[NewPacifica] Long Beach Port Accused Of Enticing Port Drivers Into Bad Debt



The Cunningham Report

 Long Beach Port Accused Of Enticing Port Drivers Into Bad Debt
08/20/2008


The Port of Long Beach continues to feel the political heat over its decision 
not to require trucking companies servicing port terminals to use 
employee-drivers instead of independent owner-operators as required in the 
Clean Trucks Program at the adjacent Port of Los Angeles.

As part of its program, the Port of Long Beach plans to make financing 
available to independent truckers in the form of a lease-to-own program 
administered by Daimler/Mercedes Benz.

A coalition of minority-rights, labor, and consumer groups today accused the 
Port of Long Beach and the German-based company of setting up a "predatory 
lending scheme" that would hoodwink the drivers into risky debt. Activist 
members of the groups held demonstrations at the German Embassy in Washington 
D.C. and at Daimler's U.S. offices in the Detroit area, where they 
simultaneously delivered a report to company and government officials entitled: 
"Foreclosure on Wheels: Long Beach's Truck Program Puts Drivers at High Risk 
for Default."

The report - jointly issued by the Consumer Federation of California, the 
NAACP, the League of United Latin American Citizens, and the Los Angeles 
Alliance for a New Economy - compares the Long Beach truck financing plan to 
the subprime mortgage situation.

It predicts that the low-income drivers will be pushed into a long-term 
commitment to an asset they may not be able to afford. If implemented, the plan 
can be expected to lead to bankruptcy and economic pain in poor and minority 
communities, the report claims. The majority of the port truckers are Hispanic.

The groups urged the port to follow the same Clean Trucks Program approved at 
the Port of Los Angeles, which requires that trucking companies servicing the 
port phase in an all employee workforce over the next five years.

Of all the provisions being required under the Los Angeles port's program, the 
employee-driver mandate is the most controversial. Port trucking companies have 
accused the Port of Los Angeles board of being more interested in helping the 
Teamsters organize the industry than in cleaning up the air.





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