The Mudcat Café TM
Thread #91565 Message #1743118
Posted By: JohnInKansas
18-May-06 - 09:55 AM
Thread Name: BS: Good fences make good Mexican neighbors
Subject: RE: BS: Good fences make good Mexican neighbors
The "free trade in labor" is something of a touchy issue in some areas.
Under the NAFTA free trade agreement, Mexican drivers using Mexican equipment now, according to trucking industry statistics, account for about 15% of the freight moved in the West Coast Belt market - California, Oregon, Washington State. This is reportedly the largest US trucking market (most tonnage, and most dollar value) reported as a separately identified region with separate statistics.
In principle, they compete openly with US drivers and freight agencies.
A US driver literally cannot afford the maintenance on a truck older than about 5 years, and a 10 year old truck is virtually worthless in the US. Even with a brand-new $160,000 truck, maintenenance to comply with safety regulations will run around $1,000 per month at a minimum. (On top of the mortgage - $3400/month typically.) If a US driver gets ticketed for a safety infraction, he may lose a load since he can't move until it's fixed; and off-site maintenance comes at about $250/hour, plus mileage, with at least 1 +20% kick in part costs due to "remote delivery."
A Mexican National, with a truck registered in Mexico, is virtually exempt from inspection by the ICC, and to a large extent by local and regional traffic cops. He only has to comply with Mexican equipment rules, and for practical purposes there aren't any. He can buy, in Mexico, a $40,000 truck, do virtually no maintenance, rarely has to stop at US inspection stations.
I don't have accurate figures, but people in the business estimate that the real cost of operation is at least 15% to 30% less for the Mexican hauler, because of the ability to operate junk equipment alone.
Add on that a Mexican registration cannot be challenged by US inspection and enforcement agencies. US drivers of my acquaintance estimate that as many as 80% of the trailers that Mexican truckers are dragging are stolen in the US, registered as Mexican (for a few dollars to a friendly official) and operated openly here. While the 80% figure seems high, it is not outrageously so, given past documented investigations of the traffic in vehicles stolen in the US and "legally registered" to Mexican operators.
Specific drivers have been identified to me who have seen, inspected, and identified their own trailers, now carrying Mexican registration in addition to their own registration and permit labels still on them who have been told by law enforcement that any attempt to "recover" their property will result in their arrest, and that as long as the operator has "valid Mexican registration papers" there's nothing law enforcement here can do.
So is the labour trade free and open?
Note that except for traffic figures that are published by industry trade journals that I've seen, this is pretty much hearsay; but the sources have some credibility with me, even if I reserve my belief in the exact numbers.
Now it probably is unfair that Canadian drivers don't have the same advantage, but they're subject to Canadian rules - which may be almost as strict as the US ones.