6/14/2011 11:00:00 AM
Proposed changes to the federal hours-of-service rule are unwarranted and would harm small businesses nationwide, a trucking executive told a Congressional panel Tuesday.
â€œThese changes, if finalized . . . would restrict productivity and would result in greater congestion and increased emissions,â€� said James Burg, president of Warren, Mich.-based James Burg Trucking Co. and a member of American Trucking Associationsâ€™ board of directors.
Burg said that if the hours-of-service rule changes proposed by the Federal Motor Carrier Safety Administration were to take effect, his 75-truck fleet would need to â€œadd additional trucks and drivers â€” and their corresponding expenses â€” simply to counter the loss in productivity.â€�
He testified Tuesday before the House Small House Small Business Committeeâ€™s subcommittee on investigations, oversight and regulations. Click here for Burgâ€™s full testimony. (PDF)
â€œBy estimates, we would need to increase our retained earnings by between 20% and 25% just to maintain our current level of financial stability,â€� said Burg, who added that productivity losses would also â€œlikely be felt by small business shippers, manufacturers and retailers in the form of increased costs.â€�
ATA has repeatedly said that the current rules are working and should be retained rather than changed based on political pressure.
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