Trucking companies are also feeling the effects of a rule aimed to force companies like Uber, Lyft, and DoorDash to accept workers as employees. For truckers who own and run their rigs, AB5 may spell the end of the road for their efforts to provide better working safeguards.
Earlier this week, the U.S. Supreme Court made headlines once again by denying an appeal by California truckers against a new rule that mandates that truck drivers work for the corporations with which they do business.
ITS Logistics Vice President Paul Brashier remarked, “This verdict certainly took everybody by surprise, especially with the speed with which they kicked this back and essentially made it law.”
Many of the state’s trucks are owned and operated by private drivers, and this is an issue.
At the Port of Oakland, this is especially true
“Every day, the port is serviced by 9,000 vehicles, the majority of which are owned and operated by independent contractors. As a result, this has a significant impact “said Oakland-based AB Trucking owner Bill Aboudi.
Drivers employed by Aboudi are employed by Aboudi; nevertheless, Aboudi hires outside contractors to handle overflow work, which Aboudi claims is now unlawful. Because of this, Aboudi has decided to no longer use trucks owned by the drivers.
“It’s a non-starter. In other words, this is your truck, and it is yours alone. I’m unable to use it because I don’t have possession of it “he asserted. For a business like mine, eliminating owner/operators is a simple way to cut down on labor costs.
Just a few weeks ago, Hedayatullah Abrahami purchased his truck.
It’s a source of pride for him and other owners/operators that they’ve invested tens of thousands of dollars to avoid becoming someone else’s employee.
There was a sign of agreement from Abrahami. “Yeah. That’s my truck, and it’s great to be able to work for myself. That makes me pleased.”
As a result, his truck is now completely pointless unless he wants to start his trucking firm and handle all of the port administration himself. When it came to paperwork like this, AB Trucking was always there for him.
He claimed that “they arrange everything.” “Everything from the port to the huge enterprises is on the table for discussion. We don’t have to lift a finger.”
Abrahami’s aspirations of becoming a truck driver have recently become significantly more difficult.
According to Brashier at ATS Logistics, the supply chain problems will only get worse and the cost of everything in California will go up as a result.
KPIX 5 quoted him as saying, “It will have an unfavorable effect on everyone.” Consumers will be subjected to an increase in inflation as a result of the current high rate of price increases.
In an ironic twist, the following approval of Proposition 22 exempted ride-hailing services like Uber and Lyft from AB5. In contrast, Brashier claims that AB5 was originally designed to make it simpler for independent truckers to join unions.
No one appears to know how or who will enforce it now that it’s a law. There is, however, a limited amount of time to figure it out. It was ordered by a judge to go into force on Thursday, and it should take effect in seven days.