74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1764
House Bill 2497
Sponsored by Representative WITT (at the request of Bill Street,
IAM Woodworkers District Lodge W1)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Creates process for forestland owners or cooperative
associations of log haulers to petition Commissioner of Bureau of
Labor and Industries to determine rate of compensation for log
haulers. Requires commissioner to determine rate of compensation
for log haulers. Prohibits forestland owners from paying rate of
compensation lower than rate of compensation determined by
commissioner and from discriminating against any person or
cooperative association for participating in determination
process.
A BILL FOR AN ACT
Relating to rate of compensation for log haulers.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + The Legislative Assembly finds that:
(1) Oregon's forest products industry is a vital component of
Oregon's economy and has a direct relationship to the economic
health and welfare of workers, rural communities and businesses.
(2) Central to the viability of the forest products industry is
a stable workforce of skilled, experienced loggers and log
haulers available to harvest and transport wood from Oregon's
forests.
(3) Stability of this workforce is endangered when inadequate
compensation rates for log haulers induce the haulers to
shortchange safety through inadequate equipment maintenance,
inadequate investment in new equipment and violation of hours of
service limitations to earn a living wage.
(4) The safety of Oregonians using the public highways is
endangered when log haulers are induced to compromise safety to
earn a living wage.
(5) Many log haulers serving Oregon's forest products industry
own and operate a single log-hauling vehicle, and a log hauler's
compensation from forestland owners compensates the log hauler
for both the hauler's personal services and the cost of
maintaining and operating the hauler's vehicle.
(6) The cost of maintaining a log-hauling vehicle in safe
operating condition is increased by the need to operate the
vehicle on unpaved roadways in forest areas.
(7) Based on patterns and configurations of forestland
ownership, the hauling of forest products is performed by
numerous log haulers who are economically dependent on a small
group of large commercial forestland owners.
(8) An imbalance of market power exists when one forestland
owner owns, possesses or acquires economic control over more than
100,000 acres of forest in a labor market area.
(9) The imbalance of market power in determining compensation
and the lack of opportunity to join together to bargain over
compensation prevents log haulers from operating in a manner
suitable for the public interest of Oregonians and results in
inadequate compensation for log haulers.
(10) It is in the public interest to ensure a reasonable rate
of compensation for log haulers to ensure that log haulers earn a
reasonable living wage without compromising the safety of their
vehicles or the safety of their operation.
(11) It is in the public interest to create a process whereby
the Commissioner of the Bureau of Labor and Industries will
oversee a system to ensure adequate rates of compensation for log
haulers and thereby ensure that the public welfare of the State
of Oregon is protected. + }
SECTION 2. { + As used in sections 1 to 6 of this 2007 Act:
(1) 'Cooperative association' means a cooperative
membership-based entity:
(a) Whose purpose is to promote the interests of log haulers
through participation in a process to determine rates of
compensation under section 3 of this 2007 Act;
(b) That is registered as a cooperative association with the
State of Oregon; and
(c) That represents at least 50 log haulers in a labor market
area.
(2) 'Economic control' means the legal right, whether through
ownership, contract or otherwise, to make or influence decisions
regarding the harvest of trees and disposition of logs harvested
from the subject land.
(3) 'Forestland' means agricultural forestland used primarily
for the growth of trees to be harvested for commercial use.
(4) 'Forestland owner' means:
(a) A person or public body, as defined in ORS 174.109, that
owns directly, or through affiliated persons, or possesses
economic control over, more than 100,000 acres in a labor market
area; or
(b) An agent or subsidiary of a person or public body described
in paragraph (a) of this subsection if that agent or subsidiary
is involved in contracting or negotiating contracts or other
arrangements, written or oral, with forest products harvesters or
log haulers.
(5) 'Labor market area' means:
(a) Contiguous counties located in the Willamette Valley; or
(b) Contiguous counties not located in the Willamette Valley.
(6) 'Log hauler' means a person having a place of business in
this state who is engaged in the agricultural activity of hauling
harvested trees from forestland in this state to a point of
delivery within this state under a contract or subcontract,
directly or indirectly, with a forestland owner. + }
SECTION 3. { + (1) The Commissioner of the Bureau of Labor and
Industries shall determine rates of compensation for log haulers
when petitioned to do so by a forestland owner or cooperative
association.
(2) In determining a rate of compensation with respect to any
given forestland owner, the commissioner shall consider the
following criteria:
(a) Prevailing wage rates for log haulers in the same labor
market area;
(b) Prevailing wage rates for similar types of hauling in the
same labor market area;
(c) The log haulers' costs, including but not limited to
overhead, fuel, insurance including health insurance, and pension
or other retirement costs;
(d) Environmental and highway laws and rules;
(e) The effect of the log haulers' compensation on the
competitive position of the forestland owner in the labor market
area or competing market areas;
(f) The amount of log hauling conducted on private roads and
the amount of log hauling conducted on public roads, including
travel time from the loading site to the delivery site and the
conditions of the roads;
(g) Cost to comply with all applicable safety rules, including
but not limited to rules for safety equipment and rules for
maintenance of vehicles;
(h) The number of hours normally worked each day and each week
by log haulers; and
(i) Limitations imposed by law or rules on the number of hours
per day and per week that a log hauler may drive or work.
(3) A request for a determination of a rate of compensation may
be submitted to the commissioner by:
(a) A joint petition submitted by a forestland owner and a
cooperative association that have agreed on a rate of
compensation; or
(b) An individual petition submitted by a forestland owner or a
cooperative association.
(4) To reduce costs, the commissioner may adopt a rate of
compensation, from among rates proposed by petitioners, that best
meets the criteria listed in subsection (2) of this section. If,
in the opinion of the commissioner, none of the proposed rates of
compensation is in the best interests of the State of Oregon, the
commissioner may set a different rate of compensation based on
the criteria.
(5) The state, as a forestland owner, may pay rates of
compensation that are the average rates proposed in joint
petitions submitted to the commissioner during the previous 12
months or may submit a joint petition with a cooperative
association.
(6) Every petition submitted to the commissioner for a
determination of a rate of compensation must be accompanied by
the following information:
(a) The identity of the forestland owner that owns or possesses
economic control over the forestland for which the rate of
compensation is to apply and the geographic area in which the
rate is to apply;
(b) The proposed rate of compensation, which may take into
consideration alternative pay systems such as pay per mile, pay
per weight, percentage of truck revenue and pay per hour;
(c) A summary of or minutes from relevant meetings held by or
between forestland owners and log haulers; and
(d) Other information relevant to the criteria listed in
subsection (2) of this section and as otherwise requested by the
commissioner.
(7) When the commissioner receives a petition under this
section, the commissioner shall promptly notify all persons who
have requested to be notified of petitions. A person has 30 days
from the date of the notice to file written comments about the
petition with the commissioner. The commissioner shall review the
comments before determining the rate of compensation.
(8) The commissioner may approve a proposed rate of
compensation only if the commissioner determines that the rate is
adequate to ensure log haulers a reasonable living wage without
compromising the safe maintenance and operation of the log
haulers' vehicles on the public highways of this state.
(9) Once a rate of compensation has been determined by the
commissioner, the rate remains in effect for that labor market
area for 12 months. + }
SECTION 4. { + A forestland owner may not:
(1) Pay a rate of compensation for log hauling services that is
less than the applicable rate of compensation determined by the
Commissioner of the Bureau of Labor and Industries under section
3 of this 2007 Act.
(2) Discriminate against any person or cooperative association
for filing a petition for a determination of a rate of
compensation or for participating in the determination process
under section 3 of this 2007 Act. + }
SECTION 5. { + If the Commissioner of the Bureau of Labor and
Industries has not determined a rate of compensation applicable
to an affected labor market area, nothing in sections 1 to 6 of
this 2007 Act prohibits a forestland owner, logger or log hauler
from negotiating and executing a contract between the forestland
owner or logger and the log hauler providing for a rate of
compensation that is applicable in that area and is different
from any rate of compensation determined under section 3 of this
2007 Act. + }
SECTION 6. { + (1) Sections 1 to 6 of this 2007 Act are
intended to displace existing market forces based on a
legislative finding that the existing market forces do not permit
the affected market to function normally and do not ensure the
safety and stability of the log-hauling industry or ensure the
safety of the general public.
(2) Activities carried out under sections 1 to 6 of this 2007
Act do not constitute a conspiracy or a combination in restraint
of trade or an illegal monopoly, nor are they carried out for the
purposes of lessening competition or fixing prices arbitrarily,
as long as the activities are carried out for the purpose of
preparing for, initiating or participating in a determination of
a rate of compensation under sections 1 to 6 of this 2007 Act.
(3) A contract entered into between a forestland owner and a
cooperative association relating to a rate of compensation is not
an unlawful restraint in trade or part of a conspiracy or
combination to accomplish an improper or illegal purpose or act,
as long as the Commissioner of the Bureau of Labor and Industries
determines the applicable rate of compensation. + }
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