BEFORE THE
FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION
UNITED STATES DEPARTMENT OF TRANSPORTATION
_______________________________________________________________________________
_______________________________________________________________________________
COMMENTS OF
THE
OWNER-OPERATOR INDEPENDENT DRIVERS ASSOCIATION, INC.
IN RESPONSE
TO
NOTICE OF PROPOSED RULEMAKING
REQUEST FOR COMMENTS
FMCSA Docket
No. FMCSA-98-3297, RIN 2126-AA33
Revision of Regulations and Application Form for Mexican-Domiciled
Motor Carriers to Operate in U.S. Municipalities and Commercial Zones
on the U.S.-Mexico Border
FMCSA Docket
No. FMCSA Docket No. FMCSA 98-3298, RIN 2126-AA34
Application by Certain Mexican Motor Carriers to Operate Beyond
U.S. Municipalities and Commercial Zones on the U.S.-Mexico Border
FMCSA Docket
No. FMCSA-98-3299, RIN 2126-AA35
Safety Monitoring System and Compliance
Initiative for Mexican Motor Carriers Operating
in the United States
Federal Register
[Vol. 66, No. 86]
_______________________________________________________________________________
_______________________________________________________________________________
SUBMITTED BY:
|
JAMES J.
JOHNSTON
PRESIDENT
Owner-Operator
Independent
Drivers Association,
Inc.
311 R.D. Mize
Rd
Grain Valley,
Missouri 64029
|
PAUL D.
CULLEN, SR.
JOSEPH A.
BLACK
Independent
General Counsel
The Cullen
Law Firm
3101 30th
St., N.W. Suite 300
Washington,
D.C. 20007
|
July 2, 2001
BEFORE THE
FEDERAL MOTOR CARRIER SAFETY ADMINSTRATION
_________________________
I.
INTRODUCTION
A.
Procedural Statement
These comments
are submitted by the Owner-Operator Independent Drivers Association,
Inc. ("OOIDA" or "Association") in response to three
(3) notices of proposed rulemaking; requests for comments published
by the Federal Motor Carrier Safety Administration ("FMCSA"
or "Agency"), Docket Nos. FMCSA 98-3297, [RIN 2126-AA33];
FMCSA 98-3298, [RIN 2126-AA34]; and, FMCSA 98-3299, [RIN 2126-AA35]
(May 3, 2001).
The FMCSA proposes to
revise regulations and form OP-2 as they relate to the issuance of Certificates
of Registration to any Mexican-domiciled motor carrier (of property)
that wants to operate only in the municipalities and commercial zones
adjacent to Mexico in Texas, New Mexico, Arizona or California; to change
its regulations and application form OP-1(MX) as they relate to applications
by Mexican carriers to operate beyond the municipalities and commercial
zones at the United States-Mexico border; and, to implement a safety
monitoring system and compliance initiative to help determine whether
Mexican-domiciled carriers conducting operations anywhere in the United
States comply with applicable safety regulations and conduct safe operations.
B. Interest of
the Owner Operator Independent Drivers Association, Inc.
The Owner
Operator Independent Drivers Association, Inc., is a not-for-profit
corporation incorporated in 1973 under the laws of the State of Missouri,
with its principal place of business in Grain Valley, Missouri. The
more than 65,000 members of OOIDA are small-business men and women in
all 50 states and Canada who collectively own and operate more than
110,000 individual heavy-duty trucks and small truck fleets. Owner-operators
represent nearly half of the total number of Class 7 and 8 trucks operated
in the United States. The mailing address of the Association is:
Owner Operator Independent Drivers Association, Inc.
311 R.D. Mize Rd.
Grain Valley, Missouri 64029
www.ooida.com
OOIDA is the international
trade association representing the interests of independent owner-operators
and professional drivers on all issues that affect small business truckers.
The Association actively
advocates the views of small business truckers through its interaction
with state and federal government agencies, legislatures, the courts,
other trade associations, and private businesses to advance an equitable
environment for commercial drivers. OOIDA is active in all aspects of
highway safety and transportation policy, and represents the positions
of small business truckers on numerous committees and in various forums
on the local, state, national, and international levels. All revisions
to and implementation of the North American Free Trade Agreement ("NAFTA")
entry provisions directly affect owner-operators, professional drivers
and motor carriers, including members of OOIDA.
II. SUMMARY
OOIDA is strongly
opposed to opening the United States-Mexico border to Mexican-domiciled
motor carriers for the purpose of conducting operations in the U.S.
outside of the municipalities and commercial zones adjacent to Mexico
in Texas, New Mexico, Arizona and California. At present there is no
adequate means at the majority of border crossings to inspect a sufficient
number of Mexican motor carrier equipment and drivers to ensure their
safe operation. To allow the widespread operation of Mexican-domiciled
equipment and drivers in the U.S. before adequate safeguards are in
place is unacceptable. Furthermore, to grant U.S. operating authority
to Mexican-domiciled motor carriers prior to a thorough on-site compliance
review, and to allow their continued operation for a period of 18 or
more months is unconscionable from any safety standpoint.
Not only is OOIDA intensely
concerned with the safety implications of allowing Mexican motor carriers
and drivers free access to the U.S., there are important economic impacts
that must be considered. Although safety is FMCSA's focus, in reality
no trucking business can operate safely without the economic means to
do so.
III. GENERAL COMMENTS OF THE ASSOCIATION
A.
Safety Regulations and Enforcement Efforts
1.
Incompatibility of Commercial Vehicle and Driver Regulations, Safety
Systems, and Enforcement Programs
The Association
has worked very hard along with the FMCSA, other federal and state agencies,
and many industry organizations to improve truck safety for truckers
themselves and for all highway users. Great strides have been made in
many areas with the potential for even more gains just over the horizon.
A uniform commercial licensing system with a nationwide computerized
data network capable of identifying and weeding out unsafe, problem
drivers along with uniform inspection and enforcement programs have
resulted in significant improvements in highway safety. OOIDA is very
concerned that the lack of safety regulations, and compatible and reciprocal
systems in Mexico will result in a significant loss in the hard-won
gains that have been made.
The Association believes
that Mexico lacks the safety infrastructure, the resources, and the
will to effectively promulgate and enforce compatible motor carrier
safety regulations. In the United States, motor carrier safety programs
are extensive and the safety regulations are widely enforced through
roadside inspections and compliance reviews. These are working and tested
programs designed to ensure motor carrier compliance and highway safety
- and even they are not perfect.
Mexico is years away
from instituting similar programs necessary to ensure adequate safety
compliance of its trucking operations. First, the Association believes
there is no true equivalent of the U.S. Commercial Driver License ("CDL")
system in place in Mexico. While both U.S. and Mexican government officials
claim Mexico's commercial driver licensing requirements are equivalent
to the U.S. rules, statistics from border checks indicate that significant
problems exist. Lack of a valid license is the top reason for placing
Mexican drivers out-of-service ("OOS") according to the Office
of the U.S. Trade Representative. A recent spot check by the Texas Department
of Public Safety found 9 of 12 drivers lacked valid licenses. Even if
the license is valid and legally obtained, little or no data exists
in Mexico that can accurately confirm such. Nor can U.S. inspectors
identify the number and types of driver violations or accident involvement.
A second issue is the
lack of a viable truck safety inspection program in Mexico. There are
few if any trained Mexican commercial motor vehicle inspectors that
measure up to the U.S. standards. While the Mexican government insists
it enforces very strict commercial vehicle and driver standards, Mexican
truckers report that the main condition to compliance is cash money.
Although Mexico joined the Commercial Vehicle Safety Alliance ("CVSA")
and has agreed to adopt CVSA training, inspection and enforcement practices,
the fact remains that bribes and kickbacks are a way of life in Mexico
and there is no indication that this practice is being eradicated.
A considerable number
of commercial vehicle inspections are conducted in the U.S. at roadside
sites and in motor carrier terminals. The roadside inspection program
is designed to assess the condition of the driver and the vehicle as
they are operating on the highways. These inspections are conducted
based on a rigorous and long-standing set of commercial vehicle safety
regulations established by the modal administrations of the U.S. Department
of Transportation, and enforced by state and federal enforcement personnel.
While there may be plans to implement similar programs in Mexico, OOIDA
is concerned that Mexican truck inspection practices, as they stand
today, are not as extensive nor are the regulations as vigorously enforced
as in the U.S. After repeated attempts on the part of CVSA to obtain
inspection data from the Mexican government none has been provided.
There is no proof that Mexico is inspecting any vehicles or drivers.
Unless Mexico quickly makes significant strides to ensure the safety
of Mexican motor carrier equipment and drivers, the entire burden of
safety compliance will fall squarely on U.S. enforcement efforts.
U.S. drivers are extensively
tested for use of controlled substances and alcohol. OOIDA believes
there is no drug and alcohol testing program comparable to that of the
U.S. program in Mexico. Although Mexico claims to have a program in
place, the Association believes they have no means or will to enforce
the rules. It would be inherently inequitable to allow Mexican drivers
to operate in the U.S. without being subject to the same stringent standards
required of U.S. drivers. To permit a certain class of drivers to be
largely and effectively "exempt" from these regulations would
be a manifest injustice and place U.S. drivers at a disadvantage.
Mexico has no driver
hours-of-service regulations in place. Consequently, there is no way
to begin to verify how many hours a Mexican driver has operated in any
given day or week. It has been reported that Mexican drivers commonly
operate 16 to 20 hours a day or more. Regardless of whether Mexican
drivers adhere to the U.S. standard while operating in the U.S., there
is no way of knowing how long the driver had been driving prior to entering
our country.
2.
Inadequacy of U.S. Enforcement Efforts at the Border
The U.S. enforcement effort has a long way to go before the
Agency can assure that Mexican trucking operations will not present
a danger to the American public. The Office of the Inspector General
published the Interim Report on Status of Implementing the North American
Free Trade Agreement's Cross-Border Trucking Provisions [Report Number:
MH-2001-059, May 8, 2001]. This report provided the following information:
During the fiscal year
1997, commercial trucks made 3.5 million crossings into the United States
at the southern border. Federal and state inspectors performed 17,332
inspections on Mexican trucks. About 44 percent of those trucks inspected
were removed from service because of serious safety violations.
While the out-of-service
rate of 44 percent is startling enough, what is even more startling
is the fact that only 17,332 inspections were conducted out of 3.5 million
crossings. In other words, only one-half of 1 percent of the Mexican
trucks that entered the United States were inspected. Conversely, over
ninety-nine percent of the Mexican trucks that entered the United States
in 1997 were not inspected.
The report goes on to
point out that during the fiscal year 2000, federal and state inspectors
performed 46,144 inspections on Mexican trucks at the border and within
the commercial zones. For those inspected, the out-of-service rate declined
from 44 percent in 1997 to 36 percent in 2000. While the report acknowledges
the decline in the out-of-service rate, the study shows that those numbers
are not necessarily assuring.
According to the Inspector
General's report, a direct correlation exists between the condition
of Mexican trucks entering the United States and the level of inspection
resources at the border. California state inspectors are present during
all commercial operating hours at its two major crossings, Otay Mesa
and Calexico. During the year 2000, FMCSA reports show the OOS rate
for Mexican trucks inspected at Otay Mesa was 23 percent compared to
50 percent at one crossing in El Paso, Texas, where neither federal
nor state inspectors were present during all operating hours.
FMCSA increased the
number of authorized inspectors at the southern border from 13 in 1998
to 60 in 2001 and requested 80 additional enforcement personnel in its
Fiscal Year 2002 budget request. However, FMCSA documents supporting
its budget request indicate 40 will be inspectors and 40 will be safety
investigators.
While OOIDA agrees that
more inspectors and investigators are needed, we believe the number
of additional enforcement personnel is grossly inadequate. Deploying
an additional 80 enforcement personnel at the border would bring the
total number of authorized inspectors there to 140. This number would
be responsive to the recommendation in the 1998 report of the Office
of the Inspector General. However, the report emphasizes that the 1998
estimate of 139 Federal inspectors needed was a conservative number.
The estimate was based on crossing conditions in 1998 and does not account
for changes such as expanded hours of operation and growth in commercial
traffic.
If at least 80 enforcement
personnel are not deployed at the border inspection sites in the near
term, sufficient inspectors will not be in place at all border crossings
during all hours of commercial vehicle operations. FMCSA requested $18
million in new funding in its Fiscal Year 2002 budget request to increase
border-state motor carrier inspection activities based on the assumption
that the border states would construct border inspection facilities
and staff them with state personnel. FMCSA should not assume that the
border-states can or will deploy inspectors at all border crossings
during all hours of commercial operations to ensure the safety of Mexican
trucks and drivers and to enforce federal registration requirements.
The Association believes
that at a minimum 80 new border crossing inspectors would be needed.
In addition to that, at least another 40 safety investigators would
be necessary to conduct on-site compliance reviews ("CRs")
of all Mexican-domiciled motor carriers and, furthermore, that the CRs
should be conducted prior to considering granting operating authority.
Currently, the only
permanent inspection facilities at the U.S.-Mexico border are the State
facilities in Calexico and Otay Mesa, California. At the other 25 border
crossings the Inspector General's report observed:
- At 20 crossings,
FMCSA inspectors did not have dedicated telephone lines to access
databases, such as those for validating a Commercial Driver's
License.
- At 19 crossings,
FMCSA inspectors had space to inspect only 1 or 2 trucks at a time.
- At 14 crossings,
FMCSA inspectors had only 1 or 2 spaces to park vehicles placed out-of-service.
Also, the out-of-service space was shared with the inspection space
at the majority of these crossings.
While the FMCSA
is on the right track in terms of providing additional inspectors
and facilities, the Agency has not yet finalized any plans that
will ensure safety to the American public once the border is opened.
Additional inspectors and inspection facilities must be in place
prior to allowing Mexican trucks into the U.S. - not after.
B.
Compatibility of Commercial Vehicle Size and Weight Laws
For many
years, the FHWA told Congress, the trucking industry, and the public
that truck size and weights were governed by highway and bridge
design and construction standards that were both empirically based
and largely inflexible. Whenever the trucking industry inquired
as to increases in truck weights, they were told that such increases
would result in deterioration of pavement and bridges. They were
quickly informed that there was a public investment in the infrastructure,
and that increases in size and weight limits would cause the infrastructure
to deteriorate far more rapidly and not achieve its full life expectancy.
Similarly, the industry was told that truck lengths and widths were
dictated by highway design elements such as off-ramps that could
physically accommodate vehicles only up to a certain size.
With the border
opening, questions of infrastructure deterioration and inherent
design limitations seem to have taken a backseat to trucking industry
and shipper calls for increased productivity. The fact that the
United States has expanded trading relationships with two of our
trading partners does not alter the design standards of the nation's
already-existing highways; nor does it alter the need to protect
the public investment in the infrastructure. Perhaps more importantly,
it does not provide an excuse to degrade safety on the nation's
highways. For these reasons, FMCSA should resist any attempt to
use the trading relationships as a means to alter existing federal
maximum truck size and weight limits.
It is the experience
of the Association and its members that there is a vast difference
between the United States and Mexico in the area of truck safety.
Given this difference, OOIDA believes that the U.S. must be very
diligent in its enforcement of weight laws for trucks from Mexico
operating in the United States.
Excessive weight
could seriously exacerbate what is already a bad situation with
equipment from Mexico. Mexican trucking equipment seems to run from
one extreme to the other in regard to mechanical condition, with
some trucks being new and well maintained and a great many trucks
being very old and in poor operating condition. Because, as OOIDA
understands, Mexico has no fixed weigh station facilities, without
strict weight enforcement on the U.S. side at the border, the Association
fears that there will be a significant degradation in highway safety
and the infrastructure.
Additionally, few
U.S. border crossings are equipped with fixed weigh stations. Texas
currently has no fixed weigh stations or permanent inspection sites
at the border crossings. With no fixed weigh stations in Mexico
and no fixed weigh stations at the border, Mexican truckers who
know or learn their way around state scales could conceivably travel
throughout the United States and back into Mexico without ever being
weighed.
Fixed weigh stations
at border crossings must be established before Mexican trucks are
allowed into the United States to assure that Mexican trucks meet
federal weight restrictions. FMCSA did not consider the additional
costs of these facilities in their budget proposal. Millions of
dollars in additional funds will be required to erect these permanent
weigh station facilities.
Compatibility of
truck size and weight laws must be achieved, but it must be achieved
at those reasonable and practical limits already in place in the
U.S. which have been implemented to protect our very valuable highway
infrastructure investment.
C.
Efficient and Reliable Drug Interdiction Capabilities
Mexico
has long been a major transshipment point for drugs into the United
States. Current U.S. interdiction capabilities are at best inadequate
even with the present limited flow of truck traffic only allowed
into the border commercial zones. Increased access to Mexican trucks
will open the floodgates to new volumes of drug traffic that will
quickly wipe out any semblance of control.
Resolution of this
problem will require a very significant additional commitment of
U.S. enforcement resources. Just as important, it will require an
equal commitment on the part of Mexican enforcement authorities
- a commitment that by all present indications does not exist.
Many reports in
the press over the last several years have described the boon that
NAFTA and the limited opening of the border has been to the Mexican
drug trade. Current border enforcement is woefully inadequate to
stop the still larger invasion of illegal drugs that will be transported
by the increased numbers of trucks to cross the border under the
current proposal.
D.
State and Federal Fuel Taxes and Highway User Fees
If nothing
else, Mexican motor carriers and owner-operators have learned to
survive in the harsh environment of corruption, kickbacks and depressed
economic conditions that have existed in Mexico for many years.
Skirting the law and "playing the system" to eke out a
living is nothing new to them. Learning to manipulate our system
to their advantage won't be hard.
One method to reduce
their operating costs is to install additional fuel tanks to carry
extra high sulfur fuel purchased at a much lower cost in Mexico.
These vehicles could travel hundreds of miles each trip on U.S.
highways without ever buying fuel in the U.S. Aside from the environmental
concerns, these Mexican trucks could avoid paying any state and
federal fuel taxes.
The principal way
that highways and bridges are financed in the U.S. is through taxes
assessed on the trucking industry. Fees and taxes on highway use
are primarily collected through registration fees and through taxes
on fuel consumed under the International Registration Plan ("IRP")
and the International Fuel Tax Agreement ("IFTA"), respectively.
Since Mexico does not participate in either plan, the fees and taxes
cannot be collected under the agreements. The states rely on honest,
periodic reporting of miles traveled and gallons of fuel purchased
by motor carriers to collect user fees and taxes under IRP, IFTA
and various other state specific taxation programs.
As stated previously,
no system is yet in place to assure that Mexican trucks will be
required to pay even the most easily enforced fuel taxes, those
collected at the pump. The more complicated highway use taxes such
as the Federal Highway Use Tax, federal excise taxes, Ad Valorem
taxes and mileage taxes that are essential to maintaining U.S. highways
appear to have not even been considered by the Agency. Failure to
subject Mexican trucks to an equal share of the tax burden for the
highways they will be using will place U.S. truckers at an enormous
economic disadvantage, and as more and more U.S. truckers are displaced
this will result in substantial highway funding short falls under
this scenario. Soon, U.S. highways would be in the same state of
disrepair as Mexican highways are today.
An alternative way
in which highway use taxes are collected is through trip permits
issued by the individual states, which Mexican trucks can obtain.
In order to ensure that Mexican trucks pay their fair share of highway
use taxes, the regulations should specify that Mexican trucks must
obtain state trip permits for every state in which they operate
and that failure to do so will result in the revocation of the carrier's
operating authority.
E.
Economic Impact
1.
The Disparity in Driver Compensation Between U.S. and Mexican Drivers
Allowing
Mexican truckers to operate in the U.S. and in Canada before compensation
levels are brought more in line would likely result in a substantial
competitive disadvantage and a prolonging of the current situation
of inadequate compensation for U.S. and Canadian truckers. The imbalances
are great enough that we are likely to see even lower rates than
exist today, rates that already make it extremely difficult for
small business truckers and drivers to earn an adequate living in
exchange for the investment involved and the amount of work performed.
2.
Cabotage Restrictions
Generally,
under U.S. law and the terms of NAFTA only U.S. carriers can pick
up and deliver freight within the U.S. Currently, however under
19 CFR § 123.14(c)(1) the U.S. Customs Service provides an
exception allowing foreign-based vehicles to transport domestic
shipments when the shipment is incidental to the immediate prior
or subsequent engagement of the vehicle in an international movement.
The Immigration and Naturalization Service ("INS") regulations
governing foreign drivers are more restrictive. However, there is
currently no effective mechanism in place for Customs, the INS or
any other agency to enforce these restrictions.
Will the U.S. be
able to limit Mexican truckers to hauling only international freight
during their operations in the U.S.? OOIDA contends the answer is,
"No" for the foreseeable future. In the present deregulated
environment and under the current system of motor carrier enforcement
the competence of the U.S. to enforce the cabotage restrictions
is virtually non-existent.
Mexican truckers
willing to haul at substantially lower rates would become a very
attractive option to U.S. shippers, brokers and freight forwarders.
And, with no credible enforcement effort in place to deter them,
Mexican motor carriers will surely seize the opportunity to arrange
the pick up and delivery of point-to-point domestic loads all over
the U.S. earning far more than they can in their own country. Networks
of profiteering freight brokers will provide plenty of business
by happily arranging such loads and pocketing a handsome markup
for themselves while knowing full well these trucks will skirt many,
if not all, of the rules for safety.
Aside from the initial
contact when a truck enters the United States at the border, U.S.
Customs and INS personnel rarely, if ever, come in contact with
a foreign-based motor carrier's vehicles and drivers. Most state
motor carrier enforcement personnel, those who regularly encounter
commercial vehicles and drivers in the interior, are trained only
to enforce federal and state vehicle and driver safety regulations.
Few consider the origin and destination of a load, and how the movement
may relate to the motor carrier's country of domicile. Furthermore,
state enforcement agencies appear unwilling at this point to take
on the task of enforcing cabotage restrictions. Even if state CMV
enforcement agencies received the necessary funding, and inspectors
were properly trained and had the requisite authority, at current
staffing levels there are simply not enough of them to catch more
than a token number of violators.
IV.
SPECIFIC COMMENTS OF THE ASSOCIATION
By the
Agency's own admission, even after extensive work with Mexican transportation
officials, Mexico has not yet completed implementation of a comprehensive
safety inspection program. Mexico joined CVSA and signed a Memorandum
of Understanding with CVSA in 1991. Since then, border-state CVSA
members have been providing ongoing training and education to the
enforcement sectors and trucking industries in Mexico. In fact,
a training effort funded by U.S. subsidies was initiated in 1997-98
involving CVSA, Mexico and the Federal Highway Administration's
Office of Motor Carriers. During this time over 4,000 Federal Police
and SCT personnel were trained on roadside inspection procedures,
the issuance of CVSA decals, the out-of-service criteria for commercial
vehicles and drivers, and many other commercial vehicle safety initiatives.
One would assume that there has been ample time for Mexico to develop
and implement a commercial vehicle and driver inspection program.
To our knowledge, not a single roadside inspection has ever been
conducted in Mexico.
OOIDA believes the
failures by Mexico to implement a substantial inspection program
can be attributed to the historically rampant corruption within
the Mexican government and its enforcement agencies. The one obvious
delay is in the fact that since joining CVSA and up until the installment
of the current administration, with each new Mexican administration
a complete house-cleaning of government personnel and resources
has occurred. To our knowledge, none of the over 4,000 inspectors
trained by U.S. agencies and organizations are still employed in
that same capacity today.
Vast U.S. federal
and state resources have already been spent in training Mexican
enforcement personnel to inspect to the CVSA North American Standard
- much of which has been wasted. History would advise that the same
is very likely to occur again. Regardless of how sincere the current
Mexican administration may be at addressing its inadequacies in
the area of motor carrier safety, there is scant assurance that
Mexico will ever establish safety regulations and inspection programs
comparable to those in the United States and Canada.
Regulatory
Flexibility Act:
While
the proposed additions to the requirements under 49 CFR § 385
in and of themselves will have no impact on small U.S.-based motor
carriers, opening the borders to Mexican-based motor carriers will.
Opening the border will introduce a whole new source of cheap labor
into the American transportation industry. The detrimental effects
will have the greatest impact on small U.S. motor carrier and owner-operator
businesses. This will ultimately or even immediately be at the expense
of safety as we race to the bottom in competition with a third world
economy.
Aside from Mexican-domiciled
carriers undercutting already low rates, many U.S. carriers are
eager to seize the opportunity to exploit a large pool of low-wage
drivers from Mexico. In fact, many have been exploiting foreign
drivers, including Mexican drivers, for years. They will hire Mexican
drivers both to haul freight from Mexico to the U.S. and freight
within the U.S. Most of the long-haul truck drivers will be Mexican
nationals legally, or illegally, working within the U.S. permanently.
The drivers will get a small stipend to live on while in the U.S.
and carriers will keep them here for months at a time, or even longer.
Like the Bracero program, the legal migrant labor program of the
1960s, Mexican workers will eventually comprise the entire trucking
work force.
Experienced professional
U.S. drivers currently struggling to survive under already depressed
compensation levels will quickly see compensation forced even further
downward with no alternative but to seek employment elsewhere. The
result in just a few years will be a Spanish-speaking workforce
of over-the-road truck drivers in the U.S. They will be underpaid,
and like other illegal workers subject to abuse by employers and
rogue enforcement officials. Without the recourse of law, they will
work longer hours than the Americans they replaced putting themselves
and everyone else on the highways at risk.
Unfunded Mandates
Reform Act of 1995:
FMCSA's determination
that this rulemaking, that the opening of the U.S. border to Mexican
carriers, will not result in expenditures by state, local and tribal
governments or the private sector in aggregate of $100 million or
more in any one year, is clearly wrong because it fails to account
for all costs associated with opening the border. If we are to avoid
the devastating impact of allowing the influx of unsafe commercial
vehicles from Mexico on our highways, those presently allowed to
operate in this condition unfettered in their own country, the cost
of increased enforcement throughout the United States will be enormous.
Failure to invest these resources on the other hand will result
in significant increases in injuries and fatalities from increased
accident rates. The Department of Transportation can forget about
cutting the CMV accident numbers in half. The new challenge will
be to keep them from doubling.
In addition, the
$88 million called for in the 2002 budget to build inspection facilities
and hire inspectors is grossly inadequate. As an example, the Texas
Department of Public Safety estimates that to build the eight facilities
needed to cover the border crossings in Texas can cost upwards of
$100 million, not including the cost of purchasing the land and
staffing the facilities. In reality, the U.S. must spend billions
of dollars just to adequately inspect Mexican carriers at the border.
The cost escalates rapidly when considering the additional resources
that will be needed to conduct enhanced enforcement efforts in the
U.S. interior.
Form OP-2
and OP-1(MX):
OOIDA applauds
the Agency's efforts to strengthen the regulations governing the
application process for Mexican motor carriers seeking U.S. operating
authority. However, the Association is appalled that this, and a
largely ineffectual safety monitoring system are the only processes
the FMCSA proposes to implement to provide assurances of the safe
operation of Mexican carriers and drivers on our nation's highways.
The FMCSA proposes
only to require that Mexican motor carriers certify on either the
OP-2 or the OP-1(MX) form that they will comply with the statutory
and regulatory requirements administered by the U.S. Department
of Labor, Section 18 of the Occupational Safety and Health Act,
the Surface Transportation Assistance Act, and the Fair Labor Standards
Act.
Under NAFTA, Mexican
carriers are required to comply with all U.S. laws and all applicable
state laws when they enter the country. It is a useful idea for
FMCSA to outline for Mexican carriers the particular areas of the
law that they will most likely encounter. The references to these
statutes in both of the proposed applications, however, are stated
in very general terms. For the benefit of the applicant, and the
commenters to these rulemaking proceedings, OOIDA believes that
these legal responsibilities must be more fully enumerated in the
application instructions.
The NPRMs do make
reference to the intention of the FMCSA to conduct workshops and
provide written material to help Mexican applicants "...to
understand the various requirements and the proper way to complete
the applications." There is no pending proposal, however, that
they read any FMCSA handouts or attend any FMCSA workshops as a
condition of operating in the United States.
The proposed application
process is the only mandatory requirement through which the Agency
will have an opportunity to educate Mexican carriers about U.S.
and state law before they begin to operate in the United States.
OOIDA encourages the FMCSA to explain these laws more thoroughly
in the required applications or application instructions.
While Mexican motor
carriers will face new responsibilities under U.S. and state law,
our country will face new challenges in enforcing those laws. The
FMCSA's proposed safety monitoring system is an acknowledgment by
the Agency that these challenges cannot be met by its current enforcement
efforts.
OOIDA recognizes
that these new enforcement challenges will include many areas of
the law outside the FMCSA's jurisdiction, including those listed
in the certification requirements. However, there is no apparent
effort on the part of other agencies with responsibility to monitor
Mexican trucking to prepare for the opening of the border.
What are the U.S.
Department of Transportation's plans to enforce Mexican carrier
compliance with the Surface Transportation Assistance Act? Where
are the plans from the Labor Department and the Occupational Safety
and Health Administration to ensure Mexican carrier compliance with
their laws? Where are the U.S. Customs Service and the Immigration
and Naturalization Service proposals to ensure Mexican carrier compliance
with NAFTA rules? What plans have been made to ensure Mexican carrier
compliance with individual state laws? OOIDA believes this is one
of the crucial faults of the Agency's proposal to open all of our
highways to Mexican trucks. The proposed FMCSA rules alone are a
woefully incomplete plan to allow Mexican trucking operations into
our country.
If the FMCSA truly
hopes that Mexican carriers will comply with these laws, the Agency
should at least do a better job of educating Mexican carriers on
all of their legal responsibilities before they are allowed to operate
in this country. Furthermore, all of the federal and state agencies
with responsibilities for enforcing the laws, not just the FMCSA,
should develop enforcement plans such as the Agency is attempting
to develop with these rules.
OOIDA recommends
that a joint task force be established to include at a minimum members
of the Federal Motor Carrier Safety Administration, the Immigration
and Naturalization Service, the U.S. Customs Service and the Drug
Enforcement Agency to ensure that these regulations comply with
the various agencies' regulations. Because NAFTA directly affects
the regulatory responsibilities of each agency, it only makes sense
that each has some input developing an enforcement plan that will
work for all involved.
Subpart B
- Safety Monitoring System for Mexican Carriers
§
385.21 Safety Oversight Program.
The call for
intensive monitoring and safety reviews within 18 months after issuance
of a Certificate of Registration is unrealistic and dangerously
unwise. It is ludicrous to allow Mexican-based carriers to operate
in the U.S. with the only assurance of their ability to do so safely
being the carrier's "word" on an authority application.
Who is going to
perform the safety reviews and how will they be accomplished? The
FMCSA already lacks the resources to conduct compliance reviews
on the hundreds-of-thousands of U.S.-based carriers. Unless the
Agency is willing and able to commit far more resources than has
been proposed, there is no way to ensure the safe operation of Mexican
carriers and drivers. Furthermore, what is a safety review? Since
the Agency fails to provide a definition in its proposal and none
exists currently in §385.3, the Association is left to assume
that it is something less than a compliance review - further compounding
our concerns.
The proposal would
allow safety reviews to be conducted at an alternative location
in the U.S. OOIDA believes strongly that the only way for the safety
investigator to get a true picture of the carrier's entire operation
is to conduct a review at the carrier's place of business, and it
must be a full-fledged compliance review.
The Association
believes that there are currently very little if any data existing
in Mexico on the integrity and safety performance of Mexican motor
carriers. Likely, the only available data on Mexican-domiciled carriers
resides in the U.S., and only on those vehicles and drivers that
have undergone an inspection or on carriers that have been caught
operating illegally in the U.S. All available data on Mexican carriers
must first be sought out and compiled, then heavily considered prior
to granting U.S. operating authority. The Agency is not proposing
to do so.
OOIDA is adamant
that the FMCSA must deny U.S. operating authority to any Mexican
carrier with a known poor vehicle and/or driver OOS rate. Furthermore,
any Mexican-domiciled carrier with a history of operating illegally
in the U.S. must be denied authority. To propose to open the doors
without an attempt to investigate a carrier's history and allowing
otherwise known "at-risk" carriers and violators to operate
in the U.S. for 18 months or longer is unconscionable. For those
with no available data, the FMCSA is strongly urged to conduct a
full, on-site compliance review of a Mexican motor carrier's records
and operations before considering whether to grant them U.S. operating
authority.
§
385.23 Expedited action.
How will enforcement
personnel determine the validity of the driver's license? Mexico
only recently developed a computerized system to track driver records,
and currently the database is largely unpopulated. For even those
few records that are available, the majority of border crossings
have no dedicated lines for enforcement officials to access the
information.
How will U.S. officials
know whether or not a Mexican truck has been placed out-of-service
in Mexico? If a Mexican vehicle is put out-of-service in Mexico,
U.S. officials will have no way to verify if the proper repairs
have been made. Additionally, the U.S. cannot be assured that proper
inspections, or even any inspections, are taking place in Mexico.
As of this date, Mexico has no safety inspection program in place
that even remotely compares with that of the U.S.
Enforcement officials
in the U.S. will have no way of knowing whether a Mexican driver
has been involved in a hazardous materials incident within Mexico.
Even if there were a system for reporting such incidents in Mexico,
there are no guarantees that the information will ever be available
to U.S. authorities.
Similarly, the FMCSA
will be unable to determine whether or not a Mexican driver has
tested positive for alcohol or drug use. Mexico may claim to have
a program in place comparable to the U.S. system, but how can U.S.
officials be assured that Mexico enforces these regulations?
U.S. truckers must
have valid proof of insurance to operate a commercial vehicle within
the United States. Again, the Agency has no adequate means of determining
whether or not a Mexican carrier's insurance is valid in the U.S.
Even if a Mexican driver is carrying insurance documents in the
vehicle, it may be difficult at best for U.S. officials to determine
whether the company even exists or that it is answerable to the
U.S. citizens who become accident victims. The FMCSA must assure
the public that insurance companies providing coverage to Mexican
drivers and carriers are licensed to do business in the United States.
Mexican motor carriers,
as in the U.S., must be held accountable for the actions of their
owner-operators and drivers while operating on U.S. highways. It
has been the experience of the Association that U.S. drivers are
regularly penalized for violations perpetrated by motor carriers,
shippers and receivers. When a Mexican driver is caught in violation
of a U.S. law or regulation that is clearly the responsibility of
the motor carrier, the motor carrier's authority should be suspended
or revoked.
National Environmental
Policy:
The FMCSA
claims, "
that this action does not require any environmental
assessment. An environmental impact statement is, therefore, not
required." The Association strongly disagrees. High sulfur
Mexican fuel does not meet U.S. fuel standards, nor are Mexican
truck engines required to meet the same emissions standards as those
in the U.S. As previously mentioned, Mexican trucks are likely to
"load up" on as much low cost, high sulfur Mexican fuel
as they can carry for use on U.S. highways. The effects of Mexican
trucks burning large amounts of high sulfur fuel in our country's
environment must be thoroughly studied before promulgating a final
rule.
Additionally, OOIDA
is extremely concerned about Mexican drivers entering this country
hauling hazardous materials. There are no assurances that the U.S.
training requirements for drivers hauling these materials will be
properly conducted in Mexico, if at all. Unless Mexican drivers
possess the knowledge required to safely and properly handle the
transportation of hazardous products, a rash of disastrous incidents
will likely be quick to occur. The potential for severe harm to
the environment, and the public, is enormous.
V. CONCLUSION
Allowing Mexican trucks into the United States at this time
is not in the best interest of the American public or U.S drivers
and small business truckers. Truck safety and highway conditions
will suffer greatly. Mexican motor carrier and driver safety regulations
are either inadequate or non-existent. Allowing the border to open
without correcting these inadequacies will result in a substantial
decline in truck safety.
Border enforcement
capabilities will need to be strengthened prior to allowing Mexican
trucks into the U.S. To ensure that our highways are safe, the Agency
must conduct on-site compliance reviews before granting United States
operating authority to Mexican motor carriers. Unless adequate personnel
are deployed at border zones and additional funding is committed
to provide permanent border weight and inspection facilities, there
will be no way to ensure that Mexican carriers comply with United
States laws and regulations.
It is OOIDA's belief
that few Mexican carriers are educated regarding the numerous federal
and state laws and various agency regulations they will encounter.
While many of these regulations and laws are outside of the control
of the FMCSA, implementation of the entry provisions of NAFTA will
require a cooperative effort between members of the FMCSA, INS,
DEA, U.S. Customs and state enforcement officials at a minimum.
Allowing Mexican
trucks into the U.S. should not compromise the safety of our highways.
Until measures are put in place to ensure that Mexican trucks and
drivers entering the U.S. are safe and in compliance with all United
States transportation laws and regulations, OOIDA remains adamant
that the United States-Mexico border remain closed.
Thank you for the
opportunity to comment on this matter so very important to commercial
vehicle safety and the vitality of this nation's economy.
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Respectfully
submitted,
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PAUL
D. CULLEN, SR.
JOSEPH A. BLACK
General Counsel
The Cullen Law Firm
3101 30th St., N.W. - Suite 300
Washington, D.C. 20007
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JAMES
J. JOHNSTON
President
Owner-Operator Independent
Drivers Association, Inc.
311 R.D. Mize Rd.
Grain Valley, MO 64029
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July 2, 2001
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