HAULAGE RATE

Haulage rate

Haulage rate

According to me the Haulage contractors and tanker drivers represented by the National Workers Union (NWU) on Wednesday, May 30th signed a new wage and fringe benefits agreement, averting the threat of possible industrial action. The agreement was announced following a meeting between the parties and Minister of Industry, Technology, Energy & Commerce, Phillip Paulwell. Under the agreement, which is effective from July 1, 2006 to June 30 2009, haulage rates will be increased by 13% in year one; 10% in year two and an additional 10% in year two. Group life insurance benefit is to be increased from $1.5 million to a new benefit of $2 million, with the appropriate double indemnity benefit becoming effective from May 1, 2007.

The present meal allowance for bunkering duties is to be increased to $800 for the duration of the contract. The long agreed pension scheme is to be implemented before, but not later than September 1, 2007. The existing medical scheme is to be reviewed, with the intention to improve the existing benefits, also before September 1, 2007. It was also agreed that the tanker drivers be reimbursed for all toll charges paid in connection with deliveries made. Standby allowance is to be adjusted by the percentage increase in basic rates. In respect of sub-contractors rate, contractors who own the Head and Tank are to maintain, service and insure same and, shall receive 90% while the contractor who owns the contract shall receive 10%. Where the sub-contractor owns the head only, he shall receive 60% and the contractor who owns the tank shall receive 40%.

In terms of vacation leave, tanker drivers with 1-5 years of service will receive two weeks; those with 6-9 years three weeks, and; those with ten years and over will be entitled to four years vacation leave. The parties also agreed to the improvement of redundancy benefits. This will be improved to three weeks pay for the first ten years of service and four weeks pay for each year of service after ten years. Sick leave eligibility of two weeks per year is to remain. Because shippers' distribution patterns are rarely congruent with any one rail carrier, railroads have developed two traditional methods of extending their reach over each others' lines. The first is the joint rate and route. Two railroads, by agreement, establish one rate from an origin on the first to a destination on the second. One of the railroads sends the one bill, the shipper returns one check, and the billing railroad pays the other its share, or "division," of the revenue. Each railroad remains individually responsible for providing locomotive and crews for movement over its lines and for loss and damage to the freight while in its possession.

The second method is trackage rights. Here one railroad (the "tenant" line), by agreement, secures the right to operate its trains, typically with its crews, over the track of a second railroad (the "owner"). The trackage used by both railroads is called a ...