IANA delivers written testimony, white paper underscoring significance of independent contractor model to intermodal industry

The Intermodal Association of North America (IANA) today submitted written testimony to the House Committee on Education and the Workforce highlighting the importance of the independent contractor business model and the vital motor carrier operations it supports. Included in the testimony is a White Paper IANA published this month that examines benefits of the independent contractor model, federal actions that threaten the continued operations of independent drivers, and the economic impacts of forced reclassification.

IANA’s testimony and associated White Paper detail the critical role of owner-operators in supporting the supply chain. For decades, over 80 percent of intermodal trucking companies that transport freight have used owner-operator drivers or independent contractors. Unlike employee drivers, independent contractors personally invest in and operate their own company. These small business owners earn a Commercial Driver’s License, invest in a truck, and bear the associated operating costs attributable to registration, licensing, insurance, and fuel. Each owner-operator makes a conscious choice to remain an independent contractor, but also can choose to secure full-time employment in the trucking industry.

“Preserving the independent contractor business model is critical to support supply chain efficiency and meet the continued fluctuations in cargo demand,” said Joni Casey, president and CEO of IANA, in testimony submitted on behalf of the association. “Changes to this model could have an adverse effect upon all supply chain participants as well as consumers by increasing costs, reducing service efficiency and reliability, and exacerbating existing driver shortages.

“The testimony also states that IANA opposes efforts to eliminate drivers’ ability to operate as small business owners, including the Protecting the Right to Organize (PRO) Act and the Department of Labor’s October 2022 Notice of Proposed Rulemaking. Both proposals would wrongfully eliminate important liberties enjoyed by owner-operators, many of which are small, minority-owned businesses.