75th OREGON LEGISLATIVE ASSEMBLY--2009 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 1461
Senate Bill 382
Sponsored by Senator MORRISETTE, Representative WITT; Senators
ATKINSON, DEVLIN, MONNES ANDERSON, MONROE, NELSON, PROZANSKI,
ROSENBAUM, VERGER, Representatives BUCKLEY, GARRARD, HOLVEY,
ROBLAN, G SMITH
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 State Forester to
determine rate of compensation for log haulers. Requires forester
to determine rate of compensation for log haulers. Prohibits
forestland owners from paying rate of compensation lower than
rate of compensation determined by forester and from
discriminating against person or cooperative association for
participating in determination process.
A BILL FOR AN ACT
Relating to compensation for log haulers.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) The Legislative Assembly finds that:
(a) The 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.
(b) Central to the viability of Oregon's forest products
industry is a stable workforce of skilled, experienced loggers
and log haulers available to harvest and transport wood from
Oregon's forests.
(c) Stability of this workforce is endangered when inadequate
compensation rates for log haulers induce the log haulers to
shortchange safety through inadequate equipment maintenance,
inadequate investment in new equipment and violation of hours of
service limitations in order to earn a living wage.
(d) The safety of Oregonians using the public highways is
endangered when log haulers are induced to compromise safety due
to inadequate hourly compensation.
(e) 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 log hauler's personal services and the cost of
maintaining and operating the log hauler's vehicle.
(f) 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.
(g) 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.
(h) 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.
(i) The imbalance of market power in determining compensation
rates and the lack of opportunity to join together to bargain
over compensation rates prevents log haulers from operating in a
manner suitable for the public interest of Oregonians and results
in inadequate compensation for log haulers.
(j) 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.
(k) It is in the public interest to create a process whereby
the State Forester will oversee a system to ensure adequate
compensation for log haulers and thereby ensure that the public
welfare of the State of Oregon is protected.
(2) The Legislative Assembly further finds that:
(a) It is in the public interest to extend to log haulers who
are owner-operators that are not covered by the National Labor
Relations Act, their cooperative or labor union rights to bargain
with the largest commercial forestland owners in Oregon, either
individually or through their association, for the purpose of
establishing a rate of compensation for log haulers who are
owner-operators to benefit their families and rural timber
dependent communities in Oregon.
(b) The establishment of a bargaining process to ensure fair
and adequate compensation for log haulers who are owner-operators
is consistent with state policies that established similar
processes for other agricultural cooperative community groups
such as grass seed growers and seafood harvesters.
(c) The bargaining processes shall be limited to rate of
compensation issues such as hours, wages and working conditions.
Labor is not a commodity or article of commerce under 15 U.S.C.
17 and therefore the right to establish minimum or living wage
compensation is within the purview of state actions that are not
preempted by federal legislation. + }
SECTION 2. { + As used in sections 1 to 5 of this 2009 Act:
(1) 'Cooperative association' means a cooperative nonprofit
membership-based entity:
(a) Whose purpose is to promote the interests of log haulers
through participation in a process to determine compensation
rates under section 3 of this 2009 Act;
(b) That is registered as a cooperative corporation with the
State of Oregon; and
(c) That represents at least 75 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 the State of
Oregon; 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) Counties whose commercial forestland is composed primarily
of Douglas fir located predominantly in western Oregon; or
(b) Counties whose commercial forest is composed primarily of
pine located predominantly in eastern Oregon.
(6) 'Log hauler' means a person having a place of business in
this state who is engaged in the agricultural activity of hauling
trees harvested from Oregon forestland under a contract or
subcontract, directly or indirectly, with a forestland owner. + }
SECTION 3. { + (1) It is the intent of sections 1 to 5 of this
2009 Act to displace competition with a system for mediation in
the Oregon log-hauling industry to a limited degree. The
regulatory program grants immunity from federal and state
antitrust laws to Oregon log haulers and forestland owners for
the limited purpose of allowing the log haulers and forestland
owners to engage in negotiations for a compensation rate for the
transportation of logs by log haulers from forestlands in Oregon.
The activities of any party that comply with sections 1 to 5 of
this 2009 Act do not constitute a conspiracy or a combination in
restraint of trade or any other unlawful activity in violation of
a provision of ORS 646.705 to 646.826 or federal antitrust laws.
(2) A cooperative association may negotiate with one or more
forestland owners or an association of forestland owners to
establish a compensation rate for members of the cooperative
association who haul logs. The forestland owners may negotiate
the compensation rate for hauling logs in this state by means of
a committee that sets forth the views of the forestland owners
and votes on issues being negotiated as authorized by this
section, including the compensation rate for hauling logs.
Participation by a forestland owner in negotiations is voluntary.
(3) If forestland owners negotiate a compensation rate by means
of a committee under subsection (2) of this section,
nonparticipating forestland owners are not bound by the acts of
the committee.
(4) Any agreement that arises from negotiations conducted under
subsection (2) of this section are binding only on the parties
that participate in the negotiations and agree to be so bound.
(5) The State Forester is authorized to actively supervise the
conduct of a cooperative association and a representative
committee of forestland owners in establishing a compensation
rate for hauling logs from forestlands in Oregon. The State
Forester is authorized to supervise the negotiations between the
parties, review the compensation rate established by the
negotiations and approve the compensation rate proposed by the
parties. The State Forester must approve the proposed
compensation rate and any adjustments to previously approved
rates before the compensation rate may be implemented.
(6) The State Forester may compel the parties to take whatever
action the State Forester considers necessary to:
(a) Ensure that the parties are engaging in conduct that is
authorized under this section;
(b) Ensure that the policies of this state are being fulfilled
under the regulatory program; and
(c) Enjoin conduct by any of the parties that is not authorized
by the State Forester or conduct that the State Forester finds
does not advance the interests of this state in carrying out the
regulatory program.
(7) The State Forester may adopt rules to carry out the State
Forester's authority under this section.
(8) The State Forester may designate persons as deemed
necessary to carry out the responsibility of actively supervising
the conduct of the parties, including persons to serve as
intermediaries between the respective parties. Persons designated
by the State Forester under this subsection must be employees of
the State Forestry Department.
(9) The State Forester by rule may set and collect fees from
the parties who are participants in a regulatory program as
needed.
(10) The State Forester may approve a proposed rate of
compensation only if the rate is adequate to ensure a sufficient
number of log haulers and to ensure that log haulers earn a
living wage within existing or future regulations regarding hours
of service, fuel costs, weight and equipment maintenance. + }
SECTION 4. { + A forestland owner may not:
(1) Discriminate against any person, trade association, labor
union or cooperative association that participates in a
compensation rate determination process under sections 1 to 5 of
this 2009 Act.
(2) Once a compensation rate has been determined by the State
Forester, the rate may not be lowered by those forestland owners
that participated in the process in that labor market area for 12
months. + }
SECTION 5. { + (1) Sections 1 to 5 of this 2009 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 the safety of
the general public.
(2) Activities carried out under sections 1 to 5 of this 2009
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 compensation rate
determination process under sections 1 to 5 of this 2009 Act. + }
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