Lifeliner IOWA MOTOR TRUCK ASSOCIATION Summer 2011
Battle The
INSIDE: Legal Update Carrier Spotlight: All Seasons Trucking TDC Awards Golf Outing
AHEAD -FINANCING IOWA’S ROADS
Joe Morten & Son dba Motor-Ways Urbandale, IA 515-266-1113
2
Lifeliner
Reback Truck Ins. Reynolds & Reynolds Sioux City, IA Des Moines, IA 800-383-4848 515-243-1724
Summer 2011
Donaghy-Kempton Des Moines, IA 515-288-8545
Edwards-Brandt Mason City, IA 641-423-0675
Mel Foster Davenport, IA 563-359-5446
Odebolt Ins. Odebolt, IA 712-668-2283
Millhiser Smith Cedar Rapids, IA 319-365-8611
Peoples Ins. Waverly, IA 319-352-6327
In this Issue
IMTA Staff
10
Taking a Stand
Brenda Neville, CAE President
Don Egli
Director of Safety and Security
DeAnn Moody
Executive Assistant
Phillip Nicolino
Marketing Manager
Mike Spalla
Membership Manager
24
Janelle Stevens
Events/Education Manager
Golf Outing Results
Articles
Chairman’s Message............................. 5 President’s Message............................... 7 Iowa Motor Carriers Foundation..........8-9 Taking a Stand..................................... 10 Supporting Domestic Energy Strategies.... 11 Legal Insight...................................12-14
20
Road Funding
New DOT Director............................... 15 Carrier Spotlight.............................16-18 Annual Management Conference......... 19 Cover Story....................................20-23 Golf Outing Update........................24-25 Iowa Truck Services.............................. 27 Members in the News.......................... 28 Citizen Advisory Commission................ 29 TDC...............................................30-39 IMTA Leaders at Work for You............... 40 Safety CO-OP..................................... 42
Our Supporters Great West Casualty...................... 2 Boyer Petroleum............................. 4 Central Trailer Service.................... 6 Prins Insurance, Inc........................ 6 Iowa Truck Services...................... 26 Hy-Vee........................................ 34
US Auctioneers............................ 41 Ziegler........................................ 43 Quality Services Corp................... 43 Donaghy-Kempton Insurors.......... 43 Midwest Wheel Companies............. 44
Summer 2011
Lifeliner
3
4
Lifeliner
Summer 2011
Chairman’s Message Mike Riggan, TanTara Transportation Corporation I am always proud to tell folks the importance of the trucking industry. I probably use the slogan, “If you got it a truck brought it” more than anyone else but I think it sums up the value of our industry in terms that everyone can understand and hopefully appreciate. The trucking industry is the driving force of Mike Riggan this economy IMTA and everyone Chairman of the Board depends upon our industry. Too often, I think our industry is taken for granted and more than once, I have thought that we could send a pretty powerful message if we stopped trucking for even one day. If people just had the opportunity to see what an impact the industry has on their daily life by simply disrupting the delivery of some essential products, I think this exercise could prove to be very impactful in my opinion. However, as I have learned over my many years in the trucking industry, common sense solutions are not always the most practical course of action.
believe that. The average IMTA member has about 30 to 40 trucks but there are a whole lot of members that have 2 to 15 trucks as well and they are all important to our efforts. We do listen to the input of our members regardless of their size and I am also here to tell you that we care a great deal about your opinion and feedback. Fortunately, most people in trucking are not bashful either so we are grateful for the many members that are engaged, informed and involved in a number of our ongoing efforts.
Instead, I became a member of IMTA and through the efforts of our association; we as an industry continue to send powerful and effective messages about the importance of this industry to anyone that will listen. Like some of you, I was certainly skeptical when I first joined IMTA. Membership into this kind of an organization was really not my style. I figured IMTA was just looking out for all the big guys and I would never have an opportunity to weigh in on anything. However, I was wrong and actually figured that out after only a few short years and today I am here as a testament that this association not only looks out for the big guys but actually does even more for the small to mid size trucking companies. I wouldn’t have stuck it out all these years to eventually become the Chairman if I didn’t honestly
We have a number of challenges looming on the not so distant horizon. Regulators from every direction are looking at our industry with the intent to govern even more. It used to be that we primarily focused on the DOT and FMCSA but now the Department of Labor, Department of Revenue, OSHA, DNR and several other agencies are weighing in on how we run our operations. It is impossible to stay on top of it all and maddening that we are subjected to this continual oversight. The cost that we incur in attempting to be in compliance is very high and continues to grow with each proposed rule.
The best defense we have is a strong organization and as your Chairman, I pledge to you that we will continue to give 100% each and every day to defend an industry that is important to everyone.
to believe that my one voice would be effective, I am here to tell you that simply is not the case. The collective impact of all of our voices channeled through your association is impactful. There will be no immediate results but can you imagine where we would be in trucking if we hadn’t had someone like IMTA watching over our interests for the past 60+ years? Obviously if you are reading this column, there is a good chance you are a member of IMTA but we have plenty of room for more members and I am urging you to do two simple things.
• Become more active with your
association, we have a number of opportunities where we need your help and we urge you to participate in association activities and get involved with our efforts.
• Recruit someone to join the
association, we always need to strengthen our foundation and reinforce the troops. I would guess you easily know of one trucker or even a supplier that is not a member of IMTA, encourage them to join the association.
I would like to believe that things will only get better but being the realist that I am, I am afraid we are only going to continue to face ongoing challenges and obstacles. The best defense we have is a strong organization and as your Chairman, I pledge to you that we will continue to give 100% each and every day to defend an industry that is important to everyone. Remember, if you got it, a truck brought it…..I love that saying and I love fighting for this industry! Mike Riggan, IMTA Chairman of the Board TanTara Transportation Corp.
That is where your support of IMTA is critical. We must work together as an industry to fight the growing oversight by the government. While I would like
Summer 2011
Lifeliner
5
IMTA’s Newest Members “IMTA’s membership remained strong and dedicated. These new members are excited to be part of an organization that makes an impact! IMTA is here to watch out for YOUR interests and expedite YOUR success. Do you know someone who should be a member? I invite you to tell them who we are and what we do. Referrals are a great way to make our voice even louder!” Mike Spalla, IMTA Membership Manager Mike Spalla, Membership Manager
Welcome New Members! Coffee Cup Fuel Stops Aberdeen, SD
Trans Lease, Inc. Kansas City, MO
Kinze Manufacturing, Inc. Williamsburg, IA
Trust Transport Fontanelle, IA
Mft Construction, Inc. Council Bluffs, IA
U.S. Auctioneers, Inc. Rock Island, IL
Partnership for Progress, Inc. Atlantic, IA
6
Lifeliner
Summer 2011
President’s Message Brenda Neville, Iowa Motor Truck Association
IMTA President and CAC Commissioner, Scott Cirksena have worked closely on road funding issues.
Iowa’s trucking industry is once again at the forefront as we recently announced our support of a gas tax. The Governor appointed a committee comprised of public citizens to explore alternatives for funding our roads and as in the past, the gas tax is the most effective and efficient
on the roads that the trucking industry uses and we will always push for more funding to the interstate system and commercial networks throughout the state. IMTA believes strongly that this type of a “user fee” is the only method in which to sustain the roads that allow us to deliver the products that everyone depends upon. A gas tax truly is a “user fee” because it assesses everyone that is using our roads to pay their fair share in maintaining those roads. Obviously there are a lot of Iowa based trucking companies that purchase fuel in this state but there are a lot of out of state trucks traveling through Iowa and with this system they are also helping support this critical and essential infrastructure. Obviously the real work will come in determining the amount of that gas tax, for every penny increase, a mere $22 million is raised and projections are
Our industry depends upon good roads and like we have demonstrated for the past 68 years, we are never afraid of a good battle and never back down from anything that will only result in a positive change for the state, the economy and for our industry. manner in which to fund our road building efforts. For the past 25 years, IMTA has supported this type of a “user fee” and while we have visibly supported an increase each year, the last increase was in 1989 and is long overdue. Now 22 years later, we are facing a road and bridge system that has dramatically deteriorated and we have reached a point where immediate and drastic measures need to be taken in an effort to get our roads up to par.
that over $215 million is needed just to get caught up on the repairs that have been overlooked over the years. So the hard part at this point is to agree to an increase that will not only be acceptable to our industry but equally acceptable to the public and of course, the elected officials that will need to take that vote at some point. IMTA leaders have typically asked for a “phase in” of any “user fee” and we will more than likely maintain that position this go around as well.
Roads are vital to the economy of this state and as an industry that has an equally vested interest in good roads, truckers are more than willing to step up and pay for them. Obviously, we want the majority of any funding concentrated
Some may argue that there are a number of ways to generate revenue for our road fund, but in most cases those methods are ineffective and slow in generating the needed funds. These methods often times sound good in
theory but once tested by practical thinking, they are solutions that offer little revenue with a lot of additional work, oversight and agency interpretation...and we all know how those types of solutions end up. Others may suggest bonding, but our industry has always rejected that funding mechanism and insists on a “pay as you go” system that is proven to be the only way to fund roads. Still others may suggest tolling in Iowa, this is almost a laughable solution and universally rejected by the trucking industry as an effective funding mechanism. This will no doubt be a controversial and divisive issue. Lawmakers struggle with taking a vote that can be perceived as a tax increase especially given today’s economy. However, it is in our best interest to be a key player and supporter of this proposal. Our industry depends upon good roads and like we have demonstrated for the past 68 years, we are never afraid of a good battle and never back down from anything that will only result in a positive change for the state, the economy and for our industry. Now is the time to demonstrate our leadership and I look forward to working with all of you to kick off an effective grassroots effort that will help this legislation get passed in 2012. Stay tuned for more information…… Brenda Neville President IMTA
Summer 2011
Lifeliner
7
Another Foundation Contribution Motor-Ways, Inc. Endows Scholarship
“I have always looked for opportunities to give back to the industry and I believe the foundation is one of the best ways to do that. I am happy to make this contribution to the foundation,” said Pat Storey, Motor-Ways, Inc. on presenting a $10,000 donation to the Iowa Motor Carriers Foundation. Motor-Ways, Inc. has been an IMTA member for over 40 years and has been a staunch supporter at virtually every IMTA event for decades. Started by Dick Adams in 1949 the company has been providing quality insurance products and impeccable service to carriers throughout the Midwest for a very long time.
Pat Storey has been extremely active with the Allied Division over the years and has served as the convention chairman on four different occasions. In addition to his work with the Allied Division, Pat has also been active on numerous committees and has served on the IMTA Board of Directors as well. He has been involved with the Foundation on and off since it was formed in 1989. “Vern Simpson was a customer and a close personal friend as well and the personal investment he made to the Iowa Motor Carriers Foundation was always an inspiration to me. His dedication and commitment to the future of the state and this industry was fulfilled when he established the foundation and an ongoing scholarship program. He never quit working on the efforts of raising funds for the foundation so I always knew
The Iowa Motor Carriers’ Foundation is a nonprofit corporation organized for the purpose of providing educational opportunities to deserving young Iowans. Scholarships awarded by the Iowa Motor Carriers’ Foundation are available to students majoring in any field of study. To be eligible to receive a Foundation scholarship, the student must currently be attending or planning to attend college in the state of Iowa. Applications are available beginning January 1st by calling the IMTA or on the IMTA website at www.iowamotortruck.com with a deadline of March 15th, scholarships are awarded by June 1st.
8
Lifeliner
Summer 2011
that at some point, I wanted to make a sizeable contribution,” continued Pat. The donation was made in December 2010 in order to be used in the 2011 scholarship process, but the official announcement came in May at the Board of Directors meeting. The check was presented to Foundation Chairman, Dave Dickey, with Harold Dickey Transportation and IMTA Chairman of the Board, Mike Riggan. “We are grateful for this contribution and appreciate Pat’s commitment to the Foundation. Motor-Ways, Inc. has always been a great IMTA member and supporter and this is a most fitting way to continue to serve the industry far into the future and leave a legacy in the name of Motor-Ways, Inc,” said Dave Dickey.
Pat Storey (middle) presented his check to Dave Dickey (left) Chairman of the foundation committee and Mike Riggan (right) IMTA - Chairman of the Board May Noard Meeting.
Establishing a Scholarship
To have a scholarship established in the name of a loved one, an endowment of $10,000 is required. At that level, a perpetual scholarship is established in the specified name and is awarded annually. For more information on establishing a scholarship contact Brenda Neville at the IMTA office. (515) 244-5193
2011 Scholarship Winners
Winner of the Bob Bannister Memorial Scholarship is Melanie Weber from Winthrop, IA. Melanie plans to attend Kirkwood Community College and study agricultural business management in the fall of 2011.
Winner of the Midwest Wheel Scholarship is Dylan Hadenfeldt of Fairfax, IA. Having already completed two years at Kirkwood Community College, Dylan plans to attend Upper Iowa University in Cedar Rapids for the remainder of his education.
Rachel Wiltgen of Cedar Rapids, IA, is this year’s winner of the Verne Simpson Memorial Scholarship. Rachel plans to attend Iowa State University and study engineering in the fall.
Winner of the Darryl Mason Memorial Scholarship is Allen George from Altoona, IA. He is the recent graduate of BondurantFarrar High School and plans to attend Iowa State University in the fall.
Alexandra Udorvich of Madrid, IA, is this year’s winner of the Motor-Ways, Inc. Scholarship. She plans to attend Des Moines Area Community College and transfer to the University of Northern Iowa to further her studies in elementary education.
Winner of the Harold Dickey Memorial Scholarship is Jenna Kurtz of Sigourney, IA. Jenna plans to attend Iowa State University while studying architecture.
Winner of the Cummins Great Plains Diesel Scholarship is Justin Gorham from Carroll, IA. Justin is the recent graduate of Carroll High School and plans to attend Des Moines Area Community College in the fall.
Winner of the Iowa Council of Safety Management Scholarship is Jacob Hannasch of Carroll, IA. Jacob plans to attend Western Community College while pursuing a degree in criminal justice in the fall.
Kimberly Farrell of Sanborn, IA, is this year’s winner of the Paul Crouse Memorial Scholarship. She plans to study elementary education at Northwestern College in Orange City, IA.
Summer 2011
Lifeliner
9
Taking a Stand The Iowa Motor Truck Association is proud to announce that it is now an affiliate of and working closely with the Consumer Energy Alliance on a variety of energy issues, with high gas and diesel prices near the top of the list. CEA effectively engages on federal issues such as the Keystone XL pipeline, offshore oil production and natural gas production at a local level as well as in Washington, D.C. because at the end of the day, Congress and the President understand that with few exceptions, their constituents live and work outside the Beltway. CEA, with offices in Houston, Washington, D.C. and Chicago, was formed to help support the thoughtful utilization of all domestic energy resources to improve domestic energy security and reduce consumer prices. CEA’s mission is to ensure a supply of reliable and affordable energy for American consumers. CEA aims to improve consumer understanding of our nation’s energy security, including the need to reduce reliance on imported oil and natural gas, maintain reasonable energy prices for consumers, and continue efforts to diversify our energy resources. As one of CEA’s more than 160 consumer and energy organizations and more than 270,000 consumer advocates as part of its Alliance, IMTA joins organizations such as DOW, Caterpillar, the Illinois Chamber and the Wisconsin Manufacturers and Commerce in the fight for thoughtful energy policy. IMTA hopes to collaborate with CEA on a variety of issues to promote reliable and affordable energy in the Midwest and throughout the United States. Working with IMTA will be Ryan Scott, the Executive Director of CEA Midwest. Before coming to CEA, Ryan worked in Deloitte’s Strategy and Operations Consulting practice. He holds a JD/MBA from Case Western Reserve University, a B.A. in Economics from the University of Southern California and is a member of the Illinois State Bar Association. IMTA will also work closely with Andrew
10
Lifeliner
Summer 2011
IMTA hopes to collaborate with CEA on a variety of issues to promote reliable and affordable energy in the Midwest and throughout the United States.
Browning, a member of CEA – Midwest’s Board of Directors and an executive vice president at CEA. Mr. Browning is a former Clinton White House appointee to the United States Department of Energy (USDOE) where he worked in the Office of Fossil Energy and served as a staff assistant to the Secretary of Energy, the Deputy Secretary of Energy and other senior level USDOE officials on U.S. domestic and international energy issues, various international trade missions and technical assistance initiatives. He holds an M.A. in International Affairs with a focus on Energy and Environment and International Economics from Johns Hopkins School of Advanced
International Studies (SAIS) and a B.A. in Political Science with a minor in Economics from the University of TexasAustin. David Holt has served as President of CEA since January 2006. David serves as Co-Chairman of the Greater Houston Partnership’s Energy Collaborative Strategy & Assessment Subcommittee. He is a member of the Texas Bar Association and Houston Bar Association.
SAVE THE DATE
September 13th, 2011 • Chicago, IL
CONSUMER ENERGY ALLIANCE -Midwest Meeting When: Tuesday September 13th Where: 200 W. Madison St., Suite 3600 – Chicago, IL What: The program will include the following: 9:00am - 1pm: Consumer Energy Alliance: Midwest Outreach Strategy Meeting CEA’s Board, Steering Committee and key Midwest Affiliates will assemble to share information and ideas about improving understanding of national energy policy, reaching out to elected officials & Presidential Candidates and helping to ensure that broad, balanced energy policy becomes a Top Tier issue for the 2012 Presidential Election in key Midwest battleground states.
(PRELIMINARY AGENDA)
• Keynote Speaker • High gas, diesel and jet fuel prices, and their effect on the Midwest Economy • Mobilizing Energy Producers, Consumers and Citizens to ensure Energy Policy discussion play central role in President Debates • Energy Producer Presentation • Energy Consumer Presentation • Key Issues: Offshore O&G; Onshore Natural Gas; Keystone Pipeline; Alternative/Renewable Energy; Efficiency • Focusing the debate on job creation, economic opportunity, US competitiveness and energy security
Supporting Domestic Energy Strategies The Importance of Supporting Domestic Energy Strategies
If you talk to anyone in trucking today and ask them about their biggest concern on a daily basis, next to operating safely, fuel is the most common answer. Even the smallest Mike Riggan IMTA fluctuation in Chairman of the Board fuel prices has a dramatic impact on our operation and its bottom line. Sometimes I feel as though we are being held hostage by the speculators and others that seem to have an impact on the daily prices of fuel. Because of this growing frustration, I have been a proponent of drilling here in the US for many years. I have never understood why our national leaders have continued to allow us as a nation to be dependent on foreign energy sources. Over the years my frustration has grown into anger by the lack of leadership that has been shown when it comes to energy policies in the US. Because of that, I was more than supportive when we had the opportunity to meet with the folks from the Consumer Energy Alliance (CEA). This is an organization that has been around for the last couple of years and they were primarily formed to combat a variety of energy issues, with their top priority being the high gas and diesel prices that are playing havoc on our economy.
actively advocate to our elected officials not only in Iowa but across the nation to make domestic energy a top priority. IMTA members are continually lamenting about fuel prices and the fallout of erratic pricing that we are forced to deal with on a daily basis. While IMTA cannot do anything directly to impact those pricing issues, we can certainly play an important role in advocating for a change in the way we are approaching this most critical issue. IMTA is in a very unique position as well because we have virtually every Presidential candidate coming through our state at one point or another and we intend to capitalize on this opportunity by taking the lead in demanding that these candidates take this issue seriously. With the help of CEA, we will be in the forefront of asking for a dramatic departure in the way we are addressing our domestic energy problems.
this meeting and actively engaged in continuing our efforts throughout the upcoming months with elected leaders and prospective candidates. IF there is one thing I have learned as a member and officer of IMTA, organized grassroots efforts do drive change and at this point, our involvement with CEA is the first time that I have felt that there is a real possibility that we can make a difference in the direction of this critical issue. I will continue to be active with CEA and its efforts not only on behalf of IMTA but on a personal level too. I will continue to communicate with you on our progress and I urge you to consider joining us on this important campaign. Mike Riggan TanTara Transportation Corp.
For far too long, our elected leaders have chosen to ignore this issue and appropriations to researching the potential energy sources here on American soil have been minimal at best. In my opinion, that has been the wrong approach and extremely irresponsible by our elected leaders.
Upon receiving information about CEA, I reviewed it very closely and thoroughly and became a strong advocate and supporter of their efforts.
Upon receiving information about CEA, I reviewed it very closely and thoroughly and became a strong advocate and supporter of their efforts. It was without any hesitation that I urged IMTA leaders to review their information and offer our support to their efforts through membership into their organization.
However, there seems to be a growing urgency in changing this line of thinking. More and more people throughout our industry and throughout the nation for that matter are demanding that development of domestic energy policies become a top priority. People are fed up with soaring fuel and gas prices and tired on our reliance of unstable foreign fuel markets. It is time to take action and respected groups like CEA need our support in making some things happen.
As one of the first state trucking associations to come on board, I believe we are in a unique position to offer support, recruit additional support and
The Consumer Energy Alliance (CEA) has a Midwest office in Chicago and they will be hosting a meeting in September. A group of IMTA members will be at
Summer 2011
Lifeliner
11
Legal Insight - Employment Law Update John F. Fatino, a 1991 graduate of Drake Law School, presently serves as chair of Whitfield & Eddy’s Trucking and Transportation Practice Group. In addition to advising clients and litigating employment matters, Mr. Fatino has extensively lectured and written on employment matters.
Employment Case Law Update
For the Iowa employer there are two recent Iowa cases of note that reflect the changing landscape of Iowa employment law. Certainly, with new members of the Iowa Supreme Court now participating John F. Fatino in the decision Whitfield & Eddy, PLC making, litigants can expect that further changes may be possible. The first case of note deals with unemployment compensation. The second deals with a trial issue concerning jury instructions and an employer’s “theory of the case”.
Unemployment Compensation: Can An Employee Really Quit and Get Benefits?
The short answer is: yes. While Iowa regulations have always allowed for this possibility, a recent decision of the Iowa Supreme Court significantly decreases the employee’s burden of proof in such situations. Generally speaking, the ability to receive unemployment compensation turns on which party terminated the employment relationship. For example, if an employer terminates an employee for reasons other than misconduct, the employee is generally entitled to unemployment compensation. On the other hand, an employee that voluntarily terminates employment is generally ineligible to receive unemployment compensation. However, there is an exception to this general rule. The following discussion will outline the exception to the general rule that allows employees to terminate their employment and then receive unemployment compensation. The author gratefully acknowledges the assistance of Jordan Roling, an associate of Whitfield & Eddy, P.L.C., in updating the materials for this article. Previous versions of the unemployment portion appeared in M. Lee Smith’s Iowa Employment Law Letter and the Iowa State Bar Association’s Labor and Employment Law Newsletter. 1
A. What is Good Cause Attributable to the Employer? Ordinarily an employee who voluntarily quits employment receives no unemployment benefits. Iowa Code section 96.5 provides that an
12
Lifeliner
Summer 2011
employee who voluntarily leaves work without good cause attributable to the employer is ineligible to receive unemployment benefits. This statute denies unemployment benefits to employees who voluntarily terminate the employment relationship. Yet, when an employee quits for good cause attributable to the employer, an employeeís rights to unemployment benefits is not extinguished. Thus, employers wishing to avoid this prospect should be acquainted with what constitutes good cause attributable to the employer under Iowa law. The Iowa Administrative Code outlines situations which the law deems good cause attributable to the employer and thus entitles an employee to unemployment benefits. As such, any worker could theoretically quit for any of these reasons and still be entitled to unemployment compensation: change in contract of hire, unsafe, unlawful, intolerable or detrimental working conditions, lay off due to pregnancy, separation because of illness, injury or pregnancy, and many more. Iowa Admin. Code ß 871-24.26 is attached as an Appendix.1
B. Does the Employer Get a Chance to Cure the Problem? Until recently, the answer was yes. In
the past, the Iowa courts have limited the scope of the law to give employers the benefit of notice to cure any problems arising in the employment context before an employee can quit and receive unemployment compensation. The Iowa appellate courts required an employee who quit due to illness or injury attributable to the employment to notify the employer of the source of contention before quitting; likewise the employee was required to engage the employer in a dialogue regarding resolution of the problem. Suluki v. Employment Appeal Board, 503 N.W.2d 402 (Iowa 1993); Cobb v. Employment Appeal Board, 506 N.W.2d 445 (Iowa 1993). These steps had allowed the employer to remedy a potential workplace problem before an employee quit. However, a recent Iowa Supreme Court case has limited the prior case law. Hy-Vee, Inc. v. Employment Appeal Board, 710 N.W.2d 1. If an employee quits for any other reason other then safety or work-related health problems, the Iowa Supreme Court has held that it is unnecessary to inform the employer of the employeeís intent to quit if the situation is not remedied. Id. at 6. The Hy-Vee court held the plain language of the regulation clearly states the two requirements of notice and intent to quit are only for situations where the employee quits for illness or injury attributable to the employment. Id. at 4-5. Otherwise no notice is required for intolerable or
detrimental work conditions. Id. at 5. Frankly, the new rule seems counterintuitive in that safety and health problems are no longer paramount when an employee decides to quit. At the same time, if the employee could prove the employer knew of the problem and failed to act following notice, the Iowa courts--most likely--would not require subsequent notification to the employer. Therefore, if the employee follows the requisite steps and the employer fails to resolve the problem, the inattentive employer will be left providing unemployment compensation. At the same time, an employee who did not provide notice but quit anyway may now be entitled to unemployment benefits depending upon the factual circumstances.
The Business Judgment Rule: Ain’t What It Used To Be When an employer is being sued and it comes time to craft the instructions to be submitted to the jury, the employer will want to make certain that the jury is instructed in its “theory of the case.” Essentially, the theory of the case is the employer’s broad theme of the case and its rationale for the action it took concerning the employee. (Of course, counsel will be responsible for the development of these themes long before trial starts and - indeed - very near the outset of the case). For instance, an employer would want to remind - and urge - the jury that adverse employment action was taken against the employee - not because of her gender but because she was a poor performer and was rightfully terminated. However, a recent Iowa Supreme Court decision reflects that the employer’s main instruction - the business judgment rule - is no longer permissible in the form it was being used in Iowa. In short, counsel will need to modify the instruction accordingly in future cases.
The case reveals the following facts. Boyle v. Alum-Line, Inc., 710 N.W.2d 741. Julie Boyle, a former employee of Alum-Line, Inc. (“AlumLine”), brought claims of sexual discrimination and retaliatory discharge against Alum-Line. Id. at 744. Boyle was the only female welder at the plant and claimed to have endured many instances of harassment from her male counterparts. Id. at 745. After making several complaints to her supervisor and managers about the harassment, Boyle’s employment was terminated. Id. Boyle brought charges against Alum-Line under the Iowa Civil Rights Act and the federal Civil Rights Act of 1964. Id. The jury found that Boyle was subjected to a hostile work environment
Legal Insight - Employment Law Update (which is only a specie of how to demonstrate discrimination). Id. at 746.2 The jury also found, however, that the company took reasonable steps to end the harassment by discharging Boyle. Id. On appeal, Boyle argued that the district court improperly instructed the jury over her objection. Id. at 749. The Iowa Supreme Court had to determine if the jury instructions given at trial were proper or prejudicial to Boyle. Id. This case also serves as a good reminder to employers that a “hostile work place” is not an independent legal cause of action but merely is a means to prove discrimination. After all, if everyone is allowed to sue because of the nature of the work place (regardless of whether it impacts a federal or state right), the courts would simply be clogged with every petty grievance between an employer and an employee. 2
Ultimately, the Iowa Supreme Court determined that jury instruction no. 17 regarding the business judgment rule was improper. Id. Jury Instruction no. 17 set out the business judgement rule which is a rule recognizing that courts (and, therefore, juries) should not be permitted to instruct businesses on how to manage themselves. See Id. Jury instruction no. 17 provided: The plaintiff was an employee at will with the defendant. This means that the employer had the right to terminate the plaintiff’s employment at any time, for any reason, with or without just cause. Therefore, you need not decide whether the employer had just cause for terminating her employment. The mere fact that her employment was terminated does not establish her claim for damages. Boyle, 710 N.W.2d at 749. In short, the jury is not to reconsider the employer’s decision concerning termination. The Iowa Supreme Court held that the instruction was both inaccurate with respect to the law and was prejudicial to Boyle which warranted a new trial. Id. As the Iowa Supreme Court saw it, the law clearly provides several exceptions to the “at will employee doctrine.” Id. The Iowa Supreme Court specifically cited to Borschel v. City of Perry, where the Court established that an employer would be in violation of the Iowa Civil Rights Act if an employee were discharged because of their age, race, creed, color, sex, national origin, religion, or disability. Boyle, 710 N.W.2d at 749 (citing Borschel v. City of Perry, 512 N.W.2d 565, 567 (Iowa 1994)). The Supreme Court also noted that based on Jury Instruction no. 17, the jury could have easily mistaken that Boyle’s termination was a reasonable step taken to end the harassment. Id. The Court said, “it was no leap of logic to make this conclusion because Boyle’s termination was certainly effective at ending the sexual harassment.” Id. In finding the district court’s instruction failed to state the exceptions to an employer’s ability to terminate employment “at
will”, the Court entered judgment for Boyle on both of her claims. Id. at 750. The case is interesting for an additional reason. The instruction has long been bandied about by state and federal practitioners. The business judgment rule had been defense counsel’s favorite instruction and the bane of plaintiff’s counsel. However, the Iowa Civil Jury Instructions prepared by a committee of the Iowa State Bar Association contain no model business judgment rule instruction. Nonetheless, the United States Court of Appeals for the Eighth Circuit3 has a model instruction concerning the business judgment rule and the Iowa Supreme Court’s decision would have no impact on federal claims tried in state or federal court. As the Eighth Circuit has instructed district court judges in the lower federal courts of the Eighth Circuit: “In an employment discrimination case, a business judgment instruction is crucial to a fair presentation of the case, and the district court must offer it whenever it is proffered by the defendant.” Wolff v. Brown, 128 F.3d 682, 685 (8th Cir. 1997). Cf. Walker v. AT&T Technologies, 995 F.2d 846 (8th Cir. 1993) (the trial court has the responsibility to give an instruction on the business judgment rule) and Blake v. J.C. Penny Co., Inc., 894 F.2d 274, 282 (8th Cir. 1990) (the Court affirmed the trial court’s instruction to the jury that, “An employer is entitled to make its own subjective personnel decisions and can discharge an employee for any reason that is not discriminatory”). The Eighth Circuit Federal Jury Instruction 5.94 reads as follows: You may not return a verdict for the plaintiff just because you might disagree with the defendant’s (decision) or believe it to be harsh or unreasonable. Although the model instruction leaves much to be explained, the Committee which created the instruction for use in the federal courts in the Eighth Circuit cited two cases, Walker and Blake (discussed above), which better explain the business judgment rule in employment The United States Court of Appeals for the Eighth Circuit is the appellate court which reviews the decisions of the federal district courts located in Minnesota, Iowa, North and South Dakota, Nebraska, Missouri, and Arkansas. It is one of the federal circuits which is below the United States Supreme Court. 3
The Eighth Circuit need not take account of the Iowa Supreme Court’s opinion with respect to federal cases. However, Boyle will control on the application of the Iowa Civil Rights Act when such claims are tried in federal court. Certainly, Boyle will control in state courts. Thus, counsel and the employer have additional grounds to contemplate removing an employment case to federal court. Nonetheless, the Boyle decision will certainly
provide an argument for those seeking to challenge the uniform instruction regarding the business judgment rule in the Eighth Circuit as well. Consequently, employer’s counsel will want to carefully craft the business judgment rule in the future based upon the Iowa Supreme Court’s holding in this case while still trying to project its theory of the case to the jury.
CONCLUSION
As demonstrated by the cases discussed above, savvy employers can discern that “the time are changing.” Consequently, by knowing about these cases, employers can respond to employee’s claims and trial theories accordingly. 871–24.26(96) Voluntary quit with good cause attributable to the employer and separations not considered to be voluntary quits. The following are reasons for a claimant leaving employment with good cause attributable to the employer: 24.26(1)A change in the contract of hire. An employer’s willful breach of contract of hire shall not be a disqualifiable issue. This would include any change that would jeopardize the worker’s safety, health or morals. The change of contract of hire must be substantial in nature and could involve changes in working hours, shifts, remuneration, location of employment, drastic modification in type of work, etc. Minor changes in a worker’s routine on the job would not constitute a change of contract of hire. 24.26(2)The claimant left due to unsafe working conditions. 24.26(3)The claimant left due to unlawful working conditions. 24.26(4)The claimant left due to intolerable or detrimental working conditions. 24.26(5)The claimant was laid off by the employer for being pregnant; however, availability must still be determined. 24.26(6)Separation because of illness, injury, or pregnancy. a. Nonemployment related separation. The claimant left because of illness, injury or pregnancy upon the advice of a licensed and practicing physician. Upon recovery, when recovery was certified by a licensed and practicing physician, the claimant returned and offered to perform services to the employer, but no suitable, comparable work was available. Recovery is defined as the ability of the claimant to perform all of the duties of the previous employment. b. Employment related separation.The claimant was compelled to leave employment because of an illness, injury, or allergy condition that was attributable to the employment. Factors and circumstances directly connected with the employment which caused or aggravated the illness, injury, allergy, or disease to the employee which made it impossible for the employee to
Summer 2011
Lifeliner
13
Legal Insight - Employment Law Update continue in employment because of serious danger to the employee’s health may be held to be an involuntary termination of employment and constitute good cause attributable to the employer. The claimant will be eligible for benefits if compelled to leave employment as a result of an injury suffered on the job. In order to be eligible under this paragraph “b” an individual must present competent evidence showing adequate health reasons to justify termination; before quitting have informed the employer of the work-related health problem and inform the employer that the individual intends to quit unless the problem is corrected or the individual is reasonably accommodated. Reasonable accommodation includes other comparable work which is not injurious to the claimantís health and for which the claimant must remain available. 24.26(7)Reserved. 24.26(8)The claimant left for the necessary and sole purpose of taking care of a member of the claimantís immediate family who was ill or injured, and after that member of the claimant’s family was sufficiently recovered, the claimant immediately returned and offered to perform services to the employer, but no work was available. Immediate family is defined as a collective body of persons who live under one roof and under one head or management, or a son or daughter, stepson, stepdaughter, father, mother, father-in-law, mother-in-law. Members of the immediate family must be related by blood or by marriage. 24.26(9)The claimant left employment upon the advice of a licensed and practicing physician for the sole purpose of taking a family member to a place having a different climate and subsequently returned to the claimantís regular employer and offered to perform services, but the claimantís regular or comparable work was not available. However, during the time the claimant was at a different climate the claimant shall be deemed to be unavailable for work notwithstanding that during the absence the claimant secured temporary employment. (Family is defined as: wife, husband, children, parents, grandparents, grandchildren, foster children, brothers, brothers-in-law, sisters, sisters-in-law, aunts, uncles or corresponding relatives of the classified employee’s spouse or other relatives of the classified employee or spouse residing in the classified employee’s immediate household.) 24.26(10)A claimant who underwent a mandatory retirement as of a certain age because of company policy or in accordance with an agreement between the employer and union. 24.26(11)The granting of a written release from employment by the employer at the employee’s request is a mutual termination of employment and not a voluntary quit. However, this would
14
Lifeliner
Summer 2011
constitute a period of voluntary unemployment by the employee and the employee would not meet the availability requirement of Iowa Code section 96.4(3). 24.26(12)When an employee gives notice of intent to resign at a future date, it is a quit issue on that future date. Should the employer terminate the employee immediately, such employee shall be eligible for benefits for the period between the actual separation and the future quit date given by the claimant. 24.26(13)A claimant who, when told of a scheduled future layoff, leaves employment before the layoff date shall be deemed to be not available for work until the future separation date designated by the employer. After the employer-designated date, the separation shall be considered a layoff. 24.26(14)Reserved. 24.26(15)Reserved. 24.26(16)The claimant left employment for a period not to exceed ten working days or such additional time as was allowed by the employer, for compelling personal reasons and prior to leaving claimant had informed the employer of such compelling personal reasons, and immediately after such compelling personal reasons ceased to exist or at the end of ten working days, whichever occurred first, the claimant returned to the employer and offered to perform services, but no work was available. However, during the time the claimant was away from work because of the continuance of this compelling personal reason, such claimant shall be deemed to be not available for work. 24.26(17)Reserved. 24.26(18)Reserved. 24.26(19)The claimant was employed on a temporary basis for assignment to spot jobs or casual labor work and fulfilled the contract of hire when each of the jobs was completed. An election not to report for a new assignment to work shall not be construed as a voluntary leaving of employment. The issue of a refusal of an offer of suitable work shall be adjudicated when an offer of work is made by the former employer. The provisions of Iowa Code section 96.5(3) and rule 24.24(96) are controlling in the determination of suitability of work. However, this subrule shall not apply to substitute school employees who are subject to the provisions of Iowa Code section 96.4(5) which denies benefits that are based on service in an educational institution when the individual declines or refuses to accept a new contract or reasonable assurance of continued employment status. Under this circumstance, the substitute school employee shall be considered to have voluntarily quit employment. 24.26(20)The claimant left work voluntarily rather than accept a transfer to another locality
that would have caused a considerable personal hardship. 24.26(21)The claimant was compelled to resign when given the choice of resigning or being discharged. This shall not be considered a voluntary leaving. 24.26(22)The claimant was hired for a specific period of time and completed the contract of hire by working until this specific period of time had lapsed. However, this subrule shall not apply to substitute school employees who are subject to the provisions of Iowa Code section 96.4(5) which denies benefits that are based on service in an educational institution when the individual declines or refuses to accept a new contract or reasonable assurance of continued employment status. Under this circumstance, the substitute school employees shall be considered to have voluntarily quit employment. 24.26(23)The claimant left work because the type of work was misrepresented to such claimant at the time of acceptance of the work assignment. 24.26(24)Reserved. 24.26(25)Temporary active military duty. A member of the national guard or organized military reserves of the armed forces of the United States ordered to temporary active duty for the purpose of military training or ordered on active state service, shall be entitled to a leave of absence during the period of such duty. The employer shall restore such person to the position held prior to such leave of absence, or employ such person in a similar position; provided, that such person shall give evidence to the employer of satisfactory completion of such training or duty, and further provided that such person is still qualified to perform the duties of such position. 24.26(26)Reserved. 24.26(27)Refusal to exercise bumping privilege. An individual who has left employment in lieu of exercising the right to bump or oust a fellow employee with less seniority shall be eligible for benefits. 24.26(28)The claimant left the transferring employer and accepted work with the acquiring employer at the time the employer acquired a clearly segregable and identifiable part of the transferring employerís business or enterprise. Under this condition, the balancing account shall immediately become chargeable for the benefits paid which are based on the wages paid by the transferring employer and no disqualification shall be imposed if the claimant is otherwise eligible. This rule is intended to implement Iowa Code sections 96.3(3), 96.4(3), 96.4(5), 96.5(1), 96.5(3), 96.6(1), 96.16, and 96.19(38). *This article does not constitute legal advice. You should contact an attorney to discuss the law based upon your specific facts.
Introducting New DOT Director IMTA is happy to welcome New DOT Administrator, Paul Trombino to the state and to his new position. IMTA works closely with the DOT on a number of issues and has enjoyed a valuable working relationship with this agency. 1. Tell us a little bit about yourself – education, background, experience, etc.
Prior to this position, I worked at the Wisconsin Department of Transportation (WisDOT) for 17 years. I served many roles at WisDOT, last serving as director of the Bureau of Paul Trombino, III, P.E. Transit, Local DOT Director Roads, Rails and Harbors, and previously as the operations director of the engineering division, director of the Bureau of Structures and manager of highway bid lettings. I started my engineering career in the district office working in planning, design, and construction. Before coming to WisDOT, I spent four years in the finance and banking industry in Chicago and Washington, D.C. I have a Bachelor of Science degree in Civil Engineering from the University of WisconsinMilwaukee and Bachelor of Science degree in Economics from the University of WisconsinMadison.
2. Why were you interested in coming to Iowa as the DOT Director?
The Iowa Department of Transportation has a great history and respect across the nation. The opportunity to lead and learn from the agency’s people was an easy decision to pursue.
3. What do you believe are the top three priorities of the DOT at this point in time?
• Implementing a modern, safe and diverse transportation system that provides cost effective and efficient mobility choices. • Ensuring the efficient and effective movement of commerce within and across the State of Iowa. • Implementing and connecting transportation to enhance the economic vitality of the State of Iowa. There is numerous key economic job creation areas located across the state where transportation plays a vital role. I believe our role at the agency is to continue to work closely with stakeholders and business communities to make certain these economic job creation centers are served well by the transportation system. • Due to the unprecedented flooding along the Missouri, I have a fourth priority. Specifically
during this time, providing support from the department for all the communities and people affected by the flooding along the Missouri during the flooding and for the long-term after the flood waters recede.
4. What strengths do you bring to the job?
I have a diverse background in implementation of transportation programs and projects. In addition, my experience in the finance industry provides me the ability to connect transportation programs and projects directly to economic issues. Being the son and grandson of a smallbusiness family barbershop, many years of observation via floor sweeping and window washing has provided me the most beneficial skills of relating directly to people and listening to their concerns. Ultimately, transportation is people, ideas, and quality customer service just like my father’s barbershop has provided for 50 plus years.
5. What vision do you have for Iowa DOT?
I have been on job at Iowa DOT since May 9 so, just over two months on the job. I have many ideas about opportunities to further enhance the department but, the most important item I am pursuing now is understanding Iowa DOT - the organization, the people, the structure and how we function managing and operating the transportation system. In addition, I am spending as much time as I can traveling the state to meet with people and groups to hear their concerns and needs for transportation in the state of Iowa.
6. What part of the job do you look forward to the most?
I greatly enjoy working with the all of the people every day at the department. They have been so welcoming to me it is a true pleasure. One area I have greatly enjoyed is working with the Transportation Commission. In Wisconsin, WisDOT does not have a Transportation Commission. I look forward to working with and supporting Commission Chair Amy Reasner and all the commissioners. The commission brings direct citizen input for the department and is a true asset in transportation program and project planning and implementation.
7. Federal funding is critically important to the DOT and with the ongoing issues in Washington, how will the DOT deal with the real threat of decreased funding?
projects to be shifted out of the 5-year program though, design and real estate activities remain. Funding at the federal is not going to change in the near future without strong leadership at the state level from all of us as a group. Flexibility, funding, and local-level decision authority are critical for the success of the transportation in the future and all three are required in a federal highway bill. Funding solutions in the federal highway program must be debated and addressed not pushed off for six years. We must collectively bring forward the fact that federal highway funding is a critical to our nation’s economy. The condition of the transportation system and stable federal transportation funding is the key issue in long-term economic growth in our nation. We are at a time of need for transportation “funding” do the age and condition of the overall system and we must leave the “financing” era of transportation behind us.
8. What stakeholder groups do you consider to be of key importance to the ongoing success of the DOT efforts? Stakeholder groups having commerce necessity tied directly and indirectly to a quality transportation system. Transportation is a fundamental economic issue. A quality transportation system provides directly for a robust economy.
9. What challenges will the DOT face in the future – both short and long term?
Funding stability will continue to be a long term issue due to lack of resolution of funding at the federal level. The states will likely be put in a position to provide funding resolutions for the Interstate system at its most critical time in the Interstate system’s history – 50 plus years after it was built as it comes into the reconstruction phase. Short term the Iowa DOT must continue to find ways to maximize our funding to meet the continuous demand on the transportation system. I view these challenges as true opportunities for all Iowans as we will find solutions together by enhancing our partnerships at all levels of government and with our stakeholder groups.
10. Closing comments?
I greatly appreciate this opportunity and look forward to work closely with the Iowa Motor Truck Association.
The Transportation Commission has made plans for the expected decrease in funding at the federal level. This required a shuffling of the 2012-2016 transportation program and the construction activities of some 4-lane expansion
Summer 2011
Lifeliner
15
Carrier Spotlight
All Seasons Trucking As anyone in the industry knows, the demands and perils of operating a trucking company continue through all four seasons here in Iowa. As an owner, the goal is to have no “lulls” or “seasonal” fluctuations so it is only appropriate that a company with a name like All Seasons has experienced consistent and constant growth and success throughout its almost 20 years of existence.
experience success as a result of that family connection. The company opened its doors for business on July 1, 1992. In those early days, the company focused on being profitable and gaining some traction in the trucking industry. Back Row (L-R) Andy Kemp, Tim Weimerskirch, Sue Kemp, Paul Kemp, Dave Like any startup Neuwohner (Dave’s son - Bailey Neuwohner), Ben Moyer company, there Front Row (L-R) (Rob Kemp’s son - Gage Kemp), Rob Kemp, Jody Neuwohner, Randy Kemp was no shortage of challenges but the Spring of 1998, Paul and his two sons company continued to prosper. The bought out the partners and developed company model was based on working a strategic plan that included start up of with owner operators and covered a brokerage company and in 2005 they hired their first company driver and by 2010, they were in a position to purchase another trucking company and they have continued to steadily grow the company and operate a successful operation.
All Season Trucking has continued to flourish because of the commitment that is often times common place when you are dealing with a family operation. Headquartered in Dubuque or “God’s Country” as stated by some of the All Season Trucking employees, this company has continued to flourish because of the commitment that is often times common place when you are dealing with a family operation. And All Seasons is certainly proud of its family roots in the company and continue to
a fairly small area. They operated 10 trucks and started to slowly gain momentum in the agricultural market. Like many companies in their first years of business, the company struggled to keep up with work demand and a great deal of personal time, commitment and dedication was put into building a viable trucking operation. However, Paul also had a desire to do more with the company and in the
Today, the company operates a fleet of 30 trucks and employees over 40 people. All Seasons Trucking is now one of the largest bulk carriers in the Tri-State area and are approaching another milestone in 2012, their 20th year in business. “It is amazing that we are already reaching the 20 year mark, every employee helped tremendously in reaching this milestone. The dedication to succeed and be the best company we can be was a goal that everyone has always made as a priority and the hard work and commitment to always serving our customers in the best way possible has certainly paid off,” said Rob Kemp, President and Lead Dispatcher “We have always made it a priority to treat our customers like family and that is really the secret to our success as an operation. Rates are
16
Lifeliner
Summer 2011
Carrier Spotlight
always going to be competitive so we will continue our drive for total customer satisfaction,” said Dave Neuwohner, Safety Manager, 2nd Vice President with All Seasons Trucking . Some of the greatest growth for All Seasons Trucking has come in the last three years when the company determined they needed to capitalize on their good reputation as being a reliable bulk carrier in the three state region and they expanded into other markets. “We determined that we needed to haul a larger variety of products and that has been a good move for us, “continued Dave.
Another unique aspect of All Seasons Trucking is their tie to the Ag market and fortunately because of the emphasis of Agriculture in this area, the company has not experienced the dramatic revenue dips and slowdowns that are common to a lot of trucking operations.
“Our tie to Agriculture has enabled us to really stay on a very steady and consistent course of operation. While there have certainly been some challenges to this sector, they are a bit more resistant to the economic ups and downs of the past two years,” said Dave. But that doesn’t mean that the company has faced some of the other challenges that have plagued the industry over the last several years, like everyone, fuel prices, driver retention, DOT regulations and challenging rate structures have
Summer 2011
Lifeliner
17
Carrier Spotlight
IMTA’s support of the “little guy” appealed to the owners of All Seasons Trucking and they continue to value IMTA’s effort in being the voice for all trucking companies in Iowa. certainly been some of the ongoing obstacles that the company has had to address. “I think driver retention which is also tied to the ongoing onslaught of government oversight through regulatory initiatives is going to continue to be a tremendous challenge to anyone in the trucking industry. I believe these two issues will be a major factor for the industry for the foreseeable future,” said Dave All Seasons Trucking takes great pride in treating the drivers in a professional manner and offers a comprehensive incentive program to the drivers and owner operators based on their time with the company. The same priority that is given to treating the customers like family is equally extended to the drivers and the employees. “It is imperative in this day of trucking that you make the driver a top priority. We work very diligently at making this a great place to work for our drivers,” said
18
Lifeliner
Summer 2011
Randy Kemp, Vice President “that is a major key to our ongoing success and any company that doesn’t realize the importance of treating their drivers right, will probably go away at some point.” All Seasons Trucking joined the association in 1994 after a call from Sid Carroll who was then the Membership Director for IMTA. IMTA’s support of the “little guy” appealed to the owners of All Seasons Trucking and they continue to value IMTA’s effort in being the voice for all trucking companies in Iowa. “As with any organization, you only get as much out of it as you are willing to put in to it and from the time we first joined IMTA, we recognized the importance of someone working on our behalf every day in front of legislators and regulators. IMTA is an industry leader and we are proud to be a part of the organization,” said Dave Neuwohner, who was also recently elected to the IMTA Board of Directors.
Dave has also played an important role in waving the flag for IMTA in the Dubuque area. He helped organize membership outreach events and continues to recruit members from the area. “IMTA provides a number of very valuable services and they are committed to serving the trucking industry. I urge everyone to take advantage of what IMTA has to offer and I can tell them firsthand how the association truly does look out for the little guys as well as the big guys,” said Dave. All Seasons Trucking has established itself as a reliable and seasoned bulk carrier in the tri-state area and the family looks towards the future with optimism and hope for continued growth and prosperity in all seasons of this successful family operation.
9:45am - 10:45am
10:00am - 11:00am
1:30pm - 2:30pm
Session 1 Economic Update Donald Broughton Managing Director | Avondale Partners
Session 2 Domestic Energy Policies Michael Whatley Vice President | Consumer Energy Alliance
Session 3 Social Networking & Marketing Steve Grubbs Founder & CEO | Victory Enterprises
Donald is a Senior Research Analyst & Managing Director covering Industrials & Transportation. His coverage includes trucking, airfreight, railroads & freight forwarders. Donald has experience in various distribution & operations management roles in the beverage industry, including Dr Pepper/Seven Up companies & Bevmark Concepts. He is known for taking complicated economic & transportation industry issues & making them easier to understand in an interesting way.
Consumer Energy Alliance is an organization that supports the thoughtful utilization of energy resources to help ensure improved domestic & global energy security & stable prices for consumers. CEA helps to improve understanding of our nation’s energy security, including the need to reduce reliance on imported oil & natural gas, maintain reasonable energy prices for consumers, properly balance our energy needs with environmental & conservation goals and continue efforts to diversify our energy resources.
There are multiple cutting edge media marketing tools emerging that will change the way companies do business with their customers. These fascinating, innovative & effective applications are beginning to be discussed in the trucking industry. This session will give you some tremendous insight on the future of sales & marketing. Steve is the founder & CEO of Victory Enterprises, Inc. a comprehensive political, corporate consulting & communications firm based in Davenport, Iowa, with offices in Illinois and Missouri.
General Session | 3:30pm
Opening Ceremonies | 7:45am In this powerful presentation, Aaron Thomas shares his family’s story & shows audiences how to deal with adversity, set important goals & live a meaningful life full of passion. Imparting the lessons of his father, Thomas challenges organizations to think through what they must do to stand out, be the best in their field & define the true value they provide to their members, customers & employees.
Best known for his role with the Dallas Cowboys, Chad Hennings’ successes began long before his professional football career. Hennings attended the U.S. Air Force Academy, where he postponed his entry into the NFL to fulfill his commitment to the U.S. Air Force. After his discharge, he spent his entire nine year professional football career with the Dallas Cowboys, retiring with three Super Bowl rings.
1.800.396.2153 | Mention IMTA Management Conference | September 2 Deadline Call the IMTA Office (515.244.5193) or Visit Our Website www.iowamotortruck.com Summer 2011
Lifeliner
19
FE ATU R E
By: Brenda Neville IMTA President
A History Lesson – The Importance of Roads in Iowa
As more Iowans purchased cars it became clear that drivers needed rules and guidelines but of even greater importance, it was determined that the state also needed better roads. So, on April 13, 1904, Governor A.B. Cummins approved House File 371 which set up a commission to deal with driving and road issues.
Battle The
AHEAD -FINANCING IOWA’S ROADS
20
Lifeliner
Summer 2011
This marked the beginning of an official transportation system in the State of Iowa. The Iowa General Assembly declared that “Iowa State College in Ames, shall act as the highway commission.” This commission was charged with its first assignment and that was to address the “road problem in Iowa.” The commissioners were asked to design highway plans, conduct construction demonstrations, provide information to the county supervisors and of course, keep a record of all important operations. Although that first commission was severely handicapped by a biennial appropriation of $7000 it was still committed to developing a valuable road system in the State of Iowa. Even then legislative leaders recognized the value of roads to the state’s growth and economy. While productive, the commission remained hindered for many years by lack of funding and necessary specialized skills. For nine years the highway commission remained part of Iowa State College in Ames. But in 1913 it separated from the college. The commission was given control over all county and township road officials. Many years later, in 1975, the Iowa State Highway Commission became the Iowa Department of Transportation. In 1916, the U.S. Congress set aside $75 million in federal aid for road building. The money was given to the states over a period of five years. Iowa’s share was $146,000 per year. The federal aid had to be matched dollar for dollar by the state. And in 1917, Iowa began to build its first concrete road as it received its first federal funding for road construction. The money was used to construct four and a half miles of a 16-foot wide concrete section of road between Mason City and Clear Lake, near
Financing Iowa’s Roads what is now U.S. 18. This marked the beginning of an aggressive effort to get Iowa out of the mud. In 1924, the Iowa legislature passed a law that required the Highway Commission to maintain the primary roads in the state. Before this time, the county board of supervisors was in charge of road maintenance. The Primary Road Act of 1927 divided Iowa roads into two systems-- primary and secondary. The primary roads included those main market roads that connected all county seat towns, cities and main market centers. Secondary roads were all public highways except primary roads, state roads and highways within cities and towns. In 1925, the legislature passed a law allowing for a gas tax on 2 cents per gallon to fund the construction and maintenance of our roads. Two cents sounds like a pretty modest investment by today’s standards, but adjusted for inflation, that would be the equivalent of 40 cents today. For the next several decades work continued on building a network of roads with a primary goal of connecting farmers to markets as well as connecting folks to their respective county seats and to Des Moines. Legislative leaders in 1939 recognized the need for a dependable source of revenue for road construction and maintenance and they began action to protect the gas tax revenues by passing a constitutional amendment which guaranteed funds generated by motor fuel taxes and other fees could not be used for any other purposes. What was to become the 18th amendment to the Iowa Constitution was overwhelmingly approved by a vote of the people in 1942.
The 18th amendment is clear and precise. “All motor vehicle registration fees and all licenses and excise taxes on motor vehicle fuel, except cost of administration, shall be used exclusively for the construction, maintenance and supervision of the public highways exclusively within the state or for the payment of bonds issued for the construction of such public highways and the payment of interest on such bonds.”
In 1944, the Iowa Motor Truck Association, only a few years old at the time, had fully immersed itself into legislative efforts. In an effort to get more members, as well as have an even stronger voice at the Capitol, the association formed Chapters throughout the state. Every county was considered a chapter and in the Fall as the IMTA Secretary-Manager John Gillespie travelled to all the chapter meetings, he highlighted IMTA’s legislative priorities. While weight and length extensions were the top priority at the time, the support of a strong network of roads in Iowa was also mentioned at those meetings. In December 1947, the Iowa Highway Users Conference was formed and IMTA Secretary-Manager John Gillespie was elected Chairman. The sole purpose of the conference was to support “safe, economic and efficient development of highway transportation in the public interest.” In its first meeting, Gillespie addressed the members of the conference, which was comprised of leaders in industries and organizations interested in highway development, and he reminded the group of the importance of highways to the nation and the state of Iowa. “Roads are important and this conference will serve as a forum for the discussion of policies and formulation of voluntary programs concerning highway development. We will seek to synchronize
so far as practicable the activities of our members in energizing and accomplishing these goals.” On June 1, 1949, Roy Crowley was named the new Executive Secretary of the Iowa Motor Truck Association and in his opening remarks to the IMTA Board of Directors at a meeting that same month, he highlighted his agenda for legislative priorities and highway development was cited as a one of the industry’s top priorities. Also in 1949, the Iowa Road Use Tax Fund (RUTF) was established by the 53rd Iowa General Assembly. RUTF was established to provide a stable and reliable source for investing in the state’s primary, secondary and municipal roadway systems. Since the inception of the RUTF, IMTA with other associations has made it a primary objective to ensure the RUTF is protected and serving the purpose for which it was designed. Over the next decade, IMTA waged many legislative battles with most of them centered on size and weight issues and the development of a pro-rated registration system. But IMTA also continued to be an important part of a coalition that was dedicated to road funding and it was in this decade that IMTA and the Associated General Contractors (AGC) started to recognize the value of working together on road funding issues. By the late 1960s, it was clear that the existing transportation networks were in need of transformation. In 1969, Governor Robert Ray responded by initiating a transportation study by the Office of Planning and Programming. Over the next couple of years, the Task Force on Modernization of Iowa’s Transportation System, in conjunction with a Department of Transportation Study Committee, formed the legislative backbone for Governor Ray’s transportation initiatives. In 1974, the 65th Iowa General Assembly created the Iowa Department of Transportation (Iowa DOT). It placed other modal agencies, including an Aeronautics Commission, under the department’s responsibility to promote more orderly and effective planning and funding of programs, and to achieve a more balanced transportation system.
Summer 2011
Lifeliner
21
Financing Iowa’s Roads Also in 1974, the legislature created the Iowa Transportation Commission, consisting of seven members. Members were to be appointed by the Governor and subject to Senate confirmation. No more than four persons can represent the same political party. Serving four-year terms, members are responsible for periodically reviewing programs of the department and making all major investment policy decisions. This model remains intact yet today.
From that point on, highway development and road funding has remained at the forefront for the State of Iowa, and the Iowa Motor Truck Association along with the Associated General Contractors and the Iowa Good Roads Association has been the leaders for any and all road funding issues. The Iowa Motor Truck Association has a long history of supporting roads in Iowa, however, we have also been an advocate for adequately funding roads “where the traffic” is in order to best use our roads for economic development. The concept of the Commercial and Industrial network was established by the legislature in 1988, with IMTA support. The stated purpose of the CIN was to “improve the flow of commerce; to make travel more convenient, safe, and efficient; and to better connect Iowa with regional, national, and international markets.” The primary roads system in Iowa is that road system under the supervision of the Iowa Department of Transportation, which consists of approximately 780 miles interstate highways and 2,400 miles of the CIN network.
22
Lifeliner
Summer 2011
Funding for the Future
Beginning in 2002, a major initiative was launched to address a “perfect storm” that seemed to be looming on the horizon as far as the state’s ability to adequately maintain and improve public roadways in Iowa and throughout the country. That perfect storm involved the combination of several factors; •A large and aging public roadway system – Iowa’s public roadway system is comprised of over 114,000 miles with approximately 25,000 bridges. This system was primarily developed, revised and modernized in the 1940s, 1950s and 1960s. Today, this system is at a point in its useful life of needing significant reinvestment. •Increasing demands on the public roadway system – While overall travel decreased slightly in 2007, large truck travel continues to increase. Between 2005 and 2007, large truck travel in Iowa increased over 3% which is equivalent to an additional 152 million miles of large truck travel in the state during that two year period. This reflects an increase of approximately 600,000 truckloads annually. •Flattening revenue available for public roadway improvements – Revenue to the Road Use Tax Fund (RUTF) and Federal Highway Trust Fund (HTF) has flattened and it is expected that those funding sources will continue to decline as fuel tax revenue decreases and other forms of funding are negatively impacted by the current economic situation. •Increasing construction cost inflation rate – The inflation of construction costs have continued to increase over the last few years which has dramatically reduced the buying power of limited funding.
Addressing the Problem
In 2002, a group of Iowa DOT, city and county representatives was formed to look at these concerns and identify some solutions. Those recommendations were the basis of legislation that was adopted by the legislature in 2003 and recommendations were: •transfer 712 miles to county and city governments
•transfer responsibility to the counties
for farm-to-market extensions in cities under 500 in population •allow board of supervisors to initiate a change in county road classification to area service “C” •Establish a study committee to evaluate the distribution of the Street Construction Fund of the Cities Furthermore, IDOT, cities and counties also took dramatic action to increase operational efficiencies such as staff reduction, agency reorganizations and other effective measures. However, despite this action, it become evident that increasing efficiency alone was not going to fully address the problem. In 2005, the legislature directed the DOT to conduct a study of the long-range construction and maintenance needs of Iowa’s public roadway system and its correlation to the existing revenue stream. This study identified that there was a projected $27.7 billion shortfall in funding to meet all current and future needs over the next 20 years. Recognizing that a shortfall of that magnitude was impossible to fill, the Iowa DOT went back to the drawing board to identify critical needs that would best preserve the system and enhance economic development. The number they came up with was $200 million per year. Upon submitting their findings to the legislature, the TIME 21 Fund (Transportation Investment Moves the Economy) was created and the new formula for distribution was 60% to the primary road fund, 20% to the secondary road fund (county) and 20% for street construction (cities). This same legislation also called for periodic review of the long range needs for Iowa’s roads. The first study is due no later than December 31, 2011 and at least every five years thereafter. The bill however did not create a revenue stream for the new fund. Throughout 2007 and 2008 the TIME 21 committee met and made numerous recommendations regarding revenue for the fund. The recommendations however, could not include a fuel tax increase and that directive came from Iowa Governor Culver. The bill that was passed and signed
Financing Iowa’s Roads Roads are critical to this state’s economy and roads are critical to our industry. by the Governor included constitutional protection to three major sources of the RUTF (motor vehicle fuel tax, annual vehicle registration fees and fees for new vehicle registrations). This constitutional protection required the funds be used only for roads. The bill also created revenue for TIME 21 by changing vehicle registration fees. The passage of TIME 21 further addressed IMTA’s concerns that more money was designated to the areas “where the traffic is” by shifting a higher percentage of new money to the interstates and CIN network of roads. The Iowa DOT was also charged with conducting a study of additional revenues necessary to reach the $200 million annually. And while this was all going on, Iowa faced some of the harshest winters they have had in a century and the deterioration among the road system continued at a rapid rate. IMTA has had a special task force in place for the last five years that specifically studied and followed this issue. Historically, the association has always been supportive of a gas tax which represents a user fee in their opinion. IMTA has always been a proponent of a “pay as you go” system and they continue to advocate for that type of funding. IMTA strongly supported the efforts of TIME 21 and developed a policy that remains in place today. The Iowa Motor Truck Association opposes any diesel fuel tax increases that are not part of a comprehensive highway construction and maintenance plan based on the following: •The plan must promote the efficient movement of freight and automobile traffic by concentrating spending on the distribution formula passed in TIME 21 in the 2008 session. (60/20/20) •The plan recognizes the government mandated loss of diesel engine efficiency and the change in the relationship between the price of gasoline and the price of diesel fuel
through the equalization of motor fuel tax rates and a phase in of any new diesel taxes not to begin immediately. •No tolling •No bonding Earlier this year, Governor Branstad announced the creation of the Governor’s Transportation 2020 Citizen Advisory Commission (CAC). “These individuals will be an asset to the Iowa Department of Transportation (IDOT) as they assess the condition of Iowa’s roadway system while evaluating the current and future funding available to best address system needs,” said the Governor. The CAC will provide input into the finalization of the study’s recommendations. The key role of the CAC is to seek public input and provide public education about the study’s findings through public meetings that will be scheduled later this summer. “Assuring sufficient funding for Iowa’s system of roads and bridges is critically important,” said Nancy Richardson, former IDOT Director and current Co-Chairperson of the CAC. “I appreciate the Governor’s interest in this issue and I think a citizen advisory group will be very helpful to the DOT in developing recommendations that are based on Iowans’ input and in helping inform and engage citizens in the issue of preserving a road system that supports Iowa’s economic, environmental and social vitality.”
IMTA’S ROLE
Because of IMTA’s longstanding commitment to roads in this state, IMTA will once again be playing a major and visible role in educating the public and lawmakers on the value of a gas tax. The last gas tax increase was in 1989 and the state of Iowa’s roadway system is too important to neglect any further. IMTA leaders recognize the difficulty for legislators to take a vote of this nature in 2012, but hopefully through the efforts of IMTA and several other trade associations that are in favor of a gas tax, this important legislation will be drafted, passed and signed by the Governor. In a recent poll of IMTA members, 72 out
of 75 members surveyed identified roads as a top priority in Iowa and were equally willing to support a gas tax as a major part of the funding mechanism to accomplish this goal. “We (Trucking) have always recognized that we need to pay our share in the maintenance of the state’s highways and a user fee is the most logical approach. A gas tax, or a user fee as we like to call it, will allow everyone that is using the roads in Iowa to help pay for the roads,” said Mike Riggan, TanTara Transportation Corporation and IMTA Chairman of the Board. “The roads in this state are falling apart rapidly and each day we put off addressing this issue is one more day in which we are further behind. Roads are critical to this state’s economy and roads are critical to our industry. We need to do something and a gas tax is the most effective manner in which to generate revenue for our roads… plain and simple,” said Bob Kohlwes, BTI Special Commodities and former IMTA Chairman of the Board. In a recent address to the CAC commission, it was stated by IMTA President Brenda Neville, “Trucks are important to everyone. Our favorite slogan is, “if you have it, a truck brought it,” so in order for us to continue to bring you the products you depend upon, we need good roads and we need good roads now. We have neglected the roads in this state for far too long and we urge you to take the action that is necessary to get us back on the right track. Iowa’s trucking industry is committed to this mission and we are in a unique position to help underscore the necessity of good roads. And even more importantly, we are willing to step up and pay our fair share by advocating for a gas tax increase.” Sources: “Rules of the Road” IPTV “History of Roads” IDOT
“Iowa DOT History” IDOT
“Highway Finance in Iowa” IDOT
“TIME-21 Funding Analysis - 2008” IDOT
“Study of Iowa’s Current Road Use, Tax Funds and Future Road Maintanence and Construction Needs - 2006” IDOT “IMTA Archives” 1942-1952
“The History of IMTA - the First 50 Years” 1992
Summer 2011
Lifeliner
23
Annual IOWA TRUCK PAC
Spring Golf Outing Iowa Truck PAC Golf Outing – Another Successful Fundraiser
Putting Contest Winners
The 2011 Truck PAC Iowa Spring Golf Outing once again raised over $17,000 for IMTA’s political action committee. The Legacy golf course in Norwalk was a new location for the event and folks were happy to enjoy a day of golfing, networking and raising money for a worthy cause.
1st Place: Pat Bishop, Boyer Petroleum
A special thanks to Clark Bannister, David Irving and George Deer, all with McKenna Truck Center, for serving as the chairs of this annual event. Thanks also to IMTA Chairman of the Board Mike Riggan, TanTara Transportation, and IMTA’s immediate Past Chairman Bob Kohlwes, BTI Special Commodities, for raising additional money for the PAC with a special hole challenge. Also assisting with the fundraising efforts through some special contests were First Vice Chairman, Jeff Wangsness with JMT Trucking and Second Vice Chairman, Dan Stevens with Farner-Bocken Companies. “It was another great event and we were grateful for the tremendous support we get from the IMTA members for this PAC fundraiser. The participation from the golfers and the sponsors makes this an ongoing success. The support is really appreciated,” said Mike Riggan, IMTA Chairman of the Board.
2nd Place: Steve Schuster, Schuster Co. 3rd Place: Dale Decker, Decker Truck Line, Inc.
Championship Flight
1st Place (L-R) Jeff Baedke, Truck
Country, Sasha Monthei, Scheldrup Blades, Brett Lippold, Truck Country, Mark Johannsen, Truck Country
3rd Place (L-R) Don Decker, Decker 2nd Place (L-R) Mack Harbour, Reynolds
& Reynolds, Inc., Linda Franzen, D.J. Franzen, Inc., Denny Franzen, D.J. Franzen, Inc., Brooks Reynolds, Reynolds & Reynolds, Inc.
24
Lifeliner
Summer 2011
Truck Line, Inc., Dale Decker, Decker Truck Line, Inc., Mark Habben, Crossroads Trailer Sales & Service, Darv Habben, Crossroads Trailer Sales & Service, Ross Habben, Crossroads Trailer Sales & Service
Thank You Sponsors!
Thank you to all the following sponsors for graciously supporting the Truck PAC Iowa Spring Golf Outing. Their generous support enables Iowa’s trucking industry to invest in the candidates and elected leaders that are dedicated to making a difference in Iowa’s business environment and brings us together as an industry to raise money for a good cause.
Boyer Petroleum Bridgestone Commercial Solutions Group TanTara Transportation Continental General Tire/Cross-Dillon Tire, Inc. Cummins Central Power, LLC Donaghy - Kempton Insurors Freightliner of Des Moines, Inc. Iowa Council of Safety Management Interstate PowerSystems Jim Hawk Truck-Trailers JJ Keller & Associates
Joe Morten and Son, Inc. d.b.a. Motor-Ways Keck Energy Kenworth Mid-Iowa McKinney Towing & Recovery O’Halloran International, Inc. Sioux City Truck Sales, Inc. Tarbell & Company Transport Permits Truck Country Central Trailer Services Reynolds & Reynolds
Truckers Insurance Midwest Wheel Companies Quality Services Corp. Wilson Trailer GE Finance McKenna Truck Center Mid-States Utility Trailer Sales, Inc. PeopLease Corporation Quality Installations, Inc.
First Flight
1st Place (L-R) Shane Aherns, Aon
Risk Services of Nebraska, Steven Aherns, Aon Risk Services of Nebraska, Mike Galvin, Northland Insurance Co., Doug Wilson, Truckers Insurance
3rd Place (L-R) Clark Bannister,
2nd Place (L-R) Steve Sinard, Scranton
Manufacturing, Jonathon McLaughlin, Scranton Manufacturing, Mike McLaughlin, Scranton Manufacturing, Shane Broderick, O’Halloran International
McKenna Truck Center, David Irving, McKenna Truck Center, Dick Youngblood, Fareway Stores, Inc., George Deer, McKenna Truck Center
Second Flight
2nd Place (L-R) Arlan VanWyk, 1st Place (L-R) Bill Fischer, Cross Dillon
Tire, Inc., Shawn Wilkening, Cross Dillon Tire, Inc., John Buettner, Cross Dillon Tire, Inc., Fred Rivera, Continental General Tire
VanWyk, Inc., Dave Tingle, Mid States Utility Trailer Sales, Tim Sulentic, Transport Permits Ltd., Flo Schall, Transport Permits Ltd.
3rd Place (L-R) Gary Johnson, Olocastle
Materials, Bob Daniels, Housby Mack, Inc , Jared Modlin, Vocon Auctions, Steve Hodges, Housby Mack, Inc.
Summer 2011
Lifeliner
25
Iowa Motor Truck Association Fuel Savings Program Interested in SAVING MONEY on your fuel?
4c/
/ 0
3c/
It Pays to be an IMTA Member! The Iowa Motor Truck Association’s fuel savings program offers you an immediate return on investment with your fuel costs. Take advantage of a 4-cent savings per gallon in the state of Iowa and 3-cent savings throughout the rest of North America. This makes every 100 fuel stops worth a minimum of $450*. It’s available to any size carrier, even if it’s already enrolled in a program but curious whether there is a better option to increase savings. The only stipulation is all participants must be a member of the IMTA. So it begs the question – Do you want to be part of the IMTA’s most valuable member program yet?
*Savings estimated at $0.03 per gallon for a 150-gallon truck. See chart below for more details.
Calculate Your Potential Fuel Savings Gallons Per Month Monthly Savings (3 cents/gallon)
Monthly Savings (4 cents/gallon)
Possible Annual Savings 1
1
5,000
10,000
15,000
20,000
25,000
30,000
40,000
50,000
60,000
$150
$300
$450
$600
$750
$900
$1,200
$1,500
$1,800
$200
$400
$600
$800
$1,000
$1,200
$1,600
$2,000
$2,400
$1,800$2,400
$3,600$4,800
$5,400$7,200
$7,200$9,600
$9,000- $10,800- $14,400- $18,000- $21,600$12,000 $14,400 $19,200 $24,000 $28,800
Possible annual savings does not include any money saved on the elimination of transaction fees
Iowa Motor Truck Association 717 East Court Avenue Des Moines, Iowa 50309 (P) 515.244.5193 • (F) 515.244.2204 www.iowamotortruck.com
Enjoy these tremendous discounts every time you fuel up by using one of the following cards: Comdata, EFS, Fleet One, TCH or Tchek. Direct bill is required, but no financial information is needed if payments are made three (3) times per week by EFT (electronic funds transfer).
Iowa Truck Services Save on EOBR Technology with the IMTA’s New Partnership
It’s long been an objective of the Iowa Motor Truck Association to offer quality services and relationships to its members that can contribute to the success of their individual companies and the trucking industry as a whole.
Phillip Nicolino IMTA Marketing Manager
That commitment has continuously allowed the IMTA to develop and maintain long-standing partnerships with organizations looking to play a role in helping the association and its members achieve their collective goals. Wellmark Blue Cross and Blue Shield, HireRight, J.J. Keller and Associates and, recently, Pilot Flying J have all stepped up over the years to bring added value to IMTA memberships. Now, PeopleNet Communications Corporation can be included on the list after it entered into an agreement with the IMTA to offer electronic on-board recorders to association members at a discounted rate. “We could not be more pleased to have this partnership in place,” said IMTA President Brenda Neville. “With the Hours-of-Service rule being a sensitive issue right now and speculation that EOBRs could be mandated in the next couple of years, the IMTA wanted to get in front of these concerns and have something in place for members to benefit from.” As part of the agreement, members of the Iowa Motor Truck Association can become eligible to receive discounts on PeopleNet’s products and services, including:
Hardware discounts
• $100 off every EOBR purchased (i.e. 50 units equals a $5,000 discount)
Monthly service contract discounts
• $5 off performance and safety bundle
On-site training session credit
• $500 credit for fleets that have less than 25 units • $2,500 credit for fleets that have 25 or more units “After gaining input from fellow members and reviewing the presentation by PeopleNet representatives, it was decided that this opportunity could not be passed up,” said Farner-Bocken Company Transportation Director Dan Stevens, who is chairman of the IMTA Strategic Planning Committee. “It provides yet another strong benefit to belonging to the IMTA in a time when this technology is becoming more and more necessary.” Stevens and the rest of the Strategic Planning Committee evaluated and approved the PeopleNet proposal. During negotiations, they made certain IMTA members got the best deal possible without sacrificing anything to get an extra bonus inserted into the agreement.
in the market for new equipment or are just starting to look, utilizing the IMTA’s partnership with PeopleNet is a great place to begin – and hopefully end – your search for EOBRs. It’s an outstanding way of investing in your company and the association that is completely dedicated to providing quality representation and business solutions to its members. Contact the Iowa Motor Truck Association now to get more details and become eligible to receive your discounts.
Dan Stevens IMTA Strategic Planning Committee Chairman, Transportation Director of Farner-Bocken Company
In addition to offering a savings on its EOBR products and services, PeopleNet will also reward companies for their devotion to the IMTA. This will translate into a credit being paid back to the IMTA for every EOBR PeopleNet sells to members of the association.
“It provides yet another strong benefit to belonging to the IMTA in a time when this technology is becoming more and more necessary.”
About PeopleNet PeopleNet PROUD MEMBER Communications “If the IMTA is going to promote of the Iowa Motor Truck Association
PeopleNet and put a stamp of approval on their equipment, we as a committee felt the association should get something in return as well,” Stevens said. “There are even members that might pick PeopleNet just because of their loyalty to the IMTA, and that should count for something, too”. To receive all possible discounts from PeopleNet, companies must first contact the Iowa Motor Truck Association to become eligible. There is a process involved that must be followed in order to ensure members of the IMTA gain the savings afforded through this newly formed alliance.
Corporation is a privately held onboard computing and carrier fleet communications provider. Since the company’s founding, PeopleNet has focused all of its energies on developing COMPUTING & FLEET the bestONBOARD possible solutions for effective carrier COMMUNICATIONS fleet management – and customizing those solutions to meet www.peoplenetonline.com the needs of its customers. PeopleNet’s 888-346-3486 commitment to innovation and its customer-centric focus have made it a leading provider of on-board computing and mobile communications systems for long-haul fleets, with a performance track record that’s second to none.
And it makes no difference if you are
Summer 2011
Lifeliner
27
Members in the News Hy-Vee Champion Drivers Displayed on Trailer
Hy-Vee executives were very excited to display the dedicated faces of Hy-Vee’s 2nd Place Overall Team Winners at the 2010 IMTA Truck Driving Championships. PDI, a wholly owned subsidiary, was also included with their 1st Place Team Winners. Hy-Vee Drivers – from left to right: Todd Anderson (Cherokee Distribution Center), Tanner Chester, Tom Goddard, Dominic Condra, and Bobby Petty all from the Chariton Distribution Center adorn the driver’s side of the trailer. PDI drivers from left to right: Gary Baker, Jason Skalicky, and Glenn Frick make up the curb-side of the trailer. All of us at Hy-Vee are very proud of the 1st and 2nd Place finish of our drivers and the way they and all of our drivers represent our company every day. These drivers along with 33 other Hy-Vee employees are seen on the roadways of Hy-Vee’s eight state territory. Others included for the 2011 year are pharmacists, Legendary Customer Service Award Winners, Dieticians, Managers, and other employees. Each year the office receives pictures from well over 1500 employees that hope to be displayed on a new Hy-Vee trailer.
Allied Oil & Supply & Shell Oil Assist in Relief Efforts in Joplin
In an effort to help with the ongoing clearing and rebuilding efforts in the Joplin community, IMTA member Allied Oil teamed up with Shell Oil company and donated 420 cases of Penzoil Premium 2-Cycle Oil. That equated to 5040, 16 ounce bottles for use in chain saws, lawn mowers, weed cutters, motorcycles and small generators. Allied’s sales team, along w/branch manager John Hilbert jumped at the opportunity to personally distribute cased of oil to the community.
28
Lifeliner
Summer 2011
Hy-Vee Truck Displays Champion Drivers
John Ruan III Elected Chairman of the Board, United States Chamber of Commerce
John Ruan III has been elected the Chairman of the Board for the United States Chamber of Commerce. The one year term began in June. A longtime US Chamber John Ruan Director, John Ruan Transportation is a strong proponent of additional investment in infrastructure. “The physical platform of our economy is deteriorating and without reinforcement, the United States will struggle to compete against nations that are making significant improvements to their infrastructure,” he says. “There are ways to commit to the level of investment we need with minimal impact on the deficit.” The Ruan family business started more than 78 years ago as a single gravel hauling truck and today it is a fleet of 5100 trailers and over 3300 power units operating nationwide and serving customers in the bulk food and dairy, retail, metals service centers, grocery, chemicals, and industrial gas industries. Today the business includes BTC Financial Corp, Iowa’s largest and oldest independent bank, of which John
III is Chairman; Iowa Export-Import, which serves a marketing channel for agricultural and automotive exports and imports, Ruan Properties; a used truck and trailer dealership, a commercial auto leasing service and an Avis car rental license. John is involved in all aspects of the many Ruan businesses and serves in several volunteer leadership outside of the transportation business, including Hubbell Realty Co., Iowa Business Council, Greater Des Moines Partnership, Downtown Community Alliance, Chief Executives Organization, Castle Pines Golf Club, Culver Educational Foundation and Des Moines Metropolitan Planning Organization. John received his BS in Business Administration from Northwestern University in 1965 and is a 198 graduate of the Program of Management Development at Harvard Business School. Ruan and his wife Janis of 4o years, have two children, John Ruan IV and Rachel McLean and four grandchildren. The US Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors and regions, as well as state and local chambers and industry associations.
Citizen Advisory Commission IMTA Member Scott Cirksena Appointed to Governor’s Transportation 2020 Citizen Advisory Commission (CAC)
Scott Cirksena, Kenworth and IMTA member was appointed by Governor Branstad to serve on the transportation commission. This important commission will play a critical Scott Cirksena role in assisting the IDOT with completing its legislatively mandated review of the “current levels of the road use tax fund and the sufficiency of those revenues for the projected construction and maintenance needs of city, county, and state governments in the future. Scott was appointed to the commission for his extensive experience in the transportation industry and his extensive service on numerous committee, boards and as the Mayor of Clive, suburb of Des Moines.
Change Advisory Council/Transportation Land Use Committee in 2007-2008 and the Des Moines International Airport Master Plan Review Committee in 2007. Each of these areas of service has provided me the opportunity to participate in broad-based, regional transportation planning decisions,” said Scott The commission has met on numerous occasions throughout the summer. Nancy Richardson and Alan Thoms serve as the Co-Chairs of the Commission. The commission has 12 public members and four legislators that are ex-officio members of the commission. “The Commission has worked well together to review the future critical needs for the primary roadway system infrastructure in the immediate and long-term future. Collectively, it has also reviewed a wide array of potential funding solutions. A schedule has been established for multiple public meetings to present the needs and gain input on possible funding solutions which will be coalesced into the final report that is submitted to the Governor in the Fall of 2011. I am confident that the Commission will be able to provide comprehensive recommendations to the Governor and his administration,” continued Scott.
“I have served the commercial transportation industry in my private sector career for the last 20 years. As Mayor of the City of Clive, Iowa and prior to that as a City Council Member, I served as a Primary Representative to the Greater Des Moines Metropolitan Planning Organization Policy Committee (MPO). My tenure of service on the MPO included positions on the Executive Committee from 2007-2010; Chair of the Freight Roundtable Committee from 2004-2008; Chair of the 2035 Metropolitan Transportation Plan Task Force from 2008 – 2010; Representative to the Iowa Climate
Governor Branstad has a proven track record with commissions of this nature and believes that they are the most effective way to determine the course of action that will be the most successful.
CAC Members:
Ann Trimble Ray, Early Dan Wiedemeier, Burlington Larry Winum, Glenwood
Co-Chair - Nancy Richardson Co-Chair – Allan Thoms Scott Cirksena, Clive Jeff Corkery , Peosta Catherine Dunn, Dubuque Geri Huser, Altoona Jim Kersten, Fort Dodge Lindsey Larson, Jefferson Rose Mitchell, West Des Moines
“The highlight has been the opportunity to work with other highly qualified individuals from all over the State of Iowa to make recommendations about the future funding of our transportation system. This is a significant process and it is an honor to participate,” said Scott. Public Meetings will be held throughout the state and IMTA members will be
Legislators:
Rep. David Tjepkes (R-Gowrie) Rep. Jim Lykam (D-Davenport) Senator Tom Rielly (D-Oskaloosa) Senator Tim Kapucian (R-Keystone)
participating in those public meetings by providing comments and insight as to the reason the industry is supportive of a gas tax increase.
Governor’s Transportation
2020
Citizen Advisory Commission (CAC) Meeting Locations Public Input Meetings Bettendorf Wednesday, August 10, 2011* Isle Casino Hotel 1777 Isle Parkway Isle Center Salon B
Mason City
Wednesday, August 17, 2011* Music Man Square 308 Pennsylvania Avenue Reunion Hall
Des Moines
Wednesday, August 24, 2011* Embassy Suites 101 East Locust Street Salon D
Storm Lake
Wednesday, August 31, 2011* Buena Vista University 610 West Fourth Street Harold Walter Siebens Forum Anderson Auditorium
Council Bluffs
Wednesday, September 7, 2011* Mid-America Center One Arena Way Room KL
Waterloo
Wednesday, September 4, 2011* Ramada Hotel Convention Center 205 West Fourth Street Room 23
Mount Pleasant
Wednesday, September 21, 2011* Iowa Wesleyan College 601 North Main John Wesley Holland Student Union Social Hall Meeting Times: 6:00 -8:00 PM
Summer 2011
Lifeliner
29
2011 Iowa Truck Driving Championships
Chairman Dan Gardner Wal-Mart Transportation 319.385.5710
2011 Iowa Truck Driving Championships – Showcasing the Best of the Best!
Once again the industry’s finest drivers gathered for two days at the Iowa Speedway in Newton to show off their professional skill set. With almost 90 drivers competing, Mike Riggan the event was IMTA once again Chairman of the Board a valuable reminder of the tremendous professionalism that exists in the trucking industry. “The caliber of driver that continues to show for this event is always very impressive and a strong reminder of why the trucking industry continues to be of such value to everyone,” said IMTA Chairman of the Board Mike Riggan. 2011 TDC Chairman, Dan Gardner with Wal-Mart was extremely proud of the participation and support that was once again shown toward the event, “We continue to get more companies involved and the support for the Iowa Truck Driving Championships never wavers. That is a true testament to this event and I couldn’t be happier.” IN addition to the competitors and their families, over 75 volunteers once again came forward to help at the event and show their support of the activities associated with the truck driving championships. In addition to the four areas of testing, the drivers are also showcased throughout the championships. The first night featured a VIP tent and champagne toast for the drivers followed by a walk down the red carpet. The VIP theme and treatment was extended throughout the championships.
30
Lifeliner
Summer 2011
Special Thanks to the 2011 TDC Committee
Co-Chairman Marvin McGinnis Casey’s General Stores 515.965.6100 Drivers were given medals of honor, certificates of participation and other gifts reminding them of the important role they play to the industry. “The manner in which we really showcase and highlight the value of the driver is truly what separates the Iowa event from other state championships. Throughout our planning, we focus our efforts on making sure the driver feels very special and appreciated and it really makes a big difference in how the drivers feel when they leave. Our hope is that they carry that pride and added confidence with them for the other 363 days they are out there representing the industry,” said Marvin McGinnis, with Caseys and the 2011 TDC Co-Chairman. “I am always proud that we as an association and an industry take the time and put forth the effort to honor these drivers. They are the foundation of our industry and we can never tell them thank you enough,” said Mike Riggan.
“The manner in which we really showcase and highlight the value of the driver is truly what separates the Iowa event from other state championships.”, said Mike Riggan
Sid Carroll Great West Casualty Co. 402.494.2411 Brian George GTL Transportation 515.967.6684 Rodney Glassner Con-Way Freight 515.263.9229 Gary Handley BTI Special Commodities 515.228.2675 Dan Hannasch Farner-Bocken Co. 712.792.3503 Jackie Johnsrud Johnsrud Transport 515.263.8265 David Neuwohner All Seasons Trucking Inc. 563-556-8531 Bridget Nixon Solar Transport 515-226-0694 Julie Pruitt Crouse Transportation 800-870-3047 James Ransom Ruan Transportation 515-245-2500 Larry Spain Continental Western Insurance 515-473-3186 IMTA Chairman of the Board; Mike Riggan TanTara Transportation 563-262-8621
2011 TDC Sponsors 2011 TDC Sponsors All Seasons Trucking ARGEE Transport Barney’s, Inc. Bauer Built Tire Bosselman Travel Center Bradshaw, Fowler, Proctor & Fairgrave, PC BTI Special Commodities Casey’s General Stores Cedar Rapids Truck Center/Quad Cities Peterbilt Central Trailer Service Continental Western Insurance Cost Reduction Technologies Crouse Transportation Cummins Central Power, LLC Decker Truck Line, Inc. Donaghy - Kempton Insurors DR & KW Transtor, Inc. Eastern Iowa Tire Farner-Bocken Company/Dan Stevens FedEx Freight Great West Casualty Green Products Company Gregg Goodenow, Ltd Growmark Hanifen Co, Inc. Hansen Company Harold Dickey Transport Heil Trailer Holmes Murphy Housby/VOCON Hy-Vee Food Stores, Inc. Interstate Power Systems Iowa Tanklines, Inc. Jim Hawk Truck & Trailers JJ Keller & Associates Joe Morten and Son, Inc. d.b.a. Motor-Ways, Inc.
Johnsrud Transport Kenworth Mid-Iowa Kenworth Truck Company Lockton Companies, LLC Majestic Truck Services McGladrey & Pullen McKenna Truck Center Mid Seven Transportation Midwest Wheel Companies O’Halloran International, Inc. Perishable Distributors of Iowa Power Service Products Prepass Prins Insurance, Inc. Qualcomm, Inc. Reynolds & Reynolds, Inc. Ruan Transportation Management Systems Schneider Graphics Simons Petroleum Solar Transport TanTara Transportation Corp. Ten D, Inc Thermo King Christensen Thermo King Des Moines Transport Permits, Ltd. Truck Country United Natural Foods US Auctioneers, Inc. Vigillo Wal-Mart Transportation, LLC Warren Transport, Inc. Weinrich Truck Line, Inc. West Side Transport Whitfield & Eddy, PLC Wilson Trailer YRC Worldwide, Inc. Summer 2011
Lifeliner
31
4 Axle Van
3 Axle Van
2011 TDC Championships Winners
(L-R) 1st Place Allen Sohn, FedEx Freight 2nd Place Joe Myers, FedEx Freight 3rd Place Steven Walker, Ruan Transportation Management Systems Back Row (L-R) Mike Riggan, TanTara Transportation, Marvin McGinnis, Casey’s General Stores, Dan Gardner, Wal-Mart Transportation, LLC
5 Axle Van
Sleeper Division
(L-R) 1st Place Jim Stinemates, Wal-Mart Transportation, LLC 2nd Place Ryan Kelley, FedEx Freight 3rd Place Mark Shinski, UPS Freight Back Row (L-R) Marvin McGinnis, Casey’s General Stores, Mike Riggan, TanTara Transportation, Dan Gardner, Wal-Mart Transportation, LLC
(L-R) 1st Place Mark Brown, Wal-Mart Transportation, LLC 2nd place Rick Baxter, Wal-Mart Transportation, LLC 3rd Place Glenn Frick, Perishable Distributors of Iowa Back Row (L-R) Marvin McGinnis, Casey’s General Stores, Mike Riggan, TanTara Transportation, Dan Gardner, Wal-Mart Transportation, LLC
32
(L-R) 1st Place Harold Flesner, Wal-Mart Transportation, LLC 2nd Place Jim Baker, Hy-Vee Foods Stores, Inc. 3rd Place Dean Filmer, Decker Truck Line, Inc. Back Row (L-R) Marvin McGinnis, Casey’s General Stores, Mike Riggan, TanTara Transportation, Dan Gardner, Wal-Mart Transportation, LLC
Tank Division
Flatbed Division
(L-R) 1st Place Jed Hinds, Wal-Mart Transportation, LLC 2nd Place Wayne Brumwell, Wal-Mart Transportation, LLC 3rd Place Tom Goddard, Hy-Vee Foods Stores, Inc. Back Row (L-R) Marvin McGinnis, Casey’s General Stores, Mike Riggan, TanTara Transportation, Dan Gardner, Wal-Mart Transportation, LLC
Lifeliner
Summer 2011
(L-R) 1st Place Chris Dougherty, Solar Transport 2nd Place Michael Lundberg, Wal-Mart Transportation, LLC 3rd Place Andrew Buechele, FedEx Freight Back Row (L-R) Marvin McGinnis, Casey’s General Stores, Mike Riggan, TanTara Transportation, Dan Gardner, Wal-Mart Transportation, LLC
Straight Truck Division
Twin Trailers Division
(L-R) 1st Place Richard Barre, Con-Way Freight 2nd Place David Bean, Wal-Mart Transportation, LLC 3rd Place Todd Anderson, Hy-Vee Foods Stores, Inc. Back Row (L-R) Marvin McGinnis, Casey’s General Stores, Mike Riggan, TanTara Transportation, Dan Gardner, Wal-Mart Transportation, LLC
1st Year Participant
Highest Overall Score
(L-R) 1st Place Ron Raney, UPS Freight 2nd Place Brian Gardner, FedEx Freight 3rd Place Ron Taylor, Wal-Mart Transportation, LLC Back Row (L-R) Marvin McGinnis, Casey’s General Stores, Mike Riggan, TanTara Transportation, Dan Gardner, Wal-Mart Transportation, LLC
(L-R) Mike Riggan, TanTara Transportation, Stephen Walker, Ruan Transportation Management Systems, Dan Gardner, Wal-Mart Transportation, LLC, Marvin McGinnis, Casey’s General Stores
Highest Pre-Trip Score
Individual Sportsmanship Award
(L-R) Mike Riggan, TanTara Transportation, Jim Stinemates, WalMart Transportation, LLC, Dan Gardner, Wal-Mart Transportation, LLC, Marvin McGinnis, Casey’s General Stores
(L-R) Mike Riggan, TanTara Transportation, Marvin McGinnis, Casey’s General Stores, Ken Royer, Casey’s General Stores, Dan Gardner, Wal-Mart Transportation, LLC
Team Sportsmanship Award
(L-R) Mike Riggan, TanTara Transportation, Jim Stinemates, Wal-Mart Transportation, LLC, Dan Gardner, Wal-Mart Transportation, LLC, Marvin McGinnis, Casey’s General Stores
Dave Scott, Bill Dix, Mike Riggan, Brenda Neville Ruan Transportation Management Systems
Summer 2011
Lifeliner
33
34
Lifeliner
Summer 2011
2011 TDC Team Winners
Team 1st Place
Truck Driving Championships
Senator Bill Dix talks to the group of IMTA members about creating a probusiness environment.
Dave Scott, Bill Dix, Mike Riggan, Brenda Neville FedEx Freight
Team 3rd Place
Team 2nd Place
Wal-Mart Transportation, LLC
Senator Bill Dix talks to the group of IMTA members about creating a probusiness environment. HyVee Food Stores, Inc.
BTI Special Commodities
Martin-Brower
Anderson Erickson Dairy
TDC Te a m s PDI
Ruan Transportation
Summer 2011
Lifeliner
35
Truck Driving Championships Con-Way Freight
Crouse Transportation
22 C om p an i e s R e p r e se n t e d 28 Fi rst Ye a r Par t i c i p a n ts 65 Vol u n t e e r s
Schuster Company
Cherry Valley Enterprises
HyVee Food Stores
Decker Truck Line
Solar Transport
UPS Freight Olson Explosives
36
Lifeliner
Summer 2011
Truck Driving Championships Farner Bocken Company
Casey’s General Stores
Johnsrud Transport
“ T he T D C i s a gre at e ve nt t h at sho wcase s the true p r o f essional s of thi s i nd us t r y,” T D C C hairman Dan Gardn e r, Wa l- Mar t Transp ortati on
FedEx Express
Boyer Petroleum
Wal-Mart Transportation
TanTara Transportation
FedEx Freight
Summer 2011
Lifeliner
37
Truck Driving Championships
s ime T n y Fu ad b H l!! Al
: Highlights Walk Red Carpet ne & Champag Toast!
38
Lifeliner
Summer 2011
Truck Driving Championships Theme t o Drivers : “You ar e Rock Stars!”
Summer 2011
Lifeliner
39
Iowa Leaders at Work for You Representative Jeff Kaufmann (R – Muscatine) in regard to the 2011 legislative session. The group also heard from the newly hired DOT administrator Paul Trombino who had only been on the job 2 days. Paul Murry Fitzer (R) Florilli Transportation, Steve Schuster, Schuster Company, came to Iowa from Donna Weinrich-Lucht, Weinrich Truck Lines, Jeff Arens, Schuster Company the Wisconsin DOT and holds degrees in economics and civil engineering Paul told the group of his ongoing commitment to ensuring that the DOT operated as efficiently and The IMTA Board of Directors held effectively as it had under the leadership their board meeting in Coralville and of recently retired administrator Nancy the group had a full day of valuable Richardson. discussions, insightful speakers and decision making for the association. Iowa State Auditor David Vaudt was IMTA Chairman of the Board, Mike also a welcome speaker to the meeting. Riggan convened the meeting and the Auditor Vaudt has been at previous group heard from President Brenda board meetings and once again Neville, IMTA lobbyist Dave Scott and provided tremendous insight into the state’s continued financial challenges.
Conference in September. There are 45 directors on the board and there is consistently over 95% participation at the board meetings. “These are valuable meetings and the service provided by the directors is greatly appreciated. I am grateful for the support and commitment that is demonstrated by the IMTA Board of Directors,” said IMTA Chairman of the Board, Mike Riggan.
IMTA Board of Directors Meet in Coralville
Robert Sturgeon (R) Barr-Nunn Transportation and Clayton Fisk, Warren Transport
“These are valuable meetings and the service provided by the directors is greatly appreciated,” said IMTA Chairman of the Board, Mike Riggan. Chairman Mike Riggan, Coach Ferentz and IMTA President Brenda Neville “Go Hawks”
Iowa Hawkeye Football Coach Kirk Ferentz was the featured speaker over the noon hour and even the cyclone fans in the audience appreciated his remarks and low key leadership style. Coach Ferentz shared his views on leadership, coaching, business and of course the upcoming season. The IMT A Board of Directors hold two meetings a year and conduct their annual meeting and elections in conjunction with the IMTA Management
Don Decker (R) Decker Truck Lines and Mark Zieman, Cherry Valley Enterprises
40
Lifeliner
Summer 2011
Ralph Arthur (R) Ruan and Mike Bagg, Central Trailer Service, Ltd.
“Auction Specialists for the Trucking Industry”
Now celebrating over 22 years in the retail sale of truck tractors & trailers at absolute public auctions!
www.usauctioneers.com P.O. Box 5444 • Rock Island, Illinois 61204 Phone: 563-332-5444 • Fax: 563-332-0033 Toll Free: 800-992-2893 A Proud Sponsor of the Iowa Truck Driving Championships Summer 2011
Lifeliner
41
Congratulations
success and continued success and safe travels in the year a head! on your
Safety is a top Priority in the Trucking Industry and the professional men and women behind the wheel of the truck are the true heroes in this ongoing commitment to safety. We salute the professional drivers that participated in the 2011 Iowa Truck Driving Championships and Thank them for their dedication to safety, professionalism and the pride they take in doing their jobs in the best way possible.
42
Lifeliner
Summer 2011
BrakeS engineS CluTCheS radiaTorS alignmenTS inSpeCTionS TranSmiSSionS
We do iT all! Call us today: 800.352.2812
Bumper-to-Bumper Truck Service Trucks Altoona
Trailers
Sioux City
Columbus
Buses
Minneapolis
rVs
Rochester
St. Cloud
www.zieglercat.com
Summer 2011
Lifeliner
43
PRSRT STD US POSTAGE PAID AMES, IA 50010 PERMIT NO. 14
Expanded
ABS COVERAGE
• • • • • • • • • • •
ABS Diagnostic Tools Retrofit Kits Sensors Complete Trailer ABS Systems Tractor Replacement Valves & CPUs Modulator Valves Sensor Cables Power Cables Exciter Rings ABS Ready Hubs Control Units
100 YEARS STRONG Since 1911
IOWA
Des Moines Davenport Clear Lake Cedar Rapids Sioux City (800) 888-0248 (800) 553-1886 (800) 397-5630 (800) 332-5435 (800) 943-3534
MISSOURI
Kansas City Grandview (800) 821-7402 (866) 318-9111
www.midwestwheel.com