2014 Lifeliner Magazine (Issue 2)

IMTA {

Lifeliner Iowa Mot or Tr uc k As s oc i at i on Issue 2, 2014

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INSIDE: Call on Washington DC

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Table of Contents

22 Driver Shortage 8

16 Call on Washington

National News

Chairman’s Message................................................ 4-5 President’s Message......................................................7 National News.......................................................... 8-9 Question of the Month................................................10 Finance......................................................................13 Legal..........................................................................14 Next Generation Speaks..............................................15 Call on Washington.............................................. 16-17 Members in the News.................................................20

IMTA Staff Brenda Neville, CAE President

Don Egli

Director of Safety and Security

DeAnn Moody

Office & Building Manager

Phillip Nicolino

Marketing Manager

Jon Dill

Membership Manager

Feature Article - Driver Shortage ................................................. 22-24 Iowa Trucking Jobs Board & Directory.................... 25-27 Board Meeting...................................................... 28-29 Foundation Scholarships....................................... 30-31 PAC Golf Outing................................................... 32-35 TDC..................................................................... 36-45 Leadership Class.................................................. 46-47 Final Word.................................................................50

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J.J. Keller & Associates.................. 19 Cornerstone Sponsors.................. 21 Inland Truck Parts & Service.......... 48 Kwik Star..................................... 48 Thompson Truck & Trailer............. 49 Truck County............................... 51 Midwest Wheel Companies............. 52

Janelle Stevens

Events/Education Manager

Brook Roberts

Administrative Assistant www.IowaMotorTruck.com

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Chairman’s Message

Ralph Arthur, Ruan Transportation Management Systems Finally we are experiencing summer in the heartland and while the many challenges we faced this past winter are behind us, as is often the case in trucking, there Ralph Arthur is always an IMTA Chairman of the Board abundance of new challenges to replace yesterday’s tribulations.

Today, I would venture to say that every IMTA member, regardless of size, is looking for qualified drivers. As industry capacity shrinks and the driver shortage worsens, trucking operations are trying a number of different methods to get their seats filled.

During the first quarter alone, driver pay rose faster than at any time over the

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Iowa Motor Truck Association Lifeliner

last decade yet the number of drivers entering the industry continues to decline at an even faster rate. Companies of all sizes are changing their operations to address the lifestyle issue. Even the promise of dedicated routes and more home time isn’t working like it used to when it comes to attracting drivers.

More companies are now focusing on their retention efforts and everyone is clamoring to learn what combination of benefits and pay increases attract drivers despite HOS regulations that actually lower the amount of miles that are driven during the week. Industry analysts report that companies are spending twice as much as they did just five years ago on recruiting and retention and I don’t believe there is any relief in sight. Like many of you, I’m not seeing a lot of new drivers entering our industry and it is disheartening.

Unfortunately there is no quick fix or overnight solution that is going to eliminate this problem. Unlike the winter

weather that finally goes away when warm temperatures arrive, the driver shortage does not have an immediate solution. While we are finally seeing some rate increases, they are not at the level needed to meet capacity requirements, nor are they enough to ensure that every trucking company can invest even more resources in retaining the drivers they have.

So what can be done to get more drivers? I wish I had an answer to that question and one that we try to answer daily here at Ruan. I would guess the same question dominates your conversations as well.

At Ruan, we are changing and adjusting our efforts regularly in hopes that even one more driver may walk through our door. We are also relying on some of our valued partners such as ATA and IMTA as these organizations implement programs that enhance the image of the industry.

IMTA recognizes that the driver shortage is the number one concern among its members and in an effort to address this concern; they have created some programs for the members. The IMTA recently launched the iatruckingjobsboard.com as one more alternative for IMTA members to place ads and reach out to potential applicants. Through the power of social media, The IMTA is spending a great deal of its resources driving traffic and interest to this jobs board.

To complement the jobs board, the IMTA is also launching a quarterly publication that will list every member and highlight the number of jobs that are available in the industry. This publication will have widespread distribution throughout the state and will especially capitalize on the state’s agricultural base in an effort attract new folks into the industry.

In addition, the IMTA is reaching out to the military. As a former member of the military, I am personally committed to working with the effort that is currently being launched to attract military personnel into our industry. The sheer number of potential employees is staggering as the military is being

downsized and we as an industry need to be at the forefront of this recruitment effort. Iowa’s trucking industry will have a front seat in this effort and I will personally see to that.

We are also turning our attention to the community college based truck driving schools in Iowa. As the driver shortage increases, industry experts are predicting that the truck driving school model will see some renewed interest by carriers in student training programs and the IMTA wants to ensure that these programs are meeting the needs of its members.

And finally, the IMTA will be spending a great deal of time in the upcoming months promoting the industry and highlighting what it means to everyone in this state. The days of putting an image program on the back burner are over. Outreach efforts will be targeted at elementary and middle school students as well as middle aged individuals. The payoff won’t be felt until 20 years from now when more people are entering the industry because they learned about it at a young age and discovered that having a job in the trucking industry is a respectable and enviable profession. For far too long, we have ignored the value

of promoting our industry and touting the tremendous value of trucking and today we are suffering the consequences of that decision.

I am encouraged by the efforts of the IMTA and its desire and drive to offer assistance with our biggest problem. I believe these efforts will help all of us as we try to secure drivers and other valued employees to the many good jobs that exist in our industry. None of us can solve this issue alone so take advantage of all the resources that are available, especially the resources you have within the IMTA. The association truly is committed to helping the membership.

As always, access to me is readily available. I encourage you to contact me directly if you have any suggestions, ideas or concerns and I look forward to our continued work together as we work towards finding answers to the challenges facing our industry.

Ralph Arthur IMTA Chairman of the Board

Ruan Transportation Management Systems

rarthur@ruan.com

www.IowaMotorTruck.com

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Iowa Motor Truck Association Lifeliner

President’s Message

Brenda Neville, Iowa Motor Truck Association

Brenda Neville IMTA President & CEO

Now that the June primaries are behind us, we know who the congressional candidates will be for Iowa and I urge you to take the time to get actively engaged in the upcoming elections.

Everyone has an opinion on the current political landscape. Iowa has always been a political state because of our state’s leading position in the vetting and showcasing presidential candidates. Here in Iowa, we have the opportunity to meet an array of national candidates and because of that most Iowans are much more astute when it comes to the political process than we are given credit for.

But it is also because of this continual parade of candidates and this non-stop political atmosphere that a prevailing weariness is evident among most Iowans too. I am confident in saying that most of us would also welcome a long intermission from the political circus that surrounds us on a daily basis. Can you imagine even ONE DAY without a campaign commercial?

Having said that however, despite your possible aversion to the current political environment, now is not the time to take your eye off the ball. This is a historic time for Iowa especially when you consider the US Senate race. Senator Tom Harkin was elected in 1984. Despite the efforts of several candidates, Harkin prevailed and has been in DC for 30 years. This is a rare opportunity for us to be a part of important history in Iowa.

The race between Congressman Bruce Braley and Iowa Senator Joni Ernst is going to be expensive, contentious and non-stop. We will all be very tired of this race by the time Election Day rolls around on November 4th. However, this is one race that we cannot ignore.

IMTA has regularly made a trip to DC in April. This annual “Call on Washington”

trip has been a valuable opportunity for IMTA leaders to wave the flag for Iowa’s trucking industry. Given the amount of regulatory and legislative baggage that has been coming out of DC specific to trucking, each year our list of discussion points with Iowa’s congressional delegation has grown longer and longer.

Our meetings with our elected officials in DC offer a chance for us to discuss the challenges facing our industry and offer suggestion and guidance to the folks that we have elected. As voting constituents, our US Representatives and US Senators owe us the courtesy to at the very least give us a forum to discuss and highlight the top issues impacting the trucking industry in Iowa. I have always been very proud of the IMTA Members that make this trip and the manner in which they passionately and professionally represent Iowa’s trucking industry.

The majority of Iowa’s congressional delegation is more than happy to meet with us when we are in DC. Congressmen King, Latham and Loebsack give us a tremendous amount of time and attention not only in DC but when they are back in Iowa as well. Senator Grassley is also a valued ally and has always demonstrated his appreciation and respect for the trucking industry. I would suggest that all four of these elected officials are truly interested in our concerns and empathize with the challenges we are facing on a daily basis.

Congressman Bruce Braley however, has never met with our group. A few years ago in fact, we weren’t even able to have a discussion in his office, instead we were herded out to the hallway with an administrative assistant that had been on his staff for one day.

This year, as we were sitting in the hallway outside of his office waiting for an appointment with his transportation liaison (because we had been told Braley was not available) the Congressman walked right by us. Instead of slowing down to even give us a quick hello or a politician’s handshake; he sped up…as if trying to avoid any type of interaction with the truckers that were sitting right outside of his door. Perhaps he had an important meeting to attend or a vote was being called on the house floor, but surely a few

IMTA MEMBERS ALWAYS STEP UP AND GET INVOLVED.

minutes with voting constituents would have trumped a brush off?

Iowa’s trucking industry is important to the State of Iowa.

• One in every 11 Iowan gets a paycheck from our industry.

• Over 80% of the communities in this state depend entirely on TRUCKS for the delivery of goods they need on a daily basis.

• Trucks represent only 12% of the vehicle miles traveled in Iowa but pay up to 49% of total highway user fees and taxes.

And the list could go on and on as far as the positive contributions that trucking not only makes to the State of Iowa but the nation as a whole. In addition, IMTA is actively engaged in the legislative and political process. IMTA members always step up and get involved.

And of even greater importance, we represent a LARGE NUMBER of voters in this state!

So please do not take the upcoming elections lightly. Do not choose to sit on the sidelines and merely complain or become disengaged. We need people in DC that not only understand and appreciate the trucking industry and its continued contributions to the economy and quality of life, but more importantly, we need someone in DC representing our industry with a strong and loud voice and even stronger convictions and commitment to our industry.

We have an opportunity to dramatically impact the legislative landscape of our state and industry in DC with the US Senate race (Bruce Braley-D vs. Joni Ernst-R).

Be a part of history, be a part of the solution, be a part of the change that is tremendously needed in DC. Take every opportunity to not only learn about the candidates but more importantly challenge them to learn about you and your business.

They need your vote, so make them earn it….and maybe, just maybe when we are in DC in 2015, we will have actually have a productive meeting with our new Senator and that meeting will take place anywhere but in the hall of the Longworth building.

www.IowaMotorTruck.com

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National News

Impacting Trucking Industry Driver Pay Continues to go Up

The National Transport Institute released a report showing that driver pay rose in the first quarter by 5.8%. An increase that is larger than any increase since the trucking industry’s last peak period which was almost a decade ago. The survey was distributed on driver pay to 350 fleets and showed that the average increases were about 2 cents per mile for van drivers with even higher increases for refrigerated drivers and owner-operators.

With more freight than capacity, driver wages will more than likely continue to be on the rise. Carriers across the country are looking for ways to attract drivers and as one industry analyst predicted,“ carriers will have to continue to get more creative in terms of pay and other benefits especially with continued regulations and HOS rules that lower the number of miles driven each week.”

US Senate Panel Focuses on Freight Projects

The Environment and Public Works Committee approved the $265 billion , six-year transportation reauthorization bill that would require states to spend some of their federal highway money on projects that would focus on projects that would improve freight mobility.

Under the proposed bill, states would have to develop freight plans, including investment strategies and projects and create advisory committees.

Iowa has been a leader in this area and actually created a Freight Advisory board 2 years ago. IMTA member Murry Fitzer, of Florilli Transportation, sits on that board. Over $6 million of the funding would be dedicated to freight issues. The bill makes no changes to federal fuel taxes.

New Medical Rule Calling for Certified Examiners In Effect

The Federal Motor Carrier Safety Administration reports that there is an adequate number of certified medical examiners to administer truck driver physicals. A new rule that went into effect on May 21. FMCSA reported just prior to the deadline that more than 21,600 medical professionals had passed the exam and estimated an additional 4000 were scheduled to take the test prior to the May 21st deadline.

The FMCSA issues a requirement in 2012 that called for medical examiners that perform the federally mandated truck driver physical exams to complete core curriculum training followed by testing and certification by an accredited institution. The examiners must also be retrained every 5 years and retested every 10 years. Several organizations including ATA and OOIDA asked the agency to delay the deadline by six months because of the shortages of certified examiners in some states.

Iowa for example, had some significant gaps throughout the state for certified examiners which would force drivers to travel long distances to get a physical.

But the FMCSA argued that there were certified examiners in every state and dozens or hundreds in most cities to meet the demand. The FMCSA continued to defend the start date by reminding the industry that most drivers will not need a new physical exam immediately following the May 21 deadline. See our “Question of the Month” to see how IMTA members are dealing with the new rule.

Gas Tax Purchasing Power at Historic Lows in 10 States, Iowa on the List

The gasoline tax is so low and has not been raised for so long in 10 states that the levy’s purchasing power has fallen to historic lows.

The study conducted by the

US CRUDE PRODUCTION CLIMBED TO A 28 YEAR HIGH WITH THE SHALE BOOM. IN MAY OUTPUT ROSE 78,000 BARRELS A DAY TO 8.428 MILLION IN EARLY MAY, THE MOST SINCE OCTOBER 1986. {8

Iowa Motor Truck Association Lifeliner

National News

Impacting Trucking Industry Institute on Taxation and Economic Policy measured the buying power of each state’s gas tax. Researchers used inflation factors and compared the states’ current gas tax rates with the average rate levied in each state since the gas tax was first enacted.

In the list that included Iowa, the tax rate has been allowed to stagnate for so long that in order to recoup the levy’s buying power the states would have to approve significant increases just to restore the tax to its previous value according to the study. The study highlighted the unprecedented decline in the gas tax purchasing power and urged lawmakers to take action.

Joining Iowa in the list of “stagnated” tax was Alabama, Alaska, Delaware, Idaho, Nebraska, New Jersey, South Carolina, Utah and Virginia.

US Crude Production Booming

US crude production climbed to a 28 year high with the shale boom. In May

output rose 78,000 barrels a day to 8.428 million in early May, the most since October 1986 according to the Energy Information Administration data.

The combination of horizontal drilling and hydraulic fracturing or fracking, has unlocked supplies from shale formations in the central United States. The United States met 87% of its energy needs in 2013 and 90% in December the most since March 1985.

Drone Deliveries in Our Future?

When Amazon announced that in the future they wanted to have the ability to provide “same day” delivery, it caused a buzz everywhere and drone deliveries have become a hot topic. However according to several different research studies, same-day delivery potential would primarily be densely populated cities with estimates that it is still about two to three years away. Same day delivery is in use in some areas and the established local courier companies are still the best suited for this delivery approach. However, Amazon is still

Gas Demand Expected to Decline 1 Percent Per Year Until 2020

A recent CNN Money article explains that although violence in Iraq may squeeze drivers’ wallets this summer, the U.S. is headed for a gas glut over the next few years as demand slows. Despite rising slightly last year, the nation’s gas demand will decline by about 1% a year for the rest of the decade, according to the International Energy Agency (IEA).

“Tightening fuel efficiency standards for automobiles, and changing consumer preferences look set to send U.S. gasoline demand back on the declining course on which it embarked in 2007,” the Paris-based IEA said in its latest forecast published earlier this week.

American demand for gas accounts for about 10% of world oil consumption, and the decline will coincide with a more ample supply, according to the IEA. The U.S. energy boom is boosting output of oil that is rich in gasoline at a time when refineries are under pressure to produce more diesel and jet fuel, amid an increase in industrial activity and air travel.

working on becoming the leader in this niche market and the next big question – can they make any money at it?

Hours of Service Debate on US Senate Floor Stalls

Debate in the US Senate on an amendment that would have blocked a one year-suspension of the hoursof-service restart changes was halted on June 19. Majority Leader Harry Reid (D-Nevada) pulled the expansive fiscal 2015 funding bill from the floor after several hours of debate due to procedural objections raised by Republicans. ATA remains optimistic that the HOS provision that was part of the overall bill still may pass later this fall when the bill could resurface. The Collins Amendment, the FMCSA would be required to review the safety effects of the rules changes and would need to justify the safety claims to Congress.

But the refineries still have to sell the gas produced from processing each barrel, and will be looking for markets to soak up that surplus. The IEA estimates that North America could swing from being a small net importer of gas to exporting 1.3 million barrels per day by 2019. Globally, the growth in world oil demand is expected to peak in 2015 and 2016, before slowing toward the end of the decade, according to IEA.

Source: NACS

www.IowaMotorTruck.com

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Question of the Month National Registry of Medical Examiners

Curt Thayer, Florilli Transportation – West Liberty, IA How has the new requirement of the National Medical Registry impacted your trucking operation?

The impact we have felt concerning the National Medical Registry is increased cost in DOT physicals as a result of the medical provider incurring cost of taking the test to become certified and wanting to recoup some of that cost.

We have also seen a very dramatic increase of focus on the sleep apnea issue and have lost 4 drivers because of this, either due to the driver refusing to take the sleep test, as well as the cost of the sleep test to the driver, and if diagnosed with sleep apnea, the additional cost of the CPAP. I only see this number increasing.

Julie Pruitt, Crouse Transportation Services – Carroll, IA How has the new requirement of the National Medical Registry impacted your trucking operation?

We have not seen any changes since this new requirement went into place. We have two company doctors in Carroll that we have used for several years.

Both went through the certification process right away, when it first became available. As of now they have

not raised their prices for the physicals and have not talked to me about doing this in the future. There is only one doctor in Carroll that is currently listed on the registry.

Keith Lamfers, Schuster Co. – Le Mars, IA How has the new requirement of the National Medical Registry impacted your trucking operation?

We have had good luck locally from our area relating to doctors being registered nationally to perform DOT physicals. Currently in Le Mars we have 9 doctors available for us to have the physicals performed.

Although we have a lot of doctors to choose from,

we have seen an increase in the cost per physical anywhere from 33% to 50%. This year we will see an increase of approximately $10,500 for new hire physicals and re-certifications due to the National Registry.

Scott Evans, Decker Truck Line – Fort Dodge, IA How has the new requirement of the National Medical Registry impacted your trucking operation?

We have not seen a decrease in the number of providers, as everyone we currently work with has been certified with the National Registry, but we have seen an increase in the cost of our DOT physicals, (and substantial increases at some clinics.) This is due

to the initial cost by the provider to become certified, as well as ongoing operational costs due to the additional work needed by medical staff to meet the new requirements. It’s a little early to tell if there will be a big increase in focus on specific medical issues, but I do anticipate we will see it for sleep apnea and diabetes for sure.

Krysta Hart, Atlantic Carriers – Atlantic, IA How has the new requirement of the National Medical Registry impacted your trucking operation?

The new requirement hasn’t impacted our hiring processes too much. We were fortunate enough to have a physical provider, who we had been working with before, decide to go through the process of becoming a registered provider under the National Medical Registry. Things have gone pretty smoothly, but the rate has gone up by $30.00. On the other

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Iowa Motor Truck Association Lifeliner

hand, some of our owner operator drivers have seen an increase in the cost and time, since not being able to get their physical done by their regular local provider.

We have noticed a decrease in 2 year physicals across the board. There has been an increased focus on blood pressure, and some sleep apnea, but in regards to sleep apnea our doctor has been good to work with and sensible.

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Iowa Motor Truck Association Lifeliner

Finance

The final tangible property regulations: Is the trucking industry ready?

Chris Anderson McGladery, LLP

Kate Abdoo McGladery, LLP

In September 2013, the Treasury Department and the IRS released the muchanticipated tangible property regulations.

The regulations include provisions that will impact how the trucking industry will account for costs related to tangible property.

Generally, the final regulations are effective for tax years beginning on or after January 1, 2014. The areas of the regulations most likely to affect the industry

include: • Provisions governing the treatment of materials and supplies • A de minimis safe harbor allowing for the deduction of certain “de minimis” purchases of tangible property • Treatment of costs to acquire and improve tangible personal and real property • Dispositions of assets and structural components of buildings

These mandatory regulations are complicated and require time and resources to digest and implement. Although a full discussion addressing all the details of implementing these new regulations is beyond the scope of this article, some provisions may require the capitalization of costs presently being deducted, other provisions could result in an acceleration of deductions. This opportunity, along with a desire to mitigate the risks associated with noncompliance, should motivate taxpayers in the trucking industry to invest the time and

resources to understand and comply with these regulations.

Materials and supplies

Materials and supplies generally include items that have a useful life of 12 months or less, or an acquisition cost of $200 or less. Incidental materials and supplies (i.e., those for which no record of consumption is kept) are generally deductible in the tax year purchased, while non-incidental supplies are deductible in the tax year first used in operations.

De minimis safe harbor

Taxpayers with an applicable financial statement (AFS) may elect to currently deduct the purchase of items costing up to $5,000 if certain conditions are met. Applicable financial statements include certified, audited financial statements, financial statements required to be submitted to the Securities and Exchange Commission (SEC), and financial statements required to be submitted to a federal or state agency.

To elect this safe harbor, a taxpayer must have a written capitalization policy in effect as of the beginning of the tax year of election that provides for the expensing of items costing less than a threshold or with an economic useful life of 12 months or less, and such items must be expensed for AFS purposes in accordance with the written policy.

Costs to improve tangible property The regulations provide comprehensive rules to determine whether costs incurred with respect to any units of tangible property are deductible repair costs or capitalizable improvement costs. An expenditure will be treated as a capitalizable improvement if the expenditure results in the betterment, restoration or adaptation of a “unit of property”.

A unit of property is generally determined by including all components that are functionally interdependent as one unit. In the case of building property, the regulations provide that a building (including all structural components) is treated as one unit of property. However, the improvement standards must be applied separately to one or more of eight defined building systems or the building structure, as applicable.

Thus, an expenditure is more likely to be treated as an improvement than it otherwise

would if the expenditure was analyzed in light of the building as a whole. However, the regulations do provide a routine maintenance safe harbor that allows for certain recurring costs to be treated as deductible repairs if the taxpayer reasonably expects to incur the costs more than once during the 10-year period beginning with the placed in service date of the building structure or applicable system.

Dispositions of tangible property

The disposition regulations provide guidance on recognizing dispositions of tangible assets. For purposes of determining when an asset has been disposed of, a building (including all of its structural components) is treated as one asset. However, the disposition of a portion of an asset may be treated as a disposition if the taxpayer elects to recognize the partial disposition.

This partial disposition election may prove beneficial to taxpayers that are undergoing capitalizable renovations of buildings by allowing an immediate write-off of a retired or abandoned component’s basis.

What you should be thinking about now

Most taxpayers will need to change one or more of their present tax accounting methods to comply with the regulations.

A clear understanding of which provisions are applied through elections and which provisions are considered methods of accounting is imperative, as most elections made on a timely filed return are generally irrevocable.

Taxpayers should begin the implementation process now, as gathering and analyzing the required data to determine which method changes and elections that will apply may be time and resource consuming. While many of the provisions in the final regulations may require tax accounting and internal process changes, the regulations also provide several opportunities to accelerate deductions, decrease administrative burdens and increase book tax conformity. Taking time now to determine the best way to apply these regulations may provide an opportunity for your business to structure tax accounting methods or annual elections in a way that will optimize the impact of the final regulations.

Co-authored by Chris Anderson and Kate Abdoo

Chris Anderson is a tax partner in the Des Moines office of McGladrey, LLP, a part of the firm’s Tangible Asset Regulation implementation team and was a 2000 graduate of the IMTA’s Leadership Program. Kate Abdoo is a tax manager in McGladrey’s Washington National Tax office. McGladrey LLP is a leading provider of assurance, tax and consulting services focused on the middle market and is the largest employer of CPA’s in Iowa. www.IowaMotorTruck.com

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Workers Compensation Workers’ Compensation Benefits ENSURING PER DIEM PAYMENTS ARE NOT TREATED AS GROSS WAGES FOR PURPOSES OF CALCULATING WORKERS’ COMPENSATION BENEFITS

Per diem, a Latin term meaning “per day” is a method of reimbursing employees for meals and incidental expenses while working away from home.

Approximately Sasha L. Monthei 50% of all Scheldrup Blades trucking companies offer per diem to their drivers. Trucking companies that utilize per diem plans enable drivers to save on federal and state taxes, ultimately putting more money in the drivers’ pockets. Additionally, per diem plans eliminate the need for drivers and companies to hassle with collecting receipts and meticulously accounting for expenses while on the road.

IRS rules permit a trucking company to prepay per diem expenses as non taxable amounts if the company has an “accountable” per diem plan, the driver is away from home long enough to require a rest period and the driver has a residence. To be an “accountable plan”, it must (1) cover only business expenses; (2) all expenses must be substantiated; and (3) the employee is require to return to the employer any prepaid amount unused. The IRS has set a meal and incidental expense allowance amount (currently $59 per day) and as long as the per diem reimbursement is less than the standard amount, the requirements of 2 and 3 above are met. The IRS rules allows trucking companies to calculate per diem on a daily basis, per mile, or a percentage of gross, as long as the total per diem does not exceed the IRS established amount.

The Iowa Workers’ Compensation Act provides gross wages used to calculate the weekly benefit rate does not include “reimbursement of expenses” or “expense allowances.” Historically, the workers’ compensation commission decisions held the fact that per diem payments were generous or exceeded actual expenses did not change their character as expenses and not wages. Therefore per diem, when paid as an expense reimbursement or allowance and not as regular income, was not included in gross wages for purposes of calculating workers’ compensation benefits.

Although the statute clearly and expressly excludes expense allowances from weekly wages, the current workers’ compensation commission has recently scrutinized per diem plans and on several occasions has treated per diem allowances as gross wages in calculating weekly workers’ compensation benefits. The purpose of this article is to identify the characteristics per diem plans should have to avoid inclusion of these payments in gross wages in the future.

In a recent decision affirmed by the commissioner, the claimant, an over the road driver was paid $52.00 per day he was out on the road as an expense allowance for meals and incidentals. He did not declare the per diem payments as taxable income. At hearing, the claimant testified of the $52.00 per diem allowance he received, he only spent a fraction for expenses while on the road, and used the remainder to pay bills. In the arbitration decision, Deputy Heitland acknowledged the agency had previously held the fact that per diem payments were generous or exceeded actual expenses did not change their character as expenses and not wages, but disregarded that holding, explaining labels placed on payments by employers do not control, rather, the true nature of the payment does. Deputy Heitland further held irrelevant the fact that per diem was designed to avoid income tax liability, despite previous agency case law holding exactly the opposite: that a claimant’s exclusion of per diem

payments from taxable income is relevant in determining whether such payments should be excluded from gross wages, as this treatment clearly demonstrates the parties’ intent to treat per diem as a reimbursed expense. According to Deputy Heitland, the employer has the burden to establish the portion of a per diem payment that represents reimbursement of expenses, and must demonstrate a rational relationship between the allowance and actual expenses incurred by drivers on the road. Based on the claimant’s testimony, Deputy Heitland concluded only $12 of the $52 daily per diem was actually used for expenses on the road and the remainder was wages to be included in the calculation for weekly indemnity benefits. This resulted in a weekly indemnity rate $129.71 more than the rate would have been if the entire per diem allowance was excluded.

Given the current trend of the commission to scrutinize per diem plans, it is probably a good time to review your company’s plan to ensure it is administered in a fashion that will prevent per diem payments from being included in the calculation of weekly indemnity benefits.

First, per diem payments should be directly related to days out on the road.

It should not be based on the number or type of loads delivered, or miles driven, and then computed as a percentage of gross earnings. Secondly, the per diem plan should require drivers to return any unused portion of a pre-paid expense allowance at the end of each pay period or reimburse drivers for actual expenses only. Providing drivers with a simple form to report unused per diem allowances/actual expenses (up to the daily maximum) per pay period would establish the amount actually used for expenses, which should be excluded from gross wages when calculating workers’ compensation benefits. *Disclaimer: This article is not intended to give tax advice. Please consult a tax professional for any tax-related issues.

Sasha L. Monthei is a graduate of the University of Iowa College of Law, order of the coif. She is a shareholder and second-vice president of Scheldrup Blades in Cedar Rapids and leads the firm’s transportation practice group. Sasha is licensed to practice law in both state and federal courts in Iowa and has handled trucking litigation cases in multiple states as well as assisted trucking companies with regulatory and contractual matters. Sasha works primarily in the areas of workers’ compensation, employment law, and transportation liability.

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Iowa Motor Truck Association Lifeliner

Next Generation Our Next Generation Speaks Change. Oh the big bad scary word, change. To some people that word is pure evil, you might as well have just told them that you were going to take their first Jennifer Brim born child, Decker Truck Line burn down their house and run away with their spouse. Okay, that may be a bit over the top but you understand what I mean. But on the flipside, there are some people that get excited about change; it’s fresh, a chance for a new start or a welcome new outlook.

I tend to think of myself as a “glass is half full” type of person. I try really hard, to look for the positives in all situations and find something good to come out of all of it. That can be a huge challenge at times but I usually succeed. I also try not to let others influence my outlook or my attitude; instead I try my hardest to influence their outlook and attitude. Such is the case when it comes to change.

I am a proponent of change. I believe that change is necessary to stay competitive in the workforce both as an individual and as a company. I have seen so many changes take place in the transportation industry, specifically in trucking, over the last 15 years. There have been changes specific to me and my career, there have been changes with my company and there have been changes that affect our industry as a whole; so many of these changes are just a natural progression of life and business. They are the changes that take place from day to day that we recognize as happening but don’t feel like they are affecting us directly or will alter our daily routine enough to worry much about them.

But then there are the bigger changes.

The changes that people feel they have no control over or that they do not understand. This type of change tends to lead to resistance and can be much more difficult to implement. We, as leaders and managers, have to first believe in the vision of the change, there truly needs to be a top down approach to make this a successful venture. And then it is our role to be somewhat creative and persuasive in order to get complete buy in from the people that are directly affected by and dealing with this change. Unfortunately there isn’t a “one size fits all’ approach for every person within the organization.

I do believe that a common denominator for successful change is good communication. People like what is familiar to them, they find value and comfort in what they currently know and have. One way to bridge the gap of the unknown is by communicating necessary and pertinent information to those affected by the change. Give them a chance to understand it and to know it. And make sure they understand the reason for the change, and that we don’t just give them the “because I said so” answer about it.

I find the more you can explain a process to someone who is otherwise unfamiliar with it the more at ease they seem to be about it, but remember that simplicity is key. It is also a good idea to show those people what’s not going to change so they feel like they still have some security in their familiar surroundings.

And for goodness sakes, be positive and enthusiastic about the communication.

No one wants to hear about some humdrum boring change that is coming their way, chances are they would be much more receptive to the idea if there was some excitement behind the message.

This goes back to my idea that I like to try to influence others about their outlook and attitude and you’re certainly not going to do that without some enthusiasm yourself.

Our company is getting ready to change our entire operating software so the topic of change seemed to come naturally to me when thinking about what to write for this article. This is a massively huge change, one that touches every single person in every office that we have.

But it’s one that I am very excited and passionate for. Our company is very lucky to have a number of long term employees but that culture can also makes our process of changing a bit more challenging.

Even for myself, the “glass is half full person”, I get overwhelmed thinking abut the change and what all of this is going to demand on each and every person within our organization for the next five months and beyond. But I keep our end results in mind at all times. I also try to remember that it’s going to be a learning process for all of us and we may take a few steps back to start with but in the long run we’ll be leaps and bounds ahead of where we are now. I never thought we’d get through the process of changing to electronic logs either, but here we are, still moving forward and doing well. Heck, most of us would say now that we don’t know what we’d do without the electronic logs.

To close I would like to share a quote with you that I came across the other day from our past President John F. Kennedy “Change is the law of life and those who look only to the past or present are certain to miss the future”. I encourage everyone to embrace change so we can continue to build our futures.

Jennifer was a member of the 2014 IMTA Leadership Class and is Director of Fleet Management for the reefer division at Decker Truck Line in Fort Dodge. A 1999 Iowa State Graduate in the transportation and logistics program, Jennifer has held numerous positions within the trucking industry. She has been in her current position for three years now but with Decker Truck Line since 2001. www.IowaMotorTruck.com

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Call on WASHINGTON IMTA Members Head to DC

IMTA members once again made the annual trip to Washington DC to meet with members of Iowa’s Congressional delegation. In addition to face to face meetings with Congressman Latham, King, Loebsack and Senator Grassley, the group also had a meeting with FMCSA Administrator Anne Ferro and the transportation liaison for Congressman Bruce Braley. In all the discussions, the Hours of Service regulations were the main topic as carriers from Iowa explained ongoing issues with loss of productivity, increased costs and driver issues with the new regulations. IMTA members also spent time with staff from the American Trucking Associations and attended receptions with other state trucking associations that were in DC for the same purpose.

“I know that it may seem like an act of futility, but I believe it is imperative that we are regularly communicating with our folks in DC. They need to see that we are engaged, involved and on top of the issues, especially with so much of what is impacting our operation is coming out of DC,” said IMTA Chairman Ralph Arthur with Ruan.

The first meeting on the agenda was with FMCSA Administrator Anne Ferro and the group had almost an hour long discussion with Anne and several staff members about ongoing issues with the new Hours of Service rules as well as CSA. “I think our group did a very nice job of presenting some real issues with the 30-minute break as well as other provisions within the new HOS rules to the Administrator and her staff. I am not sure it will do a lot of good in the short or long term because they are pretty intent that the new rules are working and are effective, but at least we were able to have a discussion and present our concerns,” said Don Decker, Decker Truck Line.

IMTA members head to Washington each April and this year the delegation of IMTA members included: Ralph Arthur, Ruan; John Smith, CRST; Don Decker, Decker Truck Line; Gary Handley, BTI Special Commodities; and Murry Fitzer, Florilli Transportation. The Allied members that attended were Dennis Thompson, Thompson Truck and Trailer; and Delwin Van Wyk, Interstate PowerSystems.

“Maintaining our presence and our voice in DC is important and valuable. I look forward to this trip every year because it is one of the best things we can do as an advocate for Iowa’s trucking industry,” said Delwin Van Wyk, Interstate PowerSystems.

L-R : Ralph Arthur, Ruan, Dennis Thompson, Thompson Truck & Trailer, Murry Fitzer, Florilli Transportation, Congressman Tom Latham, Brenda Neville, Don Decker, Decker Truck Line, Inc., Delwin Van Wyk, Interstate PowerSystems, John Smith, CRST, Inc., Gary Handley, BTI Special Commodities, Chris Spear, ATA Lobbyist

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Iowa Motor Truck Association Lifeliner

L-R : Delwin Van Wyk, Interstate PowerSystems, Joe DeLorenzo, FMCSA, Gary Handley, BTI Special Commodities, Ralph Arthur, Ruan, Murry Fitzer, Florilli Transportation, Don Decker, Decker Truck Line, Inc. Brenda Neville, IMTA, Larry Minor, FMCSA, Dennis Thompson, Travis Truck & Trailer, John Smith, CRST, Inc.

The IMTA Delegation met with FMCSA Director Anne Ferro and after the meeting Gary Handley and Don Decker continued the discussions with members of the staff.

Call on WASHINGTON IMTA Members Head to DC

“MAINTAINING OUR PRESENCE AND OUR VOICE IN DC IS IMPORTANT AND VALUABLE. I LOOK Delwin Van Wyk, Interstate FORWARD TO PowerSystems enjoying his view of the Capitol.

THIS TRIP EVERY YEAR BECAUSE IT IS ONE OF THE BEST THINGS WE CAN DO AS AN ADVOCATE FOR IOWA’S TRUCKING INDUSTRY,” SAID DELWIN VAN WYK, INTERSTATE POWERSYSTEMS.

IMTA members made a stop in the rotunda of the US Capitol to see the newest addition, a tribute to Iowa legend Norman Borlaug.

Gary Handley, Don Decker and Murry Fitzer discussing various trucking issues.

Murry Fitzer, Don Decker, Brenda Neville and Gary Handley enjoy the night life of DC.

Congressman Steve King is always happy to welcome the Iowa delegation to his office.

IMTA members talking w/Congressman Loebsack.

www.IowaMotorTruck.com

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Iowa Motor Truck Association

2014

MANAGEMENT CONFERENCE DoubleTree by Hilton | Cedar Rapids, Iowa

SAVEtheDATE

HOTEL ACCOMMODATIONS

DoubleTree by Hilton

[ Deadline

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Cedar Rapids, Iowa 52401

[

350 1st Avenue NE

Iowa Motor Truck Association Lifeliner

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PC 105683

Members in the News Ruan Delivers Norman Borlaug Statue to United States Capitol Building

Native Iowan and Noble Peace Prize winner Dr. Norman E. Borlaug was enshrined into the U.S. Capitol’s Statuary Hall on March 25 with a 7-foot statue that was delivered to Washington, D.C. by Ruan.

The unveiling of statue, which was commissioned by the State of Iowa and has Iowa limestone as its base, was the culminating event during a week-long celebration for the 100th anniversary of Borlaug’s birthday.

Borlaug was a native of Cresco, Iowa, and known around the world as the “father of Green Revolution” for his agricultural discoveries that are credited with saving billions of lives worldwide. After being awarded countless honors for his work, including the Nobel Peace Prize in 1970, Borlaug set out to create an award that specifically recognized breakthroughs in food and agriculture. This lead to him founding the World Food Prize in 1986.

TanTara Transportation Corp. Donates Flatbed Trailer to Scott Community College Foundation

Scott Community College Foundation recently announced a flatbed trailer donation from TanTara Transportation Corp. Scott Community College Foundation is a nonprofit organization providing financial resources for scholarships and college enhancement.

TanTara Transportation Corp. and Scott Community Foundation have partnered together to achieve better relations with the education of future drivers. Both organizations strive to put educated, intelligent and dedicated drivers on our roads for safer roadways.

With over 7,000 trucking companies in Iowa alone the need and ability to find quality over the road truck drivers is essentially important and vital for the transportation industry.

Scott Community College Foundation provides resources to Scott Community College to encourage their CDL program for specialized candidates.

Lisa Gonnerman Promoted to Vice President of Safety for Ruan Transportation Management Systems

In 1990, a partnership was struck with John Ruan Sr. to move the World Food Prize to Des Moines. Today, Ruan still sponsors the World Food Prize and John Ruan III serves as the Prize’s chairman.

Ireland Named Director of Parts for Sioux City Truck Sales

Ronald Ireland SCTS

Ronald Ireland was recently named director of parts for the five Peterbilt locations in the region owned and operated by Sioux City Truck Sales, Inc. The locations include Peterbilt of Sioux City, Peterbilt of Des Moines and Peterbilt of Council Bluffs in Iowa, along with Peterbilt of Norfolk and Peterbilt of Lincoln in Nebraska.

Ireland previously served as parts manager for Arizona Freightliner.

He has 10 years of experience in all facets of truck parts, including counter sales, warehouse manager, assistant manager and parts manager at the Freightliner dealership in Tucson.

Ireland now works out of the SCTS corporate office in Sioux City. He takes over the leadership of the parts division from Madsen, who is now concentrating his activities on truck sales as Sioux City Truck Sales’ Director of Sales. Madsen has been serving as both director of parts and truck sales for several years.

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Iowa Motor Truck Association Lifeliner

Lisa Gonnerman Ruan Transportation

Ruan Transportation Management Systems recently announced the promotion of Lisa Gonnerman to vice president of safety.

Since joining the company as director of safety in 2010, Gonnerman has launched Ruan’s proprietary Megasafe Safety Program; provided several years of safety leadership expertise, not only to Ruan, but to both national and local organizations such as the Federal Motor Carrier Safety Administration and Iowa Motor Truck Association; and improved Ruan’s overall safety performance.

“This is a much deserved promotion for Lisa,” said Ron Hanson, vice president of human resources for Ruan. “Lisa is a dynamic leader and has done an impressive job of enhancing Ruan’s safety culture, building a solid team of safety professionals and providing superior training to our 4,200 professional drivers.”

About Ruan

Founded in 1932, Ruan Transportation Management Systems is a family owned transportation management company, providing dedicated contract carriage and supply chain solutions to customers across the country. Ruan employs 5,200 team members in more than 260 locations.

Cornerstone Sponsors I MTA

Platinum Sponsors

Patron Sponsors

Boyer Petroleum Midwest Wheel Companies Thompson Truck & Trailer

As of June 1, 2014

Associate Sponsors

Harrison Truck Centers HireRight DAC Trucking

Truck Country

Des Moines Truck Brokers Freightliner of Des Moines GATR Truck Center GE Capital Solutions Transportation Finance McGowen, Hurst, Clark & Smith, P.C. Mid-States Utility Trailer Sales Twin Bridges Truck City

If you want to have your company listed as a Cornerstone Sponsor of the IMTA, please contact Phillip Nicolino at 515-244-5193 or phillip@iowamotortruck.com

Colleague Sponsors Allied Oil & Tire Company Bridgestone Commercial Solutions Cornhusker International Trucks Donaghy-Kempton Insurors Housby/Vocon Majestic Truck Center McGladrey O’Halloran International Peterbilt of Council Bluffs, Des Moines and Sioux City Reynolds & Reynolds TAB Bank Thermo King Christensen Transport Permits U.S. Cargo Control

www.IowaMotorTruck.com

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By: Brenda Neville

IMTA President & CEO

FACT OR FICTION Driver Shortage – Fact or Fiction?

Recently, a radio talk show based in Iowa was focusing on summer driving and the condition of the roads and during the show, the conversation turned to the shortage of drivers. The host mentioned his thoughts concerning the lack of professional truck drivers and opened up the phone lines.

For the next 30 minutes there was a stream of phone calls featuring folks from all over the state weighing in on the subject. Some of the callers insisted that there couldn’t be a shortage because it seemed like there was a significantly greater number of trucks going up and down the interstates.

While other callers who identified themselves as trucking company owners, safety directors or recruiters refuted that fact and said the shortage of drivers was at the highest level it has been in several years.

Needless to say, it was an interesting broadcast and in the end, a valuable bit of publicity for Iowa’s trucking industry. It seems as though the driver shortage is the topic of conversation almost everywhere you turn.

After the broadcast, IMTA received a call from the station and the host of the show wanted our opinion on the subject.

In addition to confirming that there was indeed a shortage of qualified drivers, we also asked for the opportunity to

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Iowa Motor Truck Association Lifeliner

come on the show and not only discuss the reality of this labor shortage in the industry but more importantly, requested the opportunity to promote the industry overall. We are still waiting to hear back on our request but look forward to some air time to remind people that there are any number of great paying jobs available in Iowa’s trucking industry.

IMTA Members Share Insight on the Driver Shortage

The driver shortage is the number one challenge facing IMTA members. Recent polling of the membership indicates that the number of companies dealing with empty trucks is at an all-time high.

In fact, some of the members that have traditionally been insulated from the challenges of keeping the trucks filled due to their business model are also feeling the impact of this widespread issue. In every conversation with an IMTA member, attracting qualified drivers to their operations is their top priority.

A member that falls into this category recently lamented that this is the first time in a decade that he has trucks sitting. This particular member has an operation that has dedicated, short haul routes and the drivers are home every night. There is no weekend work and they have consistently paid higher wages in an effort to avoid ongoing turnover issues.

“We have effectively used this model for over 20 years and have had a core group of drivers that ensure that there is no downtime. I had some drivers retire

a few months ago and I have yet to fill three trucks. I cannot believe that I am unable to find drivers based on what we offer which also includes new equipment.

I have never seen anything like this,” said the IMTA member.

The American Trucking Associations (ATA) estimate the current shortage of drivers to be roughly 30,000 in the for-hire truckload market with the other segments of the industry, less-than-truckload and private, feeling less pressure of a driver shortage. ATA projects that the shortage could reach 200,000 over the next decade.

In a recent online Wall Street Journal article, the driver shortage was highlighted. As the article pointed out the “trucker shortage reflects a conundrum of the recovery even as the labor department recently reported the U.S. is adding, on average, more than 200,000 jobs a month. The skills and goals of the nation’s roughly 9.5 million unemployed aren’t meshing with employers’ needs.”

One IMTA member reported that he could easily fill 20 more trucks and while he hates to turn away business, he simply has no other choice.

“I hate to see the trucks sitting out in the yard because I know what kind of revenue I could be generating if I had the trucks moving, but I am to the point that I may have to sell some of the power because I continue to be very disappointed with the number of applicants we are seeing on a weekly basis as well as the quality

Driver Shortage Fact or Fiction? of applicants. I am not certain I can get these trucks filled anytime soon. I am very concerned about the future of this industry,” the IMTA member said.

While another member, headquartered in rural Iowa hasn’t felt the crunch of a driver shortage. “I am still able to attract farm boys to my operation. I have 25 trucks and have not had more than a few trucks sitting empty at any given time.

But I am not naive enough think that it will stay this way, I really would like to see IMTA and ATA work on changing the requirement that an interstate driver has to be 21. I think that is the main reason the industry as a whole is facing the dilemma of no drivers. We are losing a lot of these farm kids between the age of 18 and 21 and once the trucking industry is off their radar, we have lost them for good!”

With the increased concern and focus on the driver shortage, the topic of driver pay is once again in the forefront. The average annual pay for long-distance drivers in 2013 was $49,540, according to ATA. However, in Iowa the average pay was reported to being closer to $55,000.

Many folks within Iowa’s trucking industry believe that the rate in which pay increases have been implemented has been too slow over the years and it has finally caught up with the industry.

“We should have made it a priority to increase pay on a more regular basis.

I am as guilty as the next guy in not increasing the driver pay as often as I should have. I think we as an industry are as much to blame for the driver shortage as anyone. We have always undervalued the drivers,” wrote an IMTA member in an online survey.

“I have always said there would be no driver shortage if the pay was at a level that it should be based on what the driver does. Too often we forget that the driver is the foundation of our company, the reason we exist and that alone should be a catalyst for continually increasing the driver pay,” said another member.

There also continues to be a segment of the IMTA members that continue to argue that what the industry is experiencing now is no different than what the industry has had to deal with for decades.

“For as long as I have owned a trucking company, we have struggled to keep our trucks full. Driving a truck is a tough job and is not for everyone. If you are in this business, you are always going to be challenged to have enough drivers to cover the loads. The only difference today is that we are seeing more drivers leaving the industry than entering the industry.

But with the number of people that are unemployed, I think we will eventually see folks moving back to trucking. Trucking is a good paying job that doesn’t require a lot of education and there are a lot of people that end up in our industry out of necessity,” wrote another IMTA member in the online survey.

“I think a lot of trucking executives talk about their driver retention programs but in most cases, that is all it is…merely talk.

Once we really looked at what we were doing to retain drivers, I realized that we were not doing a good job. We actually pulled together our veteran drivers and talked to them about what we could do better to ensure they would stick around. I was amazed at some of the feedback we received and we are changing our whole approach to driver retention. Surprisingly, some of the things we are going to implement based on driver feedback in our retention program are not that costly and I believe will help us get the results we need,” wrote an IMTA member.

The online Wall Street Journal driver shortage article sparked an online debate that was both interesting and compelling as readers weighed in on the subject.

Most of the comments came from folks that do not believe the driver shortage is a legitimate concern.

In addition to focusing on driver retention programs, many IMTA members have reported that they are implementing bonus programs, creating more flexibility in scheduling to allow for more time at home and evaluating benefits and retirement at all levels.

One reader responded online with the following statement, “Lets debunk the mythical ‘driver shortage’ and look at some facts: Driver Turnover Rate, Class 8 Vehicle Sales, & Elasticity of Supply.

First, many transportation companies have turnover rates as high as 92% according to ATA. How do we know that any perturbations aren’t just issues with hire-lag or driver choice? Second, Class 8 Vehicle sales have been growing and are projected to continue growing, from 248,000 in 2013, to 262,000 in 2014, and 275,000 in 2015. Why would anyone buy a new or replacement vehicle if they didn’t have the drivers to fill the seat? Finally, we have the Elasticity of Supply. The market will determine if there is a shortage and respond with appropriate measures. The only market response to-date is that some shippers are moving freight to another mode of transportation, few if any are paying drivers more money; the system works.

Simply put, just because you don’t have a $100 bill right now doesn’t mean that we have a shortage of $100 bills.”

Some IMTA members have reported that they continue to invest in recruiting efforts, but also putting a greater focus on retaining drivers.

The lifestyle component of the industry is always going to be a big hurdle for the industry. Driving a truck is not an easy job and requires time away from home.

Without question, it takes a special skill set to be a good truck driver. The industry at all levels recognizes this reality and some will argue that until the lifestyle issues can be countered, there will always be a shortage of truck drivers.

“I was a driver for 10 years and then when I started a family, it was harder and harder for me to get in that truck and be gone for days at a time. I loved every aspect of trucking but eventually my desire to be home with my family won out. I took a pay cut once I quit trucking, but I was okay with that because I personally was happier. When I had the opportunity to buy a small trucking company, I jumped on the opportunity to get back into trucking, but I vowed I would never get behind the wheel again and I haven’t. But I think of that often now as I hire drivers, especially the younger ones. I often wonder how long will I have the young driver and what can I do to make sure that I don’t lose the young driver for the same reason I quit. I haven’t come up with an answer to that question yet so I would really find value in my dues dollars if IMTA found an answer to that,” wrote and IMTA member.

www.IowaMotorTruck.com

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Driver Shortage Fact or Fiction?

Many IMTA members are investing in new equipment and providing a forum for drivers to provide feedback and input to the company.

“Sometimes something as simple as listening to the drivers can be helpful in not only retaining your current drivers but recruiting new drivers. Treating drivers with the respect they deserve can go a long way in preserving your driver force.

We have set up driver listening sessions each quarter and we have found this to be very valuable. We are not losing as many drivers as we did before we did these listening sessions and I believe there is a correlation,” said an IMTA member from northeastern Iowa.

Your Association and the Driver Shortage As always, listening to the membership is of critical importance in our efforts.

As calls of concern continued to flood the association offices, association leaders wanted to do more than just be empathetic.

IMTA staff kicked into gear and started to do some research specific to this mounting problem. The staff interviewed many of the members to learn more about the processes that were being implemented to recruit drivers. In addition, the staff reached out to its database of drivers from the recent truck driving championships and got their perspective on retention and recruiting.

Another step included research of the various avenues in which members were utilizing for recruitment. Conversations with hiring consultants and advertising experts proved thought provoking and valuable. Identifying what methods worked and didn’t work was harder than expected. Trucking companies were utilizing a smorgasbord of advertising and outreach modes and thinking “outside the box” was the common theme by almost every trucking company that was approached.

The feedback was phenomenal and the professional staff and volunteer leaders rolled up their sleeves and started to develop a plan to provide additional assistance to the members in regard to driver recruiting.

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Iowa Motor Truck Association Lifeliner

“We wanted to do more than just be an empathetic ear to the members; we wanted to be able to provide some real assistance to the membership. We wanted to come up with a program or a product that would help them with their efforts to attract drivers and qualified employees to their companies,” said IMTA Chairman Ralph Arthur.

IMTA determined that a social media approach coupled with an overall image enhancement program was the route to go. The short term goal was to provide one more option for IMTA members in their recruiting efforts by launching an online jobs board and the long term goal was to implement an ongoing image campaign that would ensure interest in the industry in the future.

“We have no illusion that the jobs board that we have created is going to suddenly get a flood of applicants into the doors of our members. But we do believe that we can use the power of the collective voice of the association to promote the jobs board and ultimately get the word out in a much bigger scale for people to look on the site and in one place, see hundreds of jobs. It is just one more option for the members and we believe that is the value we can bring to them as an association,” continued Ralph Arthur.

The subscription based online jobs board will allow members and non-members to post jobs and then through the power of social media and online marketing coupled with an aggressive media campaign push traffic to the site.

In the first week that the soft launch was implemented, over 1500 people “clicked” on the site. As this magazine went to print, over 30 companies representing well over 200 jobs were on the site. The media campaign generated several radio interviews not only within the state of Iowa but on national broadcasts including Sirius radio. Articles about the online job board appeared in several newspapers and publications including the Des Moines Register and Heavy Duty Trucking. The media campaign was not only successful in bringing attention to the job site but also was an opportunity to promote the trucking industry as a whole.

A large percentage of the fees collected for subscriptions are going directly back into the marketing and promotion of the site. The success of the online presence will be a commitment to keep the site fresh so changes will be made to ensure it is a valuable tool to the subscribers.

“The value that we bring to a service like this is that we can spend a lot of resources on promoting the site and getting traffic to the site. In talking to our members, many of them were doing online advertising and using social media, but they didn’t have the time or expertise to ensure that their specific company had the online presence that they needed OR they were spending a massive amount of money to get that online presence. We didn’t create this service to get rich as an association, we created to provide some real value to the members and offer some additional assistance to the biggest problem they are facing today,” said Immediate Past Chairman Steve Schuster.

In addition to the online jobs board, IMTA will also be distributing a directory listing IMTA members on a quarterly basis to over 250 locations across Iowa. The distribution will be in the rural areas that have an audience of potential drivers and qualified employees. All the state rest areas and truck stops will have copies of the directory as will the Co-op elevators, community banks, livestock sales yards and a number of other venues in rural Iowa.

Identifying and attracting qualified employees is a campaign that will never end. Regardless of your opinion on the current driver shortage, every trucking company has a recruiter which is evidence enough that recruiting is a top priority.

And while we all wish there was some magical solution or creative approach that would eliminate the need to invest so much in recruiting…that doesn’t exist at this point in time. Instead, it will take a relentless and organized effort on the part of everyone that has a vested interest in the long term success of the trucking industry.

Jobs Board for Members

Onli ne Empl oy me n t Si te Pu l l s in J o b S eeker s t o F ill Va c a n t Po s it ions Despite a variety of efforts, finding good, qualified drivers and employees has become a struggle for nearly every trucking company across the state and country. Recently, the Iowa Motor Truck Association took action to offer a new recruitment option for its members by creating IATruckingJobs.com, which is trucking’s first industry specific online jobs board.

ongoing public relations and marketing campaign to steer job seekers to the IATruckingJobs.com.

In addition to unlimited job postings, subscribers will also be provided a dedicated company profile page on the IMTA’s Online Jobs Board that would include: • Bio/Overview

The sole purpose of IATruckingJobs. com is to create an additional resource to connect individuals seeking new employment in trucking (or a possible career change to transportation) with companies from within the IMTA’s membership. This will be achieved through the use of Google and Facebook to strategically pull job seekers into the site.

The pinpointed marketing component will target people on the internet and social media based sites on a sophisticated combination of keyword searches and specific demographic information.

Because of the site’s concentration on the trucking industry and its unique marketing elements, IATruckingJobs.com can be a viable alternative to every IMTA members’ current recruiting and hiring efforts.

All members of the Iowa Motor Truck Association have the opportunity to post unlimited career openings on this Internet jobs board. There are two subscription options – annual or monthly – to serve organizations that continuously have positions available and those that may only have a couple per year. The fees for either an annual or monthly subscription will be used in large part to invest in an

Employers subscribing to IATruckingJobs.com will be able to access job applications through the site and will even have certain analytics available to them to see how much traffic each posting receives (overall number of views and applications). And, rest assured, the applications received will be DOT compliant to satisfy all regulations in terms of driver hiring and employment files.

• Main contact information (address and phone number) • Web site URL (linked) • Social media pages (linked) • Listing of all your available job postings

IATruckingJobs.com Reasons to Subscribe • Trucking’s first industry specific online jobs board • Unique, strategically focused marketing component • Affordable pricing compared to other advertising options • Annual or monthly subscriptions available • Unlimited job postings • Analytics to track views and applicants by job listing

THE SOLE PURPOSE OF IATRUCKINGJOBS.COM IS TO CREATE AN ADDITIONAL RESOURCE TO CONNECT INDIVIDUALS SEEKING NEW EMPLOYMENT IN TRUCKING WITH COMPANIES FROM WITHIN THE IMTA’S MEMBERSHIP. www.IowaMotorTruck.com

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We Can Help You Find Your Next Employee It’s a first of its kind. A jobs board specifically for the trucking industry that draws in good, quality job candidates seeking employment in the industry.

The Iowa Motor Truck Association’s online jobs board – www.IATruckingJobs.com – is tailored to directly serve its members in this area of need. Designed to aggressively capture job seekers that have a connection and background to the trucking industry, the IMTA Jobs Board will be searched by countless individuals who could become your company’s next employee.

Here’s what you should know: • IATruckingJobs.com will use cutting-edge Web site technology to connect job seekers with hundreds of job opportunities being posted by members of the IMTA. • It uniquely combines a social media component that offers a pinpointed marketing strategy to help bridge the gap trucking companies and qualified employees need to fill a vacant truck, assume an operations role or be your next diesel mechanic.

SUBSCRIBE

To subscribe, please complete the information below, indicating which subscription is right for your company, and return to the Iowa Motor Truck Association to activate your account.

PRICING & PAYMENT

Select either an annual or monthly subscription option, and then indicate your payment preferences below:

Company

Annual — $1,000 per year

Address (Street & Mailing)

Monthly — $125 per month

City

State

Zip

Company Phone

Start Month End Month

Check Enclosed

Company Web site

Send Invoice

Contact

Credit Card

Contact E-mail

Card #

Login E-mail

Exp. Name on Card

Login Password Please return completed form to:

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Iowa Motor Truck Association Lifeliner

Sec. Code

Signature

Iowa Motor Truck Association 717 E. Court Avenue Des Moines, Iowa 50309

E-mail: phillip@iowamotortruck.com Fax: (515) 244-2204 Questions? Call (515) 244-5193

Jobs Directory Distributed

Statewide Distribution of Jobs Directory to Help Attract Employees to Trucking Iowa Trucking Jobs Directory: Statewide Distribution of Iowa Trucking Jobs Directory

The IMTA has created a jobs directory to further assist the industry in attracting qualified drivers and employees to the industry. The directory coupled with the online jobs board will give IMTA members some additional avenues in their recruiting effort.

In addition to offering assistance to the members in their recruiting activities, IMTA also views the directory as one more way in which we can have a positive presence throughout the state and will be distributed to over 250 locations throughout Iowa on a quarterly basis.

All IMTA members will be have a listing in the directory at no charge and for an additional charge, members can place an ad in the jobs directory. The directory will also feature information on the industry as a whole in Iowa and highlight some of the many great things that trucking does for the State of Iowa.

The directory will focus on the number of good paying jobs that are available and hopefully motivate folks, especially in rural Iowa, to consider Iowa’s trucking industry as a viable career option.

areas that offer favorable demographics for potential employees and will be a valuable reminder that Iowa’s trucking industry is always looking for good employees.

“Feedback from the membership indicates that we need to continue to focus our efforts in the rural areas because of our agricultural base. There is still a segment of the population, especially in those rural areas, that still have a high level of interest and respect for the trucking industry. We are hopeful that a quarterly publication will be a constant reminder that good jobs exist in the trucking industry. We also believe it is one other way that we can promote the trucking industry as a whole too,” said IMTA President Brenda Neville.

For information on the directory or to place an ad in the next directory, please call the IMTA office.

Each quarter IMTA will update the directory and give members the opportunity to advertise as well. Distribution will be primarily in rural

THE DIRECTORY WILL FOCUS ON THE NUMBER OF GOOD PAYING JOBS THAT ARE AVAILABLE AND HOPEFULLY MOTIVATE FOLKS, ESPECIALLY IN RURAL IOWA, TO CONSIDER IOWA’S TRUCKING INDUSTRY AS A VIABLE CAREER OPTION.

MacKenzie Pick – Summer Intern at IMTA

University of Iowa student MacKenzie Pick is providing valuable assistance as a summer intern at the Iowa Motor Truck MacKenzie Pick Association.

IMTA Intern MacKenzie is working towards her degree in business and will be graduating from Iowa in May 2015.

MacKenzie is specifically assisting with IMTA’s efforts to assist members in their job recruiting efforts. Kenzie is overseeing the efforts to get the first IMTA jobs directory published. She has worked with members to ensure that their listings are correct and also working on securing advertising for the directory. Kenzie has also been assisting with building the distribution list that will include over 200 locations.

In addition, Kenzie is part of the team of IMTA staff members that are coordinating the statewide effort of having Iowa’s trucking industry at county fairs. Kenzie has helped secure exhibit space at the fairs, coordinate volunteers and equipment move in and has served as the liaison between the IMTA and the county fair administrators.

IMTA’s internship program has been in existence for the past 15 years and allows college students the opportunity to gain some real life working experience in a number of areas.

“MacKenzie has been a wonderful addition to our efforts this summer and has a great understanding of the trucking industry but also has a strong work ethic and a number of good ideas that have helped us launch a successful effort in helping the members with their recruiting efforts,” said IMTA President Brenda Neville.

www.IowaMotorTruck.com

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IMTA Board of Directors

IMTA Leaders Meet for Annual Spring Board Meeting Over 50 people attended the spring board meeting that was held in late May at the World Food Prize Building in downtown Des Moines.

IMTA Chairman of the Board Ralph Arthur with Ruan Transportation led the meeting of IMTA leaders.

Speakers at the meeting included economist Ernie Goff from Creighton University, Lisa Gonnerman, director of safety with Ruan and member of the national FMCSA CSA Sub-committee, Steve Grubbs with Victory Enterprise, ISU Athletics Director Jamie Pollard and Ambassador Ken Quinn, president of the World Food Prize.

The economy, HOS regulations and the driver shortage were the main topics of discussion. In addition, the group heard a legislative update as well as information pertaining to several congressional primary races.

Board members Donna Weinrich, of Weinrich Truck Line, and IMTA Chairman Ralph Arthur, of Ruan, enjoyed time between speaker presentations.

“I was pleased with the great attendance as well as the great discussions we had on a number of issues of importance,” said Arthur.

Board members and special guests were also given the opportunity to tour the renowned World Food Prize building and have time to visit with fellow board members and colleagues that were present. The IMTA Board convenes a spring and fall meeting and almost 90% of the 45 board members participate.

“I am always proud to be a part of this board not only because of the great folks that are part of it but because of the great work we do collectively as a group. We always get a good showing by the board members at all of our meetings and that is a testament to the value we all place on the work of this board,” said Steve Schuster, of Schuster Company in LeMars.

In addition to the carrier members, the allied division and towing division have representation on the board and ICSM leaders are also invited to participate in the meetings. Each meeting will typically feature an economist as well as other speakers that touch upon topics that are timely to the trucking industry. Board members participate in the annual meeting that is held in conjunction with the September Management Conference with the next board meeting scheduled for November.

Following his insightful speech over the lunch hour, Iowa State University Athletics Director Jamie Pollard met with IMTA Chairman Ralph Arthur, of Ruan; IMTA President Brenda Neville; and Doyle Kepley, of Dave’s Auto & Truck Service in Ames.

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IMTA members Mike Bagg, Central Trailer Service; Dick Donnelly, Warren Transport; Clayton Fisk, Warren Transport and Aaron Tennant, Tennant Truck Lines took time to pose for a photo between speaker presentations.

Ambassador Kenneth Quinn, president of the World Food Prize Foundation, was among the list of exceptional speakers for the day.

R-L: Dick Donnelly & Clayton Fisk, Warren Transport; and Delwin Van Wyk, Interstate PowerSystems

Mike Riggan, TanTara Transportation Corp., Roger Amhof, Amhof Trucking; and Aaron Tennant, Tennant Truck Lines.

R-L: Melinda Anderson, Ennis Corp.; Dave Neuwohner, All Seasons Trucking, KJ Hueneman, Hueneman Farms; and Lisa Gonnerman, Ruan Transportation.

Bill Arnold, Foodliner/Questliner and Jane Sturgeon, Barr-Nunn Transportation.

Murry Fitzer, Florilli Transportation and Dennis Thompson, Thompson Truck & Trailer.

“I WAS PLEASED WITH THE GREAT ATTENDANCE AS WELL AS THE GREAT DISCUSSIONS WE HAD ON A NUMBER OF ISSUES OF IMPORTANCE,” SAID CHAIRMAN OF THE BOARD RALPH ARTHUR.

www.IowaMotorTruck.com

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IMCF Scholarships

Iowa Motor Carriers Foundation Continues to Invest in Iowa Students Since 1989, the Iowa Motor Carriers Foundation has been proudly investing in the Iowa students. Since that first awards ceremony Iowa’s trucking industry has impacted over 200 students with almost $140,000 in scholarship dollars.

The foundation was a long-time dream of Verne Simpson, president of Mid-Seven Transportation. Verne was relentless in his efforts to form a nonprofit foundation. His vision and dream for the foundation was to not only award scholarships to students pursuing continued education at an Iowa school or college but also have a foundation that would do a number of valuable things to improve the quality of life for people in Iowa.

The first step in seeing his dream become a reality happened when he presented the first scholarship check to Kristine Edwards in 1989. His passion and commitment for the foundation never wavered until his death in May 2006.

His legacy continues yet today as the scholarship program continues to grow and thrive.

Aaron Peterson

Recipient of the 2014 Cummins Central Power Diesel Scholarship, Aaron Peterson, was presented the scholarship by IMTA Board Member, KJ Hueneman of Hueneman Farms LC.

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Annie Devries

Over the years, more endowed scholarship were set up as a way in which families could remember a loved one and create a legacy in honor of that individual. In addition, additional marketing and promotion of the scholarship program within the IMTA membership as well as the general public has resulted in a significant increase in the number of applicants.

This year, over 50 applications were received for the various scholarships that are awarded annually. While this is a testament to the value of the scholarship program, the increased number of applications also increases the difficulty in selecting the winners.

“I enjoyed being on one of the selection committees but it was a tough job in the respect that you have to select one winner. Many of the applications I reviewed were very, very good and making that final decision was not easy,” said Gary Handley, BTI Special Commodities.

“We go to great lengths to ensure that the selection process is fair and grounded with integrity and oversight.

All of the applicants put a lot of time and energy in the application process and we owe it to the applicants to put a lot of time and energy in the review process as well,” said IMTA President Brenda Neville.

A special thanks to everyone that supports the Foundation through financial contributions and more importantly, a BIG THANKS to the various IMTA members that served on the selection committee and assisted with the various check presentations. This year marked a year where the winners were from all corners of the state so rather than doing a centrally located check presentation ceremony, individual ceremonies were made to the majority of the winners with the help of IMTA members and board members.

All the applications must be submitted by March 15 and then there is a number of

IMTA Board Member, Roger Amhof, presented Annie DeVries with the 2014 Motor-Ways, Inc. Scholarship in Eldridge, Iowa.

Iowa Motor Truck Association Lifeliner

different steps that are implemented to fulfill the review process and finally make the final decision as far as the winner.

Brooke Fletcher

Brooke Fletcher was presented the 2014 Midwest Wheel Companies Scholarship

by Midwest Wheel Companies Executive Vice President and CEO, John Minor.

Gabriella Ruggiero

IMTA member, Ben Caughron of Warren Transport, Inc. presented Gabriella Ruggiero with the 2014 Iowa Council of Safety Management Scholarship at Jesup High School.

Jacob Wittrock

The 2014 Paul Crouse Memorial Scholarship was awarded to Jacob Wittrock of Arcadia.

IMTA member Julie Pruitt of Crouse Transportation Services, LLC presented the scholarship.

Special Thanks 2 0 14 Sel ection Commi tte e Me m b er s

Ralph Arthur, Ruan Transportation Mike Bagg, Central Trailer Services Adrian Dickey, Dickey Transport Jim Farr, Farr Transport Kevin Gass, Perishable Distributors of Iowa Gary Handley, BTI Special Commodities John Minor, Midwest Wheel Companies Bridget Nixon, Solar Transport Julie Pruitt, Crouse Transportation Services Jack Sawyer, Des Moines Transportation Company Pat Storey, Motor-Ways, Inc. Travis Thompson, Thompson Truck & Trailer Doc Wilson, Cummins Central Power

Joshua Jackson

Joshua Jackson was selected as the recipient of the 2014 Harold Dickey Memorial Scholarship. IMTA Member Adrian Dickey, of Dickey Transport presented the scholarship at Pekin Community High School in Packwood.

Paige Hassebroek

IMTA Board Member, KJ Hueneman of Hueneman Farms LC, presented Paige Hassebroek with the 2014 Darryl Mason Memorial Scholarship in Buffalo Center, Iowa.

Sara Hahn

The 2014 Bob Bannister Memorial Scholarship was awarded to Sara Hahn of Dyersville.

The scholarship was presented by IMTA member, Dave Neuwohner of All Seasons Trucking, Inc.

Spencer Endecott

IMTA Board Member, Delwin Van Wyk of Interstate PowerSystems, presented Spencer Endecott with the 2014 L.W. “Verne” Simpson Scholarship at Carlisle High School.

Zachary Dailey

The recipient of the 2014 Ziegler/ Caterpillar Diesel Technician Scholarship was Zachary Dailey of Essex, Iowa. The scholarship was presented by Don Egli, IMTA Director of Safety.

www.IowaMotorTruck.com

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Truck PAC Iowa

2014 Annual Spring Golf Outing – Great Success, Great Fundraiser!

IMTA members were finally able to participate in a golf outing free of rain, wind and storms. The 2014 annual spring golf outing was held at the Legacy Golf Course in late May and offered over 140 players and volunteers a day of valuable networking, golf and raising money for the PAC.

Championship Flight – 1st Place (From L to R) Ken Niece, Niece Trucking; Ryan Smith, Kingsgate Insurance; Dan Niece, Niece Trucking; Clark Bannister, Ruan.

This annual event has been in existence since the late 1970s and has become a tradition that attracts members, both truckers and vendors from all across the state to raise money for TRUCK PAC IOWA. Over $20,000 was raised at the event which not only included golf and a steak dinner but a number of additional fun activities that helped add over $4,000 to the fundraising total.

IMTA officers and leaders once again could be found at hole 10 for a special fundraiser that proudly had 100 percent participation by the golfers.

IMTA Chairman Ralph Arthur, Ruan Transportation, Mike Riggan, TanTara Transportation, Steve Schuster, Schuster Company, Jeff Wangsness, JMT Trucking and IMTA President Brenda Neville encouraged golfers to participate in the officers challenge and the financial support given by the participants was outstanding.

“We always have a good time being out here not only because we are committed to raising money for PAC but this is also an opportunity to greet the members and thank them for their support personally,” said IMTA Chairman Ralph Arthur.

Championship Flight – 2nd Place

(From L to R) Tom McMahon, Boyer Petroleum; Scott Phillips, Boyer Petroleum; Tyler Burns, Boyer Petroleum; Mike McKinney, MX8.

Championship Flight – 3rd Place (From L to R) Mark Habben, Crossroad Trailer Sales & Service; Reggie Graeve, Decker Truck Line; Dale Decker, Decker Truck Line; Mark Gleason, Decker Truck Line.

A special thanks to members of the PAC Committee for helping with the organization of the event, Chairman Delwin Van Wyk, Interstate PowerSystems, David Boyer, Boyer Petroleum Company, Dave Nelsen, Freightliner of Des Moines, Mike Riggan, TanTara Transportation and Jeff Wangsness, JMT Trucking.

The next PAC fundraiser will be the annual motorcycle and vintage/classic car victory tour which will be held on Friday, August 15th beginning in Newton. For more information on how you can get involved with this important PAC event, contact the IMTA office (515)244-5193.

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Iowa Motor Truck Association Lifeliner

Over $20,000 was raised for TRUCK PAC IOWA

First Flight – 1st Place

(From L to R) Todd Rathbone, Harrison Truck Center; Jed Swanger, Harrison Truck Center; Bob Galligan, Harrison Truck Center; Adam Hesse, Harrison Truck Center.

First Flight – 2nd Place

(From L to R) Mike Trueblood, Housby/VOCON; Steve Hodges, Housby/VOCON; Jared Modlin, Housby/VOCON; John Howard, Housby/VOCON.

First Flight – 3rd Place

(From L to R) Mike Bagg, Central Trailer Service; Randy Frisk, Central Trailer Service; Bill Bailey, Central Trailer Service; Brad Bailey, Central Trailer Service.

Second Flight – 1st Place

(From L to R) John O’Halloran, Quality Services Corp.; AJ Lucius, Cintas; Shane Broderick, O’Halloran International; Troy Baumberger, Baumberger & Sons.

Putting Contest

Second Flight – 2nd Place

(From L to R) Ken Silver, Quality Service Corp.; Dave Cowman, C & A Transportation Logistics; Ron Moon, Mid States Utility Trailer Sales; Jim Loffredo, Loffredo Fresh Produce Co.

– 1 Place st

Pat Bishop | Boyer Petroleum Co.

– 2nd Place

Second Flight – 3rd Place

(From L to R) Mike Sullivan, Kenworth Mid-Iowa; Matt Schryver, Green Products; Lee Moran, Highway Mail Company; Ben Moran, Highway Mail Company.

Donnie Wilson | AE Dairy

– 3rd Place

Mark Habben | Crossroads Trailer Sales & Service

www.IowaMotorTruck.com

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Gary Handley, BTI Special Commodities, and Mike McKinney, MX8, enjoying themselves at the PAC golf outing.

Jeff Wangsness, JMT Trucking Co., congratulates Pat Bishop, Boyer Petroleum Co., for winning first place in the annual putting contest!

Representing McGowen, Hurst, Clark & Smith, P.C. are Abby Hood, Bryan Dopheide and Nick Finkenauer who are all heading to the carts to kick off the outing.

Joede Kayser, Thompson Truck & Trailer, and Steve Schuster, Schuster Company, take time to network prior to teeing off.

Awaiting the start of the outing on a beautiful day is Jeff Baedke, Truck Country; Aaron Weiland, Schuster Company; Mike Riggan, TanTara Transportation Corp.; Pat Storey, Motor-Ways; Jeff Arens, Schuster Company

IMTA Chairman of the Board Ralph Arthur, Ruan, and Jeff Wangsness, JMT Trucking Co., take time prior to the start of the outing to sell raffle tickets to win Eagles concert tickets, Eric Church concert tickets and an Iowa Cubs ticket package.

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Iowa Motor Truck Association Lifeliner

Thank You 2014 Tru c k PA C

Iowa Golf Outing Sponsors

Allied Oil & Tire Company Boyer Petroleum Company Bridgestone Commercial Solutions Central Trailer Service, Ltd. Cornhusker International Trucks Cross-Dillon Tire, Inc. Cummins Central Power, LLC Des Moines Truck Brokers, Inc. Donaghy - Kempton Insurors Freightliner of Des Moines, Inc. Gatr Truck Center GE Capital Solutions Transportation Finance Harrison Truck Center HireRight DAC Trucking Housby/VOCON Interstate PowerSystems Iowa Council of Safety Management J.J. Keller & Associates, Inc. Jim Hawk Truck-Trailers, Inc. Joe Morten and Son, Inc. d.b.a. Motor-Ways Keck Energy Kenworth Mid-Iowa, Inc. Majestic Truck Services McGladrey, LLP McGowen, Hurst, Clark & Smith, P.C. Mid-States Utility Trailer Sales, Inc. Midwest Wheel Companies O’Halloran International, Inc. Peterbilt of Des Moines, Sioux City & Council Bluffs Quality Services Corp.

Reynolds & Reynolds, Inc. Ruan Tarbell & Co., P.L.C Thermo King Christensen Thompson Truck & Trailer, Inc. Transport Permits Transportation Alliance Bank Truck Country Truckers Insurance Associates Twin Bridges Truck City US Cargo Control Wilson Trailer Company

www.IowaMotorTruck.com

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Truck Driving CHAMPIONSHIPS A rich tradition continues to transform the Prairie Meadows Racetrack and Casino parking lot into a mecca of prideful competition for Iowa’s trucking industry when over 200 drivers, spouses, children, volunteers, regulators and trucking industry leaders show up for the annual truck driving championships.

From walking down the red carpet to being called up on stage on several occasions, the drivers are continually the center of attention. In addition, the spouses and families are also included in the recognition which this year included a walk across the stage and being presented with fresh roses.

Drivers from across the state enthusiastically show up for an event that is dedicated in its entirety to showcase and recognize the drivers and their families for the commitment and sacrifice they make to the trucking industry the other 363 days of the year.

“We can never do enough to recognize these drivers and their families. Each and every day they do everything possible to create a positive quality of life for everyone and unfortunately, they don’t get the respect they deserve. The TDC is an opportunity for us to tell them THANK YOU in a very big way,” said TDC Co-Chair Lisa Gonnerman, Ruan Transportation.

“This event is all about the drivers and their families. While we have to focus on the various testing portions of the championships, our main priority is all the other little things we can do to make the drivers feel very special and appreciated. Our mantra is to give them the royal treatment from the moment they arrive to the moment they leave.

We pride ourselves in creating a very special environment for the participants,” said TDC Chairman Gary Handley, BTI Special Commodities.

The two day event culminates with an awards banquet where winners are announced but every single driver is also brought up on stage and given an award for being a professional driver. Over 300 people attend the closing banquet.

“Far too often, drivers are treated with disrespect and disdain and that is

“WE CAN NEVER DO ENOUGH TO RECOGNIZE THESE DRIVERS AND THEIR FAMILIES,” SAID TDC CO-CHAIR LISA GONNERMAN, RUAN TRANSPORTATION. {36

Iowa Motor Truck Association Lifeliner

not right. We believe every driver is a champion for the job they do on a daily basis and while there is only a handful that leave with a trophy, we believe that every single participant leaves with something much greater…a renewed sense of pride for what they do and we are hopeful that will carry them through for another year until we get them back at the championships,” said IMTA Chairman Ralph Arthur, Ruan Transportation.

Truck Driving CHAMPIONSHIPS WI N NERS

3 Axle Van Division

4 Axle Van Division

5 Axle Van Division

Straight Truck Division

Twin Trailers Division

Sleeper Berth Division

(L to R) IMTA Chairman of the Board Ralph Arthur, Ruan; 1st Place – Dallas Williams, Casey’s General Stores, Inc.; 2nd Place – Wayne Brumwell, Walmart Transportation; 3rd Place – Steven Iburg, Con-way Freight; TDC Chairman Gary Handley, BTI Special Commodities.

(L to R) IMTA Chairman of the Board Ralph Arthur, Ruan; 1st Place – Jed Hinds, Walmart Transportation; 2nd Place – Devin Heber, United Natural Foods; 3rd Place – Scott Delaney, Casey’s General Stores, Inc; TDC Chairman Gary Handley, BTI Special Commodities.

(L to R) IMTA Chairman of the Board Ralph Arthur, Ruan; 1st Place – Scott Marnin, Con-way Freight; 2nd Place – Jim Schuster, Con-way Freight (not pictured); 3rd Place – Bob Sink, UPS Freight; 4th Place – Aaron Mendoza, FedEx Freight; TDC Chairman Gary Handley, BTI Special Commodities. Please note: After auditing the TDC score sheets after the event,

(L to R) IMTA Chairman of the Board Ralph Arthur, Ruan; 1st Place – Jeff Hoffa, Conway Freight; 2nd Place – Glen Frick, Perishable Distributors of Iowa; 3rd Place – Loren Nilson, Schuster Company; TDC Chairman Gary Handley, BTI Special Commodities.

(L to R) IMTA Chairman of the Board Ralph Arthur, Ruan; 1st Place – Denny Bell, Walmart Transportation; 2nd Place – Richard Barre, Con-way Freight; 3rd Place – Todd Anderson, Hy-Vee; TDC Chairman Gary Handley, BTI Special Commodities.

(L to R) IMTA Chairman of the Board Ralph Arthur, Ruan; 1st Place – Jim Baker, HyVee; 2nd Place – Jim Stinemates, Walmart Transportation; 3rd Place – Jim Getty, Con-way Freight; TDC Chairman Gary Handley, BTI Special Commodities.

a discrepency was found which impacted the final outcome of this class and moved Jim Schuster to the 2nd place spot.

www.IowaMotorTruck.com

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Truck Driving CHAMPIONSHIPS WI N NERS

5 Axle Van Division

5 Axle Flatbed Division

Highest Overall Score

Highest First Year Participant

Highest Pre-Trip Score

Individual Sportsmanship

(L to R) IMTA Chairman of the Board Ralph Arthur, Ruan; 1st Place – Andy Yost, Panama Transfer; 2nd Place – Rhonda Hartman, Old Dominion Freight Line; 3rd Place – Ron Bloom, Johnsrud Transport; TDC Chairman Gary Handley, BTI Special Commodities.

(L to R) Dennis Bell, Walmart Transportation and IMTA Chairman of the Board Ralph Arthur, Ruan.

(L to R) George Foster, Casey’s General Stores and IMTA Chairman of the Board Ralph Arthur, Ruan.

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Iowa Motor Truck Association Lifeliner

(L to R) IMTA Chairman of the Board Ralph Arthur, Ruan; 1st Place – Doug Beach, Ruan; 2nd Place – Tom Goddard, Hy-Vee; 3rd Place – Rick Sorensen, TanTara Transportation Corp.; TDC Chairman Gary Handley, BTI Special Commodities.

(L to R) Doug Beach, Ruan and IMTA Chairman of the Board Ralph Arthur, Ruan.

(L to R) Doug Beach, Ruan and IMTA Chairman of the Board Ralph Arthur, Ruan.

Truck Driving CHAMPIONSHIPS WI N NERS

Team Sportsmanship

1st Place Team

2nd Place Team

3rd Place Team

Old Dominion Freight Line, Inc.

Walmart Transportation, LLC

Casey’s General Stores, Inc.

Johnsrud Transport, Inc.

www.IowaMotorTruck.com

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Truck Driving CHAMPIONSHIPS T E AM

ABF Freight Systems, Inc.

BTI Special Commodities, Inc.

Crouse Transportation Services, LLC

Con-way Freight, Inc.

Des Moines Transportation Company

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Casey’s General Stores, Inc.

Iowa Motor Truck Association Lifeliner

FedEx Freight

Decker Truck Line, Inc.

Truck Driving CHAMPIONSHIPS T E AM

Hy-Vee, Inc.

Johnsrud Transport, Inc.

Old Dominion Freight Line, Inc.

Ruan

Panama Transfer, Inc.

Martin Brower

Perishable Distributors of Iowa

Salmon Companies/Mail Contractors of America

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41}

Truck Driving CHAMPIONSHIPS T E AM

Schuster Company

Tennant Truck Lines, Inc.

Walmart Transportation, LLC

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Iowa Motor Truck Association Lifeliner

Solar Transport

TanTara Transportation Corp.

United Natural Foods, Inc.

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Truck Driving CHAMPIONSHIPS

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43}

Truck Driving CHAMPIONSHIPS

{44

Iowa Motor Truck Association Lifeliner

Truck Driving CHAMPIONSHIPS

SPONSORS ACUITY Insurance Aero Industries All Seasons Trucking, Inc. Allied Oil & Tire Company ARGEE Transport Bauer Built Tire Boyer Petroleum Company Bradshaw, Fowler, Proctor & Fairgrave, P.C. Bridgestone Commercial Solutions BTI Special Commodities, Inc. Casey’s General Stores, Inc. Cedar Rapids Truck Center/Quad Cities Peterbilt Central Trailer Service Continental Western Insurance Company Cornhusker International Trucks, Inc. Cost Reduction Technologies Crouse Transportation Services, LLC Cummins Central Power, LLC Decker Truck Line, Inc. Des Moines Truck Brokers, Inc. Donaghy - Kempton Insurors Eastern Iowa Tire Elliott-Hartman Agency eScreen Inc. FedEx Freight FirstLab Freightliner of Des Moines, Inc. Gatr Truck Center GE Capital Solutions Transportation Finance Great West Casualty Company Green Products Company Growmark, Inc. Hanifen Co., Inc. Harold Dickey Transport, Inc. Harrison Truck Center Heil Trailer HireRight DAC Trucking HNI Truck Group Holmes Murphy & Associates Housby/VOCON Hy-Vee, Inc. Interstate PowerSystems Iowa Sleep Iowa Tanklines, Inc. J.J. Keller & Associates, Inc.

Jim Hawk Truck-Trailers, Inc. JMT Trucking Company Joe Morten and Son, Inc. d.b.a. Motor-Ways, Inc. Johnsrud Transport, Inc. Kenworth Mid-Iowa, Inc. Lockton Companies, LLC Love’s Travel Stops Majestic Truck Services McGladrey, LLP McGowen, Hurst, Clark & Smith, P.C. Medix Occupational Health Mid Seven Transportation Co. Mid-States Utility Trailer Sales Midwest Wheel Companies O’Halloran International, Inc. Omnitracs,LLC PeopleNet Perishable Distributors of Iowa Peterbilt of Des Moines, Sioux City & Council Bluffs Pilot / Flying J Reynolds & Reynolds, Inc. Ruan Schneider Graphics, Inc. Schuster Company Solar Transport TanTara Transportation Corp Ten D, Inc Tennant Truck Lines, Inc. Thermo King Christensen Thompson Truck & Trailer, Inc. Transport Permits Transportation Alliance Bank Tri City Canvas Truck Country Twin Bridges Truck City United Natural Foods US Cargo Control Wal-Mart Transportation, LLC Warren Transport, Inc. Weinrich Truck Lines West Side Transport, Inc. Whitfield & Eddy, PLC Wilson Trailer Company Ziegler CAT

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45}

Leadership Class 2014

Next Generation of Leaders Participate in Annual IMTA Leadership Class The annual IMTA Leadership class was held this spring with another great showing by the future leaders of Iowa’s trucking industry. The class was comprised of 20 up-and-coming leaders representing both the trucking sector and supplier sector of the membership.

The participants enjoyed four days of sessions that focused on both personal and professional development and included an array of activities developed to expand their confidence, leadership skills and knowledge of not only the association and the trucking industry but business in general.

The first focus of the program is dedicated to an intense introduction to the legislative process and the value of continued advocacy efforts at all levels. Meetings with Iowa Governor Terry Branstad, legislative leaders and regulatory chiefs were a valuable part of that education. Interactive and team building exercises were included throughout the program and sessions on business ethics, communication and writing skills and overall leadership styles were also included.

“It was really an outstanding opportunity and I am very happy to have participated. I am anxious to stay involved with the IMTA and really was not aware of all the various things that the IMTA was involved in. I am very proud to be a part of the trucking industry but even more enthused about being a part of the industry and the association after this program,” said Whitney DeMatteis, of Des Moines Truck Brokers.

The IMTA has been offering its leadership program for over 20 years and has one of the

Bradley Bailey Central Trailer Service

longest running leadership programs among trucking associations. Each spring the IMTA members are given the opportunity to sign up to participate and a waiting list already exists for 2015.

Ryan Bastian Truck Country

Jennifer Brim Decker Truck Line

Matt Burton Thompson Truck & Trailer

Ashley Cottrell TanTara Transportation Corp.

“The leadership program is one of our most important programs and we are very pleased and proud of the participation we get year after year. Our biggest challenge is trying to keep these individuals engaged and involved after they are done with the leadership program and we will continue to make this a priority. We need to capitalize on this great group of future leaders because they truly are the future of the industry and the association,” said IMTA Chairman of the Board Ralph Arthur, of Ruan Transportation.

Whitney DeMatteis Des Moines Truck Brokers

The 2014 Leadership Class experienced a full day at the Capitol where they met many representatives to discuss current issues along with the importance of being a leader on every level. Governor Terry Branstad spent time with the class and posed for a group photo. Back Row (L to R): Jason Jenkins, Walmart Transportation; Staci Spittler, Randy’s Diesel Repair; Justin Zimmerman, Clifton Larson Allen; Bradley Bailey, Central Trailer Service; Scott Jones, Cummins Central Power; Phil Kennedy, Motor-Ways; Justin Dreeszen, Midwest Wheel Companies; Adam Ruden, Ruan; Aaron Weiland, Schuster Company; Jennifer Brim, Decker Truck Line. Front Row (L to R): Ryan Bastian, Truck Country; Ashley Cottrell, TanTara Transportation Corp.; Whitney DeMatteis, Des Moines Truck Brokers; Marty Schwery, Panama Transfer; Matt Schmitz, Panama Transfer; John Dickerson, Lyman-Richey Corp.; Matt Burton, Thompson Truck & Trailer; Julie Pruitt, Crouse Transportation Services; Mallory DeZwarte, Ruan.

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Iowa Motor Truck Association Lifeliner

Leadership Class 2014

Next Generation of Leaders Participate in Annual IMTA Leadership Class

Mallory DeZwarte Ruan Transportation

John Dickerson Lyman Richey Corporation

Justin Dreeszen Midwest Wheel Companies

Jason Jenkins Walmart Transportation

Scott Jones Cummins Central Power

Phil Kennedy Motor-Ways, Inc.

Andrew Paul Ruan Transportation

Julie Pruitt Crouse Transportation Services

Adam Ruden Ruan Transportation

Matt Schmitz Panama Transfer

Marty Schwery Panama Transfer

Staci Spittler Randy’s Diesel Repair

Following the training session, speakers Alison and Scott Pope posed with a few leadership class participants (L to R): Whitney DeMatteis, Des Moines Truck Brokers; Adam Ruden, Ruan; Alison and Scott Pope, WPNT; and Mallory DeZwarte, Ruan.

Session two of the leadership class featured a tour of the Iowa Judicial Building where participants learned about the Supreme Court and Iowa Court of Appeals.

Aaron Weiland Schuster Company

Justin Zimmerman Clifton Larson Allen

The leadership class participants took the opportunity to have some fun during the team building exercise during session four. The exercise stressed the importance of leadership within a group environment.

I AM VERY PROUD TO BE A PART OF THE TRUCKING INDUSTRY BUT EVEN MORE ENTHUSED ABOUT BEING A PART OF THE INDUSTRY AND THE ASSOCIATION AFTER THIS PROGRAM,” SAID WHITNEY DEMATTEIS OF DES MOINES TRUCK BROKERS.

www.IowaMotorTruck.com

47}

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5/29/14 1:47 PM

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As is customary, IMTA conducts an audit of all the scores of the TDC following the event. In doing that this year, a discrepancy was discovered between the score keepers sheet and the entered score. This changed the outcome of this class and moved Jim to the 2nd place spot.

Congrats to Jim and all participants.

{48

Iowa Motor Truck Association Lifeliner

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Final Word

U.S. Senate Amendment Seeks to Suspend Risky Truck Driver Hours Restriction To further the impressive reductions in truck crashes over the past decade, the trucking industry is supporting a Senate appropriations bill amendment Ralph Arthur that would Ruan Transportation suspend two risky provisions recently added to the truck driver hoursof-service regulations.

Before I explain them, let me be clear that the trucking industry supports retention of John Smith the bulk of the truck driver CRST International hours-ofservice rules – the daily and weekly driving limits, mandatory off-duty rest periods and the “restart” provision. Since 2003 when the framework for these rules was put in place, truck involved fatalities have declined 21percent – even as trucks drove over 50 billion more miles.

However, new restrictions placed on the restart provision increase the risk of crashes. Specifically, a recent U.S. DOT study shows that drivers operating under the new restart restrictions are more likely to operate during the day when crash risk is higher, an impact the FMCSA did not anticipate or properly research before implementing them. For this reason, suspending the restrictions and conducting the needed research on the true impacts and benefits of these provisions will likely make roads safer.

Safety is, and always will be, the trucking industry’s highest priority. Despite moving the vast majority of freight for American consumers and businesses, nothing is more important to our industry than safe highways.

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Iowa Motor Truck Association Lifeliner

That commitment is why we support a number of safety initiatives: from requirements for electronic logging devices and mandatory speed limiters for large trucks to stronger drug and alcohol testing for drivers. Our industry supports the hours-of-service rules that prescribe rest time and limit on-duty and driving time to combat fatigue.

Trucking’s dedication to safety is also why we support the common sense efforts in Congress to reduce crash risk for large trucks and passenger vehicles. These efforts, in light of recent high-profile tragedies, have been misconstrued and misrepresented by our industry’s critics, including the Teamsters union, as an attempt to overturn the hours-of-service rules. This couldn’t be further from the truth.

When the federal government revised the rules last July, the imposed two undue restrictions on drivers’ ability to use what is called a restart. Under the current rules, when a driver reaches the end of their allotted weekly driving hours, they can reset their clock by taking 34 straight hours off. However, that restart period is required to include two stretches between 1am and 5am and drivers are limited to using the restart only once every 168 hours, in other words, once every seven days.

While these restrictions, aimed at providing more nighttime rest for drivers, may seem like no-brainers, what we’re finding now is they raise crash risk.

How? By being so prescriptive in when drivers go off duty, the rules are pushing more truck traffic into the early morning hours, after the 1am to 5am period ends.

This puts more trucks on the road when Americans are going to work, and come September, when children are going to school.

Additionally, by limiting the use of the restart to once every week, the regulations have the perverse effect of encouraging driving at suboptimal times – like when weather is bad as we saw this winter or a driver is ill. Absent the restriction, drivers would be free to take additional rest without penalty.

We believe these restrictions raise crash risk, and the agency that imposed

them – the Federal Motor Carrier Safety Administration – has told the industry that increased daytime driving is an “unintended consequence” of the regulation.

And while unintended consequences happen, the agency can’t quantify the impact on safety of that consequence.

Why? Because as they told Congress, they never examined what would happen if more trucks took to the road during the day as a result of their rule.

The agency has defended these changes saying they believe 19 lives a year will be saved by their rule. We believe saving lives on the highway is very important.

However, what if the increases in truck traffic during the day put 20 lives at risk, or more? These are important questions the agency should have answered before making a change of this magnitude.

Congress is not asking for the FMCSA to roll back the entire hours-of-service rule, but rather is requiring the agency to do its homework and research the risks associated with increased daytime driving caused by these restrictions and to suspend the restrictions while those studies take place.

The trucking industry believes good data and good science should support good public policy. That’s why we support slowing traffic down with a national speed limit of 65 mph and electronic speed limiters on large trucks. That’s why we support electronic logging devices for drivers and why we support increased traffic enforcement against aggressive car and truck drivers. And that’s why we support suspending the risk-raising restart provisions until they’re fully studied.

Ralph Arthur President - Dedicated Contract Carriage Ruan Transportation Chairman, Iowa Motor Truck Association John Smith President CRST International This op-ed piece and a shorter editorial of this same article were submitted by Ralph and John respectively in central Iowa and eastern Iowa papers in response to the continuing debate on Hours of Service. These pieces appeared in several newspapers, including the Des Moines Register and Cedar Rapids Gazette.

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