The Source for Trucking News, Opinions and Trucking Jobs | Class Action Against North American

One of the many good things about OOIDA is they go after companies that rip off the drivers. I’ve never worked for North American, but I have worked for Graebel Van Lines and many of the same complaints could pertain to Graebel or any other Van Line.

SPECIAL REPORT: OOIDA files
class action against North American Van Lines

The Owner-Operator Independent Drivers Association and six
of its owner-operator members have filed a class action against North American
Van Lines in federal court in Roanoke, VA. The complaint was filed on behalf of
all owner-operators moving freight under North American’s federal operating
authority. The lawsuit seeks injunctive relief and damages for wide ranging
violations of the federal truth-in-leasing regulations.

The complaint challenges North American’s business practices
toward its independent drivers. At the most fundamental level, federal law
requires that the relationship between the carrier and driver must be governed
by a written agreement. The suit alleges that hundreds of owner-operators have
driven for North American for many years with no written agreement.

Graebel has definite wrtten agreements. No problem there.

The complaint alleges that North American unlawfully reduces
the revenue base from shipments on which owner-operator compensation is
calculated, and that North American does not provide drivers with required
information and documentation that would allow them to check the accuracy of
amounts paid to them for their services.

Since I didn’t work on percentage I didn’t have to worry about that. But all the other household drivers did work on percentage.

North American, like most motor carriers, reports state fuel
use taxes on a fleet-wide basis. Drivers pay the fuel tax at the pump, and
receive credits for amounts overpaid in various states. The complaint alleges
that North American confiscates driver credits if the credit is not offset
within 30 days, which is in violation of the escrow provisions of the federal
leasing regulations.

I got a credit from fuel tax once, but it was placed directly into my account, exactly the same way it got taken out.

The complaint states that North American requires drivers to
contribute to a fund that North American uses to pay its public liability
insurance and to cover the cost of certain government required safety and compliance
programs. The plaintiffs contend that federal law places the obligation for
those payments solely on the motor carrier, and that passing through or
charging back the cost of them to drivers is improper. It is further alleged
that unused funds are forfeited to North American, violating the requirement that such money be
returned to drivers.

This part Graebel and a lot of other companies do. Graebel took 2.9 %
of the linehaul towards their "insurance". That adds up over time.

Lastly, the complaint alleges that owner-operators are
forced to purchase certain products and services from the Fort Wayne, IN-based
carrier as a condition of receiving freight assignments. The suit states that
drivers must purchase through North American public liability and property
damage insurance, full valuation cargo insurance, credit card services and
Qualcomm communications equipment. The forced purchase of products and services
is prohibited under the federal truth-in-leasing regulations.

I had to purchase insurance and certain coverages to work at Graebel. Now I don’t.   The story I got was - I needed Occupation Accident (which IS NOT workmen’s comp) in case I hired a crew. I NEVER  hired a crew, wasn’t supposed to hire a crew on my own, but I still had to pay for it. Not paying for this anymore  has cut my insurance bill in half.

If I had stayed with Graebel, my new contract would have cut-out the physical liability (the 2.9%). My fleet manager said they cut it out in order to help the drivers out. Now I see the light! They cut it out because it’s ILLEGAL!  I’m not the suing  type, but if a class action gets filed I’ll throw my name in the hat!