Fighting for a Real Solution at the Oakland Port
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For the last three decades Oakland residents have been suffering from premature death, asthma, cancer and heart disease as a result of port pollution. To alleviate the health impacts the industry should have replaced old polluting trucks with new clean trucks.
However, industry litigation led to a band-aid solution that instead requires individual port truck drivers and tax payers to pay for the cost of cleaning up industry’s mess. Trucking companies got off scot free by continuing to claim that their employees are “contractors.” Today truck drivers are losing their hard-earned money, their homes and the few trucks that were purchased or retrofitted to meet air standards are gradually falling apart.
The Coalition for Clean and Safe Ports is determined to continue fighting for a real solution that will finally hold the polluting industry responsible for their workers and the long overdue clean up.
Posts From Oakland
An Open Letter from America’s Port Truck Drivers on Occupy the Ports
December 12, 2011
We are the front-line workers who haul container rigs full of imported and exported goods to and from the docks and warehouses every day.
We have been elected by committees of our co-workers at the Ports of Los Angeles, Long Beach, Oakland, Seattle, Tacoma, New York and New Jersey to tell our collective story. We have accepted the honor to speak up for our brothers and sisters about our working conditions despite the risk of retaliation we face. One of us is a mother, the rest of us fathers. Between the five of us we have 11children and one more baby on the way. We have a combined 46 years of experience driving cargo from our shores for America’s stores.
We are inspired that a non-violent democratic movement that insists on basic economic fairness is capturing the hearts and minds of so many working people. Thank you “99 Percenters” for hearing our call for justice. We are humbled and overwhelmed by recent attention. Normally we are invisible.
Today’s demonstrations will impact us. While we cannot officially speak for every worker who shares our occupation, we can use this opportunity to reveal what it’s like to walk a day in our shoes for the 110,000 of us in America whose job it is to be a port truck driver. It may be tempting for media to ask questions about whether we support a shutdown, but there are no easy answers. Instead, we ask you, are you willing to listen and learn why a one-word response is impossible?
We love being behind the wheel. We are proud of the work we do to keep America’s economy moving. But we feel humiliated when we receive paychecks that suggest we work part time at a fast-food counter. Especially when we work an average of 60 or more hours a week, away from our families.
There is so much at stake in our industry. It is one of the nation’s most dangerous occupations. We don’t think truck driving should be a dead-end road in America. It should be a good job with a middle-class paycheck like it used to be decades ago.
We desperately want to drive clean and safe vehicles. Rigs that do not fill our lungs with deadly toxins, or dirty the air in the communities we haul in.
Poverty and pollution are like a plague at the ports. Our economic conditions are what led to the environmental crisis.
You, the public, have paid a severe price along with us.
Why? Just like Wall Street doesn’t have to abide by rules, our industry isn’t bound to regulation. So the market is run by con artists. The companies we work for call us independent contractors, as if we were our own bosses, but they boss us around. We receive Third World wages and drive sweatshops on wheels. We cannot negotiate our rates. (Usually we are not allowed to even see them.) We are paid by the load, not by the hour. So when we sit in those long lines at the terminals, or if we are stuck in traffic, we become volunteers who basically donate our time to the trucking and shipping companies. That’s the nice way to put it. We have all heard the words “modern-day slaves” at the lunch stops.
There are no restrooms for drivers. We keep empty bottles in our cabs. Plastic bags too. We feel like dogs. An Oakland driver was recently banned from the terminal because he was spied relieving himself behind a container. Neither the port, nor the terminal operators or anyone in the industry thinks it is their responsibility to provide humane and hygienic facilities for us. It is absolutely horrible for drivers who are women, who risk infection when they try to hold it until they can find a place to go.
The companies demand we cut corners to compete. It makes our roads less safe. When we try to blow the whistle about skipped inspections, faulty equipment, or falsified logs, then we are “starved out.” That means we are either fired outright, or more likely, we never get dispatched to haul a load again.
It may be difficult to comprehend the complex issues and nature of our employment. For us too. When businesses disguise workers like us as contractors, the Department of Labor calls it misclassification. We call it illegal. Those who profit from global trade and goods movement are getting away with it because everyone is doing it. One journalist took the time to talk to us this week and she explains it very well to outsiders. We hope you will read the enclosed article “How Goldman Sachs and Other Companies Exploit Port Truck Drivers.”
But the short answer to the question: Why are companies like SSA Marine, the Seattle-based global terminal operator that runs one of the West Coast’s major trucking carriers, Shippers’ Transport Express, doing this? Why would mega-rich Maersk, a huge Danish shipping and trucking conglomerate that wants to drill for more oil with Exxon Mobil in the Gulf Coast conduct business this way too?
To cheat on taxes, drive down business costs, and deny us the right to belong to a union, that’s why.
The typical arrangement works like this: Everything comes out of our pockets or is deducted from our paychecks. The truck or lease, fuel, insurance, registration, you name it. Our employers do not have to pay the costs of meeting emissions-compliant regulations; that is our financial burden to bear. Clean trucks cost about four to five times more than what we take home in a year. A few of us haul our company’s trucks for a tiny fraction of what the shippers pay per load instead of an hourly wage. They still call us independent owner-operators and give us a 1099 rather than a W-2.
We have never recovered from losing our basic rights as employees in America. Every year it literally goes from bad to worse to the unimaginable. We were ground zero for the government’s first major experiment into letting big business call the shots. Since it worked so well for the CEOs in transportation, why not the mortgage and banking industry too?
Even the few of us who are hired as legitimate employees are routinely denied our legal rights under this system. Just ask our co-workers who haul clothing brands like Guess?, Under Armour, and Ralph Lauren’s Polo. The carrier they work for in Los Angeles is called Toll Group and is headquartered in Australia. At the busiest time of the holiday shopping season, 26 drivers were axed after wearing Teamster T-shirts to work. They were protesting the lack of access to clean, indoor restrooms with running water. The company hired an anti-union consultant to intimidate the drivers. Down Under, the same company bargains with 12,000 of our counterparts in good faith.
Despite our great hardships, many of us cannot — or refuse to, as some of the most well-intentioned suggest — “just quit.” First, we want to work and do not have a safety net. Many of us are tied to one-sided leases. But more importantly, why should we have to leave? Truck driving is what we do, and we do it well.
We are the skilled, specially-licensed professionals who guarantee that Target, Best Buy, and Wal-Mart are all stocked with just-in-time delivery for consumers. Take a look at all the stuff in your house. The things you see advertised on TV. Chances are a port truck driver brought that special holiday gift to the store you bought it.
We would rather stick together and transform our industry from within. We deserve to be fairly rewarded and valued. That is why we have united to stage convoys, park our trucks, marched on the boss, and even shut down these ports.
It’s like our hero Dutch Prior, a Shipper’s/SSA Marine driver, told CBS Early Morning this month: “If you don’t stand for something, you’ll fall for anything.”
The more underwater we are, the more our restlessness grows. We are being thoughtful about how best to organize ourselves and do what is needed to win dignity, respect, and justice.
Nowadays greedy corporations are treated as “people” while the politicians they bankroll cast union members who try to improve their workplaces as “thugs.”
But we believe in the power and potential behind a truly united 99%. We admire the strength and perseverance of the longshoremen. We are fighting like mad to overcome our exploitation, so please, stick by us long after December 12. Our friends in the Coalition for Clean & Safe Ports created a pledge you can sign to support us here.
We drivers have a saying, “We may not have a union yet, but no one can stop us from acting like one.”
The brothers and sisters of the Teamsters have our backs. They help us make our voices heard. But we need your help too so we can achieve the day where we raise our fists and together declare: “No one could stop us from forming a union.”
Thank you.
In solidarity,
Leonardo Mejia
SSA Marine/Shippers Transport Express
Port of Long Beach
10-year driver
Yemane Berhane
Ports of Seattle & Tacoma
6-year port driver
Xiomara Perez
Toll Group
Port of Los Angeles
8-year driver
Abdul Khan
Port of Oakland
7-year port driver
Ramiro Gotay
Ports of New York & New Jersey
15-year port driver
Trucking industry exposed for “ripping off” workers and taxpayers; Department of Labor vows crackdown
December 2, 2011
What is the trucking industry response to claims that port drivers are actually employees who have been stripped of their basic rights by trucking companies? Robert Digges, a spokesman for the American Trucking Associations, tripped on his own tongue on a CBS national news segment when he tried protesting the idea that trucking companies are cheating workers – and it’s getting picked up on blogs like the Daily Kos.
“They (trucking companies) believe they get a more productive employee – excuse me a more effective worker – a worker who is efficient, who has some skin in the game.”
So, the industry that dismantled the Los Angeles Clean Truck Program finally lets the truth slip: port truck drivers are actually employees who have had their rights stripped from them by greedy port trucking companies seeking to pad their bottom line.
“As long as we are independent contractors (the company) doesn’t have to cover benefits, they don’t have to cover sick days, bereavement leave time, holiday pay. It just saves the company money,” said Dutch Prior, a port driver for Shippers Transport in Oakland.
While the scheme is a boon for port trucking companies like Shippers Transport, a subsidiary of the giant SSA Marine (half-owned by Goldman Sachs), it’s drawing the attention of the Occupy movement and the Department of Labor.
“These (practices) have astronomical impacts on local governments, state governments and federal government and also hurts good, legitimate businesses that are playing by the rules and for employees that are being ripped off,” said Hilda Solis, the head of the US Department of Labor.
Last year the agency collected more than $5 million for nearly 8,000 misclassified workers, but with 300 new investigators on staff the Department of Labor will be looking more closely at misclassification schemes.
On December 12th the Occupy movement is organizing a shutdown of the West Coast ports while the Occupy protesters in New York take their case directly to Goldman Sachs on the same day (Goldman Sachs – half-owner of SSA Marine – has its own checkered history with paying taxes. It’s easy to understand why the Occupy folks are targeting the company in the coordination with the port shut down.)
The CBS Early Show segment is only the latest in a series of investigative news pieces on the port trucking industry generally and on Shippers Transport in particular.
Salon.com interviewed Leonardo Mejia, a truck driver for Shippers Transport who works out of Long Beach. “Mejia is part of the shadow economy, though not in the sense that that term is commonly understood: as an autonomous netherworld entirely off the books and underground, invisible to the taxman and mainstream society. Mejia’s shadow economy is something a little different; purposefully created from the top down, its growth driven by employers increasingly eager to shed costly, legally mandated commitments to their employees.”
New laws will help port truck drivers and other employees who are purposely misclassified by their employers, but enforcement of new and existing laws is key. Without strict enforcement from government agencies an imbalance of power exists which keeps truck drivers under the thumb of the giant trucking companies like Shippers Transport.
“There’s an imbalance of power in the market which enables the big shippers to control the cost of shipping,” According to Dr. David Bensman, a professor at Rutgers University and author of “The Big Rig”, a report about misclassification in the port trucking industry. “And as long as you have that imbalance of market power you are going to have intense competition and substandard industry practices.”
New Law Ends Payroll Shell Game
November 29, 2011
*This guest blog by Jon Zerolnick was originally published on on LAANE’s blog The Frying Pan.
Fun fact: L.A. leads the nation in jobs—just the kind that most people don’t think of as jobs. We’re the national leader in “nonemployers:” entities relying on independent contractors rather than employees. As economist Jack Kyser explained in 2006, “a lot of people want to have a business but don’t want the headaches of actually having to employ people.” The Times cited Kyser in explaining that “businesses become nonemployers to avoid the costs of workers’ compensation, paid leave, health insurance and state taxes.”
In many cases this sort of practice is, not to put too fine a word on it, illegal. Starting in just a few weeks, though, the state has a powerful new tool to deal with these lawbreakers. SB 459 goes into effect on January 1, 2012, and it levies large fines against employers who willfully misclassify workers as independent contractors to avoid their legal and tax responsibilities.
Not only will this lead to the potential recovery of hundreds of millions of dollars of lost revenue to the state, but it has the potential to dramatically improve the lives of workers.
Workers like Leonardo Mejia. Mejia — profiled recently in a piece on Salon.com that exposed this scam — is a truck driver at the Ports of L.A. and Long Beach. He works for a company called Shippers Transport Express, a subsidiary of the massive SSA Marine, which is itself half-owned by Goldman Sachs. Shippers Transport classifies Mejia as an independent contractor, and gives him an IRS Form 1099 instead of a W-2. But Mejia shows up for work every day at the time and place that the company tells him to. He accepts every truck load given to him by the company, or risks loss of future work assignments. He drives a truck that is registered to the company, and his lease with the company specifies that he cannot use the truck to drive for any other company. He does not bargain for the rates he is paid: the rates are set by the company, and he can take it or leave it. If he chooses to leave it, he turns in his truck and looks for another job.
Is Mejia an independent contractor? It doesn’t seem like he has a lot in common with consultants, computer programmers, freelancers and other true independent contractors who typically set their own hours and rules of business, and who contract with a range of clients. But he does have a lot in common with other port drivers. There are about 12,000 port drivers in Southern California, and about 90 percent are classified as independent contractors. Make that misclassified: the leading national expert on employment issues recently issued a report concluding that the overwhelming majority of the nation’s port drivers are really employees, despite what their paperwork says. (Full disclosure: the report was co-authored by some of LAANE’s partners in the Coalition for Clean and Safe Ports.)
SB 459 is an excellent first step to bringing a degree of justice to Mejia and thousands of other workers. Which may be why business interests are going apoplectic and predicting a coming economic apocalypse, where all employers move to Texas, or go on strike or something.
Yes, the finest minds at the L.A. Business Journal are now coming right out and acknowledging that being forced to play by the rules – pay taxes, respect minimum wage and overtime laws, health and safety laws, and the rights of workers to organize – is a “Job Killer.” Are they really so bold as to admit that the only way businesses can compete is by cheating?
(Goldman Sachs — half-owner of SSA Marine — has its own checkered history with paying taxes. I can understand why the Occupy folks are targeting the company!)
For any sort of responsible business, though, SB 459 should be welcome; employers who play by the rules get undercut by the cheats. If this practice were to continue unabated, it would create a race to the bottom, and the ruination of an entire industry—just as has happened with port trucking since 1980.
Let the hacks raise their bogus objections to following the law: business didn’t get to weigh in (not true); businesses sometimes don’t need full-time, long-term employees (so hire part-time, short-term employees as successful companies do constantly); businesses cannot afford statutory employees (wait—do I really get to not pay my taxes because I spent all that money on executive bonuses?); it’s hard to keep the legal definitions straight (pity the poor employer with an insufficient grasp on employment rules). They’re just sore – and worried – that the free ride may be coming to an end.
Tricking Taxpayers and Truck Drivers: Goldman Sachs Brings Wall Street to the Waterfront
October 17, 2011
What’s fueling the ire behind the Occupy Wall Street protests that have spread from Manhattan’s financial district to cities in every state of the country and around the world? For starters, a certain corporation that 99% of us bailed out received $23 billion from the government but only paid one percent of its 2008 income in taxes after raking in $2.3 billion in profit.
And a new Salon.com story “Employers New Ruse: ‘Independent Contracting” may help unearth another master scheme in which Lloyd Blankfein and Goldman Sachs’ tax-avoidance maneuvering runs amok, only this time, the industry they’re manipulating isn’t banking – it’s global shipping transportation and the tens of thousands of port truck drivers that keep our economy moving.
Salon.com tells the story of Leonardo Mejia, a truck driver for Shipper’s Transport Express, a subsidiary of the massive container terminal operator SSA Marine. Mr. Mejia is one of the nation’s port truck drivers whose employer treats them, for tax purposes, as the boss – even as they boss them around just like the rest of America’s employees. In other words, his company simply hands him a 1099 rather than a W-2, and voila! – bye-bye pesky payroll taxes and business expenses.
Misclassification, as it’s more wonkily known in Department of Labor and union parlance, cost the U.S. government an estimated $54 billion in underreported employment taxes, according to a 2009 report by the Treasury Inspector General for Tax Administration.
What the story doesn’t report, is that Goldman Sachs owns half of the global supply chain giant that Mr. Mejia hauls for, one of the world’s largest transportation and shipping outfits in the U.S. – and the entire planet.
Home foreclosures aren’t enough, apparently. U.S. port truck drivers like Mr. Mejia are facing “foreclosures on wheels” at the hands of Goldman Sachs-owned SSA Marine. Here’s a snippet:
Mejia is part of the shadow economy…purposefully created from the top down, its growth driven by employers increasingly eager to shed costly, legally mandated commitments to their employees.
On an economy-wide scale, the calculated misclassification of employees as independent contractors is a nightmare for workers. It removes the normal protections employers are legally required to give their employees without offering any real freedom in exchange. The practice is also a disaster for governments struggling to balance their budgets, depriving both federal and state governments of billions of dollars in tax revenue.
“It’s a great scheme. The boss pretends their employee is his or her own boss to skirt taxes and force business costs onto the workers, and then the real boss bosses that worker around just like every other employer,” said Dr. David Bensman of Rutgers University, a co-author of a groundbreaking research report, The Big Rig: Poverty, Pollution and the Misclassification of Truck Drivers at America’s Ports,which concluded the typical port truck driver is truly an employee.
“Gaming the system, Goldman Sachs’ Wall Street style is not welcome at our trade hubs, one of the state’s most valuable economic engines,” wrote California Assemblymember Sandre` Swanson in an Oakland Tribune editorial. “World-class ports are vital to our economic progress. We cannot permit Wall Street-style trickery to stand in our way.”
And if you’re a part of the 99% that’s fed up with Goldman Sachs anti-worker, tax-avoidance games at our country’s ports then sign your name to the growing list of Americans who are doing something about it.
Had Enough of Pollution & Poverty? Pledge to End It.
September 30, 2011
A Word from Patricia Castellanos, Chair of the Los Angeles Coalition for Clean & Safe Ports
Our movement for environmental and economic justice was dealt a real blow by corporate polluters and anti-union interests this week. They convinced the 9th Circuit Court of Appeals panel that an arcane loophole in the law prevents the nation’s largest port from fully implementing the EPA-award winning LA Clean Truck Program.
Are you willing to stand with the nation’s port workers and residents who are pledging to not take this sitting down? The nation’s 110,000 first-rate truck drivers who have long been subjected to third-world working conditions will be the first to feel the impact of this blow – along with the 87 million Americans who live and work in polluted port regions. Now they need to hear that we will fight back with them.
While top-notch attorneys representing the port and environmental groups like Sierra Club and the Natural Resources Defense Council succeeded in preserving many of the pioneering standards that helped introduce thousands of clean trucks into service, conservative judges put the brakes on the regulation that would stop the industry’s dirty tricks that brought diesel-soaked air and dead-end jobs to our communities in the first place.
If upheld, profitable, multi-national corporations like Maersk and the Goldman Sachs- owned SSA Marine will continue to disguise their truck drivers as independent contractors in a widespread scheme to cheat on taxes and force struggling blue-collar workers to buy and maintain the next generation of green trucks. Underpaid truck drivers and overburdened taxpayers should not be forced to foot the bill for industry giant’s diesel mess!
Thousands of truck drivers are standing up and speaking out, and they need to know we have their backs. Take the pledge to amplify their voices and ask your friends to do the same. Across the country, I, along with partners from over 150 organizations united in the Coalition for Clean & Safe Ports, will personally share your show of solidarity with truck drivers in Los Angeles, Long Beach, Oakland, Seattle, New York, Newark, Houston and Miami.
Your past support of the LA Clean Truck Program and the Clean Ports Act of 2011 demonstrates you care deeply about clean air and good, green jobs. Let’s show these corporate bullies who trample on workers and pollute our communities just how much powerful we become when the going gets tough.