As we approach the holiday season I am currently 1 week through a 3 week vacation. Along with it being my first extended holiday in the last 24 years, it is really the first time I’ve let my team fully run the ship without at least some guidance from afar.

The timing was right. They all have confidence in their abilities and so do I. It is a necessary step in the sustainability of my company to have it run without me. What are the gaps they need to fill? What lessons can I learn from the exercise?

1-      No two people will ever approach solving a problem or answering a question the same way. As an owner or manager, we have to accept that things will not get done the way we would do it and that’s okay.

2-      Necessity is the mother of invention. People respond to pressure and deadlines. If we’re not there to deal with a situation, the need to resolve it will create a champion with a solution. The more it happens the better your team will be at the daily problem solving that arises.

3-      For the most part, I have a young team. Most are the age I was when I started my business. And they are all more capable in their respective duties than I was at their age. That is the fact I focused on to let go of the reins to this extent and feel comfortable doing so. Kind of a sink or swim, what’s the worst that could happen scenario.

4-      As managers, how can we effectively accomplish that task when we are caught up fully in the day to day? We may be the best problem solvers due to our experience level but what could we accomplish if we applied those same talents to investigating new products, processes and opportunities?

5-      I had my grandson here the first week of our holiday. He’s just shy of two and his key mission in life is to demand your undivided attention. If there is trouble he will find it. Babysitting is a key element of business too. Bringing on a new account or starting a new project can be all consuming. Find the equivalent of daycare for these types of business situations. Babysitting is okay on occasion, but don’t make a career of it, as you will accomplish nothing else.

When I’m back, one of the first things I’ll do is assess what the gaps were, if any, in my absence. That will be the first blog of 2012.

Have a great holiday season everyone!

Lee’s Quote for the Day

“Say it can’t be done and that’s what will happen. Saying it can be done requires constant focus, self-belief, and tenacity. In other words, it’s much easier to talk ourselves out of it, than talk ourselves into it.” J

Lee Palmer is the President and Creative Director at Palmer Marketing, a company that specializes in creative marketing and advertising solutions for the transportation industry.

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If we started by saying Same Sh-- different pile, I'm sure I would get someones or everyones attention. So Lets start !!!!
1) Big or Small make no mistake about it, The U.S. D.O.T. is coming up to audit one and all. Yes their own backyard is larger, but they love us too. If just 1 BASIC score is over the Thresehold they will be visiting you soon.
2) Have you made all your plans for your Christmas list? Sure Hope they included, learing digesting, and preperations for passing on, the NEW (RIDICULOUS) H.O.S. (well the reset provision anyways)
3) Have all of your staff been trained correctly? Ensured anyone, who exerts care and control over any drivers, knows at least as much about HOS, D&A, Reasonable Suspicion, Accident Protocol ? of course the lsit could go on. Suffice to say this is a good beginning.
4) To all the drivers out there, I for one salute each and everyone of you. It is not an easy job, certainly more so for LONG DISTANCE Drivers, away from your family, friends, and all, each and everyone you care about.
5) Recently I saw some things in the U.S. while travelling, that we should also try up here, in the GREAT WHITE NORTH?!
ANYONE, AND I MEAN ANYONE passing a truck stop, Christmas Day, Boxing Day, or anytime over the holidays, while we reflect on spending time, with Loved Ones, and enjoying Drinks? Parties, Gifts, Kids, (you get the idea): Why not drop in to that Truck Stop? thank one of the drivers, and maybe buy them a meal and just say THANKS, for the job they do. Without them the holiday season would not be possible, for us to enjoy.

Remember, if you eat it, wear it, live in it, or use it, It arrived by Truck.

WHATEVER YOU CELEBRATE THIS TIME OF YEAR, AND WHATEVER RELIGION YOU MAY BE, All the best for the HOLIDAY SEASON, I wish each and everyone of you continued (yes ALL OF YOU) Health, and Happiness, for the coming year, and THANKS FOR READING MY LITTLE CONTRIBUTION TO our INDUSTRY.

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Canadians are no doubt sick of elections; we've had five provincial ones lately. But trucking enthusiasts will have noted Jim Hoffa's re-coronation on Nov. 18 as general president of the International Brotherhood of Teamsters.

On a pedantic note, few people know that the word “teamster” literally means someone who can handle a team of animals, whether bullocks or horses. That's what we are, drivers of metal and composite plastic horses. It's an eons-old trade, probably going back to ancient Iraq and Sumeria where animals were first domesticated and used as beasts of burden.

But the modern Teamsters Union is a North American phenomenon older than trucks themselves. Drivers started organizing in British Columbia back in the 1890s. With 1.3 million members in the US, Canada's 100,000 Teamsters are small potatoes, but it remains the biggest trucking union in this country (only rivalled by the CAW and Steelworkers). Teamsters Canada is an autonomous organization but it doesn't have as much of a presence on the labour scene here as does the American parent-entity south of the border.

The Hoffa name has become synonymous with the IBT, largely because of the charismatic nature of the disappeared-and-presumed-murdered original Hoffa, James Riddle, the father of the present-day general president James Phillip Hoffa.

Jimmy Hoffa disappeared in 1975 but he's not forgotten, despite the mediocre movie with Jack Nicholson and Danny DeVito. Strange that Hollywood twisted a compelling story into fictional nonsense by addding the DeVito character and several other plot devices that don't jive with what actually happened, notwithstanding that the real story is far more engaging than anything a hackneyed screen writer could fabricate.

With his upcoming third term as president, James Phillip, will surpass his father's record at the helm of the two-horse union. It's curious that the adopted son is looking more and more like his father as years go by. “He's still got a long way to go to fill his father's shoes,” one old timer told me in Hamilton one day. And maybe that's true. But there are important differences between him and his benefactor.

James is a labour lawyer from Michigan, unlike his dad who came up through the ranks, at one time working in a grocery warehouse. Although never working as a truck driver, Jimmy's home base was Teamsters local 299 of Detroit. The senior Hoffa was a Republican and hated the Kennedys (Robert Kennedy indeed put his ass in stir), while James is Democrat and an Obama supporter. James recently raised the ire of the neo-cons when he suggested “we ought to take out some of the (Tea Party) bitches” during a Labour Day picnic in Detroit where he was introducing Obama.

Hoffa's victory in 2011 was never in doubt. He garnered 60% of the vote, out-distancing his two opponents, former ally Fred Gegare with 23% of the vote, and TDU-backed Sandy Pope who got 17% of the pie.

The extremely low voter turnout is a little shocking. Less than 20% of the eligible voters mailed in their ballots, and in Canada the electoral exercise was even more apathetic, with only one in ten Teamsters bothering to vote.

What does it mean? Incumbency is a factor, and most members are happy enough with the leadership that they don't care to vote. Hoffa's had a few missed steps, but no major scandals. There's some criticism that his negotiating team gave away too much at YRC, and the car haulers seem to be an unhappy lot, but his overall performance seems solid enough.

He does have some opposition forming on the horizon, if the reformers can get organized and run one alternative candidate instead of two. This time the Teamsters for a Democratic Union threw its support behind Sandy Pope from New York, but it didn't seem to have much impact. I also remember one senior Teamster, also in Hamilton explaining to me what TDU stands for: “Too Dumb to Understand!” he pretty well shouted at me.

Pope may have stumbled by not running with a slate, as did her opponents Gegare and Hoffa. Slates seem to be the way to go at the IBT. I don't believe anyone's ever won an executive position in my local 938, without running on a slate.

With about 9,000 members, Local 938 primarily has Purolator, UPS and some car haulers in its hegemony. Its the second largest bargaining unit in Canada, second only to Local 1999 in Montreal which has over 10,000 members, and is the nest from which Teamsters Canada president Bob Bouvier fledged.

The Teamsters may not be as influential on the labour front as their American counterparts, but they have had a few victories. Trucking is no longer their main focus and today's Teamsters include railroad engineers and school board staff. So signing up drivers from Young's System and Wilson's must give some padding to an eroding membership base.

But I was curious when I read that local 938 had elected their executive by acclamation on Aug. 27. These are good jobs with a lot of perqs. With almost 9,000 members you'd think a few people would throw their hat in the ring. But this didn't happen this time nor did it happen last election. The incumbent slate (with a few changes) ran unopposed, and five years ago altered the bylaws so it would be tougher to run for election to the executive. Members now have to attend 50% of general meetings for the preceding 24 months before the election, not always an easy thing to do considering card-holders are scattered throughout the province.

It's no secret that president Craig McInnes pulls in 106 K plus change, with the other executives in 938 making slightly less. And I'm sure this includes a generous expense account, car allowance and pension. The pot is sweetened in that some of the executives pull in salaries to sit on Joint Councils, and Canada is allowed three vice presidents (of which McInnes is one, also running unopposed), who also rake in pretty good cabbage. I'm guessing Bob Bouvier, as head of Teamsters Canada makes at least $300,000.

So is this unreasonable, considering what CEOs get paid in North America? I think not. Union executives should be as equally well compensated as the private sector. Teamsters also have a reputation of getting contracts that set the bar within the industry. But I'd still like to see some more representation from the rank and file, rather than watching the same bunch acclaiming itself in perpetuity.

Local 938 has a long interesting history, some of it a little sketchy. Not so long ago it was put in trusteeship for three years by the above mentioned James Hoffa because of some hanky-panky with the books. It's never been clear what exactly went on. So that's another reason the executive should not run uncontested. That's the way a functional democracy works. It has to have competition and an opposition in order to thrive, in order to be accountable to the people it serves.

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I have a button. When it’s pressed alarms go off, temperatures rise and composure slips away. If I am told to do something that I believe is fundamentally wrong, I have a pretty hard time with it. I fight back, sometimes kicking and screaming. I take it personal. I’m learning to be more diplomatic and in the end, stand up for what I believe in without alienating my client in the process.

Like most things, experience is the best teacher, followed closely or in tandem with trusting your instincts. Most people have a hard time accepting a thought or idea that is fresh, as there is no physical reference for them to gauge whether it is good or bad. Most people are reference thinkers. If it hasn’t been done before, they are sceptical and most revert to the safer, less daring approach. The opposite is usually what is required, so you do need to be a bit stubborn to be in a business where you are creating customized solutions.

No matter what profession you’re in, you need the confidence in your abilities to do the right thing for your client, especially when they are struggling with a direction. It’s our job to guide them. When you spend a lot of your energy developing a solution, its human nature to get a bit defensive when someone challenges you and wants to send you in a totally new direction you can’t get behind. What I’ve learned over the years follows:

·         If you are hired as a professional for guidance, you have an obligation to provide that guidance especially when it is challenged.

·         If your client is challenging your solution, there is a legitimate reason they are not comfortable moving ahead. Don’t start over; just listen more carefully as often a tweak to the original plan will bring it all together.

·         Don’t ever think you have all the answers but be confident in communicating the facts you know to be true and be open to and encourage collaboration with your client.

·         Communicate in person whenever possible to get the plan back on track. You and your client will benefit from the extra effort made to resolve the hurdles you need to, face-to-face.

Lee’s Quote for the Day

“Gaining your customer’s trust is the most valuable aspect of any business relationship. It may seem a bit like climbing Mount Everest, but when you finally get there, it’s worth every step of the journey” J

Lee Palmer is the President and Creative Director at Palmer Marketing, a company that specializes in creative marketing and advertising solutions for the transportation industry.

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Much to the chagrin of the rest of the McCarron tribe, my foray into social media began about a year ago when I started dabbling in the world of Facebook and LinkedIn. I had loads of fun catching up with pals from all over the world and even picked up some deals by rekindling old business relationships.

However, the real power of social media and its implications for the trucking industry didn’t hit me hit until this past Spring. I was blown away as I watched ordinary people armed with only the weapons of social media change the world. They accomplished in months what billions of dollars in military might failed to do in years—wipe out three Middle East tyrannies and protest regimes in a dozen more.

I don’t think Facebook and Twitter are fundamentally changing our business—we still move freight on trucks, and shippers still want good service and better prices. But it is revolutionizing how people talk—and hear—about our companies.

How to manage this change is a multi-million-dollar question at a lot of businesses. Not many have a good answer.
According to an Accenture study, only 8% of US companies “extensively” use social media even though 65% of marketing executives say social media is important to their companies’ future success. The survey, of 200 respondents from large ($1 billion-plus) companies, found that only 5% formally integrate social media with other customer and marketing initiatives. About 25% said they were only “slightly engaged” or “not engaged at all” with social media.

Age of Transparency
The days of companies controlling and even hoarding information are over. Now anyone can be Andy Rooney. If you mistreat a customer, he’ll take his complaint online where it will live forever.
What will you do when it happens to you? In a MarketTools study of 330 marketing executives, 95% of respondents said satisfied customers are very important or extremely important to their company, yet only 8% regularly respond to customer complaints online.

Maybe they don’t want to show their weaknesses or vulnerabilities. On the other hand, sharing a problem and how it was solved can build trust. And trust is still the key to a successful relationship, one of the few things Facebook hasn’t changed. If your five-day service was six days last month, you’d better tell people before they tell the world, and explain what you’re doing to get back on track.

Social Media and Sales
It isn't enough for trucking companies to just be on social media. You need to figure out why you’re on it and how it can help you sell freight.

A study by Gary Breininger & Associates found that supply chain professionals spend an average of 17 hours a week on the net. Not a huge surprise to me. What caught my attention is that 58% of respondents said the most important reason they use it is to source suppliers.

They’re visiting your web site, checking public records, and reading whatever else comes up with your name on it, including blog posts, Twitter feeds, and Facebook pages. Social media may not translate into a direct sale, but what customers read will influence their decision to call you up or skip on down to the next search result.

What Your Employees Say
The best way to attract and retain good employees these days is to embrace these changes and make them an integral part of your corporate culture. You can’t fight it or ban it any more. In fact, you need to use the available tools to empower your employees as a source of ideas to garner innovative ideas and improve your bottom line. I would wager that your top sales producers are using LinkedIn to build your business. It also means they have a permanent online resume for all your competitors to see.

As you plan for the year ahead, talk about how to monitor social media and which outlets are most important. Start with Facebook and Twitter and move on to Yelp, Yammer, Jive, or whatever platform is new as you’re reading this. Then go Google yourself and see what shows up. I bet your prospects and competitors already have, and in growing numbers.

Mike McCarron is the managing partner at MSM Transportation (www.shipmsm.com) in Bolton, Ont., which specializes in moving products from Canada to and from the rest of the world.

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Last week we received some unexpected good news in the United States as the unemployment rate fell to 8.6%. In Canada the news wasn’t as good as the unemployment rate increased to 7.4 percent. Without counting those people who have given up looking for work or who are underemployed (e.g. performing a job below their level of expertise and education at a wage inferior to what they should be earning), there are about 14 million people unemployed in North America (e.g. 13.3 million in the United States and 1.3 million in Canada).

FTR Associates estimated that there was a shortage of 200,000 drivers in the United States in the first quarter of 2011. How does one explain the fact that out of a pool of 13.3 million unemployed people (plus millions more if you include those who are underemployed), we cannot find 100,000 to 200,000 individuals to fill these jobs?

Here are some thoughts on this apparent anomaly. There were 3.2 million commercial drivers in the United States in 2008, including 1.8 million heavy haul or tractor-trailer drivers, according to the U.S. Labor Department. By May 2010, the number of big rig drivers had dropped 18.4 percent to about 1.5 million. In other words, there are 300,000 drivers that left the labour force that should be available to fill the available jobs. Why is it so hard to convince them to come back to work?

One of the most frequently mentioned reasons is compensation. In the United States, experienced truck drivers can make $50,000 a year at some truckload carriers. According to a BLS survey, the average wage was $39,450 in 2010 while the median wage was $37,770. The survey indicated that 75% earn less than $47,000 per annum.

The trucking industry has a long term practice of paying its drivers by the mile. While there is certain fairness to this approach since it correlates directly with the amount of miles driven and hours worked, it also injects a level of uncertainty into the driver’s weekly pay package. Inconsistent load availability translates into inconsistent pay.

Pay raises are difficult to implement since they cannot be easily correlated with increases in freight rates. In fact, there has been tremendous downward pressure on freight rates as the recession took hold and shippers sought a means of reducing supply chain costs. According to the American Transportation Research Institute, U.S. driver pay fell by 7.4 % in 2009.
Then there is the lifestyle issue. For long haul drivers, being away from home for days or weeks at a time is another deterrent. While there can be a certain glamour in being on the open road and visiting different regions of North America, spending so much time away from home can lead to a range of potential lifestyle issues (e.g. marital difficulties, unhealthy living etc.).

There are a host of other issues that contribute to the problem. At the heart of it is the fact that being a truck driver is not a recognized profession. The current driver compensation packages make drivers a commodity who can sell their services to the highest bidder.
Hours of Service regulations may or may not improve driver safety but restrict work hours. The new CSA provisions improve the quality of those drivers who meet the standards but make it tough on those who work for trucking companies that do not support them with a high quality fleet management program.

The driver shortage problem is coming to a head. Fleet costs are rising as more demanding emissions standards are imposed by governments. The CSA program will push poor quality drivers out of the business. An increasing number of shippers are challenging carrier rate increases (that are intended to cover these rising costs). A driver shortage problem that will exacerbate the capacity shortage is not a sustainable situation, particularly as we try to pull ourselves out of recession.

So what has to change? It will take a combined effort from shippers, carriers and governments to help avert a capacity shortage situation that will disrupt the Canadian and U.S. economies.

From a shipper perspective, there is a need to have “carrier friendly” freight. This can be achieved by removing inefficient and non-productive processes. This includes making improvements in freight packaging, loading, paperwork, vendor and customer network management. Many shippers need to get their “house in order” to keep their freight costs in line. As unpleasant as this may sound, freight rates have to go up (although the level of increase can be muted by Best in Class transportation practices).

From a carrier perspective, there is a need to run a sound operation, to properly recruit and train drivers and to offer them a job and a career within the organization. It is time to look at other pay options including guaranteed pay and incentive based pay for drivers who achieve certain metrics and CSA scores. There is a need to manage and communicate with drivers effectively including dispatcher training so drivers are treated with respect and dignity. We need to create a class of professional drivers who meet specific metrics on an ongoing basis and are properly recognized and compensated for their excellence.

For governments, they need to think through every law and policy they pass that has an impact on driver safety, performance and lifestyle. In North America we need a team of professional drivers that are intelligent, hard-working, thoughtful and motivated employees that serve as a differentiator as we compete with the other leading world economies.

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Over the past number of years I have offered advice on how Owner Operators can make themselves more profitable and hopefully some of you have listened and derived benefit from my writings. What I want to explain in this article is how to protect the small business that you have worked so hard to build. As with most small businesses, the owner is also the company’s only employee and if something should happen to that person the entire company is at risk, along with any personal assets that might be owned or co-owned by them, why would personnel assets be on the line? This is an easy question to answer but could end up being a hard pill to swallow if you ever find yourself in this situation after an accident. If you have a bank loan on your truck, chances are the financial institution you used, asked for (or demanded) a personal guarantee as a prerequisite for the loan. By signing that document you gave the bank the authority to force you to sell any personal assets that you might own to satisfy the balance of the loan should you default for any reason.

Have an accident with inadequate insurance? Doesn’t matter, make the payments - pay the loan. Got sick? Had a Heart Attack? Doesn’t matter, make the payments - pay the loan. You can see where I’m going with this. I know these scenarios are not pleasant topics, but I felt the need to get them on paper - because I have seen it happen (too many times). One of my favourite Owner Operators when I was running a carrier had a minor heart attack but was still going to be out of commission for at least 6 months, this guy was a great operator, clean equipment, worked hard, everyone liked him and then bang he had a heart attack. I remember going up to the hospital and seeing him, which is where I learned that he had no insurance for such an event and no nest egg at all. He and his wife had a house with a mortgage and a small amount of money in RRSP’s, that's it!

Of course you can find a driver and put them in your truck while you’re convalescing but I gotta tell you that this is a risky path to take, you better be sure the person knows their stuff and doesn’t cause more problems than they solve. The other thing to consider is that you might be able to make your truck payment, but of course any income that you might have used to satisfy your needs at home will now go directly to the driver, so what now? The correct thing to do, as usual, is to do your homework and make sure that you have all (or most) of these scenarios covered with insurance. I have been working with the good folks over at NAL Insurance Inc. for the past number of years, and have seen how things should work when the proper insurance is purchased and problems happen.

One of NAL’s primary products is WSIB/WCB Alternative Insurance; this product is a no-brainer for Carriers that contract with Owner Operators. This type of coverage provides long-term protection for on and Off the Job Injuries (unlike WSIB, which only covers On the Job situations), and is usually packaged with comprehensive Out of Province Medical Insurance (to cover Emergency Medical Expenses when travelling across the border). This Insurance should be a mandatory requirement at Carriers. Further, NAL makes sure each Owner Operator is aware of the scenarios listed above, as well as other possibilities, for instance, the negative effect on cashflow in the event of an accident (Deductible Buydown Coverage), the impact of a Cancer Diagnosis (Critical Illness and Sickness Coverage), or the getting stuck on some lonely highway in the middle of the night (Truckside Emergency Road Service). I hate to sound like a commercial, but I wouldn’t write it if I didn’t believe in it. Proper insurance protection is a necessary component of any sound business; unfortunately too many Owner Operators lack proper coverage and only find that out after it’s too late.

To reinforce my point, here are a couple real world scenarios that NAL has passed on to me, one with a good outcome, and one with a not-so-good outcome. The first one deals with a 47-year-old driver from the Windsor area. During a driver meeting, this gentleman was vehement that he didn’t need WSIB Alternative Coverage or Critical Illness Protection. His comment was “all insurance companies are jokes, they will gladly take your money, but when it comes time to claim they throw up as many road blocks as possible”. Luckily, the fleet he drove for made the coverage mandatory. Further, after the NAL rep got a chance to meet him one on one, he decided to increase his Critical Illness protection to $50,000. It decision turned out to be very timely, because 13 months later he was diagnosed with colon cancer. Luckily, they caught the cancer in time; he has since recovered fully, but did admit that if it wasn’t for the $50,000 Critical Illness settlement he may have lost everything.

This brings me to the not-so-good story. After a two-hour sit down with a NAL rep, an Owner Operator from rural Ontario made the unfortunate decision to “pass” on valuable Disability coverage. His premise was “I own my truck out right, no loan. If something happens, I’ll just sell my truck and live on the proceeds until I recover”. Unfortunately, too many drivers have similar opinions. The reality is that equity in a depreciable asset is certainly not the foundation of a solid financial plan, especially in a distressed situation. Unfortunately, within 12 months, this driver was tarping down his load fell from the deck and broke his arm and collarbone. The results, Due to the nature of the injury, he required two surgeries and was off for an entire year. The truck was long gone (sold for less than half what he thought it was worth), and a house in foreclosure proceedings. This could have all been avoided with a little per-planning, food for thought (and motivation to get you financial house in order).

Safe Trucking
Rjh

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