In a letter dated May 3, the groups, which include the National Shippers Strategic Transportation Council, American Association of Exporters and Importers and National Retail Federation, say the law would eliminate a needed flexible workforce and put California ports at a disadvantage when competing for cargo.
They say Assembly Bill 950, introduced by Assemblymen John A. P'rez and Sandre Swanson in February, “would eliminate the jobs and rights of owner-operators to conduct business at California’s ports.”
The bill cleared the California state assembly's Labor and Employment Committee last week.
“Container activity at the ports varies daily by as much as 30 percent and annually such activity is closely tied to state, national and international economic conditions. Owner-operators provide necessary capacity and flexibility to meet the varying demands of port drayage,” the letter said. “To impose an employee driver mandate on the companies who arrange for drayage services is simply not consistent with reality of port activity and places California ports at another financial disadvantage to other North American ports.”
The letter said if the main concern is misclassification, as the proponents of AB 950 claim, then California should focus on existing and established enforcement mechanisms. 'Rather than address potential misclassification, this bill reaches too far in eliminating a class of drivers and small businesses that represent the dominant model for the drayage industry. Clear and uniform criteria for classifying independent contractors serve the interests of all parties. Elimination is a one-size-fits-all approach in a highly variable industry.”
The letter said the employee driver mandate proposed in AB 950 “is preempted by federal law. Federal law prohibits states from taking actions that impact the rates, routes, or services of trucking companies absent qualification under a specified ‘safety exception.’ '
The bill is supported by the Coalition for Clean & Safe Ports, a group that includes environmental organizations and labor unions.
The coalition said port drivers are misclassified and subjected to “low non-negotiable wages, frequent safety violations, and little autonomy from the employers who dictate their financial constraints.” ' Chris Dupin
