Datatrac Web allows users to have much greater control when determining how their end customers interact with functions like order entry and real-time tracking.  Its web-based interface makes Datatrac accessible anywhere, anytime.  Because the new interface is engineered from the ground up as a modern, web-based application, users will never be tied to a particular platform, operating system, server hardware or even physical location.  If an authorized user has access to a computer with a web browser, then they have access to their business operations system.

Now, a new and powerful module will give dispatchers unprecedented visibility and control of operations.  Critical operational data is plotted on the integrated Google Map using GPS coordinates supplied by Datatrac Mobility.  Driver, vehicle and job data are accessible for current information.  Dispatching a job is as easy as dragging and dropping it onto the appropriate driver’s icon. 

Current customers are impressed by this technology shift.  "Datatrac is not just giving us something that everyone else already has, this is different and in my opinion better.  There isn’t another company in the industry that has something like this.  The new interface is going to reconfirm to everyone in the industry why Datatrac is the leader.” said John V. Rutigliano, VP of Operations for A-1 International.

Garland Duvall, Datatrac’s CEO commented after the new module was unveiled at the company’s annual user meeting, “We have now progressed to the point where we can leverage the power of our established products in a whole new way.  Datatrac Web can fundamentally change the way that expedited carriers handle their operations.”  New modules will be released at an aggressive pace over the coming months as development continues.

Hackbarth Delivery Service has opened two new operations in Jacksonville and Gainesville, Fla.  Hackbarth has been a part of Florida’s transportation industry for almost 30 years with locations in Pensacola and Tallahassee. 

Hackbarth will offer full services in these new locations including warehousing, courier, freight, on-demand, routed and overnight services.  Daily operations are set to begin in May.  Expansion into area markets is expected to bring new business opportunities for IC drivers, warehouse crews and office professionals.

The U.S. Small Business Administration issued a scam alert to small businesses, warning them not to respond to letters falsely claiming to have been sent by the SBA asking for bank account information to qualify them for federal tax rebates. 

The fraudulent letters were sent out with what appears to be an SBA letterhead to small businesses across the country, advising recipients that  they may be eligible for a tax rebate under the Economic Stimulus Act, and  that SBA is assessing their eligibility for such a rebate.  The letter asks the small business to provide the name of its bank and account number. 

These letters have not been sent by or authorized by the SBA, and all small  businesses are strongly advised not to respond to them.

The scheme is similar in many ways to e-mail scams often referred to as “phishing” that seek personal data and financial account information that enables another party to access and individual’s bank accounts or to engage  in identity theft.

The SBA is working with the SBA Office of Inspector General to investigate this matter. The Office of Inspector General asks that anyone who receives such a letter report it to the OIG Fraud Line at 1 (800) 767-0385, or e-mail at  [email protected].

Eastern Connection, Woburn, Mass., recently relocated its Providence, R.I. office. The new facility, located at 182 Swan Street in Providence, R.I., boasts 8,400 SF of space. The expanded facility size will allow Eastern Connection to sublease space to some of its customers, to help them with supply chain logistic needs. The location is conveniently near I-95.

“The larger facility allows us to improve efficiencies in our overnight and logistics operations,” said Steve Lavigne, executive vice president of operations. “This will allow us to provide improved service and later pickup times in the state of Rhode Island.”

SmartIcon Technologies LLC, developer of SMARTLOGIN ®, a patent pending 1-Click AutoLogin technology for retailers and service providers, and Courierboard, the Online Delivery Network, have entered into an agreement to begin offering SmartLogin to their members for Courierboard.com. SmartLogin is now available for download at www.Courierboard.com

“We are extremely excited to bring this next generation login technology to all Courierboard members, which places the Courierboard logo on their PC desktop and gives them the ultimate convenience of one click autologin capabilities.  Our members will never have to remember their username and password or manually login again”, said June Hayford, Chief Operating Officer of Courierboard.  “SmartLogin gives us 24x7 desktop advertising and brand exposure that has never been offered before, and provides us with a valuable tool which turns impressions into clicks that result in more website traffic and use, which is huge for our advertisers.  Additionally, Smart Login makes it more convenient for our shipper members and companies with freight to access Courierboard to search our courier database and post RFPs and freight, bringing more business leads to our courier company members.

SmartLogin installs in 20 seconds, and allows members the ultimate login convenience to post and view information.  At the heart of SmartLogin is a patent-pending 1-Click AutoLogin component that places the Courierboard logo on a member’s PC desktop and web browser toolbar.  Members just click on the Courierboard Icon to be automatically logged into their Courierboard.com account where they can post and view information in an instant.   

“Courierboard is obviously the premier Online Delivery Network for the courier industry, and they have certainly taken an important step to continue strengthening their brand by bringing their CB Icon directly to computer desktops across North America” said Kirk Godby, owner of SmartIcon Technologies.   “In addition, they are bringing more value to their members who will certainly appreciate the convenience of one click access.”

Leading industry experts in the air cargo industry announced that as the result of a rapidly expanding Certified Cargo Screener Program (CCSP), the screening deadlines for air cargo on passenger planes are being met ahead of the anticipated schedule. However, while the screening goals are being met, the panelists also expressed concern that the Obama administration and new regulators at TSA may abandon a risk-based system of screening, leading to what they fear is increased security risks to the American public.  

At Air Cargo 2009, panelists offered a new vision of cargo security that works toward full compliance with the law, while also formulating risk-based security solutions that focus finite resources on threat detection and prevention.

“All of those in the air cargo industry have always had security as their top priority, and CCSP is a valuable tool that provides another layer of security for air cargo,” said Brandon Fried, executive director of the Airforwarders Association.  “Even with the progress to date, achieving 100 percent screening by the deadline will nonetheless be an immense challenge for the industry, not out of lack of will or resources, but instead because of the scope of the task and variations in cargo that do not exist in passenger baggage. “

These challenges, coupled with a GAO report that indicated the quest for 100 percent may actually reduce the security of the nation, were addressed by former Under Secretary of the Department of Homeland Security Asa Hutchison.  In his remarks, Hutchison commended the supply chain for working diligently toward 100 percent screening.  However, he encouraged industry to work together in a collective effort to redefine security in a way that is based on threat identification and detection. 

Looking for a place to commiserate with other small business owners?

SBA’s Business Gateway Program has launched http://Community.Business.gov – the first government-sponsored online community built specifically for small businesses.

The Business.gov Community provides small business owners, bloggers, and the government with a place to discuss and share information about starting and running a successful business.

An extension of Business.gov, the Business.gov Community combines discussion forums, blogs, an idea exchange, and more, and offers advanced tools for navigating the labyrinth of government resources, policies, laws, and opportunities that affect the small business owner.

“Over the past year, we have significantly expanded our efforts to engage with small business owners, by giving them easy access to the information they need to run their business,” said Nancy Sternberg, program manager of Business Gateway. 

As you have may have already learned from the air forwarders you work with, if you are performing pick-up and/or transfer of outbound air cargo on behalf of forwarders (IACs) these changes affect you.

• As of Feb. 1, 2009, newly hired drivers, dispatchers and anyone else who has physical access to or is involved in coordinating the pick-up or transfer of cargo that will be tendered to an airline must have a new version of air cargo security training.
• By May 1, 2009, all your current drivers and other personnel involved in air cargo operations must be complete refresher training (re-training) in accord with these new requirement even if previously trained less than one year ago.

Courier Magazine has won the 2009 Nichee Award for Best Niche Magazine Design.

Editor Jody Becker accepted the award on behalf of the magazine at the Niche Magazine Conference in Denver, Colo., on April 28. The Nichee Awards recognize the creative talents of the best niche publishers. Courier Magazine's March-April 2009 issue was submitted for judging. The magazine recently underwent a total design, spearheaded by Becker and Art Director Aaron Phillips.

For more information about Courier Magazine, visit www.couriermagazine.com.

Avalon Risk Management has opened its first international office in Mississauga, Ontario. Avalon Risk Management (Canada), Inc. was established to meet the growing demand for Avalon’s services throughout Canada and the global needs of its logistics clients.

Canadian natives Phil Amodeo and Brian Gottlieb will be overseeing the day-to-day sales efforts of the Toronto office under the direction of Robert Macher.

Hackbarth Delivery Service has added a new location in Little Rock Ark. Hackbarth now has 13 locations in seven states offering daily service to the entire southeastern United States.   

Hackbarth Delivery Service began daily operations at the end of January with plans for rapid expansion in the market with services focused on distribution, hot shots and warehousing logistics.

American Airlines Cargo Division (AA Cargo) is participating in the U.S. launch of an air cargo industry e-freight initiative which supports a move toward paperless documentation.  The initiative is facilitated by the International Air Transport Association (IATA).

IATA’s e-freight effectively eliminates the need to send 12 paper documents with air cargo shipments, which streamlines processes, improves speed and reliability, and cuts costs. IATA represents 230 airlines comprising 93 percent of international scheduled air traffic.

The first use of the new system began on American flights between New York John F. Kennedy and London Heathrow airports. Further expansion into other routes is planned, and will be launched at additional major U.S. airports.

IATA’s e-freight program is one of five Simplifying the Business projects being led by IATA to improve service and cut costs. Previous projects have included 100 percent electronic ticketing and RFID for baggage management. E-freight requires that business, technical and legal frameworks be in place to allow airlines, freight forwarders, customs administrations, and governments to seamlessly exchange electronic information and e-documents instead of paper.  In addition, the effort supports the environment by reducing paper-based waste.

“The U.S. launch of the e-freight initiative brings us one step closer to a completely paperless environment,” said Dave Brooks, President - AA Cargo. “The improvement in data quality and timeliness of information will increase the speed of our interactions, yielding more efficient commerce for all of us in the air cargo industry.”

Over the past year IATA has assessed the readiness of 209 locations worldwide in addition to the original six e-freight sites. It found that 46 countries, representing 63 percent of global air-freight volumes, have the appropriate international treaties and high level customs framework in place to qualify for IATA e-freight. The United States becomes the ninth e-freight location worldwide to deliver paper-free cargo.

Other participants in the U.S. launch include British Airways, KLM, United Airlines, DHL, and Kuehne+Nagel. IATA e-freight is also operational in Canada, Germany, Hong Kong, Netherlands, Singapore, South Korea, Sweden and the United Kingdom. The industry has set the end of 2010 as a deadline for the implementation of e-freight where feasible.

• Datatrac Corporation has added to its web-based logistics system.  As part of the Datatrac Web solution, a new online order entry capability has been added to the integrated distribution module already in use by couriers throughout the Datatrac network.  With this new functionality, service providers can expand their distribution service offering to shippers who lack advanced EDI or integration technology. (www.datatrac.com)

• ArcLogistics 9.3, ESRI`s routing and scheduling solution for fleet management, is now available. ArcLogistics 9.3 improves on the company`s ArcLogistics Route 3 solution with significant usability enhancements and new capabilities to help organizations optimize their fleet operations. Businesses and governments with fleets of any size can use ArcLogistics 9.3 to build the most efficient routes and schedules. With ArcLogistics 9.3, users will be able to send their optimized stops from the ArcLogistics desktop to ArcLogistics Navigator, ESRI`s new in-vehicle navigation application. Drivers can also receive door-to-door directions and quickest- or shortest-route options while honoring logistics-specific road attributes such as turn restrictions and vehicle speeds. ESRI plans to release ArcLogistics Navigator with Service Pack 1 of ArcLogistics 9.3. Existing ESRI software users benefit because ArcLogistics is built on ESRI`s ArcGIS platform.  (www.esri.com/arclogistics)

·        CXT Software released X Dispatch 9, a new version of its delivery management software. X Dispatch 9 boasts over thirty new feature enhancements. Highlights include new toolsets for task management, customer relationship management (CRM) and database backups. Weight Scale capabilities have been added, allowing customers to capture the correct weight on parcels that were previously understated or approximated. Multi-location companies can keep separate offices separate with the new business units feature. New integration capabilities include tapping into your telephone system’s CallerID data to pre-populate incoming new order forms, and fully automated systems which allow third-party shippers to directly inject orders into your workflow. (www.cxtsoftware.com)

• Key Software Systems, developers of Xcelerator, announce several enhancements to its dispatch software. Dispatch Ticker lists events as they occur in real-time.  A new method of calculating fuel cost allows Xcelerator users to calculate fuel on a dollar per mile basis, still centered on service and vehicle combinations. In addition, Key Software Systems recently enhanced the current MapQuest allowing users to view construction delays, traffic pattern changes and accident awareness in real time. (www.keysoftwaresystems)

Technology Pays

Members of XLA are the influential companies that participate in policy and legislative initiatives to protect the industry from onerous laws and regulations that impair business activity.  For more than 32 years, XLA has been highly successful in representing the interests of these companies in Washington, D.C., and to the world agencies that impact their businesses globally.

Salaries for most warehousing employees are trending up, according to 2008 Warehousing Salaries and Wages, the new study published by the Warehousing Education and Research Council (WERC).  However, some surprising developments were revealed, particularly in sales compensation. Among exempt employees, traffic managers, general managers and office managers experienced the greatest increase in median salary at 17.9 percent, 17.6 percent and 16.5 percent respectively. Compensation for sales positions at all levels declined by as much as 16.2 percent, in part due to a loss in bonuses/commissions received.

With a 7.1 percent increase in median wages, warehouse workers enjoyed the highest percentage gain among non-exempt employees.  Customer service representatives’ pay increased 5.4 percent, widening the gap from $.07 to $.38 per hour between their compensation and the second-highest paid (shipping and receiving clerks).

The Warehousing Education and Research Council (WERC) has set the date for its 2009 Annual Conference (32nd annual) and Industry Resources Event. The conference will be April 26-29, 2009, at the Atlanta Marriott Marquis, Atlanta, Ga. For details, visit www.werc.org.

Registration is open for Air Cargo 2009 at the Red Rock Casino and Resort, Las Vegas, Nevada, on March 8-9, 2009. The theme of this year’s conference and exhibition is “Strategies And Solutions For A Dynamic Global Marketplace.”

The conference is a joint effort of the Air and Expedited Motor Carriers Association, the Airforwarders Association and the Express Delivery and Logistics Association.

Independent Contractor Alert:

Does Your Company Use Independent Contractors?
The Enforcement and Legislative Landscape has Literally Changed Overnight.

Save the Date - 2009 Independent Contractor Summit and Lobby Day
MCAA to hold Independent Contractor Summit and Lobby Day in Washington, D.C. on March 5, 2009.

MCAA will hold an independent contractor summit and lobby day in Washington, D.C. to educate federal representatives on the courier business and its vital role in the economy of their districts.

The event will consist of education and informational sessions with outside expert speakers in the morning. In the afternoon, attendees will have pre-scheduled meetings on Capitol Hill with their Members of Congress or appropriate legislative staff person.

A room block is being secured at the Madison Hotel in Washington, D.C. Additional information will follow as it becomes available.

Congratulations to the winners of the American Express Gift Certificates in the Courier Magazine Reader Survey Drawing!

• Randy Seiler, Quick Delivery Service, Inc., Schaumburg, Ill.
• Michael Milam, Runabout Couriers, Cocoa, Fla.
• Mark Spivack, Xcel Delivery Services, Tuscon, Ariz.
• Paul Steffes, Jet Transportation & Logistics, Jamesburg, N.J.

Thank you to all who answered our questions! You have helped us in our efforts to make Courier Magazine even better for you!

The first ever Transportation Insurance Pricing Survey was issued last month to thousands of leading transportation insurance brokers, wholesalers and underwriters representing thousands of placements in every major state.

The survey indicates that prices are generally falling across the board between 10 to 20 percent, even for the most difficult to place risks. All transportation market segments have excess underwriting capacity with the availability of insurers significantly increasing in the last year. In addition, the softening of the market has resulted in underwriting standards being relaxed.

It is believed that excess capacity and intensifying competition has been partly fueled by the entry of standard insurers into the transportation market in pursuit of premium volume. These insurers are seeking above average transportation risks and charging rates significantly below specialty transportation insurers to gain market share. Historically, this "generalist rotation" has occurred in the middle to late stages of a soft market cycle.

Deutsche Post World Net, the world`s leading transport and logistics company, today announced a plan to restructure its DHL U.S. Express business by working with UPS for airlift capacity and reducing costs in its ground infrastructure. Under the plan, DHL and UPS have agreed to develop a contract whereby UPS will provide air uplift for DHL Express U.S. domestic and international shipments within North America.

In addition, DHL will align its U.S. Express infrastructure to existing shipment volumes by redesigning its ground linehaul network to better match capacity with customer requirements. The impact on service levels will be minimal with less than 4 percent of shipments affected. DHL remains focused on delivering international and domestic Express products, offering an attractive alternative for U.S. customers and keeping a strong commitment to the U.S. market.

CALSTART`s Hybrid Truck Users Forum (HTUF) selected Hybra-Drive Systems LLC in a unique government-corporate partnership to build three large Class 6 trucks using hydraulic hybrid technology for road testing by UPS, FedEx Ground and Purolator.

Under the new agreement, which is being funded by the Department of Energy, Hybra-Drive will build and deliver three hydraulic hybrid trucks over the next nine to 12 months. UPS, FedEx Ground and Purolator then will conduct a six to nine month evaluation of the vehicle. Hybra-Drive hopes the evaluations will demonstrate up to a 60 percent cut in fuel use along with an accompanying reduction in emissions.

In a hydraulic hybrid truck, a high-efficiency diesel engine is combined with a unique hydraulic propulsion system, replacing the conventional drivetrain and transmission.  The vehicle uses hydraulic pumps and hydraulic storage tanks to store energy, similar to what is done with electric motors and batteries in hybrid electric vehicles.  Fuel economy is increased in three ways: vehicle braking energy is recovered that normally is wasted; the engine is operated more efficiently; and the engine can be shut off when stopped or decelerating.

The International Bridge, Tunnel and Turnpike Association (IBTTA) released two studies that show toll roads are much safer than non-tolled roads and the public overwhelmingly supports both tolling and road pricing.

The first study compares the safety record of toll roads, tunnels and bridges to that of non-tolled facilities in the United States. The study, based on the most complete compilation of statistics available about the toll industry, concludes that toll facilities in the United States have a much lower fatality rate than do U.S. roads overall and lower fatality rates than both urban and rural interstate highways. 

The second study summarizes the findings from 110 different surveys that look at public attitudes toward tolling. The study shows that there is clear majority support for tolling and road pricing. Among all surveys, 56 percent showed support for tolling while opposition was found in only 31 percent of the surveys. 

Other findings in the studies included:

• Toll facilities in the United States have lower fatality rates than U.S. roads overall.  The Fatality Analysis Reporting System of the National Highway Traffic Safety Administration`s National Center for Statistics and Analysis reports that in 2005 the overall road fatality rate for the United States was 1.47 fatalities per 100 million vehicle miles traveled. The fatality rates for urban and rural interstate highways in 2004 (the last year for which data was readily available) were .55 and 1.21 respectively.

• Innovations in toll technology help to reduce fatality and accident rates. Traffic management information services, annual budgets, types of toll configurations, and types of managed lanes, contribute to fatality and accident rates. The survey shows that as the percentage of electronic toll collection (ETC) users during peak operating times goes up, accident rates go down.

For more about the studies, visit  www.IBTTA.org.

The Internal Revenue Service recently clarified its independent contractors guidelines in its Tax Gap publication. The fact sheet, “Employment Taxes and Worker Classification,” focuses on the level of control the worker has in the performance of his or her job. According to the fact sheet, three types of control are significant in employment. They are behavioral control, financial control, and the type of relationship. The fact sheet also contains helpful additional resources at the bottom of the page. To view the fact sheet, click here

Messenger Courier Association of the Americas (MCAA) has released the agenda for its 21st Annual Meeting on May 14 - 17 at the Loews Coronado Bay Resort, San Diego, Calif.

The Annual Meeting will offer the following educational sessions:

• Keynote Speaker Dan Clark – “The Answers Are Still In The Box”
• Building a Defense Strategy Against Employment Claims
• Contact Management Software and Maximize Your Web Presence
• Alternatives to the Independent Contractor Model
• Creating a World Class Customer Service
• Operational Efficiencies – How to Improve Your Bottom Line
• Government and Legal Affairs Update
• How to Become the First Mile – Last Mile Solution for an Air Freight Forwarder

For details about registration, visit www.mcaa.com.

The MCAA will hold its second Independent Contractor Summit on April 23, 2008 at the Madison Hotel in Washington, DC. Attendees will participate in both classroom style educational sessions and meetings on Capitol Hill with key Members of Congress.

 The summit will include education and informational sessions with outside expert speakers and closed-door discussions amongst the sameday delivery industry in the morning. United States Congressmen Dave Reichert (R-WA), a strong supporter of the independent contractor business model, and Tom Price (R-GA), a key member of the United States House Committee on Education and Labor, will speak at the event. Art Sackler, MCAA’s federal government affairs lobbyist, a representative from the Internal Revenue Service, and MCAA leadership will also speak at the event. In addition to confirmed speakers, an invitation has been sent to the National Federation of Independent Businesses.

In the afternoon, attendees will have pre-scheduled meetings on Capitol Hill with their Members of Congress or appropriate legislative staff person. These meetings will focus on educating Congress on how the sameday delivery industry operates and the challenges it currently faces. After the Capitol Hill meetings have been completed, attendees will be free to leave. Breakfast, lunch, and roundtrip transportation to and from Capitol Hill will be provided.

 “MCAA and the sameday delivery industry have come a long way since the first Independent Contractor Summit held in New York City over two years ago,” said MCAA President Rob Slack. “The first summit resulted in the development of strategic initiatives to better the industry’s position regarding the independent contractor business model, and this summit will take it a step further.”

MCAA members have been engaging their federal representatives at their district offices for more than six months. These positive results of the grassroots effort have allowed Members of Congress to better understand the sameday delivery industry. The independent contractor business model continues to be under siege from state regulators, trial lawyers, and increasingly the federal government. In 2007, the United States House of Representatives held three committee hearings on the misclassification of independent contractors. In the same year, Senate Bill 2044 sponsored by U.S. Senator Barack Obama (D-IL) was introduced in the United States Senate. This legislation includes many negative changes, most notably, the elimination of the safe harbor provisions in the tax code for independent contractors.

 Beginning with breakfast, the event will last from 7:30 a.m. ET to 5 p.m. ET. Hotel reservations can be made at the Madison Hotel ($229 a night) in Washington, D.C. by calling (202) 862-1600. The MCAA room rate code is MCA422. Please contact John Ferraro, MCAA Government Affairs Director, to request a registration form.

California Delivery Association will hold its 21st Annual Convention and Exhibition February 22-24, 2008, at the Sheraton Gateway Hotel in Burlingame, Cal.  The location is just minutes from San Francisco International Airport and near major attractions of San Francisco and the surrounding Bay Area

The annual CDA convention is the biggest of any state courier association in the country. The 2008 event promises to be an information-filled weekend with a great program lineup, exhibits by the industry’s most prominent suppliers of goods and services, unique networking and business development opportunities, and plenty of time for fun and relaxation. 

Watch the CDA website for additional information (www.cdawebsite.org) or call the CDA offices at (530) 644-8570.

In the new report "RFID for the Postal and Courier Service", IDTechEx estimate that the global market for RFID systems, including tags, in this sector will be $3 billion in 2016. It could be much bigger if current efforts to tag individual items gain widespread acceptance. In due course, more than one trillion postal items will be tagged yearly, making this the second largest application of RFID in the world after the retail supply chain.

The report details 10-year forecasts plus a full explanation of the technologies. The report also includes 30 new case studies of RFID in action in the postal and courier service in North America, Europe, the Middle East and East Asia. The major breakthroughs that will provide future success are discussed.

The report indicates that RFID is an idea whose time has come in postal, courier and high volume light logistics. In the past, RFID has been used for little more than the evaluation of postal performance, using tags in a small percentage of letters, and the tracking of a small number of conveyances and vehicles. No longer. From DHL taking bids for RFID labels on one billion packages to Saudi Post tagging postal boxes, the report shows big innovations are now happening.

For more information, visit www.researchandmarkets.com/reports/c58322.

The National Transportation and Logistics Association (NTLA) has introduced a courier service certification program for pharmaceutical distribution. The program defines standard criteria for transportation providers that wish to service this industry segment and implements an audit/certification program to document carriers’ compliance with these standards. NTLA worked with a large pharmaceutical wholesaler on defining standards in the following areas: security, facilities, insurance/risk management, closed loop delivery/chain of custody, procurement processes and implementations.

Standards and certification will create a level playing field for all carriers regardless of size and will improve quality and consistency for all wholesalers. For details about this program, visit www.thentla.com.

Courier services in China will become a new growth point in cargo transport, according to new research completed by CCID Consulting, China`s leading research, consulting and IT outsourcing service provider.

Courier services are expected to increase relatively rapidly in the next five years, except for document delivery, which will decrease due to the popularity of "courier" delivery through the Internet. World air cargo transport will increase 6 percent in the next 10-20 years, while courier services will increase twice as much, that is, 12 percent. Courier services in the Asia-Pacific region, however, will increase by a minimum of 18 percent annually. China`s courier market is currently equivalent to the added European markets and is expected to show the highest market increase at 36 percent. Currently 390,000 foreign enterprises and more than one million Chinese enterprises need to communicate on a daily basis, the majority of whom have foreign trade documents, international payments, and transfers completed by international courier. Most experts predict that the compound growth rate of China`s international courier service will reach 30 percent over the next five years.

The United Kingdom market for courier services will increase by 27 percent between 2007 and 2011, according to a new report from Research and Markets. The report further states that major sectors of the market will continue to remain saturated, however courier companies will continue to specialize in technical courier services and specialist home deliveries. Research and Markets analyzed the UK market for courier services for a five-year review period (2002-2006) and a five year forecast period up until 2011. The market is segmented into core sameday services, technical courier services, international courier services and home delivery service. The report also includes a PESTE and SWOT analysis to provide a complete picture of the market. For details, visit www.researchandmarkets.com.

A 2006 investigative report by the Toronto Star recently cited by 680News in Toronto says that courier companies are Toronto`s biggest parking violators. The report said that out of the 2.8 million tickets issued each year in the city, more than 34,000 thousand - worth about $1.5 million - are put under courier windshields.

The Toronto Star reported drivers received 130 tickets a day, which worked out to be one ticket every four minutes during business hours. One UPS worker told the Star that with the amount couriers pay in tickets, the city should be able to recover from its debt. A FedEx driver said the company would lose money if they had to wait to find parking.

According to 680News, in 2002, Toronto adopted a "zero tolerance" parking policy between 7 a.m. and 7 p.m. on main arteries, designed to ease congestion and disuade drivers from parking downtown.

Save the date for the Executive Learning Series Meeting set for Oct. 4 - 6 at the Loews Vanderbilt Hotel in Nashville, Tenn. The Executive Learning Series meeting will feature educational seminars on a range of issues affecting MCAA and XLA members, including industry best practices as well as updates from government officials on recent changes to cargo handling regulations. The event, which will kick off with a golf tournament, also features a trade show and many business-networking opportunities.o-sponsored by Express Delivery and Logistics Association (XLA) and Messenger Courier Association of the Americas (MCAA). Visit MCAA or XLA for details.

Registration is open for the National Transportation and Logistics Association’s Fifth Annual Transportation Roundtable on Oct. 16-18 at the Westin La Cantera Resort in San Antonio, Texas. This year’s Transportation Roundtable will focus on the need for service standards in the industry and what shippers, carriers and service providers need to support collaboration and work together to achieve them.  Business leaders, industry analysts and association managers will share their experience with building, promoting and managing against standards. This external perspective will be balanced with input from inside the industry to identify the functions that require standardization; discuss the trade-offs between speed and specifics; and discuss the ways that the NTLA as an organization can support the industry to define standards and ensure quality. Visit  www.theNTLA.com to register.  There is a discount of $100 for early registration by Sept. 3. For details, visit the NTLA website.

NICA (Braintree, MA), a company specializing in defining and supporting the independent contractor model, released an audit initiative, the “NICA Education and Compliance Program.” This program is designed to educate companies that use independent contractors by identifying areas where companies are not in compliance with government regulatory requirements related to the use of independent contractors.  

The intention of the program is to provide these benefits:

• Proactively identify potential problems
• Educate staff on IC issues
• Prepare employees to interact with regulatory agencies
• Understand the impact of working with ICs
• Reduce the risk of negative regulatory audit results
• Explain the regulatory agency auditing process
• Increase likelihood of positive case resolution

Instead of performing traditional paper or simple spreadsheet audits, the NICA Education and Compliance Program uses paperless mobile collection technology that allows NICA’s Business Development Representatives to conduct on-site audits of business processes and operations. Client companies can then access the comprehensive audit results through a secure website where they will have access to their audit feedback results. 

Audit feedback results include an action plan report with specific recommendations indicating how to correct non-compliant operations and educate company staff. 

For more information, contact NICA by phone: 800-551-NICA (6422) or e-mail: [email protected], or visit the company website: www.nicainc.com. 

The New York State Messenger & Courier Association invites members, guests and visitors to its annual summer event at the Terrace Club in the Rockefeller Center Hotel, June 15, 2007, 6:00 p.m.

Dinner ~ Open Bar ~ Entertainment ~ Silent Auction ~ Networking

Make new connections, learn what is going on in the industry, and a have fun while bidding on a chance for fabulous tickets to New York venues and events being offered in the silent auction.

Tickets: Members $87.50 pp / Non-members: $100.00 pp

Book early - contact Bill Goodman by phone: 718-321-1080 or e-mail: [email protected].

For more information, visit www.nysmca.org.

Attorneys for a former courier accused of throwing away mail he was tasked with delivering have reached a plea deal. Frederick S. Reincke, 30, allegedly discarded more than 200 pieces of mail at a carwash in Lancaster County, PA, while he was working as a postal carrier for Platinum Logistics, a contractor for the U.S. Postal Service. The company delivers mail for two of the county`s 370 city and suburban routes. Reincke quit his job at Platinum Logistics in September.

Reincke, who has prior arrests for possession of drug paraphernalia, disorderly conduct and driving under the influence, waived a preliminary hearing and is expected to plead guilty to obstruction of law enforcement and other government agencies, according to the Intelligencer Journal. Reincke was accused of keeping the undelivered mail in the trunk of his car for about four months before dumping it at the carwash.

 Representatives of FedEx Corp. reported a drop in quarterly earnings and warned its growth targets would be at risk if the U.S. economy did not improve, according to The Toronto Star.

The company cited a slower economic environment, lower fuel surcharges and severe winter storms for the lower profit, which still exceeded Wall Street estimates. It also gave a current-quarter outlook whose top end was above analysts` expectations.

"FedEx did a nice job in the quarter in what everyone knows is a challenging economic environment," said BB&T Capital Markets analyst John Barnes. "Their earnings guidance has spooked some people, but given that the economy is sluggish it`s entirely reasonable to temper some enthusiasm."

FedEx’s net income fell to $420 million (U.S.), or $1.35 a share, in the third quarter ending Feb. 28, from $428 million, or $1.38 a share, a year earlier. Wall Street analysts had on average expected $1.33 per share.

"The U.S. economy grew at a lower rate than we expected in the third quarter, and we saw continued adjustments in the automotive and housing markets," said FedEx chief executive Frederick Smith. "I believe, however, this represents a healthy transition for the economy as it phases into a more sustainable growth rate."

But, according to chief financial officer Alan Graf, if the U.S. economy does not improve, FedEx might not meet its fiscal 2008 target of 10 to 15 per cent growth.

Like main rival United Parcel Service Inc., FedEx is seen as a bellwether of U.S. economic activity.

Lawyers for current and former FedEx Ground/Home delivery drivers nationwide have filed motions to certify two nationwide classes and 10 statewide classes in the Multi-District Litigation challenging FedEx’s illegal classification of its drivers as independent contractors. The attorneys contend that by not classifying the drivers as employees, FedEx foisted all of its operating expenses on drivers.

Lynn Rossman Faris, Esq., co-lead counsel based in Oakland, CA, said the first wave of cases submitted for class certification follow the taking of more than 200 depositions. Among those deposed were Daniel Sullivan, founder and former CEO of FedEx Ground Package System, Inc.; current FedEx CEO David Rebholz; current Executive Vice Present Rodger Marticke; and most of the company’s top executives.

The nationwide classes the plaintiffs are seeking to certify include all current and former drivers who have been “deprived of their legal rights under the Family Medical Leave Act (FMLA) and deprived of all medical and pension and other benefits given to all other FedEx employees.”

In addition, the plaintiffs are asking certification of statewide classes citing a variety of violations of state law in the following 10 states:  California, Indiana, Iowa, Kansas, Maryland, Massachusetts, New Jersey, New York, Oregon, and South Dakota.  Plaintiffs plan to file similar class certification motions in at least 20 other states in the coming weeks.

“This is a major milestone in a landmark case involving the blatant misuse of independent contractor status to deprive FedEx Ground delivery drivers of their legal rights and to permit the exploitation of these workers who believed FedEx’s claim that they would be business partners with the multi-billion dollar company,” explained Faris.  She said the first set of cases filed is representative of a cross section of all the suits because they clearly meet or exceed the standards for class certification.

At the heart of the lawsuits is a challenge to FedEx’s right to call its 14,000 drivers “independent contractors,” while dictating to them every aspect of how to pick up and deliver packages, what to wear, what time to arrive at the customers’ doors, and virtually every aspect of their daily work lives. 

The lawsuits are seeking to have the former and current class members reimbursed for all expenses, including wage and other employment-related taxes. Experts estimate those reimbursements could approach $1 billion.

For more information, visit http://www.fedexdriverslawsuit.com

The Associated Press reported that a courier was robbed at a gas station in Indianapolis, IN, on March 14. The thieves got away with jewelry worth nearly $1 million.

As you purchase new electronics for your office or home – computers, monitors, laptops, video gaming consoles, cell phones and other hand-held devices – the Electronic Industries Alliance (EIA) (Arlington, VA) wants to remind everyone of the options available for donating, selling or recycling used electronics.  By visiting the E-Cycling Central website at www.eiae.org, consumers can search for local and national options for managing used electronics.

 “As technology advances, our members are continuously making their products more environmentally friendly and energy efficient.  We hope that consumers will take advantage of the many opportunities available, from donation or resale to responsible recycling.  EIA is happy to provide a tool to assist consumers in properly managing their used electronics,” says EIA’s Vice President of Environmental Affairs, Rick Goss.

 E-Cycling Central (formerly known as the Consumer Education Initiative) is a resource created by EIA’s Environmental Issues Council to provide not only a database of management options, but also information for consumers to make responsible decisions about how to properly manage their used products.  

Visit the E-Cycling Central website at for important tips on how to protect your privacy and identify proper management options.

Headquartered in Arlington, Va., the Alliance is made up of the Electronic Components, Assemblies & Materials Association (ECA); the Government Electronics & Information Technology Association (GEIA); the Solid State and Semiconductor Technology Association (JEDEC); the Telecommunications Industry Association (TIA); and leading consumer electronics companies who participate in EIA`s Environmental Issues Council. EIA is also heavily involved in cyber security issues through the Internet Security Alliance (ISAlliance), and education issues, through the National Science & Technology Education Partnership (NSTEP).

# # # #

DHL Express (Plantation, FL) announced new rates for 2007, including a 3.9 percent increase in the net average shipping rate for DHL Domestic Air Express and International Express, and an average increase of 4.9 percent for DHL Ground shipments and for DHL@home.

The increase for air express and international shipments is comprised of a 5.9 percent average increase in the base rates, offset by a 2.0 percentage point reduction in the air fuel surcharge index. The new rates will be effective January 1, 2007.

For more information, visit DHL online: www.dhl-usa.com.

Eric Donaldson, vice president of Hot Shot Delivery (Houston, TX) and current president and founder of the Texas Courier and Logistics Association (TCLA) announced the launching of the TCLA website: www.texascla.com.

"We are excited about the launch and hope that all Texas courier and logistic companies will join and get the benefits the association offers," notes Donaldson.

UPS Canada’s (Mississauga, Canada) drivers are helping in the fight against drunk driving this holiday season by teaming with MADD Canada (Mothers Against Drunk Driving). UPS’s brown trucks will sport red ribbons as part of Project Red Ribbon, an effort to raise public awareness about the dangers of driving under the influence of alcohol.

“The Project Red Ribbon campaign is reaching many more Canadians this year because of the efforts of UPS,” explains MADD’s Carolyn Swinson. “It is tremendous to have UPS Canada’s national outreach to help drive home our message through the month of December.”

Over four million red ribbons are distributed by MADD Canada members and its sponsors during the Project Red Ribbon campaign. By displaying a red ribbon, Canadians honor those who have been killed or injured as a result of impaired driving while reminding motorists of the importance of safe and sober driving. 

A settlement has been reached between the San Diego District Attorney and NICA, Inc., according to Thomas McGrath, president and CEO of NICA.

In May 2006, a grand jury in San Diego returned a 400-count indictment against eight current and former employees of NICA for allegedly filing false workers’ compensation claims. With this settlement, all counts against Eileen Rogantino, Wesley McClure, Timothy Bergin, Mary Jayne Graham and Andrew Rogantino have been dismissed.

“We said all along that these charges were inappropriate, and I think we’ve been vindicated by all the counts that have been dismissed.” McGrath said. “This dismissal of 397 of 400 counts is an acknowledgement of the strength of our case and our vigorous legal defense led by Richard Egbert.”

Under the terms of the settlement, Thomas McGrath, David Kenyon, NICA’s controller, and Daniel Curran, NICA’s business development representative, settled on one count each. The one count to which the three employees agreed to settle, “Misrepresentation of a Fact,” relates to a single monthly earnings report filed with the California State Compensation Insurance Fund (“SCIF”). All 147 remaining counts against McGrath, Kenyon and Curran were dismissed.

The settlement resolves all potential claims related to this matter. Although McGrath and the two remaining defendants claim they were confident that they would prevail at trial, they say they chose to settle and avoid the cost of what was expected to be a prolonged trial.

As part of the settlement, McGrath has agreed with SCIF to pay for injuries sustained by independent contractors affiliated with NICA.

McGrath adds, “NICA has always stood by independent contractors and companies that choose to utilize their services and will continue to do so in the future.”

For more information, visit the NICA website: www.nicainc.com.

Drug smugglers were unsuccessful in an attempt to use courier companies to get heroin into South Africa twice this week.

According to Ronnie Mamoepa, the South African Foreign Affairs spokesperson, someone pretending to be an official from the South African High Commission in Islamabad, Pakistan, went to a FedEx office in Islamabad on Saturday and tried to send a package to Johannesburg in an official High Commission envelope.

FedEx officials became suspicious when the person tried to use a false account number, evaded questions and left. The package was found to contain high-grade heroin.

In a subsequent incident, police reportedly seized a package containing 600 g of pure heroin being sent through DHL.

Bank Courier Robbed at Gunpoint
On Friday, October 27, bank courier Carlos Carranza was robbed while loading bank bags into a vehicle for delivery, according to a Salinas, CA, police report. Carranza was approached from behind outside Rabobank in Monterey County by a man carrying a handgun. The thief demanded the couriers’ bank bags, then fled. No arrest has been made.

In an opinion filed August 22 but certified for publication September 12, 2006, the court affirmed Santa Clara Superior Court Judge Thomas W. Cain’s order denying a petition for a writ of administrative mandate brought by JKH Enterprises, Inc. after the Department of Industrial Relations issued a stop work order and $16,000 penalty for JKH’s failure to provide workers’ compensation insurance for its drivers.

To read the Metropolitan News-Enterprise article, go to http://www.metnews.com/articles/2006/jhke091206.htm.

Southwest Airlines (Dallas, TX) raised its cargo per-piece weight limit from 150 to 200 pounds to better respond to its customers’ needs. The change creates new opportunities to provide shippers with a “one-stop shop.”

“We are thrilled to offer our cargo customers this flexibility so Southwest Airlines can ship more of their packages,” notes Southwest’s Senior Director of Cargo Matt Buckley. “While we can’t be all things to all people, relaxing our weight restrictions improves our ability to meet the needs of our customers across our expansive route network.”

 Southwest Airlines Cargo has three levels of service: NFG (Next Flight Guaranteed), RUSH Priority Freight, and FREIGHT. The weight limit increase will apply to all service levels.

 Southwest Airlines currently operates more than 3,000 flights per day to 62 cities coast to coast. Southwest’s newest and 63rd destination, Washington Dulles, is due to begin October 5, 2006.

The Texas Courier and Logistics Association (TCLA) is being launched in an effort to unite courier and logistics companies across Texas. The association’s goal is to follow in the footsteps of other state courier associations and provide insight on current legislation and serve as an outlet for business owners to share thoughts, questions and concerns.

Spearheaded by Eric Donaldson, vice president of Hot Shot Delivery Inc. (Houston, TX), the new association will include prominent courier and logistics providers from Houston, Dallas, San Antonio and surrounding areas. Through the guidance of national courier and logistics associations, the Texas association expects to become a voice for courier owners across the state in matters of current legislation.

“Too often we must turn to providers out of state to get insight on industry regulations, explains Donaldson. “With the creation of this association, we will have a larger voice on industry issues and create an open forum for courier owners throughout Texas.”

The association expects to take off by the end of the summer.

For additional information regarding the TCLA, visit the Hot Shot website: www.hotshot-delivery.com or call: 713-869-5525.

The Massachusetts Department of Workforce Development has ruled that former FedEx Ground/Home Delivery Driver Robert V. Williams was illegally denied unemployment benefits after finding that he was actually an employee of FedEx, not an independent contractor as the company has claimed, it was announced today.

In rejecting the company’s position, the Department of Workforce Development concluded after its investigation that Williams, of Berlin, Massachusetts, was entitled to unemployment benefits because his services “must be considered to have been under the direction and control” of FedEx.

In its decision, the state examiner noted numerous reasons why Williams should be considered an employee, including the fact that Williams was required to:

·       work, without flexibility typically afforded a truly independent contractor. (The schedule was dictated by the company out of its Worcester terminal in Northborough, MA.)

·       rent the company electronic package scanner, which is required by the company to monitor driver output.
·       buy the specified company uniform, and company delivery vehicle, from the company-specified dealer.

“The Decision speaks for itself, loud and clear, that Mr. Williams was an independent contractor in name only and that he is absolutely entitled to the benefits afforded other FedEx employees,” said Shannon Liss-Riordan, one of Williams’ attorneys. “It is easy to understand why the company did not enter an appearance to contest the appeal. It had no argument.”

Lynn Rossman Faris, Esq., lead attorney in the national class action suit against FedEx Ground in which Mr. Williams is a class member, hailed the decision as yet another example, from coast to coast, of decisions supporting the contention that FedEx has been misclassifying its drivers as independent contractors.

“This decision is timely as we are in full-scale depositions at the FedEx Ground headquarters in Pittsburgh on the class-action litigation,” she explained. “We have begun the process of taking 75 sworn statements, including those from top company executives, regional managers and terminal managers, all aimed at demonstrating in Federal Court what Massachusetts has just determined: FedEx Ground drivers are and have always been employees.”

###

The U.S. attorney`s office announced that a Dallas area mail courier pleaded guilty in federal court to stealing more than a dozen pieces of mail that contained company checks.

U.S. postal inspectors investigating the reports found 19 checks -- totalling nearly $500,000 -- hidden in Awunor Jackson Ikechukwu’s vehicle.

Ikechukwu, 46, faces up to five years in prison and a fine up to $250,000.

Police are looking for a man suspected of robbing a courier at gunpoint in Salinas, CA, according to the Bay City Newswire.

The courier reportedly was in the parking lot of the First National Bank in Salinas on July 14, 2006, when an unknown man approached him brandishing a handgun. The courier handed over an undisclosed amount of money and was unhurt. The robber fled on foot.

Avant Business Services (New York, NY) will open its doors as a new brand entity August 1, 2006, incorporating Service Warehousing and Logistics and Airline Delivery Services.

The consolidation of the two companies will allow customers to easily recognize and find a broad range of office and business services under one name brand. The new formation represents an operational shift for Avant Business Services from messenger company to a multidimensional service provider meeting the needs of its growing and diverse customer base.

“We are extremely excited about the new name and logo that better reflect our ‘basket’ of services,” says Avant Business Services Vice President Mark Chiusano. “Our clients have asked us to provide a wider array of business services, and this will help us meet the demand.”

Avant Business Services is privately owned and operated by the Chiusano family. Beginning as a messenger servicein 1925, the family business expanded over the years to meet customers’ needs including mailroom and courier services.

Avant Business Services is a North East regional company and maintains a network of strategic partnerships with vendors located throughout the United States.

For more information about Avant Business Services, visit www.avantservices.com or contact James Chiusano: 212-687-5145, extension 216.

The Ottawa Citizen reported that two Ottawa men were charged in relation to a cross-country drug trafficking scheme that used courier companies to ferry thousands of dollars worth of cocaine and marijuana across the country.

Initially, police found just a small quantity of cocaine while executing a search warrant, but a courier package carrying a kilogram of cocaine arrived at the residence while police were investigating. Police seized more than a kilogram of cocaine and almost a kilogram of marijuana during the bust. The estimated street value is approximately $234,000.

Colorado Court Rules Compliance With Statutory Requirements Is Mandatory in Order to Create Rebuttable Presumption of Independent Contractor Relationship

IC Alert: Same Test, Two Different Results

The Independent Contractor Monitor

[Reprinted with permission from Contractor Management Services, LLC]

When dealing with independent contractor (IC) issues, just knowing the language of the tests is not sufficient.  Companies utilizing the services of ICs need to know how the test is interpreted and applied in each state in which they operate.  An excellent example of this point is the application of the commonly referred to “ABC Test” in Massachusetts and Illinois. 

For those unfamiliar with the ABC test, it requires compliance with the all the following:

A. The worker is free from direction and control in the performance of his/her services, both in contract and in fact; and

B. The services are performed either (1) outside the usual course of business of the entity utilizing the worker OR (2) outside of all the places of business of the entity utilizing the worker ; and

C. The worker is customarily engaged in an independently established trade, occupation, profession or business of the same nature as the services performed.

In addressing the issue of what is considered to be “places of business” of the entity utilizing the services of a worker, the Massachusetts Supreme Judicial Court, in Athol Daily News, determined that, because newspaper carriers delivered the papers from house-to-house using the public roads, it is clear the work performed by the carriers (delivery of newspapers) was outside the premises of the newspaper company. The court found illogical the counter argument that the company’s “places of business” should include all the geographic area where its papers are delivered.

Unfortunately for those operating in Illinois, the Illinois courts do not share the logic of the Massachusetts courts.  In 2005, in the Chicago Messenger Service case involving unemployment benefits, the Illinois Court of Appeals ruled that Chicago Messenger’s “places of business” included any place where the drivers are representing the interests of Chicago Messenger.  In an earlier case, Carpetland U.S.A., Inc., the Illinois Supreme Court held that carpet measurers who went to customers’ houses to obtain measurements for quoting a price were “on the business premises” of Carpetland when they were at the customers’ houses because while at the house they were representing Carpetland’s interests. Relying on the Carpetland case, the court in Chicago Messenger held that courier drivers, while performing deliveries for Chicago Messenger, were representing the interests of Chicago Messenger when they picked up and delivered packages and, therefore, the roadways on which the drivers traveled became Chicago Messenger’s “places of business for purposes of the Act [part 2 of the B portion of the ABC test].” ii.

That two courts analyzing the same language came to two different conclusions emphasizes that just knowing the language of the test used is not sufficient.  Companies using the services of independent contractors need to also know how the courts in the state and the applicable agencies apply and interpret the test.  As illustrated, the ABC test in Illinois, although identical to the ABC test in Massachusetts, does not mean the same thing in each state.  A worker, who would be recognized as an independent contractor in Massachusetts, would be deemed an employee in Illinois. Same test, two different results.

For companies in Illinois, the Chicago Messenger case is definitely a shock.  What can be done about it?  Read on...

i. In 2004, the Massachusetts legislature eliminated part 2 of the B portion of the test.

ii. Chicago Messenger argued that it was merely a broker of delivery service and, therefore, the drivers were not representing its interests. The court rejected this argument.  There was not much discussion by the court on this issue.  However, it appears that Chicago Messenger held itself out to the public as involved in the business of picking up and delivering packages, not just as a broker of such services.

Illinois House Bill 5002

HB5002, titled the “Employee Classification Act,” is being sponsored by Representatives G. Hanning, C. Soto, W. Delgado, M. Anotonia Berrios, L. McKeon, E. Acevedo, E. Goler, L. Jones, E. Washington, C. Howard, P. Verchoore, J. McGuire, C. Jefferson and L. Dugan.  The purpose of the Bill as set forth in Section 3 states it is “intended to address the practice of misclassifying employees as independent contractors.”  The Bill, in Sections 10 and 20, provides that any worker providing services to/for an employer or entity shall be considered an employee of the employer or entity unless the all provisions of the ABC test are met.  The burden of proof is on the employer or entity claiming the worker is an independent contractor.

The penalties for misclassifying a worker as an independent contractor range from civil to criminal.  The Bill would make it a Class 3 Misdemeanor criminal offense for an employer to attempt to induce a person to waive the provisions of the Bill.  The civil penalties range from $1500 fines to punitive damages being paid to the person misclassified.

The current version of the Bill only applies to employers and entities that are contractors as defined in Section 5 of the Bill.  A “contractor” is defined as any person who “undertakes to construct, alter, repair, move, wreck, or demolish any fixture or structure.”  Therefore, unless further amended, the Bill does not apply to the courier industry.  However, this Bill may give the courier industry an opportunity to clarify the independent contractor issue in Illinois and alleviate the courts interpretations in the AMF Messenger and Chicago Messenger cases.  CMS recommends that courier companies in Illinois and/or the industry immediately start lobbying their representatives to have the Bill amended to add a section expressly dealing with the courier industry and providing a more reasoned and logical approach to applying the test for determining when a worker is an independent contractor as opposed to an employee.

The courts in Illinois have spoken and it is clear they will not, any time soon, be persuaded to back off or temper their interpretation of the test.  If a change is to be made in Illinois for the courier industry, it will have to be done at the legislature.  We encourage courier companies in Illinois to work with their associations and to contact their state legislators, make them aware of the problems caused by the Illinois courts, and request legislative action to remedy the adverse impacts of the court cases.

***

Through regular newsletters, CMS is taking the lead in making sure that everyone is aware of the issues, nationwide, regarding the use of independent contractors because with awareness comes the appropriate action. If you would like to receive these updates, please use the following link: http://www.icadvantage.com/Email.asp

Dennis P. Roccaforte
President - Contractor Management Services, LLC.

If you would like to speak to a CMS representative, call: 800-742-7508 or visit the CMS website at www.ICTheRightWay.com.

The Independent Contractor Monitor

[Reprinted with permission from Contractor Management Services, LLC]

Arizona

Arizona House Bill 2478 (HB 2478) proposes to amend the workers’ compensation statute to provide that a business that leases vehicles to drivers of taxis and livery vehicles is not the driver’s employer for purposes of the workers’ compensation statutes if (1) the business does not require the driver to perform work exclusively for the business, even though the driver may choose to work exclusively for the business, (2) the business does not pay the driver a salary, hourly rate or other financial remuneration, (3) obtains from the driver either a sole proprietorship waiver or an independent contractor agreement that meets the requirements of subsection D Arizona Revised statute 23-902. A business that complies with the proposed provisions of this bill is not liable for workers’ compensation coverage or the payment of premiums for the drivers. Drivers of taxis and livery vehicles receive payment directly from the passengers and are responsible for the lease payments to the business. Not expressly addressed is the impact, if any, of a driver paying the business a percentage of a fare the business dispatched to the driver.

Tennessee

House Bill3595 and Senate Bill 3717 will require all companies, prior to contracting with an independent contractor who will be issued an IRS Form 1099-Misc, to verify the independent contractor’s taxpayer identification number with the social security administration.

California

Assembly Bill No. 2186 was introduced on February 22, 2006, by Assembly Member Torrico. The current language of the bill merely states it is the “intent of the Legislature to prohibit the deliberate misclassification of employees as independent contractors . . . and to penalize intentional misclassification.” The bill does not specify what will be considered deliberate or intentional misclassification, or what penalties, if any, will be imposed beyond those currently being assessed by the California EDD and other agencies. If support can be garnered from state representatives favorable to the plight of the courier industry, this negative bill could be used as a vehicle to either adopt guidelines or require the EDD to adopt guidelines for the courier industry. Before the legislature penalizes such conduct, perhaps it can be convinced to establish guidelines by which a company can measure its utilization of independent contractors. Individual courier companies and local associations should consider taking an active stance to use this bill to try to establish guidelines.

***

Through regular newsletters, CMS is taking the lead in making sure that everyone is aware of the issues, nationwide, regarding the use of independent contractors because with awareness comes the appropriate action. If you would like to receive these updates, please use the following link: http://www.icadvantage.com/Email.asp

Dennis P. Roccaforte
President - Contractor Management Services, LLC.

If you would like to speak to a CMS representative, call: 800-742-7508 or visit the CMS website at www.ICTheRightWay.com.

IC Alert: New York

The Independent Contractor Monitor

[Reprinted with permission from Contractor Management Services, LLC]

Through regular newsletters, CMS is taking the lead in making sure that everyone is aware of the issues, nationwide, regarding the use of independent contractors because with awareness comes the appropriate action. If you would like others to receive these updates, please use the following link: http://www.icadvantage.com/Email.asp

New York

In October 2005, the Unemployment Insurance Division, the Division of Labor Standards and the Division of Safety and Health adopted guidelines to use in analyzing whether drivers, both on-demand and routed, in the messenger and/or courier industries are employees or independent contractors.  The guidelines help clarify the relationship and provide a level of certainty in a confusing and gray issue. Unfortunately, there are still efforts at the New York Assembly to pass legislation that would undo the gains made by the guidelines and hinder, possibly severally, the ability of companies in the courier and messenger industries to use the services of independent contractors.

Assembly Bill A08686 - (Sponsored by Rep. John; co-sponsored by Brodsky):

A08686 was first introduced in 2005, but no action was taken on it.  However, on January 4, 2006, it was again referred to the Labor Committee.  Hopefully, it will not gain any traction this time around and will merely die for lack of action.  However, the potential impact of this bill, and the fact that it re-surfaced even after the departments adopted the guidelines, is a reason for concern and attention.

A08686 would apply to independent contractor issues for purposes of tax and finance, workers’ compensation, or any issues arising through the Dept. of Labor (which includes unemployment).  It adopts the “ABC” test for all New York labor and tax related issues. However, like the 2004 change made in Massachusetts, the B factor is modified to require that the services performed by an IC be outside the employer’s usual course of business.  The Massachusetts change was adopted to address an issue in the construction trades, but was so broadly written that it had unintended consequences of applying to any business that uses the services of an IC.  New York bill A08686 is written with the same language as the Massachusetts 2004 change and will have the same broad impact.  CMS expects A08686 to die this year for lack of action; however, vigilance and oversight are required by the industry so the bill does not gain support and pass without noticing as happened in MA.

Assembly Bill A03347 - (Sponsored by Rep. John; co-sponsored by Nolan, Colton, McLaughlin and Cohen M):

This bill, like A08686, was first introduced in 2005 and did not receive any action.  A03347 was also again referred to the Labor Committee on January 4, 2006.  The stated purpose of A03347 is to specify specific criteria for a determination of independent contractor status.  The bill expressly replicates the Minnesota statute (M.S.A. 176.042) addressing the employee/independent contractor status issue.  A worker will only be deemed an independent contractor if all the following criteria are met:

1. Worker maintains a separate business with the worker’s own office, equipment, materials and other facilities;
2. Worker holds or has applied for a federal employer identification number;
3. The worker operates under contracts to perform specific services or work for the specific amounts of money and under which the worker controls the means of performing the services or work;
4. Worker incurs the main expenses related to the service/work performed under the contract;
5. Worker is responsible for the satisfactory completion of the work/services the worker contracts to perform and is liable for failure to complete the service/work;
6. Worker receives compensation for work/service on a commission, per job or competitive bid basis and not on any other basis;
7. Worker may realize a profit or suffer a loss under contracts to perform work/service;
8. Worker has continuing or recurring business liabilities or obligations; and
9. Success or failure of the worker’s business depends on the relationship of business receipts to expenditures.

The New York guidelines adopted in October 2005 are designed specifically for the courier and delivery industries.  They address both on-demand and routed drivers, and help provide more certainty to the independent contractor issues for the industry.  While A03347 also provides valuable guidance for independent contractor issues, and would be welcomed by those operating in states like California, the application of A03347 to the courier and delivery industries would be a step backward from the guidelines.

***

Dennis P. Roccaforte
President - Contractor Management Services, LLC.

If you would like to speak to a CMS representative you can contact us at (800) 742-7508 or visit our website at www.ICTheRightWay.com.

Political Fallout Threatens Retail Cargo

A proposal to hand over management of some terminals at certain U.S. ports to an Arab-controlled company wouldn’t affect retail cargo directly but political fallout from the plan has the potential to create disruption, according to the March Port Tracker report by NRF and Global Insight.

A change in top-level port management would not be likely to result in a change in the day-to-day managers on the docks or in the longshoremen handling cargo, according to the report. But a number of Democrats and Republicans in Congress have vowed to block the move, ignoring the fact that most U.S. container terminals are already run by foreign companies. Some legislative proposals would prohibit foreign ownership of terminal operating companies, while others call for stepped up security measures such as inspecting 100 percent of cargo.

“A massive invalidation of existing terminal leases and a fire sale of terminal operating contracts would have real potential for confusion at the top levels of terminal management,” Global Insight Economist Paul Bingham said. “It is possible that such confusion could trickle down to affect operations on the docks, especially if inexperienced port managers or federal government employees are brought in to make decisions. The magnitude of the impacts and the risk of this occurring are unknown because disruption of this order is unprecedented anywhere.”

“We’re going to monitor this situation very carefully over the next several months,” NRF Vice President and International Trade Counsel Erik Autor said. “This is a case where what happens in Washington can have as much effect on cargo as what happens on the docks. Port Tracker is going to be an essential tool for retailers working to keep their supply chains free of disruptions.”

In a $6.8 billion transaction, Dubai Ports World is slated to take over some terminal operations at the ports of New York/New Jersey, Miami, Houston, New Orleans, Philadelphia and Baltimore from the current operator, British-owned Peninsular and Oriental Steam Navigation Company. Critics claim the deal is a security risk because the company is owned by the government of Dubai, part of the United Arab Emirates. Of the ports involved, only New York/New Jersey is a major retail container port, and Dubai Ports World would take control of only the Port Newark Container Terminal, the smallest of the three terminals in New Jersey.

Despite news media and political attention focused on the Dubai issue, the March Port Tracker report found the nation’s major retail container ports in good condition, operating without congestion as the slow season for retail cargo comes to an end and volume begins to increase. Looking ahead toward the peak of the 2006 season this fall, the report sees challenges from increased growth in trade, but expects any congestion to be kept to a minimum through continued refinements to operations. All ports covered – Los Angeles/Long Beach, Oakland, Tacoma and Seattle on the West Coast, and New York/New Jersey, Hampton Roads, Charleston and Savannah on the East Coast – are currently rated “low” for congestion, the same as in February.

Nationwide, ports surveyed handled 1.23 million Twenty-foot Equivalent Units (TEUs) of container traffic during January, the most recent month for which numbers are available. The figure is up 2.1 percent from December and 8 percent from January 2005. Over the report’s six-month forecast period, February’s 1.1 million TEU, 1.4 percent from a year ago, was expected to be the lowest volume of the slow post-holiday winter season. Volume is beginning to climb again and should hit 1.4 million TEU in July, up 10.2 percent from July 2005. One TEU is a 20-foot cargo container or its equivalent.

Port Tracker, which is produced by the economic research, forecasting and analysis firm Global Insight for NRF, looks at inbound container volume, the availability of trucks and railroad cars to move cargo out of the ports, labor conditions and other factors that affect cargo movement and congestion. Subscription information is available at www.nrf.com/porttracker or by calling (202) 783-7971.

The Independent Contractor Monitor

[Reprinted with permission from Contractor Management Services, LLC]

Through regular newsletters, CMS is taking the lead in making sure that everyone is aware of the issues, nationwide, regarding the use of independent contractors because with awareness comes the appropriate action. If you would like others to receive these updates, please use the following link: http://www.icadvantage.com/Email.asp

Rhode Island

Representatives Diaz, Almeida, Slater, Williams and Anguilla introduced House Bill No. 2006-7603 (HB 06-7603) on February 16, 2006, amending the Rhode Island “Temporary Employee Protection Act” by adding a provision defining when a worker is considered an employee under the Act. Sec. 28-6.10-3(c), as proposed, defines an employee as “an individual performing any service for compensation” unless (1) the individual is free from control and direction in connection with the performance of the service, both under his/her contract and in fact; and, (2) the service is performed outside the usual course of business of the employer; and, (3) the individual is customarily engaged in an independently established trade, occupation, profession or business of the same nature as that involved in the services performed. The proposed addition also provides that the failure to withhold income taxes or to pay unemployment compensation contributions shall not be considered in determining whether a worker is an employee.

Although proposed HB 06-7603 does not impact the current tests used to analyze a worker’s status as an independent contractor or employee under Rhode Island’s workers’ compensation and unemployment statutes, it reflects a dangerous shift toward a more restrictive test for independent contractors. Further, the bill could be amended as it works its way through the legislature to apply the proposed test to all independent contractor issues. HB 06-7603 should be watched to make sure no changes or amendments are added that attempt to expand this new proposed test to the workers’ compensation and unemployment statutes.

Texas

Businesses operating in Texas that utilize independent contractors know Texas has been historically favorable to the independent contractor model. However, CMS believes the days of the Texas Workforce Commission’s (“TWC”) general acceptance of the use of independent contractors will soon be history. During a recent discussion, a TWC representative acknowledged to CMS the TWC usually upholds a worker’s status as an independent contractor if the worker voluntarily signs an agreement or other document acknowledging his/her status as an independent contractor. However, this representative stated the TWC has recently seen a rise in the number of complaints by persons who have been designated as independent contractors (alleging their signature was coerced or not otherwise voluntary).  As a result, the TWC is starting to look more closely at the independent contractor issue when it feels there might be abuses of the independent contractor model. CMS predicts that Texa s will soon join the vast majority of other states that look beyond the agreement or document signed by the worker, and will start examining the nature of the relationship between the worker and the business to determine whether a true independent contractor relationship exists. Those who do business in Texas should take note and examine their utilization of independent contractors now to avoid problems later.

***

Dennis P. Roccaforte
President - Contractor Management Services, LLC.

If you would like to speak to a CMS representative you can contact us at (800) 742-7508 or visit our website at www.ICTheRightWay.com.

IC Alert: Colorado

The Independent Contractor Monitor

[Reprinted with permission from Contractor Management Services, LLC]

Through regular newsletters, CMS is taking the lead in making sure that everyone is aware of the issues, nationwide, regarding the use of independent contractors because with awareness comes the appropriate action. If you would like others to receive these updates, please use the following link: http://www.icadvantage.com/Email.asp

PENNSYLVANIA

House Bill 1215 (HB 1215) is still working its way through the Pennsylvania Assembly and is currently before the Appropriations Committee (recommitted on Feb. 8, 2006). First introduced in March 2005, HB 1215 is intended to provide clarity to the issue of independent contractors and the application of Pennsylvania’s workers’ compensation laws.

The current version of HB 1215 (as amended December 14, 2005) will establish that an Independent Contractor, for workers’ compensation purposes, is the owner of any business entity who does not employ other persons and who meets the following requirements:

1. Has a written agreement to perform specific work for a specific amount of money;
2. Controls the means and manner of work performed, subject to any state or federal regulatory requirements;
3. Compensation is received on a commission or per-job basis, and not hourly, daily or other time period, and realizes a profit or loss from such work;
4. Is not prohibited from making comparable services available to the general public;
5. Maintains a separate business and furnishes significant tools, materials and equipment to perform the work;
6. Holds one or more bank accounts for purposes of paying business expenses or other expenses related to work performed; and
7. Is not treated as an employee for purposes of income or employment taxation with regard to work performed.

One requirement that may be problematic is the requirement that independent contractors maintain a separate bank account to pay business expenses.  If the bill is passed with this requirement, companies using independent contractors in Pennsylvania will have to remain diligent in verifying each independent contractor maintains a business bank account.

There are several favorable aspects of HB 1215 worth noting.  First, the bill states clearly and unambiguously that a person or entity using the services of an independent contractor is not liable under the workers’ compensation laws for an injury sustained by an independent contractor.  This should help deal with workers’ compensation carriers who try to extort premiums for workers who are independent contractors and not employees.  Second, the bill provides that independent contractors shall register their status with the Department of Labor.  The form of registration will contain a statement that the individual acknowledges his/her status as an independent contractor and that the individual is not eligible for benefits under the workers’ compensation laws.  This will be binding on the individual (independent contractor) unless it can be shown that the employer knowingly and with intent to defraud forced the worker to register as an independent contractor.

Dennis P. Roccaforte
President - Contractor Management Services, LLC.

If you would like to speak to a CMS representative you can contact us at (800) 742-7508 or visit our website at www.ICTheRightWay.com.

IC Alert: Colorado

The Independent Contractor Monitor

[Reprinted with permission from Contractor Management Services, LLC]

Through regular newsletters, CMS is taking the lead in making sure that everyone is aware of the issues, nationwide, regarding the use of independent contractors because with awareness comes the appropriate action. If you would like others to receive these updates, please use the following link: http://www.icadvantage.com/Email.asp

COLORADO

WARNING: Colorado Assembly members move to repeal exemption from Colorado’s workers’ compensation statutes for drivers operating under a lease agreement with a common carrier or contract carrier, and eliminate the right of independent contractors to choose their own coverage.

On February 16, 2006, Senate Bill 2006-191 (SB 06-191) was introduced in the Colorado Assembly. The sponsors of this bill are Sen. Veiga and Rep. Larson. SB 06-191 proposes to eliminate sections 8-40-301(5) and (6) of the Colorado Revised Statutes. Section 8-40-301(5) currently excludes from the term “employee,” for purposes of workers’ compensation, any person who works as a driver under a lease agreement with a common carrier or contract carrier. Section 8-40-301(6) provides that a driver excluded from the term “employee” pursuant to Section 8-40-301(5) shall be eligible for and must be offered workers’ compensation coverage by Pinnacol Assurance or similar coverage that complies with Sec. 40-11.5-102(5). The carrier can require, in the lease agreement, the driver pay for the workers’ compensation or similar coverage.

If SB 06-191 is passed, independent contractor drivers will no longer be exempt from being considered an employee of the carrier for purposes of workers compensation. This means that a carrier must cover the independent contractor driver, as an employee, under the carrier’s workers’ compensation policy. Currently, a carrier need only offer independent contractor drivers coverage under either Pinnacol Assurance or similar coverage. If the driver accepts the offered coverage, the carrier may require the driver pay the premiums for such coverage. SB 06-191 will eliminate an independent contractor’s ability to reject coverage offered under either Pinnacol Assurance or similar coverage, and to obtain other alternative coverage (e.g., coverage under a group occupational accident insurance), if the independent contractor so chooses. SB 06-191 will require all independent contractor drivers in the courier, delivery, taxi, limousine, trucking and similar industries be treated as employees for purposes of workers’ compensation.

Dennis P. Roccaforte
President - Contractor Management Services, LLC.

If you would like to speak to a CMS representative you can contact us at (800) 742-7508 or visit our website at www.ICTheRightWay.com.

IC Alert: Maine, Mississippi and Virginia

The Independent Contractor Monitor

[Reprinted with permission from Contractor Management Services, LLC]

Due to the rising concern and growing attention to the Independent Contractor (IC) model, CMS will begin sending, on a semi-regular basis, e-mail updates of legislation and other key developments.  CMS maintains a comprehensive database of IC compliance rulings, regulations, court decisions and laws covering local, state and federal agencies.  We also regularly monitor proposed legislation and other developments, across the country, that may have an impact, directly or indirectly, favorable or unfavorable, on the use of independent contractors.  Many of you probably already monitor what is happening in your own states, however, it is important that we all keep informed of the trends and happenings across the country. Through regular newsletters, CMS is taking the lead in making sure that everyone is aware of the issues, nationwide, regarding the use of independent contractors because with awareness comes the appropriate action. 

If you would like others to receive these updates, please use the following link: http://www.icadvantage.com/Email.asp.  [Editor’s note: Courier Magazine will also publish these updates on our website as they become available.]

Maine

In Maine, 2005 ME House Paper 1287 (involving unemployment compensation claims) was recently introduced.  This proposal (2005 H.P. 1287) flattens the traditional ABC test.  In order to qualify as an IC under H.P. 1287, the worker must still be free from control and direction over performance of the work (the A factor).  However, unlike the traditional ABC test that requires compliance with all three factors, H.P. 1287 only requires the worker be free from direction and control and (1) the service performed is either outside the usual course of the business for whom the services are provided or is performed outside all places of the business for whom the service is provided (the B factor), or (2) the worker is customarily engaged in an independently established trade, occupation, profession or business.

Those who operate in Maine should contact their state legislatures and voice support for H.P. 1287.  And, those who do not operate in Maine, but know others who do, should encourage those operating in Maine to actively support H.P. 1287.  It may only be one state, but each state counts

Mississippi

In Mississippi, Senate Bill No. 2181 (2006 S.B. 2181) was recently introduced.  The title of 2006 S.B. 2181 is encouraging: An Act ... to Provide that Certain Owner/Operators of Motor Vehicles are Independent Contractors and are Exempt from the Provisions of the Workers’ Compensation Law.  If approved, this bill will expressly provide that the term employee does not include an owner/operator of a motor vehicle who leases his vehicular equipment with a driver to a motor carrier under a written contract.  Such owner/operators will be considered independent contractors exempt from the provisions of the workers’ compensation statutes.

S.B. 2181 recognizes the need for workers operating as independent contractors to be protected in the event of injuries incurred while being self-employed.  S.B. 2181 will require owner/operators to provide for himself and his employees or drivers coverage under a workers’ compensation insurance policy or an authorized occupational policy.  The bill expressly states that the motor carriers utilizing the services of an owner/operator are not liable for an owner/operator’s failure to provide coverage for himself or his employees or other drivers.  This Bill deserves the industry’s full support.

Virginia

In Virginia, House Bill No. 168 (2006 Session) was submitted on December 29, 2005.  House Bill 168 will make it a criminal offense for any person to knowingly coerce, induce, or threaten an individual falsely to declare himself to be an independent contractor or falsely to claim that an individual employed by such person is an independent contractor in order to avoid or evade the withholding or payment of taxes required by law to be paid for employees.  The penalty, in addition to any other penalty available for a class one misdemeanor offense (jail time of less than one year), shall be the greater of (1) the taxes that would have otherwise been due for the person wrongly classified as an independent contractor or (2) $10,000.

The criminalization of what, in most cases, is merely a misunderstanding or lack of understanding of the laws surrounding the use of independent contractors is overkill.  The penalties (assessment of back taxes, interest and fines) already available are sufficient to penalize those who erroneously, and usually unintentionally, labeled their workforce as independent contractors when they should have been labeled and reported as employees.  Anyone who uses, has ever used, or thinks they may use, the services of an independent contractor in Virginia should be concerned about this bill.


Dennis P. Roccaforte
President - Contractor Management Services, LLC.

If you would like to speak to a CMS representative you can contact us at (800) 742-7508 or visit our website at www.ICTheRightWay.com.

The Messenger-Courier Association of the Americas will hold its annual meeting and trade show at Loews Ventana Canyon Resort in Tucson, AZ, May 17-20, 2006.

The event will feature educational programming, a trade show, golf tournament and networking events. 

Schedule of Events MCAA 2006 Annual Meeting

Wednesday, May 17, 2006
 8:00 A.M - 2:00 P.M.           Golf Tournament    
 10:00 A.M - 1:00 P.M.      Tour
 6:00 P.M. - 7:00 P.M.             New Member/Vendor/ Sponsor Reception
 7:30 P.M. - 9:00 P.M.             Grand Opening Night Reception
      
Thursday, May 18, 2006
8:00 A.M - 9:00 A.M              Meet the Candidates Breakfast
9:00 A.M -10:30 A.M        Business Meeting and Election
10:45 A.M - 11:45 A.M      Keynote - Tom Chapeaux
Noon - 1:00 P.M.                   Lunch
1:00 P.M. - 2:30 P.M.             Future of the Industry         
2:45 P.M. - 3:45 P.M.             MCAA Independent Contractor Initiative
6:00 P.M.  - 7:30 P.M.            Reception

Friday, May 19
8:00 A.M - 9:00 A.M              Meet the Vendors Brunch
9:00 A.M -10:00 A.M             Update on Courier Transportation Law
10:00 A.M - 10:30 A.M      Networking Break
10:30 A.M - 11:30 P.M.      Dynamic Business Planning, Taking it to the Next Level
Noon - 1:00 P.M.                  Lunch
1:00 P.M. - 2:00P.M.          New IAC Air Cargo Regulations
6:30 P.M. - 7:30 P.M.        Reception
7:30 P.M. - 11:00 P.M.     Annual Banquet

Saturday, May 20, 2006
9:00 A.M - 10:30          Brunch and Roundtables

For more information, visit the MCAA website: www.mcaa.com or contact Bob DeCaprio by e-mail: [email protected] or phone: 202-785-3298.

Universal Express Inc. (New York, NY) has filed a $160 million suit against Coach Industries Group (CIGI), its subsidiary, Corporate Development Services (CDS),  and others for fraud and breach of contract.

The suit seeks immediate damages for the illegal sale of Corporate Development Services to CIGI in fraudulent and intentional violation of Universal Express� contractual right of first refusal to purchase that business, then known as Subcontracting Concepts, Inc. (SCI).

 ï¿½This lawsuit and violation of our contract were the direct result of greed and opportunity,� charges Richard Altomare, CEO and chairman of Universal Express, Inc. �Universal Express has steadfastly maintained over the past twenty-three years that malfeasance will always be met with legal action from this company.  We have a zero tolerance for those who attempt to profit by disregarding the integrity and hard work of our organization.�

Rob Slack, an SCI partner, objected to the post stating: �The posting of the press release from USXP �announcing� they were suing SCI for $160M is not new news to us.  We heard about it several weeks ago.  We have already instructed our attorneys to file for immediate dismissal as this is a frivolous law suit with no merit whatsoever.

�One of the problems of living in the greatest country in the world,� continues Slack, �is that our constitution allows for anyone to sue anyone at any time.  It is unfortunate when people abuse their rights in an attempt to raise money by suing in hopes of a settlement.

�There will be no settlement in this case and there will be a counter suit to cover our legal expenses. If you do any research on USXP you will see that they have a penchant for suing people.  I assure you, this case will be disposed of in quick fashion,� concludes Slack.

Universal Express�s Altomare, however, is determined to pursue the legal action.

�To date, Universal Express has demonstrated its willingness to exercise its legal rights whenever wrongdoing occurs,� Altomare notes.  �The character of a company is often defined by what shenanigans it will not tolerate.  We remain confident of the outcome of a suit when the facts and evidence are presented to the court.�

For more information on the suit, visit the Universal Express website. 

Summons: www.usxp.com/cigisummons.pdf
Complaint: www.usxp.com/cigicomplaint.pdf
Exhibits:    www.usxp.com/exhibits.pdf

In preparing to write an article on the EDD�s campaign against California delivery companies, a Los Angeles Times reporter interviewed NICA Director Tim Bergen.  The article, �Delivery Companies Pressured,� [http://www.latimes.com/business/taxes/la-fi-contractors5dec05,1,2760913.story?coll=la-headlines-business-taxes] appeared late last year. 

Feeling that his comments and NICA�s services were misrepresented in the article, Bergin responded with several key clarifications. His comments, in part, follow.

�The real story of independent contractors use in California begins about four or five years ago when the California Workers� Compensation market started to experience problems.  At that time, a number of California courier companies that utilized the Employee Driver Operator Model were paying approximately fifteen dollars per one hundred dollars in employee driver wages for worker�s compensation. 

�The fifteen-dollar figure quickly jumped to the mid-twenties, which increased to mid-thirties and in some situations exceeded forty dollars.  The net result of the workers� compensation crisis is that many courier companies experienced a significant loss in operating revenue and were faced with essentially three options: close the doors, leave the state, or explore a new business model.  Not surprisingly, in order to survive, several courier companies made a business decision to transition to an independent contractor driver model.  NICA�s role was simply to provide an efficacious way to service these new independent contractor relationships.

�I note that Mr. Lifsher made no mention of the numerous and successful NICA independent contractor status challenges before Administrative Law Judges, the California Unemployment Insurance Appeals Board (CUIAB) and the Department of Labor.  Over the years, NICA has relied upon these legal challenges to conform its business practices to the existing law and has even developed an educational program based upon these legal principles for independent contractors and contracting companies.  However, given the heightened level of audit activity, it appears now that even prior favorable decisions may be of little consequence to preventing or passing an EDD audit.  This is clearly illustrated in the plight of one Los Angeles-based courier company that has won two California Unemployment Insurance Appeals Board (CUIAB) cases and one Administrative Law Judge decision upholding the independent contractor status of certain drivers.  Nevertheless, the EDD still audited and assessed this same courier company and is now seeking an administrative determination that other independent contractor drivers were employees.

�Coincidentally, these aggressive EDD practices are the very reason for the passage of AB1643 in the past year.  AB1643 signed into law by Governor Schwarzenegger on September, 28, 2004, requires the EDD to conduct a 12-month study and report to the legislature by July 1, 2006, regarding existing classification procedures.  More particularly, AB1643 requires the EDD to report on the following: 1) the number of small business owners who have objected to being classified as employees in the past five years; 2) the number of those found to be independent contractors and 3) the length of time it took to make final findings in each case. 

�It is very puzzling why such a momentous event related to the independent contractor classification issue was never referenced in such an allegedly fair and balanced article.  It is also puzzling why Mark Ridley Thomas, a Los Angeles Assemblyman and creator of the bill, was apparently never interviewed by the L.A. newspaper for his perspective on this issue. 

�An October 1, 2004, National Association of Woman Business Owners (NAWBO) press release points out that AB1643 was sought after woman-owned businesses and other companies found themselves facing extensive state audits, fines, attorney�s fees and back taxes.  The press release further notes that state officials insisted on viewing companies and independent contractors they used as employer and employees.  Accordingly, AB1643 makes it clear that the EDD�s campaign against NICA and the courier industry was preceded by the EDD�s campaign against small businesses in general, particularly those utilizing independent contractor consultants.

For more information, visit NICA on the Internet: www.nicainc.com, or call:  800-551-NICA.

Continental Messenger and Delivery Services (Burbank, CA) has joined the Muscular Dystrophy Association (MDA) in planning an inaugural Tee Up for MDA Golf Tournament.

Coined �The Drive for a Cure,� the event will be held the morning of March 27, 2006, at La Canada Flintridge Country Club.  Proceeds from the golf tournament will fund research and services for local families living with muscular dystrophy.

In addition to participating as a golfer, there are also sponsorship opportunities that range from Hole Sponsor to Golf Cart Sponsor.  Sponsors of this event already include: Continental Messenger and Delivery Services, The Walt Disney Company, NICA Inc., and City National Bank.

The tournament will be followed by an auction with several exciting items, including trips, gift certificates, and valuable products.  Following will be an awards banquet to recognize the day�s top golfers.  Other contests will be held throughout the day for golfers to compete for prizes, including a Lexus for any lucky golfer who hits a hole-in-one.

�Events such as this are only possible through the participation and sponsorship of generous individuals and organizations,� says Barry Greer of Continental Messenger who is heading up the event. �The team participation fee of $700 includes greens fees, cart, lunch, contest entries and awards banquet for four. For $40, non-golfers will be able to purchase tickets in advance for the awards banquet.�

For more information on sponsorship and participation opportunities, contact the MDA at 818-981-8200 or visit the Tee Up for MDA website at http://mdasfv06.golfreg.com/.

California Delivery Association�s 2006 Convention & Exhibition will be held February 24-26, 2006 at the Hyatt Regency Santa Clara Hotel in Santa Clara, California � adjacent to Great America Theme Park. The conference is designed to give attendees an edge over the competition and to enable informed decision-making.

Planners expect the weekend to be information-filled with a great program lineup, exhibits by the industry�s most prominent suppliers of goods and services, unique networking and business development opportunities, and plenty of time for fun and relaxation.

As the industry confronts new challenges, successful companies are finding ways to distinguish themselves from the competition.  They are also learning what it takes to manage and operate profitably in a state that isn�t known for its friendliness toward business.  These new tactics and methods will be shared in the special sessions aimed at helping companies achieve success.

This is an industry event, for members and non-members alike, and special �Saturday-only� pricing packages have been developed to make it very affordable for everyone.

For more information, visit CDA�s website: www.cdawebsite.org, or call: 530-644-8570.

In a show of resiliency, strength and determination, most of the U.S. Gulf Coast seaports impacted by back-to-back hurricanes this past season have returned their operations to at or near what they were before the storms hit in August and September.  Even those with the most extensive damage are reporting significant progress toward accommodating the normal volumes of freight and passengers on which their communities and the nation depend.

 ï¿½I�m awed at the speed at which these hurricane-ravaged ports have worked to bring their operations back on line, � reports Kurt Nagle, American Association of Port Authorities president and CEO.   ï¿½America�s seaports make up the backbone of our economy, so the faster they can get back to normal operations after a disaster, the better off we are as a nation.  The men and women who run these ports are showing terrific leadership in the face of daunting challenges.�

Examples of ports with operations at or near pre-hurricane levels include the Texas port of Beaumont; the Louisiana ports of Lake Charles and Fourchon; and the Alabama State Port Authority at Mobile. 

Port of Beaumont Executive Port Director David  ï¿½Chris� Fisher notes his port is back to 100 percent of operational capacity after being hard-hit by Hurricane Rita, while Adam McBride, Port of Lake Charles� port director, offered a similar report, noting that all road and rail connections are fully functional again, and the port�s workforce has returned to handle all cargo.

At the southern tip of Louisiana, Greater Lafourche Port Commission Executive Director Ted Falgout reports the petroleum-handling facilities at Port Fourchon are about 90 percent back to normal.  Although not all storm damage has been repaired, Falgout reports that all berths at his port are fully functional and extremely busy as a result of damage to the neighboring petroleum service bases of Venice and Cameron.

Further east, Alabama State Port Authority Director and CEO James Lyons says the Port of Mobile was open for business and handling vessels the Saturday following Hurricane Katrina.  He estimates the Port of Mobile is now 95 percent functional, with repairs completed in most areas and the balance to be finished by late spring or early summer.

Louisiana�s renowned Port of New Orleans and the two largest ports along the Mississippi Gulf Coast � Pascagoula and Gulfport � received the storms� largest impacts.

Gary LaGrange, Port of New Orleans� president and CEO, reports that his port has seen the return of about half of its normal activity and about 60 percent of its normal trucking activity, even though approximately one-third of the port�s infrastructure was heavily damaged by Hurricane Katrina. 

Have you been accused of not making your estimated tax payment? It may be because on Sunday, September 11, 2005, an accident occurred on the San Mateo Bridge near San Francisco, CA.  A courier truck transporting payments to an IRS Payment Processing Site overturned, causing approximately 30,000 Form 1040ES quarterly estimated tax payments to be ejected into the San Francisco Bay.

If you sent a tax payment that has not cleared your bank, you should send another check and indicate on it: �2005 Form 1040ES Replacement Check.�

If you stop payment on your original payment check, you can request a reimbursement of bank charges. To file a claim, you must complete Form 8546, Claim for Reimbursement of Bank Charges Incurred due to Erroneous Service Levy or Misplaced Check.  You can obtain the form on the Internet: www.irs.gov or by calling 800-TAX-FORM.

IC-Friendly Bill Pending in the Pennsylvania Senate

A bill pending in the Pennsylvania Senate will have a positive effect on Independent Contractors operating in that state, if passed.  Senate Bill #643 was introduced by Senator John Gordner of Pennsylvania�s 27th District.

The legislation permits independent contractors without employees to certify with the Bureau of Workers� Compensation that they are exempt from the requirement to carry workers� compensation insurance.  The certification will, in turn, indemnify businesses that contract with these independent contractors from liability for the contractor�s work-related injuries.

For more information, visit:  http://www.legis.state.pa.us/

America�s small businesses continue to drive the U.S. economy, according to the updated 2005 Small Business FAQ, (http://www.sba.gov/advo/stats/sbfaq.pdf)  recently released by the Office of Advocacy at the U.S. Small Business Administration.  The updated FAQ compiles the most recent and important small business statistics in a useful and easily understood document.

�The 2005 Small Business FAQ is a great resource for small business people, policymakers, and anyone interested in how small business drives our economy,� said Dr. Chad Moutray, Chief Economist for the Office of Advocacy.  He added, �These statistics paint a compelling picture of just how important small business is to America.  They show that small businesses are America�s job-creators, innovators, and the path to mainstream economic activity for all segments of our society.�

Small business statistics highlighted in the 2005 Small Business FAQ include:

*  Small businesses represent 99.7 percent of all employer firms.

*  Over the past decade, small business net job creation fluctuated between 60 and 80 percent.

*  Small businesses generate more than 50 percent of the nonfarm private gross domestic product (GDP).

*  Two-thirds of new employer establishments survive at least two years after start-up, and 44 percent survive at least four years.

*  Small businesses employ half of all private sector employees.

*  Very small firms with fewer than 20 employees spend 45 percent more per employee than the largest firms to comply with federal regulations.

*  Minorities own 4.1 million firms that generate $694.1 billion in revenues and employ 4.8 million workers.

*  Women own 6.5 million businesses that generate $950.6 billion in revenues, and employ 7.2 million workers.

*  In 2004, an estimated 580,900 employer firms opened while an estimated 576,200 closed.

The Office of Advocacy, the �small business watchdog� of the government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President.  It is the source for small business
statistics presented in user-friendly formats and it funds research into small business issues.

For more information and a complete copy of the 2005 Small Business FAQ, visit the Office of Advocacy website at www.sba.gov/advo.

PRESS RELEASE

Release Immediately
Contact: Mary Jo Viola
201-661-2464, [email protected]

Capacity Coverage, one of the nation�s leading transportation brokers, has teamed up with Khoury Claims Service to offer policy holders the highest quality claims management services available. �For over 20 years The Capacity Group has been dedicated to offering policyholders the best service available. By teaming with Khoury Claims our service capabilities are even better,� says Capacity�s Chief Operating Officer Carl Gerson.

Policyholder benefits include expedited claims recovery, pre-paid cash options, reduced premiums, limited deductibles, deductible recovery, as well as maximum recovery on physical damage and loss of revenue.  In addition, clients will able to submit, view and manage claims online 24 hours a day.

Khoury Claims Services (KCS) is best known in the car-rental industry -- serving clients such as Hertz, Avis, National, Alamo, Budget, Dollar, Thrifty, Advantage, and many independents. KCS focuses on increasing cash flow and eliminating net loss by providing claims subrogation and fleet acquisition and disposal services. The KCS management team is comprised of recovery professionals who have industry experience in diminution of value, I-CAR, and manufacturers repair specifications.

Founded in 1985, the Capacity Group is currently the 65th largest insurance brokerage firm nationwide as ranked by �Business Insurance�, and among the top five privately held brokerage firms in New Jersey. Capacity�s expertise includes Property and Casualty insurance, Employee Benefits, Life, Health and Financial Planning.

• John Rosso - Midway Ford Shirt
• Mitchell Frost - Midway Ford Rugby Shirt
• Gail Rosso - GPS Software System
• Norman Countway - IPOD
• Ryan MacDonnell - IPOD Shuffle
• Robert Santandrea - Midway Ford Jacket

Each year Courier Magazine presents the Mercury Award to someone who has had a significant and consistent impact on the messenger-courier industry.  This year, it was Courier Magazine�s honor to present the award to Carrie Ehlers, president of Bonded Messenger Service, Inc. (Milwaukee, WI).

Carrie Ehlers is well-known throughout the industry both for her advanced knowledge of transportation business practices and her willingness to share her knowledge and expertise.  She has advised countless industry peers who want to know about the innovative programs for safety and motivation she developed and instituted within her own company.  In addition, she unselfishly volunteers countless hours to share that knowledge and expertise with Courier Magazine, ECA and other groups.  She attends all industry conferences, is a valued speaker at most of them, and sits on panels and advisory boards.  She gives of herself wherever there is need.

Courier Magazine is proud to add Carrie Ehlers to its list of dedicated industry professionals who make the delivery business more profitable and pleasant for all.

U.S. Department of Transportation Issues New Rules Regulating Work and Sleep Schedules for Commercial Truck Drivers

The U.S. Department of Transportation`s Federal Motor Carrier Safety Administration (FMCSA) issued a new Hours-of-Service rule that spells out the length of time commercial drivers can operate trucks before they are required to take a break. The new rule is the product of years of research meant to keep drivers healthy and make highways safer, officials said today.

      The new rule replaces Hours-of-Service regulations that were last updated in 2003. Parts of the rule, including the maximum driving time and minimum rest limits remain the same. However, the new rule includes changes affecting short-haul operators and longer distance drivers who use in-cab sleeper-berths for their rest.

      �This new rule will help keep drivers healthy and make our roads safer,� said Secretary of Transportation Norman Y. Mineta. �Drivers that are well rested are less likely to lose control, crash, or injure others.�

      �The research shows that this new rule will improve driver health and safety and the safety of our roadways,� said FMCSA Administrator Annette M. Sandberg. �Ensuring drivers obtain necessary rest and restorative sleep will save lives.�

      The most important change under the new rule now allows short-haul operators not required to hold a commercial drivers license, like landscape crews and delivery drivers who work within a 150 mile radius of their starting point, to extend their work day twice a week. They also will no longer have to maintain logbooks. The change was prompted by safety data that show short haul drivers make up over half the commercial fleet yet are involved in less than seven percent of the nation`s fatigue-related fatal truck crashes, Administrator Sandberg said.

      As in the 2003 regulations, the new rule prohibits truckers from driving more than eleven hours in a row, working longer than 14 hours in a shift and driving more than 60 hours over a seven day period or 70 hours over an eight day period, Administrator Sandberg said. In addition, the new rule requires truckers to rest for at least ten hours between shifts and provides a 34-hour period to recover from cumulative fatigue.

      FMCSA said it tasked driver health and safety experts to review over 1,000 health- and fatigue-related articles and studies and considered thousands of comments received from drivers, truck companies, safety advocates and researchers before settling on the new safety provisions. Based on this research, FMCSA concluded the new rule will keep drivers healthy and reduce the 5.5 percent of fatal truck crashes that are caused by driver fatigue.

      Another change contained in the new rule requires truckers who use sleeper-berths to rest for eight hours in a row, and take another two consecutive hours off duty before resetting their daily driving schedule. Studies show that drivers are less likely to be fatigued if they take a single eight hour block of rest than if they break their rest into smaller periods of time as they were allowed under the previous rule.

      As in 2003, the new rule announced today applies only to commercial truck drivers, and not to passenger motor coach operators. Motor coach drivers are still covered by the Hours-of-Service rules in effect prior to 2003.

      The new rule will go into effect October 1, 2005. Sandberg pledged to work with states and the trucking community for the first three months the rule is in effect allowing them time to update educational materials, train employees and re-program driving schedules. During this transitional period, FMCSA and state law enforcement officials will monitor carriers for egregious violations of the new rule and pursue enforcement action where necessary, she said.

      For more information, or to review the new Hours-of-Service rule, visit www.fmsca.dot.gov.

Announcing that they are ready to begin serving the Norfolk, VA region, American Expediting Company president, Vic Finnegan, reported on the availability of a �team of trained couriers� specially designated for that city.

�Norfolk was deemed an area with a growing need for courier work,� says Finnegan. �It is likely too, that additional expansion will take place in the counties adjacent to this community.�

Citing the entire region as �fertile,� Finnegan noted that there are preliminary plans to develop business relationships throughout Virginia indicating that other location openings will soon follow.

American Expediting Company, a 24/7 rush/same-day delivery service headquartered in Philadelphia, PA, has over 18 locations on the East Coast and as far west as Detroit, MI.

For information on the Norfolk service, or to place an order, contact Kelly Wince at 888-288-9980. America. For additional information on American Expediting Company, visit the website at www.amexpediting.com.

PRESS RELEASE

Release Immediately Contact:
Mary Jo Viola
1-800-222-2425
[email protected]

Executives Convene to Address Bank Courier Issues
Executives from nationwide courier service Beavex, insurance broker Capacity Coverage, and Lloyds of London broker Claytons convened at Lloyds of London to address issues regarding claims underwriting and improved security measures for courier companies in the banking industry.

Both BeavEx and Capacity Coverage take a leadership role in National Transportation & Logistics Association (NTLA) efforts to encourage banks, courier services, and the insurance industry to work together to create industry �best practices� for bank transportation.

Oil Prices Impact Gross Domestic Product

Federal Chairman Alan Greenspan predicts the rise in oil prices in 2005 will reduce our nation�s gross domestic product (GDP) growth by 0.75 percent.  Given that our economy is approximately $12 trillion in size, that reduction is equivalent to $90 billion.  The price of a barrel of oil has gone from $43.45 on 12/31/04 to $60.57 at the end of July 2005, an increase of +39 percent year-to-date. 

(Source: Federal Reserve, Commerce Department, NY Mercantile Exchange.) 

If the drivers are successful, FedEx Ground could face an unprecedented increase in operating costs and a complete overhaul of its work force. 

The drivers, as reported by the Associated Press, are suing because FedEx refuses to hire them as employees. The drivers fit the description of independent contractors in that they do own their own trucks and pay their own operating expenses.  But, they claim FedEx controls just about everything they do: the hours they work, where and when they pick up or deliver packages, how they maintain their trucks, even how they dress. FedEx also prohibits drivers from using their trucks to carry non-FedEx shipments.

 ï¿½They�re calling these drivers independent contractors, but they�re really employees,� says Christopher Gilreath, a lawyer for a group of Memphis drivers who filed suit against FedEx in federal court last month.

Gilreath said more than a dozen similar suits are planned or have been filed around the country. The lawsuits directly affect small groups of current or former drivers, and some plaintiffs have already sought class-action status that could expand the reach of court rulings.

Last year, a Los Angeles court decided that one category of contract drivers for FedEx Ground should be treated as company employees. FedEx has said it will appeal.

FedEx cranked up its competition with Atlanta-based UPS in 1998 when it bought several trucking operations, including RPS Inc. which later became FedEx Ground. RPS had relied on contract drivers since its creation in 1985. Drivers for UPS are company employees driving company-owned trucks.

Small Business to Impact Government Decisions

Congressional Action to Stop Junk Faxes Allows Small Businesses to Communicate With Customers

With the passage of the Junk Fax Prevention Act of 2005 (S. 714), signed by President Bush on July 9^th, Congress has acted to stop junk faxes while ensuring that small businesses can communicate with their customers.  The legislation ensures that businesses can send faxes to customers with whom they already have an established business relationship without having to obtain written prior approval.   

The legislation prohibits sending unsolicited fax advertisements to anyone who has requested that they not be sent.  Unsolicited faxes can be sent if the senders have an established business relationship with the customer and the fax contains a conspicuous notice on its first page that the recipient may request not to be sent any further unsolicited faxes.  To prevent third party mass marketers from buying fax lists, businesses must obtain fax numbers either directly from the recipient, or from a published source such as a directory, advertisement or Internet site.

The Junk Fax Prevention Act of 2005 overturns overly broad regulations issued by Federal Communications Commission (FCC) in July, 2003.  Those regulations would have made it illegal for businesses to send faxes to even long-time customers unless they had specific written permission to send a fax to a particular number.  The FCC regulations were opposed by a broad range of over 600 businesses and trade associations who joined the �Fax Ban Coalition� organized to oppose and reverse the FCC�s regulations.

United Express System, Inc. of Aurora, Illinois has been named as a recipient of the �Small Business of the Year� award by the Greater Aurora (IL) Chamber of Commerce. The Award which was announced by the Chamber at its May 19th Annual Meeting coincides with United Express�s 20th year in business.

In 1985 Brad and Janice Westrom, United Express owners, started serving the Fox Valley area as an on-call messenger service. Today the company has expanded and diversified into local cartage, expedited freight, distribution, warehousing and fulfillment services.

United Express System has grown into one of the most widely used services of its type and prides itself on long term partnering and outstanding customer service.

The Westrom�s credit their continuing success on the loyalty and dedication of their employees who continuously strive to be #1 in customer service. Brad stated that �without great customer service we would not exist. We have persevered through many ups and downs during the early years, but it is now paying off mainly in happy customers. We try to go the extra mile and perform that which others can�t or won�t.�

Chicago Skyway Begins Electronic Toll Collection Friday, June 17, 2005
Six Lanes Convert to Illinois Tollway�s I-PASS System

Electronic Toll Collection (ETC) will begin Friday, June 17, 2005 for motorists traveling on the Chicago Skyway, the 7.8 mile bridge that connects the Indiana Toll Road to Chicago�s Dan Ryan Expressway (I-94).  Skyway Concession Company, LLC (SCC) is implementing an ETC system that is compatible with the Illinois Tollway�s I-PASS and with transponders from several states to the east of Illinois.

The new system opens the Skyway to speedier travel for millions of I-PASS customers using their existing transponders. I-PASS users must pay full Skyway rates and do not receive discounts on their tolls, as they do on the Illinois Tollway.

The Skyway has modified three of its eight existing lanes in each direction as dedicated I-PASS lanes. Additionally new, faster-opening gates have been installed in the I-PASS lanes for immediate response as an electronic transaction is completed. Vehicles traveling through the plaza can maintain a maximum safe speed of 5 miles per hour. For information, concerns, or in case of emergency, drivers should contact 312-747-8383.

Independent Contractor Issues Flare

California has long been known for its inflammatory policies regarding the IC vs. employee matter.  Now, Massachusetts may be joining California in that hot seat.

The difficulty began in July 2004, when Massachusetts� Governor Romney signed a bill amending the Massachusetts law that creates a presumption that workers are employees, not independent contractors.

Another Massachusetts law, which became effective September 8, 2004, fed the fire by increasing the potential sanctions for misclassification of workers as independent contractors.

Fanning the flames, Harvard University and the University of Massachusetts released the results of a joint study in December 2004 reporting that up to 248,000 workers in Massachusetts were misclassified as independent contractors. According to the study, the action cost the state $152 million in uncollected income tax revenue, and $35.1 million in unemployment insurance taxes.

Now, Massachusetts workers may only be classified as independent contractors if they meet the state�s rigid �three-factor� rule.  All three points must be met, a feat that is thought by many to be more difficult to satisfy than the traditional common law test or the IRS�s familiar Twenty Factor Test.

 
The three-factors:

1. The individual is free from control and direction in connection with the performance of the service, both under his contract for the performance of service and in fact;

2. The service is performed outside the usual course of the business of the employer;

3. The individual is customarily engaged in an independently established trade, occupation, profession or business of the same nature as that involved in the service performed.

 
The flames continue to spread as four Massachusetts drivers filed a class-action lawsuit against FedEx Ground (Pittsburg, PA), claiming that they were unlawfully classified as independent contractors. This action, filed May 6, 2005, is the first brought on behalf of all 17,000 of FedEx�s IC drivers in the United States and Canada. According to The Boston Globe, FedEx Ground spokesman David Westrick, declined to comment on the specifics of the lawsuit. He said, however, that since the delivery firm was founded in 1985, it has relied on independent drivers and will continue to do so.

Chicago FedEx drivers followed by filing a class action suit there.

The situation does not look promising for FedEx.  In a similar suit last July, a California court ruled in favor of FedEx workers who claimed to be employees.  Westrick said the company plans to appeal that ruling.

The main points the drivers are using to make their case is that they were retained as independent contractors but treated exactly the same as employees. They claim that they provided their own vehicles, paid for their own gas and repairs, but were required to work a minimum amount of hours for FedEx and were not allowed to drive for any other delivery companies. They also did not receive health insurance or retirement benefits.

Hope on the Horizon

New York State is the first to show some flexibility on the issue.  The NY Department of Labor is working with a group of legislators and the New York State Messenger and Courier Association, Inc. to establish guidelines that will allow for varying flexibilities depending on the industry type. 

Among the issues being addressed by the New York task force is the use of uniforms for IC drivers.  Traditionally, if courier companies require drivers to wear uniforms they are considered to be crossing the line of �direction and control.�  This violation often automatically throws these drivers into the employee category. However, because of heightened security in the post 9-11 environment, the new parameters would allow courier companies to require their independent contractors to wear uniforms.

According to Christopher MacKrell, who is a business development manager with CD&L and a member of the task force, the guidelines should be finalized by July of this year.  MacKrell believes the goals are �achievable for those who want to do it right.�

Industry hopes remain high that once New York allows for a more flexible view, other states may follow suit.

FORT SMITH, ARKANSAS (April 1, 2005) � In anticipation of rapid growth over the next 18 months, Arkansas- based EagleOne Logistics has named Kennie Kerr, Vice President of Sales and Marketing.  Kerr will oversee all marketing projects for the company and handle sales for both national and local Houston based accounts. 

Kerr is a graduate of Texas A&M University, and comes to EagleOne Logistics through the recent acquisition of Express Time Delivery.  As one of the former owners of Express Time Delivery, she brings with her 12 years of experience in the transportation industry in sales, marketing, and business management.

CONTACT:  Kennie Kerr          
281.580.8181

EAGLEONE LOGISTICS ACQUIRES EXPRESS TIME DELIVERY, PREPARES FOR RAPID EXPANSION INTO TEXAS MARKET

FORT SMITH, ARKANSAS (April 1, 2005) � In preparation for its rapid growth within the Texas market in 2005, EagleOne Logistics has purchased Express Time Delivery. The purchase of Express Time Delivery, a full service transportation provider based in Houston, Texas, provides EagleOne Logistics with an opportunity to offer full service transportation solutions to clients in the state of Texas.

�Express Time Delivery has been a long term provider of quality transportation solutions to the Texas market� said Greg Hasley, President of EagleOne Logistics. �The compatibility of Express Time Delivery with EagleOne Logistics was very good, making this a perfect choice for expansion into this market share.�

Hasley also states �EagleOne Logistics is currently positioning for rapid growth into the Texas market share, through new contracts and current client relationships. It�s acquisition of Express Time Delivery has allowed us to become a more competitive participant, while still maintaining our focus on quality customer service.�

Contact: Kennie Kerr
281.580.8181