance regarding the operation of automated vehicles.  The guidelines were originally built around government opportunities for collaboration, and AV tech growth boosting through administration efforts.

The initiative’s main aspiration was to prioritize safety, innovation, and  consistent regulatory methods.

“While keeping safety as the approach–the priority for all of our engagements–we’ve been able to move this throughout the federal government so that all of the tools, assets, research, and grant-making dollars that are available, and enforcement authorities that are available throughout the federal government, can be at the hands of all our stakeholders that care about this,” said DOT deputy assistant secretary Finch Fulton.

According to Fulton, the upcoming national highway policy updates are an important way in which this technology can demonstrate its safety benefits throughout U.S. transit networks.

“Developments such as automated vehicles, drones, hyperloop, commercial space, and data initiatives can dramatically change the way people and goods are moved about the country and world,” Fulton explained. “Many of these technologies challenge the department in new or more sophisticated ways on methods to both prove and improve levels of safety, or in determining what mechanisms are best suited in the department for providing oversight.”

A main determining factor around AV regulation will be public opinion, according to Elaine Chao, Transportation Secretary.

“The real challenge is, as regulators, how do we address, how do we engage with emerging new technologies to address legitimate public concerns about safety, security, and privacy without hampering innovation? Because innovation is a trademark of who we are as Americans. That is our greatest export,” she said in February.

Currently, guidelines align with AV technology support initiatives and collaboration efforts by the Trump administration, including AV sector federal investments and research resources.

Back in January, Chao also announced the DOT’s standardized list of recommended ADAS terminology named “Clearing the Confusion” in collaboration with the National Safety Council, Consumer Reports, AAA, and J.D. Power–an initiative aiming to advance driver assistance systems.

“Currently, there is variance among manufacturers,” said Chao. “We want to make sure that drivers are aware that these systems are designed to ‘assist,’ not replace an engaged driver, which is still very important.”

Chao also explained her confidence behind AV tech’s potential to save thousands of lives, as 94% of crashes are a result of human error. She also noted that the tech could be particularly beneficial for those with transportation challenges needing more mobility options.

Still, congressional policymakers have not yet progressed on any autonomous tech legislation. According to Commerce Committee Chairman Roger Wicker (R-Miss.), new automated vehicle legislation directives were not likely to involve any provisions relative to trucks and buses. Additionally, the latest autonomous vehicle bill not to pass the Senate was related to vehicle regulations.

DOT’s DAS terminology list was announced two days after the American Transportation Research Institute demanded an autonomous vehicle technology policy for the trucking industry.

“Given that we intend for the policy document to be a living document and to be developed in an iterative fashion, subsequent opportunities to comment will also be provided periodically,” said the Federal Register.

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