IWLA urges rejection of California bill re-regulating warehouses and their customers

Bill would reverse policy enacted in 1980s during Gov. Brown's first term.
By Modern Materials Handling Staff
September 03, 2012 - MMH Editorial

The International Warehouse Logistics Association today urged California Gov. Jerry Brown to veto Assembly Bill 1855 (Torres). The bill regulates the form and content of contracts entered into by California’s warehouse industry.

According to the IWLA, the bill if enacted would roll back 32 years of sensible working economic regulations strictly adhered to by California warehouse owners and operators. Most ironic, the bill reverses a policy this same governor enacted in 1980 during his first term.

AB 1855 was introduced by Assemblymember Torres earlier in 2012, and sought to redress labor law abuses by temporary staffing firms that hired “temp workers” to work in warehouses. However, the bill goes far beyond addressing abuses by these firms. Under AB 1855, warehouse companies and their customers would be required to file copies of warehouse contracts with the California Labor Commissioner in a form, content and manner set by the bill.

“Once again California is out of step with the rest of the United States, and AB 1855 places new contract burdens on any customer that is doing business with a warehouse in California,” said Joel Anderson, IWLA president & CEO.

Anderson noted that warehouse contracts with customers are already covered by the Uniform Commercial Code, a law adopted by all the states to allow companies to do business in states other than the one where they are based, under the same terms of contract law.

IWLA had urged members of the California state legislature to amend the bill in policy committees and on the floor before a final vote was taken. “The California legislature just doesn’t get it. Adding more burdens to businesses, especially those same burdens Gov. Brown removed during his first term, makes it much more economically attractive to store goods out of state especially in Nevada, Arizona and Oregon, and then ship those goods into California,” Anderson said. “That formula can only mean disaster. The loss of jobs and taxes will be immense because California will be the only state to have re-regulated warehouse contractors and contracts.”

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Logistics managers have always been under pressure to strike the right distance between specialized intermediaries and the markets they want to serve. That challenge is becoming increasingly complex, however, as mega-brokerage enterprises capture more share.

There are so many ways to analyze the state of truckload capacity, and on top of that there is, perhaps, no other facet of freight transportation that is so directly impacted by myriad moving parts, whether it be driver availability, rates, demand, weather, the economy, and, of course, federal regulations, among others.

The ATA said that the annualized turnover rate for large truckload carriers, which it defines as truckload fleets with more than $30 million in revenue, increased 3 percent to an annualized rate of 87 percent in the second quarter.

If you want to meet some of the most ticked-off people on the planet, talk to any trucking industry retiree who received that letter from the Teamsters’ Central States pension plan notifying them of their potential financial haircut coming in retirement.

Global express delivery and logistics services provider DHL introduced a new flight geared towards Michigan-based importers and exporters out of the Detroit Metropolitan Airport.

About the Author

Josh Bond, Senior Editor
Josh Bond is Senior Editor for Modern, and was formerly Modern’s lift truck columnist and associate editor. He has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce University.


Post a comment
Commenting is not available in this channel entry.