Brokerage Reform

Petition to the United States House Committee on Transportation and Infrastructure

United States House of Representatives

Washington, D.C. 20515

The Honorable Sam Graves Chair, Committee on Transportation and Infrastructure

Subject: The Brokerage Conundrum

Dear Honorable Members of the House Committee on Transportation and Infrastructure,

Freight brokers have become pivotal yet problematic intermediaries in the freight industry, leveraging modern technology not to enhance efficiency but to obscure practices that disadvantage American truck drivers. While AI and predictive analytics could facilitate direct shipper-carrier relationships, the brokerage sector’s expansion raises concerns about labor practices, particularly the displacement of American drivers by foreign labor, often underpaid.

Predatory Practices by Brokers

  • Wage Dumping: Brokers frequently source foreign labor to undercut American drivers’ wages.
  • Unfair Compensation: Drivers suffer from underpayment and lack of compensation for waiting times.
  • Lack of Transparency: Pricing and fee structures are opaque, affecting drivers’ earnings.
  • Contractual Changes: Load rejections, cancellations, and incorrect load details manipulate drivers’ earnings.
  • Illegal Dispatching: Orders often violate federal hours of service regulations, endangering drivers.

Call for Legislative Reform

We propose the following reforms to restore fairness and transparency in the freight industry:

  1. Transparency in Operations: Mandate brokers and shippers to report annually on their use of non-US licensed drivers, promoting accountability.
  2. Accountability Measures: Introduce severe penalties for wage dumping, with funds redirected to enforce these regulations.
  3. Work Visa Oversight: Enhance scrutiny on the use of work visas in trucking to prevent exploitation.
  4. Financial Responsibility: Strengthen and enforce recent FMCSA rules ensuring broker financial accountability.
  5. Driver Protections: Require brokers to verify drivers’ US commercial licenses, ensuring legal employment.

The Role of American Truckers United

ATU is not only advocating for reform but actively engaging in:

  • Lobbying and Legal Action: We are committed to influencing policy and challenging unfair practices in court.
  • Education and Community Building: We aim to empower drivers with knowledge and support networks.

Conclusion

The sustainability and fairness of the trucking industry are non-negotiable for America’s economic health. We urge the House Transportation Committee to enact these reforms, ensuring that the roads are safe, the industry is fair, and our truck drivers are respected.

Join us in this movement for justice on American roads.

Sincerely,

American Truckers United and Fellow Petitioners


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