The recent decision by Hub Group to discontinue its employee-based drayage operation in Southern California is the latest event in a tug of war between the independent contractor model of trucking and the employee model that is likely to continue for some time to come and the result will impact costs for shippers.
XPO Logistics, the Connecticut-based corporation that bought Con-way last year, is facing a class action lawsuit claiming three of its trucking subsidiaries misclassified drivers as independent contractors, according to Los Angeles Superior Court documents. At least one other trucking company — Intermodal Container Services Inc. — is also part of the lawsuit.
XPO Logistics, the Connecticut-based corporation that bought Con-way last year, is facing a class action lawsuit claiming three of its trucking subsidiaries misclassified drivers as independent contractors, according to Los Angeles Superior Court documents. At least one other trucking company – Intermodal Container Services Inc. – is also part of the lawsuit.
One by one, 38 truckers who service the ports of Los Angeles and Long Beach pulled up in front of the California Labor Commissioner and made their pitch to be classified as employees, not independent contractors, and be reimbursed for lost wages. This month, it was announced, they all won.
The California Labor Commissioner ruled in favor of 38 drivers who claimed that drayage company Pacific 9 Transportation misclassified them as independent contractors, awarding the drivers a total of $6.9 million in stolen wages, with an average individual award of $182,270.
A port trucking firm in Carson has been ordered to turn over nearly $7 million in back pay to 38 drivers, the latest in a series of recent wins for port drivers and the Teamsters union that has been trying to organize them.
The Teamsters have managed to obtain union contracts for about 500 drivers through “labor peace” agreements with several trucking companies at the ports. But the IBT drivers were the first group of misclassified workers in which a majority had petitioned for union representation from inside the company.
“You have the support of the 1.4 million Teamster members,” Hoffa said. “We will bring justice to port truck drivers and warehouse workers nationwide.” The truck drivers who ferry goods to the ports of Los Angeles and Long Beach walked off the job Monday
Workers from California Cartage, a warehouse at the Port of L.A., have joined striking truckers who drive for Pacific 9 Transportation and XPO Logistics, creating the potential for disruption at two key links in the cargo supply chain.
Striking port truck drivers and other supply chain workers strike at ITS Marine Terminal, Port of Long Beach in Long Beach CA. Tuesday October 26, 2015.