Deregulation and the decline of the unionized trucking industry

by Charles R. Perry

Publisher: Industrial Research Unit, Wharton School, University of Pennsylvania in Philadelphia, Pa

Written in English
Cover of: Deregulation and the decline of the unionized trucking industry | Charles R. Perry
Published: Pages: 131 Downloads: 509
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  • United States.


  • Trucking -- United States.,
  • Trucking -- Government policy -- United States.,
  • Trucking -- Deregulation -- United States.

Edition Notes

Includes bibliographical references and index.

Statementby Charles R. Perry ; with the assistance of Craig M. Waring and Peter N. Glick.
SeriesLabor relations and public policy series,, no. 28, Major Industrial Research Unit study ;, no. 64
ContributionsWaring, Craig M., Glick, Peter N.
LC ClassificationsHE5623 .P38 1986
The Physical Object
Paginationxii, 131 p. ;
Number of Pages131
ID Numbers
Open LibraryOL2560445M
ISBN 100895460513
LC Control Number85081946

  Unions have never represented a majority of the American workforce. However, to listen to today’s union bosses, one might be led to believe that they did. Ever since their peak, in , when unions represented a total of percent of the workforce unions in the private-sector have been on an almost steady decline. The [ ]. Since deregulation of the trucking industry in , more than once- thriving trucking companies have gone out of business. More than , workers at those companies lost their jobs. Since deregulation of the airlines in , a dozen airline companies have merged or gone out of business. More t of their employees lost their jobs.   The Motor Carrier Act of signaled the beginning of deregulation of the trucking industry in the United States. The net results were rate decreases, reduction of the unionized Teamster workforce previously dominating the industry, better service to remote areas of the country, increased efficiency by reduction of empty miles, and better use. of the industry’s scope, the market is one of the most heavily unionized in the trucking industry, though unionization has declined substantially since (Belzer ).

Since Congress deregulated the industry in the s-- when a unionized truck driver made today’s equivalent of $ an hour -- about two-thirds of the nation’s 75,odd port truck drivers.   Indeed, the only previous study of that issue (Rose ) found that nonwhite/white wage gaps in the trucking industry declined following deregulation in In estimating the effects of deregulation, however, that study did not distinguish between union and nonunion workers or between black and white drivers.   The transportation sector is more heavily unionized than private industry as a whole, but its trends in unionization are similar. (See chart 2.(19)) Union membership was even more prevalent in the trucking industry than in the rest of transportation prior to deregulation, according to unpublished data from the Current Population Survey. Union compensation following intrastate deregulation: Evidence from the US trucking industry. This study contributes to the analysis of union pay compensation patterns in the trucking industry by considering the effect of intrastate deregulation on wage and nonwage compensation in the US trucking industry.

Providing such an analysis contributes to gaining greater understanding of the persistence of relatively high union premiums in the for-hire sector following federal legislation promoting interstate competition. For-hire trucking still faced intrastate rate and entry regulation following interstate deregulation within this trucking sector. Deregulation in the airline and trucking sectors, he implied, was an example of “better government.” Open Market bloggers would argue that smaller government is almost always better government, but Kennedy’s pragmatic case for this specific deregulation holds lesson for the regulatory debates of today.   I was a dumbass truck driver for 53 years, I have seen what the 1% has done to trucking and I witnessed how the Republicans broke the back of organized labor. Any driver who votes for Republicans and then claim to be a union man, is one big hypocrite, %! Oh, yes I receive a pretty good check every month from my Uncle Sam and I am protected by Medicare, also draw a little . C has recently been in debt for services that were not work related. However, the union argues that because it is the duly certified representative of all the employees, the employer must pay for some of its debt. 4. Union D is part of a large organization of other unions that decides to bargain as a group during negotiations.

Deregulation and the decline of the unionized trucking industry by Charles R. Perry Download PDF EPUB FB2

That’s the question sociologist Steve Viscelli tackles in The Big Rig: Trucking and the Decline of the American Dream. His book focuses on the long-haul “truckload” segment of the industry, which includes the greatest number of professional drivers today.

This is also the segment that has changed the most since the s. The Big Rig begins with a brief history of how trucking. industry. After a pre-deregulation period of relatively low employment growth, fromin to 1, inthe number of workers employed in trucking dramatically increased to 1, in Together, the union mem-bership rate and industry employment trends suggest a tremendous loss of labor bargaining power following deregulation.

Perry, author of a book called 'Deregulation and the Decline of the Unionized Trucking Industry,' said Thursday the power of the Teamsters in their industry has been on the decline.

Trucking deregulation is unfinished. According to one study, abolishing all remaining federal controls would save shippers about $28 billion per year. A Department of Transportation study done by researchers at the University of Pennsylvania's Wharton School estimated that abolishing state regulation would save another $5 billion to $12 billion.

This changed in the late s due to two interconnected dynamics, the deregulation of the industry, and the decline of the trucking unions.

Though deregulation is Author: Michael Bernick. This book provides excellent insight into the trucking industry generally and the driver shortage in particular. It does a fantastic job penetrating a lot of the misinformation spread by the large trucking firms in a way that is only possible through the firsthand experience and interviews that the author has s: Conclusion This study indicates substantial losses to union employees in the trucking industry as a consequence of motor carrier deregulation.

Union wages in the early to mids were estimated to be 55 percent greater than nonunion wages, holding constant worker characteristics. Dave shares a few thoughts on DEREGULATION. What is DEREGULATION. Was it good for the trucking industry.

Did deregulation bring about the downfall of the ind. Claim: From Nov. 26 to 29,U.S. truckers will carry out a nationwide protest against the election of Joe Biden Deregulation and the decline of the unionized trucking industry book his policies that they say will hurt blue-collar workers including those in their e.

The deregulation of the trucking industry led to the loss of power from the hands of unions, the end of many of the big unionized LTL companies that prospered under regulation, and the rise of the large truckload carriers that we see today.

Companies that fought deregulation and free market rates died, companies that embraced deregulation prospered. Within a few years of deregulation, the federal government began reregulating the trucking industry to ensure safety under the auspices of the Federal Motor Carrier Safety Administration (FMCSA).

This agency is tasked with setting the key work rules for truckers, as will be discussed in the next chapter, but the first major change instituted. 1. Introduction. Much of the literature on trucking deregulation suggests that union rent sharing in the previously regulated for-hire sector of the trucking industry persisted despite enhanced competition following the passage of the Motor Carrier Act of 1 For instance, using driver level data Rose () and Hirsch () find post interstate deregulation union wage premiums declined.

However, with deregulation has come a loss of union membership as the industry changed over the last 30 years. The Fall of Jimmy Hoffa’s Teamsters. The International Brotherhood of Teamsters, one of three unions who endorsed Reagan, pretty much controlled the interstate trucking industry in the U.S.

prior to Paying the Toll: Economic Deregulation of the Trucking Industry. Book • By Michael Belzer • Download PDF. | EPI Study. The Economic Policy Institute staff is unionized with the Nonprofit Professional Employees Union.

A comic book about a truck stop waitress’s romance with a truck driver, via In62% of truckers were unionized. But bythat number had fallen to 23%. Correspondingly, wages had dropped by 30%.

The shift was due to a series of deregulatory legislative efforts culminating in the Motor Carrier Act ofwhich effectively exempted the trucking industry. Reviews of The Big Rig. The Big Rig is sure to become the touchstone study of U.S.

trucking. Coupling fascinating accounts of personal struggles with sharp structural analyses linking these struggles to macroeconomic forces, it is the best kind of ethnographic sociol ogy.

- Ben Snyder, review in Men and Masculinities This is a powerful and important book that brings clear insights into some of. The authors find that deregulation is associated with significantly declining black/white wage gaps among both union and nonunion drivers.

This wage pattern is attributable to significant reductions in the real wages of white drivers; the real wages of black drivers did not change with deregulation.

The trucking industry includes a large number of companies, important segments of the industry are characterized by low capital and entry costs to firms, and, because worker skills are acquired quickly, which case both union and nonunion wages would decline following deregulation.

Union density should decline, as long as unions continue to. With red tape relentlessly on the rise over the past four decades, it is easy to forget that trucking has benefited from broad deregulation signed into law by President Carter in But there is trouble in paradise, according to Slate writer Benjamin Snyder.

Snyder alleges that deregulation has effectively shifted the burden of rules from the firm level to the individual level, resulting in a plethora of federal rules targeting drivers that are ineffective. Increasing public interest in deregulation led to a series of federal laws beginning in with the Railroad Revitalization and Regulatory Reform Act.

The deregulation of the trucking industry began with the Motor Carrier Act ofwhich was signed into law by President Carter on July 1, Deregulation would maximize the flexibility of the transportation system to adapt to consumer de­mand. At the same time costs could be expected to decline as the necessity to operate at a profit, or at least break even, forces the ineffi­cient out of the business.

Deregulation also had a major impact on the labor unions that had been active in the industry. The power of the International Brotherhood of Teamsters declined dramatically (the percentage of union members employed in the industry declined from more than 60% in the late s to 28% in ).

The deregulation of the trucking industry and the "Volcker shock," along with Ronald Reagan's crushing of the PATCO air traffic controllers' strike. Union membership remains an important determinant of wages, with members earning 18% to 21% more than their non-union counterparts. The authors conclude that the primary sources of wage decline and increased wage inequality have been deregulation, de-unionization, and a.

onset ofICCderegulation thetruckingindustry,whichbeganin earnest in thefallofHowever, although a number of indicators showthe effects of increasedcompetition in the industry as early as. Sweatshops on Wheels: Winners and Losers in Trucking Deregulation exposes the dark side of government deregulation in America's interstate trucking industry.

In the years since deregulation inmedian earnings have dropped 30% and most long-haul truckers earn less than half of pre-regulation wages. Work weeks average more than sixty : $ The trucking industry in the United States has affected the political and economic history of the United States in the 20th century.

Before the invention of automobiles, most freight was moved by train or horse-drawn vehicle. During World War I, the military was the first to use trucks the increased construction of paved roads, trucking began to achieve significant foothold.

Deregulation Is a Suspect in the Decline of Truck Safety while wages for unionized drivers of fleet operations have been frozen or are falling. trucking-industry groups are working. routes or services within the transportation industry. 6 5 Taylor () observes that 48 percent of Florida shippers reported a price decline following state deregulation.

Past studies indicate 9, more establishments competing in the trucking industry for six years following intrastate deregulation. Transportation Secretary Elizabeth H.

Dole has sent the White House draft legislation that would fully deregulate the interstate trucking industry, she said today. Long-haul trucks have been described as sweatshops on wheels. The typical long-haul trucker works the equivalent of two full-time jobs, often for little more than minimum wage.

But it wasn’t always this way. Trucking used to be one of the best working-class jobs in the United States. The Big Rig explains how this massive degradation in the quality of work has occurred, and how companies.Perry, Charles.

Deregulation and the Decline of the Unionized Trucking Industry. Philadelphia: Wharton School’s Industrial Research Unit. Rose, Nancy. Labor Rent-Sharing and Regulation: Evidence from the Trucking Industry.

Journal of Political. Difficulties Since Deregulation In March the union and trucking operators signed a month agreement that gave major concessions in wages and work rules to help the trucking industry.