Dan Rather Reports

Episode Number: 436

Episode Title: Truck Talk

Description: Dan Rather visits the big truck stop at Carl's Corner, Texas, to hear from the American Truckers Associations and big rig drivers from across the country who are concerned about their profession.

Transcript:

TONIGHT A SPECIAL BROADCAST. AN OPEN FORUM ON THE OPEN ROAD.

A DISCUSSION WITH TRUCKERS ABOUT THE BUSINESS OF THE BIG RIGS.

GOOD EVENING AND THANK YOU FOR JOINING US. WE ALL SEE THE ENDLESS STREAM OF TRUCKS OUT ON THE ROAD THAT HAUL PRETTY MUCH EVERYTHING WE BUY OR SELL BUT MOST OF US KNOW VERY LITTLE ABOUT THE MILLIONS OF FOLKS BEHIND THE WHEEL AND WHAT IT TAKES TO MAKE IT ON THE LONG HAUL THESE DAYS.

WE'LL GET INTO THE SERIOUS ISSUES SOON, BUT FIRST A LITTLE ABOUT THIS COLORFUL PLACE THAT IS HOSTING US.

WE'RE COMING TO YOU AN HOUR SOUTH OF DALLAS. A LEGENDARY TRUCK STOP OFF I35 CALLED WILLIE'S PLACE IN CARL'S CORNER, TEXAS. THE WILLIE IS WILLIE NELSON WHO CO-OWNS THIS TRUCKERS MECCA WITH IS OLD PAL CARL CORNELIUS. CARL GAVE ME A LITTLE TOUR OF HIS NOT SO LITTLE TRUCK STOP. HOW BIG IS THIS PLACE? OH LORD IT'S PRETTY BIG. IT'S ABOUT 40-50 THOUSAND SQUARE FOOT. THE BIGGEST NAME IS WILLIE'S NAME ON IT. HE WANTED TO LEAVE IT CARL'S CORNER TRUCK STOP I SAID NO. IT HAS TO BE WILLIE'S PLACE BECAUSE WILLIE IS AN ICON.

HE'LL BRING IN A LOT MORE PEOPLE. CARL AND WILLIE GO WAY BACK. THEY BECAME FRIENDS OVER CARL'S FAVORITE PAST TIME. POKER. YOU KNOW. STUD OR DRAW? I PLAY ANY KIND OF POKER. AND IT WAS A POKER GAME THAT GOT WILLIE INTO CARL'S TRUCK STOP BUSINESS. TRUE OR UNTRUE YOU LOST IT TO HIM IN A POKER GAME. I LOST IT TO HIM IN A POKER GAME AND I WON PART OF IT BACK AND NOW WE BET THE TRUCK STOP, I'LL FOLD. I DON'T WANT IT ALL BACK. CORNELIUS IS MAYOR OF CARL'S CORNER. POPULATION ABOUT 200. FOUNDED IN THE EARLY 1980S TO ENSURE THE FLOW OF SPIRITS AT HIS TRUCK STOP. THE TRUCK STOP WHERE WE ARE TODAY IS A LONG WAY FROM WHERE CARL STARTED. I HAD SOLID GLASS MIRRORS IN THE BACK AND I HAD A SWIMMING POOL IN THE MIDDLE AND A HOT TUB ON THE STAGE AND EVERYTHING. I HAD AN ADULT BAR BACK THERE, A SAUNA, THE WHOLE WORKS AND AT THE SAME WE USED IT FOR A WEDDING CHAPEL WHEN NECESSARY YOU KNOW. WHEN NECESSARY? YEAH, WHEN I WANTED TO GET MARRIED. I MARRIED PEOPLE. IT WAS A DIFFERENT TIME. THIS WAS A GUY THAT DROVE HIS MOTORCYCLE INTO MY BAR. WHAT DO YOU MEAN DROVE HIS MOTORCYCLE INTO THE BAR? HE WANTED TO COME IN. THIS IS ONE OF MY DANCING GIRLS. DANCING GIRLS? YEAH MAKE YOUR LIVER QUIVER. MAKE MY LIVER QUIVER? OH YEAH. DO YOU STILL HAVE THESE GIRLS OR NO? NO, NO I SURE DON'T RIGHT NOW. HOW Y'ALL DOING? NOW, IT'S A FAMILY FRIENDLY ESTABLISHMENT. TELL ME YOU'VE GOT THE DINING AREA THERE WHAT ELSE DO YOU HAVE HERE? DO YOU HAVE SHOWERS? WE HAVE SHOWERS. WE HAVE A CONVENIENCE STORE AND WE HAVE 13 DIESEL PUMPS AND A BUNCH OF GAS PUMPS OUT FRONT. WE HAVE A THEATER AND WE HAVE THE WALK OF FAME WHERE YOU GO THROUGH THERE AND YOU SEE WHAT WILLIE HAS BEEN REBUILDING AND WE HAVE THE MUSIC ROOM. GUITAR AND EVERYTHING LIKE THAT. WHEN WILLIE SIGNS THEM THEY ALL GO IMMEDIATELY. THEN WE HAVE THE SALOON IN THE BACK. AND OF COURSE WE HAVE SIRIUS RADIO HERE AND XM. AND THEY'RE DEFINITION OF INTELLECTION IS IF YOU COULD LISTEN TO THE WILLIAM TELL OVERTURE AND NOT THINK OF THE LONE RANGER YOU ARE ELECTED. I STOPPED BY FOR A CHAT WITH THE LEGENDARY BILL MACK, THE GODFATHER OF TRUCKING RADIO WHO OFTEN COMES DOWN HERE TO BROADCAST HIS FAMOUS SHOW FOR THE GUYS AND GALS DRIVING THE RIGS. WE'RE TRYING TO BE STATE OF THE ART. WELL, ARE YOU THE BEST TRUCK STOP IN AMERICA? WELL I'D LIKE TO SAY SO BUT I HAVEN'T MET ALL OF THEM. THAT'LL MAKE YOU LOOK JUST LIKE ME. THE ULTIMATE BODY.

AND GOOD EVENING FROM INSIDE THE TRUCK STOP. WE'D LIKE TO THANK CARL AND BILL MACK FOR HOSTING US. THIS IS WILLIE'S PLACE THE GRAND BALLROOM HERE AND BETWEEN BILL MACK'S OLD TIME COUNTRY MUSIC, WILLIE'S BIOFUEL AND CARL'S FAMOUS OR INFAMOUS DEPENDING ON YOUR POINT OF VIEW, CHICKEN FRIED STEAK, THIS PLACE IS HOPPING WITH TRUCKERS TONIGHT. A PERFECT PLACE FOR OUR TRUCK STOP FORUM. NOW, LET'S GET STARTED. AS PART OF AN INVESTIGATIVE REPORT THAT TOOK SEVERAL MONTHS TO PUT TOGETHER WE RECENTLY BROADCAST A STORY ABOUT ROOKIE TRUCKERS THAT REALLY STRUCK A NERVE, ESPECIALLY THE ACCOUNTS AND CLAIMS IF YOU WILL OF A NEW DRIVER AND A TRAINING MANAGER WHO GAVE A TROUBLING GLIMPSE INTO A SYSTEM THAT IS PUTTING 1000 OF NEW DRIVERS ON THE ROAD.

WE PROFILED DESIREE WOOD, A 45-YEAR OLD TRUCKER WHO SAID SHE HAD BEEN POORLY TRAINED TO DRIVE BIG RIGS AND THAT SHE HAD OBSERVED OTHERS BEING POORLY TRAINED. SHE SAYS SHE SPENT $1000S AT A COMMERCIAL DRIVER'S LICENSE SCHOOL IN FLORIDA CALLED THE CDL SCHOOL. SO HOW DID YOU WIND UP CHOOSING TO GO TO TRUCKING SCHOOL. IT SEEMS AN ODD CHOICE. I MOSTLY DID NOT WANT TO WORK IN AN OFFICE. I WANTED TO GO SOMEWHERE WHERE I WAS GOING TO DO MY JOB A BE LEFT ALONE. BUT HERE AT THE MIAMI CAMPUS OF THE CDL SCHOOL, WOOD SAYS SHE DIDN'T EXPECT TO BE LEFT ALONE QUITE SO MUCH. SHE SAYS SHE PAID MORE THAN $5500 AND SHE WANTED TO LEARN HOW TO DRIVE A TRUCK. INSTEAD SHE SAYS SHE SPENT MOST OF THE TIME CRUSHING CONES ON THE DRIVING COURSE.

DID YOU HAVE A LOT OF DRIVING PRACTICE? DID THEY GIVE YOU A LOT OF DRIVING SCHOOL EXPERIENCE? NO. MY SCHOOL WE GOT OUR WRITTEN PART OUT OF THE WAY THE 1ST WEEK THEN WE GO TO THE DRIVING COURSE AND BASICALLY THEY WOULD DROP US OFF THERE AND THEY'D BE LIKE THERE'S THE TRUCKS, WE'LL PICK YOU UP AT 7. AND SHE SAYS ACTUAL ROAD TRAINING WAS LIMITED TO 2 VERY SHORT TRIPS IN THREE WEEKS. I ONLY GOT TWO TIMES. YOU'RE SUPPOSED TO GO THREE BUT THE LAST DAY I WAS LIKE BEGGING THEM, LIKE I HAVEN'T GONE OUT VERY MUCH, CAN I GO. YOU KNOW THAT A LOT OF PEOPLE HEAR THIS AND SAY YOU MEAN TO TELL ME YOU WENT TO WHAT IS SUPPOSED TO BE TRUCKING SCHOOL AND SHE ACTUALLY ONLY DROVE THE TRUCK MORE OR LESS AROUND THE BLOCK. MMM-HUH, YEAH. WHAT DO WE THINK OF THAT? IT'S UNSAFE. WELL DO YOU THINK OR NOT THAT NEW DRIVERS WHO'VE GOTTEN THEIR CDL, A COMMERCIAL DRIVER'S LICENSE. WHEN THEY START DRIVING ARE THEY READY TO DRIVE A BIG RIG, WHAT 80,000 POUNDS ON THE HIGHWAY. NO, THEY'RE NOT. I MEAN THEY'RE PUTTING THESE PEOPLE OUT ON THE HIGHWAY SOME OF THEM ARE IN APPROPRIATE TO EVER SIT IN THIS SEAT AND THEY'RE PUSHING THEM THROUGH THESE SCHOOLS. IT'S A BUSINESS. YES, IT'S A BUSINESS. IT IS AN INDUSTRY ITSELF OF STUDENTS. WE ALSO MET TOM HANSEN WHO WAS SPEAKING OUT FOR THE FIRST TIME WITH DRIVER TRAINING OR LACK OF IT AT HIS FORMER COMPANY CRST VAN EXPEDITE. WHEN I SEE A TRUCK FROM THE FORMER COMPANY I WORKED FOR, I

GIVE THEM A LOT OF SPACE BECAUSE I'M NOT SO SURE OF THAT PERSON'S

SKILLS. UNTIL VERY RECENTLY, TOM HANSEN WORKED AS A MANAGER HERE AT

CRST'S TERMINAL IN OKLAHOMA CITY.

EVERY MONDAY MORNING FOR FIVE YEARS, HANSEN SAYS HE GOT 30 TO

40 NEW RECRUITS WHO HE'D PUT THROUGH A BATTERY OF CHECKS AND

TESTS TO ENSURE THEY QUALIFIED FOR CRST'S FINISHING SCHOOL.

WHEN THIS BRAND-NEW STUDENT GOT THERE, DID THEY PASS THE

QUALIFICATIONS THAT WE GAVE THEM?

COULD THEY WRITE THEIR NAME MORE THAN ONCE?

COULD THEY READ A MAP?

COULD THEY PASS A ROAD TEST WITHOUT HITTING FOUR CURBS, OR

BEIN' ABLE SHIFT A TRUCK? I KNOW FROM PERSONAL EXPERIENCE, DOING THOUSANDS OF ROAD TESTS, AT LEAST IN THE LAST SEVEN YEARS, LITERALLY THOUSANDS-- THAT'S NOT AN EXAGGERATION, THERE'S A LOT OF 'EM WHO PROBABLY SHOULDN'T BE DOING THIS BUSINESS. THEY PROBABLY SHOULD STICK TO MAYBE YOU KNOW DRYWALLING OR ROOFING OR WHATEVER THEY WEVE DOING IN THE PAST.

WELL THAT WAS TOM HANSEN FORMERLY WITH CRST TRUCKING AND DESIREE WOOD WHO DRIVES FOR COVENANT TRANSPORT. BY THE WAY DESIREE WOOD IS IN OUR AUDIENCE NOW. I WANT TO SPEND A FEW MINUTES DISCUSSING THIS REPORT AND THEN I WANT TO MOVE ONTO OTHER SUBJECTS ABOUT THE TRUCKING BUSINESS. A REALLY IMPORTANT BUSINESS FOR THE COUNTRY, FOR IT'S ECONOMY, FOR OUR WHOLE TRANSPORTATION SYSTEM. FIRST I WANT TO TELL YOU ABOUT WHO IS IN OUR PANEL AND WHO IS NOT ON OUR PANEL. THE AMERICAN TRUCKING ASSOCIATION IS A POWERFUL VOICE FOR 1000S OF TRUCKING COMPANIES IN WASHINGTON. THEY LOBBY, THEY TRY TO GET SOME LEGISLATION PASSED. THEY TRY TO STOP OTHER LEGISLATION. THEY'RE ACTIVELY INVOLVED IN TRYING TO PERFECT REGULATORY EVENTS. WE INTERVIEW THEM IN THE 1ST REPORT AND THEY INITIALLY AGREED TO JOIN US TONIGHT. BUT THEN ATA'S PRESS SECRETARY ONE CLAYTON BOYCE SENT US A NOTE BACKING OUT SAYING AND I QUOTE DIRECTLY.

YOU SHOULD KNOW THAT WE PROMISED THE ATA AT LEAST 20 MINUTES TO LAY OUT THEIR CRITIQUE OF OUR FIRST REPORT AND DISCUSS BROADER ECONOMIC AND SAFETY ISSUES CONCERNING TRUCKS. THERE ARE PLENTY OF ISSUES AS YOU KNOW. THESE ARE ISSUES THAT ONLY EFFECT MILLIONS OF PEOPLE WHO WORK IN THE TRUCKING INDUSTRY. THEY EFFECT EVERYBODY IN THE COUNTRY. BUT THIS MR. BOYCE SAID IT WAS ONE WOMAN, DESIREE WOOD, WHO COMPELLED THEM TO CANCEL WRING AND AGAIN I QUOTE DIRECTLY.

SO THEY FLATLY REFUSED TO COME ON EVEN THOUGH WE HAD PROMISED THEM 20 MINUTES IN THE CLEAR TO GIVE THEIR POINT OF VIEW. A FOOT NOTE, THE IDEA THAT A SINGLE PERSON WHOEVER IT IS COULD SILENCE THE REPRESENTATIVES OF A 600 BILLION DOLLAR INDUSTRY WAS PRETTY WELL DISAPPOINTING THE SAY THE LEAST. WE ALSO REACHED OUT TO COVENANT AND CRST AND 10 OTHER LEADING TRUCKING COMPANIES. A DOZEN INVITATIONS AND ONLY ONE COMPANY ACCEPTED. WE'RE VERY HAPPY TO HAVE TWO PANELISTS HERE TONIGHT FROM WERNER ENTERPRISES, THE THIRD LARGEST LONG HAUL COMPANY IN THE COUNTRY AND THEY ARE INTERNATIONALLY INVOLVED AS WELL. FIRST WE HAVE MR. DEREK LEATHERS. WARNER'S CEO. MR. LEATHERS HAS WORKED IN THE INDUSTRY FOR NEARLY 20 YEARS FIRST WITH SNYDER, ANOTHER BIG FLEET WHERE HE HEADED UP THE MEXICO OPERATIONS. NEXT WE HAVE ONE OF WERNER'S TOP DRIVERS. AND ONE OF THE TOP DRIVERS IN THE COUNTRY, TIM DEAN FROM GRISWOLD, IOWA. MR. DEAN IS A TWO TIME NEBRASKA STATE TRUCK DRIVING CHAMPION WHO HAS DRIVEN ALMOST 2.6 MILLION ACCIDENT FREE MILES IN HIS 19 YEARS WITH WERNER. THANK YOU FOR BEING WITH US TONIGHT, WE APPRECIATE IT. WE HAVE ANOTHER WORKING TRUCKER WITH US, MILES VERHOFF. HE IS AN INDEPENDENT OWNER/OPERATOR FROM WISCONSIN. AFTER 16 YEARS DRIVING COMPANY RIGGS, MR. VERHOEF BOUGHT HIS OWN TRUCK IN 1999 AND BECAME ACTIVE IN THE OWNER/OPERATOR INDEPENDENT DRIVERS ASSOCIATION OR OIDA. DID I SAY IT RIGHT? YES SIR. OIDA. THAT'S A GROUP THAT ADVOCATES FOR TRUCK DRIVERS. WE ALSO HAVE OIDA'S EXECUTIVE VICE PRESIDENT WITH US, TODD SPENCER. MR. SPENCER TRADED IN HIS TRUCK FOR A SOAP BOX SO TO SPEAK BACK IN 1981. HE HAS TESTIFIED BEFORE CONGRESS ON TRUCKING ISSUES, HE IS VERY KNOWLEDGEABLE ABOUT THE BUSINESS AS A WHOLE. THANK YOU FOR BEING WITH US, APPRECIATE IT. FINALLY ANOTHER FORMER TRUCKER, MICHAEL BELZER GAVE UP THE ROAD FOR THE IVORY TOWERS OF CORNELL UNIVERSITY. NOW HE IS AN ECONOMICS PROFESSOR AT WAYNE'S STATE UNIVERSITY IN DETROIT. HIS RESEARCH SPANS FROM TRUCKING OPERATIONS TO LABOR, TO SAFETY AND REGULATION. HE'S WRITTEN A BOOK CALLED SWEAT SHOPS ON WHEELS. THANK YOU ALL FOR BEING WITH US TONIGHT. LET'S START WITH OUR REPORT ON ROOKIE TRUCKERS. WE GOT A LOT OF GROUND TO COVER. WE AREN'T GOING TO CONCENTRATE THE WHOLE PROGRAM. LET'S START WITH THAT BROADCAST. LET'S FIRST GO AROUND THE HORN. WHAT IS YOUR REACTION OF THAT FIRST BROADCAST, FAIR, UNFAIR, ACCURATE, INACCURATE, IN CONTEXT, NOT IN CONTEXT. WHAT DO YOU THINK MR. LEATHERS? WELL I THINK FOR STARTERS OBVIOUSLY ANY FOCUS ON TRAINING IS A GOOD THING. I MEAN WE ALL HAVE TO BE FOCUSED ON IT. WE NEED TO CONTINUOUSLY IMPROVE OUR PROGRAMS. AS FAR AS FAIR OR UNFAIR I DON'T WORK AT SIERRA STEEN NOR DO I WORK AT COVENANT, I CAN'T SPEAK TO THE SPECIFICS OF WHAT THEY DO OR DON'T DO. CLEARLY THERE WAS REPRESENTATION FROM MISS WOOD. NOT A LOT OF CONVERSATION FROM THE COMPANIES THEMSELVES. PERHAPS WE'RE NOT THE BRIGHTEST FOLKS FOR SHOWING UP TONIGHT BUT WE DECIDED THAT WE'D RATHER TAKE THE QUESTIONS HEAD ON AND ADDRESS ISSUES THAT ARE GOOD FOR OUR INDUSTRY AND REALLY HAVE A HEALTHY DEBATE. SO ALL IN ALL I THINK HOPEFULLY IT WILL BE A LOT MORE FAIR AT THE END OF THE NIGHT THAN MAYBE PERHAPS IT WAS THUS FAR NOT THROUGH ANY FAULT PARTICULARLY. LET ME PAUSE A SECOND, WE REALLY APPRECIATE YOU BEING HERE. LIKE I SAID 10 COMPANIES SAID NO, THE MAIN ASSOCIATION SAID NO. YOU HAD THE GUTS AND GRIT TO SAY YES AND WE VERY MUCH APPRECIATE IT. OKAY WE'RE GOING AROUND THE HORN TO TALK ABOUT THAT FIRST REPORT WE DID WHAT OUR INVESTIGATION SHOWED UP TO BE VERY PROBABLE REAL PROBLEMS IN THE TRUCKING SCHOOLS. NOW TEAM DEAN YOU IN A WAY ARE A DEAN OF DRIVERS. 19 YEARS EXPERIENCE, TRUCK DRIVING CHAMPION. TELL US WHAT YOU KNOW AND WHAT YOUR REACTION WAS TO THAT FIRST PIECE. WELL YOU KNOW EVERYBODY HAS TO START SOMEWHERE AND YOU KNOW I WAS BLESSED WITH THE OPPORTUNITY GIVEN TO ME BY WERNER ENTERPRISES TO PURSUE MY DREAMS OF DRIVING A TRUCK SO. YOU KNOW UH, I KIND OF AGREE WITH WHAT DEREK SAYS THERE BUT YOU KNOW. WELL DID ANY OF THOSE PROBLEMS RESONATE WITH YOU? NOT OFF THE TOP OF MY HEAD. MILES VERHOEF, DID YOU SEE THE PIECE AND IF SO WHAT DID YOU THINK OF IT? I DID SEE IT. I WAS ACTUALLY PLEASANTLY SURPRISED FOR THE FACT OF LACK OF DRIVER TRAINING, THE LACK OF FEDERAL MOTOR CARE SAFETY REGULATIONS NOT SPECIFYING ANY TYPE OF DRIVER TRAINING FOR ENTRY LEVEL DRIVERS. I APPRECIATE THE FOLKS FROM WERNER BEGIN HERE. OBVIOUSLY THE OTHERS DIDN'T FIND IT NECESSARY TO BE HERE AND I DO APPRECIATE THE FACT THAT THEY DID SHOW UP. I'VE BEEN DOING THIS 27 YEARS. MY PERSONAL EXPERIENCE IS WE NEED MORE TRAINING. WE NEED MORE TRAINING FOR ENTRY LEVEL DRIVERS. IT IS ALMOST NONEXISTENT. ALMOST NONEXISTENT. NOT TOO STRONG A STATEMENT YOU THINK? WELL, NO. I RUN INTO TEAMS ON A REGULAR BASIS WHERE THEIR TRAINER HAS SIX MONTHS. THE TRAINER HAS SIX MONTHS. I'M NOT GOING TO NAME THE COMPANY THAT I HAVE RUN ACROSS BUT THAT'S NOT A GOOD SIGN WHEN THE TRAINER HAS SIX MONTHS OF DRIVER EXPERIENCE AND THE TRAINEE HAS TWO WEEKS OF DRIVING EXPERIENCE. WELL TODD, WHAT ABOUT YOURSELF? YOU'RE VERY EXPERIENCED IN THIS BUSINESS. DID THAT STORY RESONATE WITH YOU? DID IT RING TRUE TO YOU OR NOT? DAN, THE REALTY OF THE PREVIOUS SHOW IS ALL TOO COMMON ACROSS OUR INDUSTRY. WE HEAR THOSE STORIES FROM DRIVERS. IT EXISTS. OUR ORGANIZATION FOR IT'S ENTIRE 30 YEARS OF EXISTENCE HAS ADVOCATED MEANINGFUL ENTRY LEVEL DRIVERS, ENTRY LEVEL COMPREHENSIVE TRAINING FOR ENTRY LEVEL DRIVERS. THERE CURRENTLY IS NONE REQUIRED. MANY DRIVERS ENTER THIS INDUSTRY AND ALWAYS HAVE WITH NO TRAINING WHATSOEVER LEARNING GOING DOWN THE ROAD. THE TRAINING THAT EXISTS TODAY, SOME IS CERTAINLY BETTER THAN WHAT WE SAW ON THE PREVIOUS EPISODE. A LOT OF IT IS FAR WORSE. THERE ARE NO STANDARDS. THERE IS NO TRAINING WHATSOEVER REQUIRED. WHAT MOST OF THE DRIVER TRAINING SCHOOLS DO NOW IS THEY TRAIN JUST TO THE LEVEL WHERE A COMPANY WILL PUT THAT PARTICULAR INDIVIDUAL TO WORK DRIVING A TRUCK. I THINK IT'S SCARY AS IT CAN BE. THERE IS NOTHING PROFESSIONAL ABOUT IT, THAT OUGHT TO CHANGE. FMCSA WAS DIRECTED IN 1991 BY CONGRESS TO DO SOMETHING WITH DRIVER TRAINING. WHO IS THAT? THAT'S THE FEDERAL AGENCY THAT OVERSEES MOTOR CARE SAFETY. IT WASN'T FMCSA THEN, IT WAS A PREDECESSOR AGENCY. IN 1991 CONGRESS DIRECTED THE AGENCY TO DO SOMETHING WITH IT. 11 YEARS LATER OUR ORGANIZATION SUED THE AGENCY BECAUSE THEY NEVER HAD. NEVER COME UP WITH ANY KIND OF MEANINGFUL REGULATIONS, WHAT THEY DID WERE LAUGHABLE. THIS IS ON THEIR AGENDA. WE'RE OPTIMISTIC THAT THE AGENCY WILL MOVE AHEAD WITH IT THIS TIME. WELL TWO POINTS. #1 THERE ARE PEOPLE WHO SAY LISTEN, YOU DON'T NEED MORE FEDERAL REGULATION, YOU NEED LESS. AS REGULATION IS PART OF WHAT KILLED THE TRUCKING INDUSTRY IN THE 70S AND GOING INTO THE 1980S. HOW DO YOU ANSWER THAT? IT'S SHEER IDIOCY, LUNACY TO THINK THAT YOU COULD TAKE SOMEBODY OFF THE STREET, TURN 'EM LOOSE IN 40 TON VEHICLES AND THEY CAN NAVIGATE ON OUR CONGESTED HIGHWAYS WITH EVERY KIND OF VERY NON-PROFESSIONAL DRIVER IN EVERY KIND OF TRAFFIC SITUATION IN EVERY KIND OF WEATHER AND DO IT SAFELY WITHOUT A LO T OF TRAINING, A LOT OF PROFESSIONALISM AND A LOT OF SUPPORT FROM THE INDUSTRY THAT THEY WORK IN. VIRTUALLY NONE OF THAT IS THERE NOW. WELL PROFESSOR BELZER. YOU ARE AN ECONOMIST AND EXPERT IN THE TRUCKING BUSINESS. DID YOU SEE THE PIECE AND IF SO WHAT DID YOU THINK ABOUT IT? I SAW THE PIECE. I SAW AN ECHO OF THE PREVIOUS STATEMENT THAT I'VE SEEN A LOT WORSE. IT WAS ACTUALLY PRETTY GOOD. I THINK IT CONCENTRATED ON A PARTICULAR ASPECT, THE TRAINING ASPECT WHICH IS A STRUCTURAL PROBLEM. DUE TO THE NATURE OF THE WAY THE INDUSTRY OPERATES TODAY. BEFORE DEREGULATION YOU HAD A TRAINING SYSTEM. PEOPLE WENT TO WORK FOR A TRUCKING COMPANY AND THEY STARTED TO WORK ON THE DOCK AND THEN THEY WORKED IN THE CITY. THEY GOT A FEEL FOR BEING AROUND THE EQUIPMENT THEN MANY YEARS LATER DOWN THE ROAD WOULD THEY FINALLY GET INTO AN OVER THE ROAD VEHICLE AND HEAD DOWN THE ROAD. SO ALL OF THOSE STRUCTURES HAVE BEEN PUT BY THE WAYSIDE AS A RESULT OF THE DEREGULATION OF TRUCKING SO THE COMPETITION IS NOW DRIVING THE OUTCOME. AND SO ECONOMIC COMPETITION IS THE CRITICAL FACTOR AND I THINK THAT IS THE PART THAT ISN'T QUITE SO CLEAR HERE. IN PARTICULAR, THE FACT THAT THE TRUCKERS HAVE TO OPERATE WITH WHAT LITTLE REVENUE THAT IS LEFT OVER AT THE END OF THE DAY AND THERE IS SO LITTLE REVENUE BY THE TIME THEY'RE CHASING THE DOLLAR THAT THERE IS ONLY SO MUCH THEY CAN DO. ALL RIGHT, EVERYBODY HAS HAD A CHANCE TO SPEAK UP, SOME LIKED IT, SOME DIDN'T, COME TOOK A MIDDLE COURSE. I THINK WE CAN AGREE, IF NOT SPEAK UP, THAT THERE ARE PROBLEMS WITH DRIVER TRAINING. HONEST, DECENT INTENDING PEOPLE CAN DIFFER HOW BIG THE PROBLEMS ARE, HOW DEEP THE PROBLEMS ARE, BUT THERE ARE PROBLEMS THERE. MR. LEATHERS, I KNOW YOUR COMPANY HAS A LOT OF EXPERIENCE HIRING NEW TRUCKERS. CAN YOU TELL ME ABOUT YOUR FINISHING PROGRAM AND WHY YOU THINK IT WORKS BECAUSE ONE OF THE CRITICISMS THAT WE RECEIVED SAID WELL LISTEN YOU TALKED ABOUT THE DRIVER'S SCHOOLS BUT AFTER THESE ROOKIE TRUCK DRIVERS GET OUT OF THE DRIVER'S SCHOOL, MANY COMPANIES HAVE "A FINISHING SCHOOL" TO HELP THEM GET READY FOR THE ROAD SO LET'S TALK ABOUT WHAT YOUR COMPANY DOES. SURE. I GUESS FIRST LET'S TALK ON WHAT WE AGREE ON. I AGREE WITH THE OTHER PANELISTS THERE ARE SOME ISSUES AND CONCERNS AT THE DRIVER'S SCHOOL LEVEL. I THINK STANDARDIZATION IS A GOOD THING. I THINK ALL OF US WORKING TOWARD HAVING CERTAIN SORT OF MINIMUM REQUIREMENTS THAT ALL THESE SCHOOLS NEED TO MEET WOULD BE TO OUR INDUSTRIES BENEFIT. AND I PERSONALLY DON'T THINK IT MATTERS IF YOU'RE AN OWNER/OPERATOR COMPANY DRIVER, BEGINNING DRIVER, LONG TERM DRIVER, IT'S IN ALL OF OUT BEST INTEREST THAT THESE FOLKS COME OUT OF THE SCHOOLS BETTER EQUIPPED, BETTER TRAINED. NOW WHERE WE MIGHT DIFFER SLIGHTLY IS IF YOU GO BACK TO THE ANALOGY OF THE 70S AND 80S A LOT OF THE FOLKS IN THIS ROOM WHO CAME UP THROUGH TRUCKING THAT STARTED IN AGRICULTURE AND DID OTHER JOBS AND WORKED THEIR WAY IN, IT WAS REALLY AN INFORMAL APPRENTICESHIP PROGRAM AND REALLY WHAT HAPPENED BACK THEN IS PEOPLE LEARNED FROM PEOPLE WHO KNEW HOW TO DRIVE. THEY TOOK IT IN BABY STEPS. THEY WEREN'T RUSHED INTO IT, ETC. SO, I THINK THE QUESTION IS HOW DO YOU TAKE THAT CONCEPT AND THEN BUILD IT INTO A CORPORATE ENVIRONMENT AND BUILD A CORPORATE CULTURE AROUND IT. SO TO YOUR QUESTION, QUICKLY WHAT WE TRY TO DO IS, A. WE DO NOT ASSUME WHEN WE GET A DRIVER FROM A DRIVER TRAINING SCHOOL THEY'RE READY TO DRIVE. I KNOW THE COMMENT IN THE PIECE WAS THAT THEIR HANDED THE KEYS AND TOLD GOOD LUCK. THAT WOULD NOT WORK AT OUR COMPANY. THAT IS NOT SOMETHING WE COULD ENDORSE. WHAT WE DO, IS WE HAVE A PROCESS BY WHICH WE BRING THEM IN OUT OF SCHOOL AND THEY ARE ASSIGNED TO A TRAINER. TRAINERS ARE MANDATED, ESPECIALLY IN THE EARLY DAYS OF TRAINING, THEY MUST HAVE OBSERVATION TIME. WE HAVE ONBOARD ELECTRONIC RECORDING DEVICES. I UNDERSTAND THAT IS A CONTROVERSIAL SUBJECT WITH DRIVERS. BUT AS YOU SAID AT THE OPENING WE'RE HERE TO TAKE QUESTIONS ON ALL ISSUE BUT THAT'S WHAT WE DO. WE KNOW WHEN THEY'RE OBSERVING, WE KNOW WHEN THEY'RE COMPLIANT WITH THEIR DUTIES AS A TRAINER. THEY PHASE THEM IN SLOWLY SO THE FIRST THREE DAYS THE TRAINER'S JOB FOR THE MOST PART IS TO SIMPLY OBSERVE THAT STUDENT DRIVER AS THEY PROGRESS. AFTER THREE DAYS, THEY ARE SLOWLY STARTING NOW TO BOTH TAKE OPPORTUNITIES TO DRIVE. THEY'RE DISPATCHED AT A SLIGHTLY HIGHER LEVEL. STILL WITH MANDATORY OBSERVATION TIME. SO WE ARE ABLE TO ACTUALLY THROUGH OUR RECORDINGS OBSERVING THEM, WE MAKE SURE AND VALIDATE THAT IS TAKING PLACE. THEY'RE ON DUTY NOT DRIVING FROM A LOGGING PERSPECTIVE. WHEN THEY'RE IN THE JUMP SEAT WATCHING THAT TRAINING PERFORM. AFTER 11 DAYS, NOW WE'RE AT 14 DAYS IN TOTAL NOW THEY START TO BEHAVE AND REALLY START TO UNDERSTAND AND LEARN MORE INDEPENDENCE BUT THAT TRAINER IS STILL ACCOUNTABLE FOR HIS OR HER STUDENT. THROUGHOUT THAT ENTIRE PROCESS, WE DON'T DISPATCH THEM AS A TEAM. EVERYONE IN THIS ROOM AND MANY PEOPLE OUT THERE WATCHING THE SHOW KNOW TEAM TRANSITS AND HOW MANY MILES YOU EXPECT OF A TEAM. A BONAFIED ACTUAL TEAM OUT THERE DRIVING. THAT'S NOT THE WAY WE APPROACH IT SO THEY ARE DISPATCHED AS A SOLO DRIVER IN PHASE ONE. SLOWLY RAMPED UP TO 650 MILES AND THEN SLOWLY WE MOVE THAT DIAL UP AS THEY ARE READY. IN EACH OF THOSE STEPS THE TRAINER MUST SIGN OFF THAT THE TRAINEE OR STUDENT DRIVER IS READY TO GO TO THE NEXT STEP. SO WE CONCUR I THINK IN THEORY ON THE IDEA THAT WE HAVE TO GIVE MORE TRAINING, MORE DEVELOPMENT, MORE FOCUS ON THESE STUDENT DRIVERS. I THINK WHERE I MIGHT DIFFER IS THAT I DON'T THINK SOME OF THE LARGER COMPANIES OUT THERE PROVIDING THESE TRAINING PROGRAMS ARE THE BAD GUYS. I THINK WHAT WE HAVE TO FIGURE OUT IS HOW TO MAKE THE BAD ONES BETTER AND THE GOOD ONES CONTINUOUSLY TRYING TO IMPROVE AND MAINLY AT THE END OF THE DAY CONTINUE TO FOCUS ALL OF OUR EFFORTS ON MAKING THE HIGHWAY SAFER. YOU KNOW THE GENTLEMAN FROM THE SAFETY SIDE OF CRST MADE A COMMENT THAT WHEN I SEE A TRUCK FROM MY FORMER EMPLOYER I LIKE TO GIVE IT A BROAD BERTH OR SOMETHING TO THAT EFFECT AND MY COMMENT OR MY THOUGHT WHEN I HEARD THAT WAS I WISH THE ENTIRE MOTORING PUBLIC TOOK THAT SAME THOUGHT IN MIND EVERY DAY BUT IT'S NOT BECAUSE WE SHOULD ASSUME THAT ALL THE TRUCKERS CAN'T DRIVE. I THINK A LOT OF STATISTICS WOULD POINT TO WHERE THE REAL ISSUES ARE WHICH ARE ALL THE LITTLE CARS AROUND US AND SO IF WE COULD ALL WORK TOGETHER A LITTLE BETTER AND UNDERSTAND HOW LONG IT TAKES TO STOP ONE OF THESE VEHICLES WE WOULD BE BETTER SERVED. I WANT TO BRING IN NOW ALAN SMITH WHO JOINS US TONIGHT FROM THE AUDIENCE. HE IS FROM FLORIDA. MR. SMITH SPENT 30 YEARS IN THE BIG RIG BUSINESS. THESE DAYS HE ALSO RUNS A WEBSITE ASK THE TRUCKER.COM A WEBSITE FOR NEW DRIVERS WHICH POSTED DESIREE WOOD'S STORY ORIGINALLY. MR. SMITH THANK YOU FOR BEING HERE TONIGHT. I APPRECIATE YOU BEING HERE. WE'VE TAKEN SOME HEAT, IN FACT WE'VE TAKEN A LOT OF HEAT ON THIS PROGRAM FROM PEOPLE WHO SAY THE REPORT WE PUT ON THE AIR ABOUT PROBLEMS WITH TRAINING DRIVERS AND UNQUALIFIED DRIVERS AND UNQUALIFIED DRIVERS BEING BEHIND THE WHEEL WAS MAKING A MOUNTAIN OUT OF A MOLE HILL, BASICALLY SAYING WELL YES, YOU HAVE A FEW BAD APPLES BUT THIS IS NOT A WIDESPREAD PROBLEM. WHAT ARE YOU HEARING FROM ROOKIE DRIVERS. WELL, FIRST OF ALL I'D LIKE TO THANK YOU FOR HAVING ME HERE AND HAVING EVERYBODY HERE TO JOIN IN CONCERNING THESE ISSUES WITH THE TRUCKING INDUSTRY. BUT, AS FAR AS DESIREE'S STORY ON OUR BLOG, I HAVE TO ADMIT WHEN SHE FIRST STARTED IT I WAS WATCHING IT VERY CLOSELY BECAUSE I HAD BEEN IN THE BUSINESS A LONG TIME AND IT WAS EVEN KIND OF CATCHING ME BY SURPRISE. AND REALLY I'M HERE TONIGHT LITERALLY AS A VOICE FOR 1000S OF CDL STUDENTS AND NEW DRIVERS THAT I HAD BEEN IN CONTACT WITH THROUGHOUT OUT WEBSITE SINCE WE STARTED IT. AND SHORTLY AFTER HER STORY STARTED TAKING HOLD. I LITERALLY RECEIVED 100S OF EMAILS FROM WOMEN ALL ACROSS THE COUNTRY, WOMEN AND CDL STUDENTS. MAYBE THEY HAVE A DUI ON THEIR RECORD TWO OR THREE YEARS BEFORE. I AM HEARING FROM LITERALLY 1000S OF PEOPLE ACROSS THE COUNTRY THAT THEY ARE BEING TOLD WELL DON'T WORRY, DON'T WRITE THAT DOWN, THAT'S NOT GOING TO BOTHER YOU. WELL OBVIOUSLY IF YOU HAVE A DUI OR ANY VIOLATION SUCH AS THAT, YOU'RE NOT GOING TO GET HIRED. THE SCHOOLS ARE STILL TAKING THEIR MONEY, THEY'RE WASTING THEIR TIME IN THE TRUCK KNOWING THAT WITHIN A COUPLE WEEKS THEY'RE GOING TO BE THROWN OUT WITH THE TRUCK ANYWAY. SO I WAS REALLY SURPRISED MYSELF THE MAGNITUDE THAT STARTED POURING IN THROUGH EMAILS, THROUGH PHONE CALLS, AND I HAVE CORRESPONDED WITH MANY OF THESE PEOPLE. I HAVE TALKED WITH THEM OVER THE PHONE, SPENT HOURS, IT ALMOST TURNED INTO A FULL TIME JOB FOR ME NOW AND IT IS A BIG, BIG ISSUE AND AN ISSUE WHICH I KNOW WE HAVE BEEN DISCUSSED BEFORE. A LOT OF THESE ISSUES HAVE BEEN TALKED ABOUT FOR MANY YEARS NOW. AND THERE IS STILL NO CHANGE NOW, NOTHING COMING OF IT. SO THAT'S WHAT I'M HOPING WE'RE GOING TO GET THROUGH TONIGHT. WELL WITH THESE SCHOOLS, IS IT OR IS IT NOT A CASE OF THEY PAY THE MONEY $3000 UP TO $7000 TO GO TO THE SCHOOL. IS IT A CASE OR NOT THAT THEY'RE SORT OF CHURNED THROUGH THE SCHOOL THEN CHURNED THROUGH THE TRUCKING COMPANIES. THEY GO TO SCHOOL 6 OR 9 MONTHS LATER, THEY'VE DRIVEN FOR A LITTLE WHILE AND THEY'RE OUT AND A NEW GROUP OF ROOKIE DRIVERS COME IN WITH SOME OF THESE COMPANIES. WELL THAT IS WHAT I HAVE REFEREED TO AS CLEARING DRIVERS OUT. NOW VETERAN DRIVERS ALIKE IN ALL MY YEARS IN THE BUSINESS THEY USE A BETTER TERM, THEY CALL IT STARVING YOU OUT AND THAT HAS BEEN GOING ON FOR YEARS AND I SEE IT AS A MEANS OF USING THESE CDL STUDENTS WHOSE ONLY HOPE IS JUST TO HAVE A JOB REALLY JUST AS A FORM OF CHEAP LABOR. MR. LEATHERS LET ME ASK YOU, CORRECT ME IF I'M WRONG, ACCORDING TO THE PUBLIC RECORDS IN THE PAST DECADE YOU'VE HIRED ABOUT 90,000 OUT OF SOME 380 DRIVING SCHOOLS THAT MAY VARY IN TERMS OF REQUIREMENT AND DURATION, DOES THAT SOUND ABOUT RIGHT TO YOU? SOUNDS ABOUT RIGHT. THAT BEING THE CASE, HOW DO YOU DECIDE WHETHER OR NOT TO RECRUIT FROM A CERTAIN SCHOOL. WELL I MEAN THERE IS LITERALLY AS SOME PEOPLE HAVE INDICATED, THERE IS PROBABLY ABOUT 1500 PLUS SCHOOLS OUT THERE AROUND THE COUNTRY. WE DO NOT RECRUIT FROM THE PREDOMINANCE OF THOSE SCHOOLS. IN TOTAL, WE RECRUIT FROM LESS THAN RIGHT AROUND 10% OF THE SCHOOLS OUT THERE IN THE COUNTRY TODAY. GEOGRAPHY IS A BIG PART. ALL THE BIG FLEETS WHETHER IT'S WERNER OR ANY OTHER FLEET ARE REALLY AN ASSIMILATION NOF A WHOLE LOT OF SMALL FLEETS SO IN OUR CASE WE RUN ABOUT 150 DIFFERENT FLEETS OUT THERE DEDICATED OR OTHERWISE AND GENERALLY SPEAKING ESPECIALLY NOW WHEN THERE IS MORE AND MORE OF A PUSH FOR JOBS TO GET DRIVERS HOME DAILY OR WEEKLY. YOU HAVE TO FIND DEDICATED OPPORTUNITIES TO DO THAT SO, A LOT OF IT REALLY HAS TO DO WITH IF YOU NEED A JOB IN ARDMORE, OKLAHOMA, YOU NEED A SCHOOL SOMEWHERE IN AND AROUND ARDMORE, OKLAHOMA SO THERE IS A PART OF IT THAT IS DRIVEN BY THAT. SOME OF IT IS DRIVEN BY THEIR SIMPLE ABILITY TO MEET DEMAND. THERE IS A LOT OF FOLKS LOOKING FOR THESE JOBS, SO THAT CERTAINLY PLAYS INTO IT. MOSTLY AND WHAT I WOULD HOPE TO BE ABLE TO TELL YOU IS MOSTLY IT IS GOING TO BE DRIVEN BY QUALITY SO THE GENERAL STANDARD FOR INSTANCE THAT WE TRY TO WORK WITH IS NO LESS THAN 140 HOURS IN THE SCHOOL, NO LESS THAN 40 HOURS BEHIND THE WHEEL. THE ISSUE IS HOW DO YOU ENFORCE THAT. HOW DO YOU MAKE SURE AND MONITOR THAT AND THE BIGGER ISSUE IS IN MY OPINION NO MATTER WHETHER IT IS 40 OR 400 WHY WOULD YOU ASSUME THEM TO BE READY IF YOU DON'T PUT THEM WITH YOUR OWN TRAINER AND WHY WOULD YOU ASSUME THAT THEY'RE READY TO GO SOLO UNTIL SOMEBODY HAS SIGNED OFF ON THEM. I SEE. WE HAVE SO MUCH GROUND TO COVER. WE'RE GOING TO TAKE A SHORT BREAK HERE, A VERY SHORT BREAK. COMING UP NEXT, WE'RE GOING TO TURN TO THE EXPERIENCED DRIVERS AND TALK ABOUT THE NUTS AND BOLTS OF THE LONG HAUL LIFE AND WHAT IT TAKES TO MAKE IT OUT THERE.

WE'LL BE BACK FROM WILLIE'S PLACE IN THE HEART OF TEXAS IN JUST A MINUTE SO STAY HERE WITH US.

MISSED AN EDITION OF DAN RATHER REPORTS OR JUST WANT TO SEE ONE AGAIN. WE'RE NOW AVAILABLE ON ITUNES SO CHECK US OUT.

WELCOME BACK TO CARL'S CORNER, TEXAS. WE ARE ABOUT 60 MILES SOUTH OF DALLAS AND FORT WORTH AT A MECCA FOR TRUCKERS. JOINED BY OUR PANEL OF TRUCKING EXPERTS HERE AND A ROOM FULL OF DRIVERS. MAKE ONE NOTE THAT WE SAID WE WERE GOING TO MOVE OFF THE BUSINESS OF SCHOOLS, HOW DRIVERS ARE TRAINED OR NOT TRAINED, PROBLEM ROOKIE DRIVERS. BUT SEVERAL OF OUR PANELISTS SAID SOMETHING. TODD SPENCER YOU SAID YOU HAD SOMETHING YOU WANTED TO ADD TO THAT WE THOUGHT WE SHOULD COVER. ABSOLUTELY, DAN. YOU MENTIONED IN THE LAST SEGMENT THAT THERE WAS SHORTAGE OF DRIVERS. NEVER IN MY 30 SOME YEARS IN TRUCKING HAVE I SEEN A SHORTAGE OF DRIVERS. THE INDUSTRY NORM IS A TURNOVER OF 120 OR 130% EVERY YEAR. TURNOVER IS THE PROBLEM, ATTRITION IS THE PROBLEM. FINDING PEOPLE NO MATTER HOW WELL YOU TRAIN THEM, ANYBODY THAT'S NEW IS INEXPERIENCED. THERE IS NO SUBSTITUTE FOR EXPERIENCE WHEN IT COMES TO SAFE PEOPLE. REAL PROBLEM ISN'T THE TRAINING. IT'S THE ECONOMICS THAT PUT THE BEST PEOPLE, THE BEST TRAINED PEOPLE BEHIND THE WHEEL AND KEEP THEM THERE. WELL PROFESSOR, YOU'VE WRITTEN AND TALKED A LOT ABOUT THIS SUBJECT. BUT WHAT YOU SAID IN CONTEXT FOR US? THE PROBLEM IS THERE IS NO SUCH THING IN ECONOMICS THERE IS NO SUCH THING AS LABOR SHORTAGES, THEY REALLY CAN'T HAPPEN. THEY ARE REALLY IMBALANCES BETWEEN SUPPLY AND DEMAND AND THEY'RE ESSENTIALLY SITUATIONS WHERE THERE IS NOT ENOUGH PAY AND THE PACKAGE IS SIGNIFICANTLY AUSTERE SO THAT PEOPLE DON'T STAY. AND TODD'S RIGHT, YOU NEED TO HAVE PEOPLE TO STAY. IF WE COULD MAKE THE JOB MORE ATTRACTIVE AND PAY THEM MORE, THEN THEY WOULD DO A WHOLE LOT BETTER. WELL WHAT ABOUT THAT MR. LEVERS? ITS SORT OF MUSICAL CHAIRS PROBLEM. THE COME OUT OF SCHOOL, THEY ARE BURDENED WITH DEBT, THE HARDEST TIME TO MAKE A LIVING IS THE FIRST 6 WEEKS. THEY ARE NERVOUS TO BEGIN WITH AND ITS HARD WORK. THERE IS ALSO A LARGE PERCENTAGE OF THEM THAT WENT TO SCHOOL WITHOUT KNOWING WHAT TRUCKING WAS GOING TO BE LIKE. AND I THINK IF YOU TALK TO YOUR AUDIENCE OR THESE GENTLEMEN OR TIM, YOU'D FIND THAT YOU HAVE 5 MINUTE CONVERSATION WITH MANY OF THEM AND YOU KINDA KNOW THIS ISN'T REALLY GOING TO WORK OUT REAL WELL IN TERMS OF A TRUCK DRIVING CAREER. IF YOU GET THEM THROUGH THAT, IF YOU CAN GET THEM THROUGH THE KNOT HOLE WHICH IS VERY DIFFICULT THAT FIRST PERIOD, AND YOU GET THEM TO SETTLE INTO THEIR SEATS AND THE MUSICAL CHAIRS STOP AND THEY GET A SEAT, THEY STAY. SO YOU LOOK AT, WE HAVE THE TALE OF TWO CITIES AND WE KNOW THAT. YOU HAVE EARLY ON TURNOVER DURING THE TRAINING CYCLE AND THE FIRST 6 MONTHS. ON THE OTHER END OF THE SPECTRUM WE HAVE 600 DRIVERS ROUGHLY, I THINK ITS 584 TO BE EXACT. SO ON A 7000 TRUCK BASE, THAT HAVE OVER A MILLION MILES SAFE DRIVING OR GREATER. SO IT TAKES ABOUT 8 YEARS TO GET A MILLION MILES SAFE DRIVING. SO IT'S A LONG EFFORT, RIGHT? SO WE'VE GOT A LOT OF EVERY EXPERIENCED, VERY TENURED DRIVERS, THAT STAY TIME AND TIME AND YEAR AND YEAR, YEAR IN AND YEAR OUT. AND THEN WE HAVE A GROUP THAT'S VERY TOUGH AT THE BEGINNING AND ITS ALL ABOUT GETTING THEM THROUGH THAT FIRST THREE TO SIX MONTHS AND GETTING THEM THROUGH THE DIFFICULT PERIOD, GET THE DEBTS DOWN, GET THINGS PAID OFF, GET THE FAMILY ADJUSTED TO THE LIFESTYLE. AND I THINK THE OTHER THING, THE LARGER FLEETS ARE DOING A BETTER JOB OF IS TRYING TO GET THEM HOME MORE OFTEN. BECAUSE I HONESTLY IT REALLY DOESN'T MATTER WHAT YOU PAY SOMEBODY. IF YOU GIVE THEM A JOB THAT SIMPLY IS IMPOSSIBLE TO DO, AND IMPOSSIBLE ON THE HOME FRONT, EVENTUALLY YOU WILL WALK AWAY. AND ITS NOT GOING TO WORK. YOU'VE GOT TO HAVE A BALANCE BETWEEN PAY, LIFESTYLE, FAMILY, SAFETY, ALL OF THOSE THINGS. SO, I THINK IT'S A WORK IN PROGRESS, WE'VE CERTAINLY GOT A WAYS TO GO, BUT WE ACCEPT THAT. AND THAT'S PARTLY WHY WERE HERE. WELL WHAT ABOUT THIS ALLEGATION OF CHURNING, DELIBERATE CHURNING OF DRIVERS. YOU GET A CONSTANT STREAM OF NEW DRIVERS COMING IN, 7 MONTHS, 9 MONTHS LATER, THEY ARE OUT AND A NEW CROP OF VERY LOW PAID PEOPLE COME ON. YEAH WE HEAR THAT ALL THE TIME. AND THE NUMBERS DON'T SUPPORT IT ECONOMICALLY. THE DELIBERATE, THE IDEA OF DELIBERATE CHURNING, AND I CAN ONLY SPEAK TO OUR FLEET, THE NUMBERS DON'T SUPPORT IT. BASICALLY WHAT HAPPENS WHEN A DRIVER COMES OUT OF DRIVING SCHOOL, YOU HAVE TO AS YOU SAID, I'VE NOT USED THE TERM FINISHING SCHOOL UNTIL I HEARD IT ON YOUR REPORT, BUT. THEY GO TO STUDENT DRIVER PROGRAM. DURING THAT PERIOD ITS TOUGH ON THEM AND TOUGH ON THE COMPANY. BECAUSE THEY ARE NOT PRODUCING AND THEY ARE NOT MAKING ENOUGH MONEY PROBABLY TO MAKE ENDS MEET. ITS TOUGH, THEY CAN DO IT, BUT ITS TOUGH. THEY GET OUT, THE LOWEST PRODUCTION DRIVERS ARE GOING TO HAVE ARE GOING TO BE YOUR NEWER DRIVERS. THEY ARE NOT GOING TO RUN THE SAME MILES, THEY ARE NOT GOING TO PRODUCE AS MUCH, AND THEIR ACCIDENT FREQUENCY IS GOING TO BE HIGHER. THAT'S A FACT. WHEN WE ALL STARTED DRIVING, WE HAD MORE ACCIDENTS AS TEENAGERS THEN WE HAD LATER. SO WE HAVE TO WORK AND BECOME MATURE DRIVERS. YOU GET TO A PERIOD AFTER SOME EXPERIENCE THAT'S IN WHERE BOTH THE PRODUCTION AND THE ACCIDENT FREQUENCY GOES DOWN. AND YOU START TO GET A REALLY PRODUCTIVE DRIVER BOTH FOR HIM OR HERSELF AND THEIR FAMILY AS WELL AS FOR THE COMPANY. YOU GET WELL UP INTO THE EXPERIENCE RANGE AND THEN YOU HAVE DIFFERENT ISSUE. ACCIDENTS ALMOST BECOME NON-EXISTENT AND FORTUNATELY WHEN THEY DO HAPPEN THEY HIT THINGS HARD. BECAUSE LIKE ANY OTHER JOB, MINE OR YOURS INCLUDED, IF YOU DO IT TOO OFTEN, MAYBE YOU'VE COME COMPLACENT, IT ONLY TAKES A SPLIT SECOND FOR SOMETHING BAD TO HAPPEN. SO THERE'S ALL KINDS OF DATA OUT THERE THAT SHOWS THAT YOU ARE GOING TO HAVE MORE FREQUENCY THE FIRST YEAR, YOU ARE GOING TO HAVE LOW FREQUENCY AND LOW IMPACT. 1-3 YEARS. AND THEN WHEN YOU GO 3 YEARS AND GREATER, THOSE FOLKS HARDLY ARE GOING TO HIT ANYTHING, HOWEVER YOU GOT TO REALLY WORK WITH THEM ALL THE TIME AND REMIND THEM ABOUT THEIR FAMILY AT HOME WAITING FOR THEM. BECAUSE WHEN THEY DO, THOSE ARE SOME OF THE MOST SEVERE ACCIDENTS YOU'LL SEE JUST BECAUSE THEY ARE GOING TO BE COMFORTABLE AND WITH COMFORT COMES RISKS. I WANT TO EMPHASIZE THAT WE KNOW THAT THERE ARE A LOT OF GOOD TRUCK DRIVERS OUT THERE. THERE'S NOTHING THAT HELPS OUR TRANSPORTATION SYSTEM MORE THEN AN EXPERIENCED MATURE TRUCK DRIVER AND THERE ARE A LOT OF THEM OUT THERE. THERE ARE ALSO A LOT OF GOOD COMPANIES. BUT IT'S A BIG BUSINESS, WE JUST WANT TO MAKE THAT POINT AS WE MOVE ON. WE'VE TALKED SOME ABOUT HOW THE TRUCK DRIVERS LIFE IS DIFFERENT FROM ANYTHING ELSE AND NEW PEOPLE TELL ME THAT DRIVING A TRUCK IS LIKE BEING IN THE MILITARY. ITS IN YOUR BLOOD. TELL THEM WHAT YOU LIKE ABOUT TRUCKING. IT IS IN YOUR BLOOD, YOU'RE SERVING YOUR COUNTRY, DELIVERING AMERICA'S GOODS. YOU KNOW IT'S A PRIDE TO BE ABLE TO GO DELIVER A LOAD ON TIME. AND KNOW THAT YOU ARE PLAYING YOUR PART IN KEEPING THE UNITED STATES ECONOMY MOVING. THERE'S YOU KNOW NO GREATER PRIDE.

WHAT DO YOU LIKE ABOUT THE BUSINESS SIDE OF THE TRUCKING BUSINESS? WELL ACTUALLY I LIKE MOSTLY WHAT TIM JUST TALKED ABOUT, I MEAN I CAME FROM PRETTY HUMBLE BEGINNINGS. MY STEPFATHER WHO RAISED ME WAS PART TIME MAINTENANCE MAN, DROVE A TRUCK FOR AWHILE. AND ITS REWARDING YOU CAN FEEL IT AND TOUCH IT. I MEAN YOU CAN GO INTO BANKING, DO LOTS OF OTHER THINGS AND YOU DON'T REALLY KNOW WHAT YOU ARE DOING. IN TRUCKING YOU CAN FEEL IT AND TOUCH IT AND A LOT OF THE GUYS I WENT TO COLLEGE WITH DO A LOT OF OTHER THINGS IN A LOT OF OTHER INDUSTRIES BUT I CAN ASSURE YOU EVERY TIME WE GET TOGETHER, THE ONLY STORIES THEY WANT TO TALK ABOUT IS TRUCKING. TRUCKERS DO MAKE FOR GOOD STORIES SOMETIMES TOO, I MEAN THERE IS THINGS YOU HEAR ON THE ROAD, AND THINGS THEY BRING BACK TO THE OFFICE. BUT YOU KNOW ITS INTERESTING AND IT IS AMERICAS WORK. EVERYTHING WE DO AND I WISH THE MOTORING PUBLIC BETTER UNDERSTOOD IT. EVERYTHING WE DO GETS THEIR ULTIMATELY BY TRUCK. AND LITERALLY I MEAN EVERYTHING. I MEAN OCCASIONALLY THERE'S RAILHEADS THAT MIGHT BACK UP TO A BUILDING, BUT FOR THE MOST PART IT HAS TO GET THERE BY TRUCK AND THE MEN AND WOMEN IN THIS ROOM GET IT THERE. I READ A STAT RECENTLY THAT SAID 80% OF THE COMMUNITIES IN THE UNITED STATES OF AMERICA ARE ONLY SERVICED BY TRUCK AT THIS POINT. AND YOU CAN EXTRAPOLATE FROM THAT PRETTY MUCH THE SAME IN CANADA AND MEXICO? I WOULD ASSUME, I WOULD ASSUME ACTUALLY TO BE HONEST IN MEXICO WOULD BE A GREAT PERCENTAGE. THAT YOU WOULD ONLY BE ABLE TO DELIVER TO BY TRUCK. AND YET THERE'S THIS QUANDARY RIGHT, BECAUSE TRUCK CRASHES MAKE FOR BIG NEWS. MEDIA FOLLOWS BIG NEWS. AND UNFORTUNATELY TIM'S STORY, OR THE STORY OF THESE GENTLEMEN OR MANY OF THE PEOPLE OUT HERE, THE MEDIA DOESN'T QUITE GRAVITATE TO AS MUCH AND I WISH THEY WOULD. WELL THAT'S ONE REASON WE ARE HERE TONIGHT. MILES VERHOEF, TELL ME WHY YOU TRUCK. ITS TOUGH, YOU TOLD ME TODAY THAT YOU GET HOME ABOUT ONE EVERY 30 DAYS, YOU LITERALLY LIVE IN YOUR TRUCK. WHY DO YOU DO IT? I LOVE WHAT I DO. ABSOLUTELY LOVE WHAT I DO. BEEN DOING IT FOR YEARS. STARTED DOING IT WHEN I WAS A TEENAGER, MY FOSTER FATHER PUT ME IN A TRUCK OUT IN THE FIELD IN MONTANA AND SHOWED ME HOW TO SHIFT IT. AND I STARTED HAULING GRAIN OUT IN THE FIELDS FOR MONTHS BEFORE I CONTINUED IT AND ITS JUST BEEN IN MY BLOOD. SAYING I LOVE THE SMELL OF DIESEL SMOKE AND AS I MENTIONED EARLIER, I'VE SEEN LIFE, I'VE SEEN DEATH, I'VE SEEN EVERY TYPE OF BEAUTIFUL TOPOGRAPHY THAT THIS COUNTRY HAS TO OFFER. SOME BEAUTIFUL CITY LIGHTS TO THE MOST BEAUTIFUL MAJESTIC MOUNTAINS. SO I ABSOLUTELY LOVE WHAT I DO. LET ME ASK YOU AND I DON'T WANT TO GET TOO PERSONAL HERE, ANY TIME YOU THINK WE ARE JUST TELL ME AND WE WILL GET OFF OF IT. BUT HELP ME UNDERSTAND ABOUT HOW MUCH WOULD YOU EARN AND WHAT ARE YOUR EXPENSE OF A YEAR, AND WHAT ARE YOUR BENEFITS. LETS TALK ABOUT THIS AS A JOB, AS AN EARN A LIVING JOB. GIVE US A RANGE THAT YOU MAKE IN AN AVERAGE YEAR. WELL AS INDEPENDENT, MY GROSS INCOME IS GOING TO BE SIGNIFICANTLY DIFFERENT THEN A COMPANY DRIVER, YOU KNOW BECAUSE I OWN THE COMPANY, I HAVE ALL OF THE EXPENSES THAT GO ALONG BEING MY COMPANY OWNER. I OWN THE EQUIPMENT. YOU KNOW MY PARTICULAR OPERATION, I SPEND ALMOST $1900 A MONTH JUST IN TRACTOR AND TRAILER PAYMENTS. MY INSURANCE RUNS $600 MONTH. YOU KNOW I CAN GO ON AND ON. MY FUEL RUNS ME $35,000, $36000 A YEAR JUST IN FUEL. SO THERE'S A LOT OF EXPENSES. MY PERSONAL INCOME, THIS YEAR HAS DROPPED BY $20,000 DUE TO THE DOWNTURN IN THE ECONOMY. AND WE STAND AT ABOUT WHAT? A LITTLE OVER $40,000. AND BENEFITS, WHAT BENEFITS, HEALTHCARE, PENSION BENEFITS, ANYTHING? THE BENEFIT I HAVE A JOB. AND THAT WOULD BE DIFFERENT AT YOUR COMPANY WOULD IT? YES. OUR DRIVERS WOULD HAVE 401K, THEY'D HAVE HEALTH AND DENTAL. THEY'D HAVE THE OPPORTUNITY TO PARTICIPATE IN COMPANY SUBSIDIZED STOCK PURCHASE. WE WOULD OBVIOUSLY TAKE CARE OF THE MAINTENANCE OF THE TRUCK, THE TRAILER. WE ALSO HAVE OWNER-OPERATORS AT OUR COMPANY SO IT'S A MIX OF BOTH. BUT OUR COMPANY DRIVERS THAT IS, WE'D TAKE THOSE HEADACHES AWAY. IN GOOD TIMES, OBVIOUSLY ESPECIALLY WITH THE EXPERIENCE MILES HAS AND THE ABILITY TO DO WHAT HE DOES, HE WOULD DO BETTER IN TOUGH TIMES, YOU KNOW ITS PROBABLY BETTER TO BE ON THE COMPANY SIDE OF THE FENCE. AND IT JUST DEPENDS. THERE'S GOOD TIMES AND BAD AND THAT'S WHY HONESTLY WE HAVE A MIX BECAUSE I THINK REALLY THERE'S NO ONE SIZE FITS ALL IN THIS INDUSTRY FOR REALLY ANYTHING AND OUR FIRST YEAR GUYS ARE GOING TO MAKE ON AVERAGE ABOUT $37,000. IF THEY STICK IT OUT FOR THE YEAR, AND AGAIN YOU GOT TO GET THROUGH THAT KNOT HOLE, THAT'S THE TOUGH PART RIGHT, AND WE'VE TALKED ABOUT THAT. OUR FLEET AVERAGE IS GOING TO BE AROUND $41,000, TO $42,500 RIGHT IN THAT RANGE, ON ANY GIVEN DAY. SO THE MONEY IS THERE. TRAINERS OR GUYS IN DEDICATED ACCOUNTS THAT ARE DOING MORE SPECIALIZED WORK CAN MAKE CONSIDERABLY MORE THEN THAT AT TIMES BECAUSE OF THEIR EXPERTISE THEY BRING. SO ITS REALLY YOU KNOW I DON'T KNOW, I DON'T KNOW THAT THERE'S A TIME. YOU KNOW YOU'VE GOT ON ONE END OF THIS SPECTRUM YOU'VE GOT TIM. HE'S BEEN A COMPANY DRIVER FOR YEARS AND YEARS. OBVIOUSLY WE RESPECT THE OWNER OPERATOR APPROACH AS WELL. AND THE ONE THING I CAN TELL YOU ABOUT OWNER/OPERATORS IS THAT KNOWN THEIR BUSINESS LIKE NOBODY ELSE. AND THERE'S A LOT MORE ABOUT 30 SECONDS OF TIRES AND EVERYTHING ELSE GOING ON IN HIS TRUCK AND WHAT'S HAPPENED EVERY DAY. AND I WISH OUR COMPANY DRIVERS ON MANY OCCASIONS KNEW AS MUCH, RIGHT. BUT THEY PAY OUT, OR NOT PAY US, BUT THEY COUNT ON US TO MAKE SURE WE TAKE CARE OF THOSE DETAILS FOR THEM. WELL LETS START ABOUT THE REST OF THE TRUCKERS JOINING US HERE TONIGHT. HOW MANY OF YOU DRIVE FOR A COMPANY?

A PRETTY GOOD SHOW OF HANDS. AND HOW MANY DRIVE INDEPENDENTLY, HOW MANY OF YOU ARE INDEPENDENT TRUCKERS. WHAT'S THE INDUSTRY SPLIT DO WE KNOW? THEY MIGHT KNOW, I DON'T KNOW THAT OFF THE TOP OF MY HEAD. PROFESSOR? ITS ABOUT 75% COMPANY DRIVERS. 25% OWNER/OPERATOR. MOST OF THE OWNER/OPERATORS ARE CONTRACTED LIKE WEINER OWNER/OPERATORS WOULD BE TO ACCOMPANY. SO MILES IS PRETTY UNUSUALLY, NOT EXTREMELY UNUSUAL BUT BEING A REAL TRUE INDEPENDENT, THAT'S REALLY WHAT HE IS, HE OPERATES UNDER HIS OWN AUTHORITY AND HE RUNS HIS OWN BUSINESS AND HE GOES TO BROKERS TO GET HIS FREIGHT. WHAT OTHER TOTAL THAT'S ABOUT 30%. TOTAL I MIGHT GUESS, THERE'S NO. LET ME JUST BE REAL CLEAR. THE GOVERNMENT DOES NOT COLLECT ANY DATA, IT'S A GIANT WHOLE THE CENSUS DEPARTMENT PEOPLE TEAR THEIR HAIR OUT ALL THE TIME OVER THIS QUESTION. THEY KNOW THEY HAVE A WHOLE IN THE DATA, BUT THEY CAN'T COLLECT THE INFORMATION BECAUSE THESE ARE BUSINESSES NOT EMPLOYEES SO ALL THE NORMALLY STRUCTURES THAT WE HAVE TO COLLECT DATA FROM PEOPLE AREN'T THERE FOR THIS PURPOSE. SO OUR SURVEYING SAYS THAT APPROXIMATELY 25% OF ALL OVER THE ROAD DRIVERS ARE SURVEYING SAYS. ARE OWNER/OPERATORS. AND ABOUT 75% ARE EMPLOYEE DRIVERS. SPENCER? AND WHAT MAKES THAT EVEN MORE CONVOLUTED IS THAT THERE ARE SOMETHING IN THE AREA OF 700,000 MOTOR CARRIERS REGISTERED IN THE US. 700,000? YES ABSOLUTELY. AND OF THOSE, 90% OF ALL THE CARRIERS IN THE COUNTRY ARE OWNED BY PEOPLE THAT OWN TENANTS TO YOUR TRUCKS. SO WHILE THERE ARE BIG COUNTRIES LIKE WERNER AND SOME OF THE OTHERS, THERE ARE THOUSANDS, AND THOUSANDS, AND THOUSANDS OF SMALL ONES. WELL I DIDN'T REALIZE THERE WAS THAT MANY. I DIDN'T REALIZE THE TRUCKING BUSINESS WAS THAT BIG. OVER THAT, 750,000? THAT'S HOW MANY ARE REGISTERED. PROFESSOR. EXACTLY, THAT'S HOW MANY REGISTERED. WHAT HAPPENS IS A COMPANY WILL COME INTO EXISTENCE, WILL FILE FOR AUTHORITY. WILL HAUL FREIGHT FOR A YEAR, GO OUT OF BUSINESS AND WE KNOW THE TURNOVER IS VERY GREAT IN THE COMPANIES THEMSELVES. SO THEY JUST DISAPPEAR BUT NOBODY KINDA SENDS A LETTER BACK AND SAY BY THE WAY I JUST DISAPPEARED AND COLLECTING THE DATA ON THIS IS LIKE CATCHING LIGHTENING IN A BOTTLE. YOU KNOW BEN FRANKLIN CAN DO IT BUT THE REST OF US CAN'T. LET ME TURN TO YOU, WHY AREN'T TRUCKING COMPANIES GETTING PAID MORE? WHY CAN'T YOU CHARGE THE SHIPPERS HIGHER RATERS? WHO IS SETTING THE RATES? IS IT ME, IS IT THE CONSUMER, IS IT, WHO SETS THE RATES? WELL I THINK ONE OF THE PROBLEMS IN TERMS OF THE RATES IS THE EXACT STATISTICS THAT WE JUST COVERED. MEANING THERE IS 700,000 TRUCKING COMPANIES OUT THERE IN TOUGH TIMES, ESPECIALLY LIKE THE ONES WE ARE GOING THROUGH RIGHT NOW, THERE IS ALWAYS SOMEBODY THAT WILL HAUL A LOAD FOR ALMOST ANYTHING. SO WHO SETS THE RATES, YOU'D LIKE TO THINK YOU SET THE RATES ON BEHALF OF YOUR COMPANY, YOU GO TO YOUR CUSTOMERS. YOU TELL THEM WHAT YOU THINK THE VALUE OF A LOAD OR SHIPMENT IS. AND IN GOOD TIMES, IN STRONG TIMES THEY STAND BY YOU AND I THINK THIS USED TO BE AN INDUSTRY BASED ON PARTNERSHIPS, BASED ON LONGER TIME HORIZONS. AND UNFORTUNATELY ITS TURNED TO AN INDUSTRY BASED ON PROCUREMENT FOLKS. SO NOW YOU GOT PROCUREMENT FOLKS THAT AREN'T NECESSARILY EVEN IN TRANSPORTATION PROCURING TO BUY WHICH WHEN THAT TERM COMES ACROSS YOUR DESK. ARE THESE SO CALLED BROKERS? NO, I'M TALKING ABOUT ON THE SHIPPERS SIDE. I'M TALKING ABOUT EVERYTHING YOU BUY OUT THERE, EVERYTHING YOU GO TO THE STORE AND SEE ON THE SHELF, IS BEING THE TRANSPORTATION IS BEING PROCURED SOMEWHERE IN SOME BIG COOPERATION. AND THEY ARE BASICALLY GOING TO PUT IT OUT TO BID. AND IF YOU PUT ANYTHING OUT TO BID, TO HUNDREDS IF NOT THOUSANDS OF PEOPLE, YOU ARE GOING TO HAVE A BIT OF A FEEDING FRENZY, SO YOU LOOK AT RATES. RATES ARE DOWN OVER THE LAST COUPLE OF YEARS, ABOUT 9, GOING ON 10 PERCENT. COSTS ARE UP, ACROSS TRUCKERS, IF YOU LOOK AT ALL THE RAW MATERIAL INPUTS. YOU KNOW TRUCKS, TRAILERS, EVERYTHING IS GOING UP, EPA REQUIREMENTS ARE BECOMING MORE DIFFICULT. COSTS ARE UP, RATES ARE DOWN, AND THERE IN LIES THE PROBLEM. SO YOU LOOK AT 2008 AND YOU TAKE ALL THE PUBLICLY TRADED TRUCKING COMPANIES IN AMERICA AND THEY AVERAGE 1.8% MARGIN. 1.8%. SO WE TALK A LOT ABOUT THINGS WE WANT TO DO, THINGS WE KNOW ARE RIGHT TO DO. AND THE QUESTION IS HOW DO YOU GET THERE FROM HERE. THERE IN IS THE DIFFICULT, YOU KNOW I THINK FOCUSING ON SOME OF THE THINGS THAT ARE TRULY VALUE ADDED WHERE YOU ARE NOT ASKING THE CUSTOMER TO PAY FOR IT, YOU ARE TRYING TO GET MORE EFFICIENT. SO SAFETY, BETTER TRAINING, BETTER COST STRUCTURE, YOU KNOW BEING MORE EFFICIENT. THAT'S GREAT. BUT THE PEOPLE HAVE TO REALIZE OUT THERE THAT WHEN YOU TALK ABOUT PUTTING OUT POLICIES TO REGULATE SPEED, YOU ARE REGULATING PAY. WHEN YOU TALK ABOUT GOVERNING YOUR FLEET, YOU ARE REGULATING PAY, IT'S A PAY CUT WHEN YOU DO IT. AND SO, YOU REALLY HAVE TO ASK YOURSELF WHAT ARE YOU IN THIS FOR LONGER TERM? YOU KNOW OUR COMPANY WAS FOUNDED BY A DRIVER, WITH ONE TRUCK. AND WENT FROM ONE TRUCK TO NOW THE 7,000 PLUS WE HAVE AND HE'S STILL OUR CHAIRMAN, SO. I CAME AND HAVE TO MEET WITH HIM REGULARLY OBVIOUSLY TO TALK ABOUT MANY THINGS BUT ONE OF THE QUICK, YOU KNOW LISTEN KID YOU DON'T KNOW WHAT YOU ARE TALKING ABOUT MOMENTS WAS WHEN HE TOLD HIM ABOUT ALL THIS ASSOCIATED, POWERMENT AND ALL THESE OTHER WONDERFUL CONCEPTS AND HE LOOKED AT ME AND SAID LET ME EXPLAIN SOMETHING. ITS ABOUT A GOOD PIECE OF EQUIPMENT, WITH GOOD PAY, WITH GOOD TIME AT HOME. AND ALL THIS OTHER STUFF YOU WANT TO TALK ABOUT IS WONDERFUL, BUT WE GOT TO GET GOOD EQUIPMENT, YOU GOT TO GET THEM HOME, AND YOU GOT TO PAY THEM. PROFESSOR LET ME TURN TO YOU. A NUMBER OF PEOPLE, AND I'M SPEAKING OF HUNDREDS OF PEOPLE HAVE BEEN IN TOUCH WITH US, SINCE WE STARTED DIGGING INTO THIS INVESTIGATING A LITTLE BIT. AND SOME OF THEM, I WOULDN'T SAY A FEW, SOME OF THEM SUGGEST, AND I'M ASKING YOU IF THERE IS ANYTHING TO THIS. THAT WHERE WE ARE HEADED WHETHER WE LIKE IT OR NOT IS THE BIG TRUCKING COMPANIES ARE GOING TO BEGIN TO OUTSOURCE THE TRUCKING BUSINESS TO MEXICAN DRIVERS, MEXICAN TRUCKS BECAUSE THEY WILL BE ABLE TO GET THEM AT A LOWER COST. AND THE SAME WAY WITH THE AUTOMOBILE BUSINESS, MOVE SOME PLANTS TO MEXICO ANYTHING TO THAT FEAR? WELL ITS ABSOLUTELY REALISTIC TO IMAGINE. AS YOU DESCRIBED FROM WERNER, THAT A COMPETITION IS VERY FIERCE OUT THERE, ONCE YOU OPEN THE DOOR TO THE BIDDING PROCESS. THE LOWEST COST BID IS THE ONE THAT WINS THE JOB AND TRUCKING IS CONSIDERED BY SHIPPERS TO BE A COMMODITY. THAT IS, THEY DON'T LOOK AT THE QUALITY OF THE SERVICE, SOMEBODY WHO IS ACTUALLY RESPONSIBLE FOR THE DEALING WITH THE FREIGHT WILL BE CONCERNED ABOUT QUALITY OF SERVICE, BUT THAT WONT BE THE PROCUREMENT PERSON. THAT WILL BE THE BEAN COUNTER. SO THE BEAN COUNTER JUST LOOKS AT COUNTS THE BEANS AND SAYS ILL TAKE THE CHEAPEST POOL I CAN GO WITH. SO IF YOU WERE TO OPEN THE DOOR FOR EXAMPLE AND HAVE THE MEXICAN TRUCK OPERATIONS, THAT'S BEEN THE BIG ISSUE, YOU WOULD CERTAINLY DRIVE DOWN COMPENSATION BY A THIRD FROM ITS ALREADY LOW LEVEL. REALLY QUICKLY. THE MEXICAN DRIVERS ARE EARNING SOMEWHERE IN THE NEIGHBORHOOD OF 13 CENTS A MILE, SOMETHING LIKE THAT, WERE TALKING ABOUT EXPERIENCED DRIVERS. SO YOU WOULD HAVE A REALLY GREAT DOWNWARD PRESSURE, AND THAT DOWNWARD PRESSURE WOULD LEAD TO AN ENORMOUS SAFETY PROBLEM BECAUSE AS WE'VE SHOWN SAFETY CAN BE VERY STRONGLY PREDICTED BY PAY. SPENCER, ANYTHING TO THIS FEAR? ABSOLUTELY, THE US CHAMBER OF COMMERCE, ONE OF ITS HIGHEST PRIORITIES FOR THE LAST DECADE IS TO OPEN OUR SOUTHERN BORDERS SO TRUCKS FROM MEXICO CAN OPERATE THROUGHOUT THE US AND CANADA. AND CLEARLY THERE ARE SAFETY ISSUES, THERE ARE SECURITY ISSUES BUT THERE ARE VERY MUCH ECONOMIC ISSUES WITH THAT. AND CERTAINLY THAT WOULD BE THE DEATH NOW FOR MANY, MANY TRUCKERS AND TRUCKING COMPANIES THROUGHOUT THE US. SO YOU EXPERIENCE IN MEXICO, WHAT ABOUT THIS FEAR, IS IT REAL OR JUST IMAGINED. WELL THIS IS A REALLY COMPLICATED SUBJECT, SO THIS IS LIKE A WHOLE SHOW IF YOU DO IT JUSTICE BUT. AT THE END OF DAY, I LIVED IN MEXICO FOR MANY YEARS, I HAVE SOME OF THE BEST FRIENDS I HAVE IN THE ENTIRE WORLD ARE MEXICAN. AND SO I WANT TO BE CLEAR ON THE FACT THAT IF WE DON'T THINK THERE'S GREAT DRIVERS IN MEXICO, JUST LIKE THERE ARE GREAT DRIVERS IN THE US, ITS WRONG. WE ARE WRONG, THERE ARE VERY, VERY GOOD DRIVERS DOWN THERE. VERY GOOD DRIVERS HERE. BY THE WAY THERE IS BAD ON BOTH SIDES OF THE BORDER TOO. AND SO ON THE DRIVERS SIDE, I THINK DRIVERS ARE HUMANS, THEY ARE GOING TO HAVE THE WHOLE GAMUT OF GOOD, BAD AND UGLY NO MATTER WHAT COUNTRY YOU ARE IN. THE BIGGER ISSUE IS THE ECONOMIC ONE. SO THERE'S REALLY TWO ISSUES THERE. I KNOW PRETTY MUCH PERSONALLY EVERY MAJOR MEXICAN FLEET THAT EXISTS TODAY. NONE OF THEM HAVE INTEREST IN COMING INTO THE UNITED STATES ON ANY LEVEL. THIS IS MUCH TO DO ABOUT POLITICS AND LESS TO DO ABOUT BUSINESS. WE THINK NAFTA AND THE NAFTA PROCESS SHOULD BE RESPECTED SIMPLY BECAUSE YOU CAN'T KINDA JUST CARVE OUT PIECES THAT YOU DON'T LIKE. HOWEVER, IF YOU OPEN THE BORDER TOMORROW, I WANT TO BE PERFECTLY CLEAR, WE HAVE NO INTEREST, NO INTEREST, NONE, IN OUR DRIVERS CROSSING IN TO MEXICO NOR DO OUR MEXICAN PARTNERS HAVE ANY INTEREST IN THEIR DRIVERS CROSSING INTO THE US. WELL AS YOU, MAYBE ANOTHER SUBJECT FOR ANOTHER DAY, BUT I WANTED TO TOUCH ON BECAUSE WHEN I TALK TO DRIVERS THERE'S A REAL FEAR OUT THERE ABOUT IT. LET ME TURN SPENCER, TAKE A TRY AT THIS IF YOU WILL. YOU'VE GOT HIGH TURNOVER WITH INEXPERIENCED DRIVERS, THAT YOU'VE DRIVEN HOME THAT'S A FACT, IS IT NOT? ABSOLUTELY. YOU GOT TIRED TRUCKERS, COMMON SENSE SUGGESTS THAT ALL OF THEM WOULD ADD UP TO MORE CRASHES THAT IS IF YOU HAVE HIGH TURNOVER, INEXPERIENCED DRIVERS, TIRED TRUCKERS. SOMETIMES THE RECORDS ARE KEPT WELL SOMETIMES THEY ARE NOT KEPT WELL ABOUT HOW MANY HOURS THEY DRIVE. BUT THAT'S NOT THE CASE RIGHT NOW. TRUCKING IS SAFER TODAY STATISTICALLY THEN IT WAS EVEN 2 OR 3 YEARS AGO, RIGHT? IT'S A TESTAMENT TO THOSE PEOPLE THAT ARE OUT THERE, THE QUALITY CONSCIENCES PEOPLE THAT ARE DOING IT ARE DOING A GREAT JOB, DESPITE NOT MUCH SUPPORT. WE ARE PROBABLY SEEING SOME BENEFIT FROM A SLOWER ECONOMY, BUT THE NUMBER THAT'S THROWN OUT, 5,000 FATALITIES A YEAR, THAT'S JUST TOTAL TRUCK INVOLVED FATALITIES, THAT IS NO WAY SHAPE OR FORM INDICATES WHO IS AT FAULT IN THOSE ACCIDENTS, AND ALWAYS STATISTICS SHOW, ITS NEVER THE TRUCK DRIVER IN A MAJORITY WAY, THE PERCENTAGES ARE ALWAYS ABOUT 18% TRUCK DRIVERS, ABOUT 80%, OR 78% AUTOMOBILE DRIVERS. BUT AT THE SAME TIME, 5,000 IS A BIG NUMBER. I WOULD POINT OUT THAT OF THOSE 5,000 INCLUDE OVER 1,000 TRUCK DRIVERS. ALMOST A THOUSAND, ALMOST EVERY YEAR. 62% OF THOSE ACCIDENTS, FATALITIES, ARE SINGLE VEHICLE ACCIDENTS. GUYS SOMETHING HAPPENS TO THE VEHICLE GOING DOWN THE ROAD. IT DIDN'T HIT ANOTHER CAR OR. DIDN'T HIT ANYTHING, DIDN'T HIT ANOTHER VEHICLE. THIS IS AN INDUSTRY THAT ASKS FOR MUCH IN SACRIFICE FROM FAMILIES, WHILE THE INCOME THAT YOU CAN MAKE IN NO WAY, SHAPE OR FORM OFFSETS THE SACRIFICES THAT YOU MAKES AWAY FROM FAMILY, AND TIME AND THE LIVING CONDITIONS. BUT ITS ALSO A DANGEROUS INDUSTRY. WE'D LIKE TO SEE SOME THINGS DONE TO MAKE A TRUCK DRIVER'S LIFE A BETTER, SAFER LIFE. AND WE ARE NOT GOING IN THAT DIRECTION RIGHT NOW. WE GOT TO FIX SAFETY, WE GOT TO GET MORE MILES, WE GOT SOMEHOW INCREASE RATES FROM THE SHIPPERS AND ULTIMATELY WE GOT TO HOLD ON TO WHAT WE PAY OUR DRIVERS. AND I CAN'T WAIT AROUND FOR WASHINGTON TO FIGURE OUT WHAT THEY WANT TO DO ON THAT OR MANY OTHER ISSUES IN THE MEANTIME. AGAIN I WANT TO THANK YOU FOR BEING HERE, WHEN SO MANY IN THE TRUCKING INDUSTRY AT THE TOP REFUSE TO DEAL WITH THIS. YOU CAME, I APPRECIATE IT. I REALLY APPRECIATE YOU ALL BEING HERE, THIS HAS BEEN QUITE INTERESTING. AND I WANT TO THANK ALL OF OUR GUESTS ON THE PANEL FOR COMING OUT TONIGHT AND SHEDDING SOME LIGHT ON THIS INDUSTRY. WE WILL BE BACK WITH SOME CLOSING THOUGHTS IN JUST A MINUTE.

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WAKEY, WAKEY, EGGS AND BACEY, RISE AND SHINE ITS BREAKFAST TIME, YOU ALL COME ON HERE TO WILLIE'S PLACE AT EXIST 374 NCS. OUR BLUE SKIES CAFE IS OPEN 24-7, SERVING A FULL MENU, AND OUR DIESEL PRICES IS $2.79, YOU ALL COME ON AND SEE US.

YOU SURE DO SOUND PRETTY.

WELL IF YOU THINK YOU HAVE A LONG DAY THAT WAS THE WAKE UP CALL AT CARL'S CORNER. 5:30 AM, TIME TO HIT THE ROAD. AND ITS TIME FOR US TO HIT THE ROAD AS WELL. THAT'S OUR PROGRAM FOR TONIGHT. A TIP TO OUR HOST, BILL MACH AND CARL CORNELIUS, AND ESPECIALLY TO ALL THE DRIVERS ACROSS THIS GREAT COUNTRY WHO LITERALLY KEEP IT RUNNING. WE KNOW HOW HARD YOU WORK AND WE DON'T THANK YOU OFTEN ENOUGH. I'M GOING TO CONTINUE OUR REPORTING ON TRUCKING AND WE WANT TO HEAR FROM YOU. DRIVERS, DISPATCHERS, FLEET OWNERS, MANAGERS. WE WANT YOU TO SEND US YOUR STORIES ABOUT THE BIG RIG BUSINESS. THIS ALL STARTED FOR US, IT WAS AN INVESTIGATIVE REPORT INTO THE TRUCK SCHOOL BUSINESS. WE'VE GOTTEN INTEREST IN THIS TRUCKING BUSINESS AND WE'D LIKE TO COME BACK TO IT FROM TIME TO TIME ON THIS BROADCAST IF WE CAN, BUT FOR NOW, THAT'S TONIGHT'S PROGRAM. SO FOR HDNET, FROM CARL'S CORNER TEXAS, DAN RATHER REPORTING. GOOD NIGHT. THANK YOU.