Dillon Transport Responses to Employee Comments:


HOLIDAY GREETINGS
(DECEMBER 2011)

From one of our Georgia employees - "Just thinking of everyone through the holidays. I wish everyone a wonderful holiday season. I hope it was a great year for everyone at Dillon Transport as it was an absolute great year for me. Thank you everyone."


MINIMIZING DEAD HEAD MILES
(DECEMBER 2011)

We appreciate the efforts of our drivers and all of the comments received regarding dead head miles, as they are a concern for the entire Dillon organization not just our drivers. We're sure you'll agree that it is not in anyone's best interest to waste time and fuel. We will continue to investigate and are reviewing ways to eliminate or greatly reduce dead head miles to the benefit of all.


TERMINAL MANAGER COMPENSATION
(DECEMBER 2011)

A rumor was submitted from a driver in Georgia stating that Dillon terminal managers receive a year end bonus based on what the terminal turns in profit each year, so the managers benefit from not paying dead head miles to drivers. We can assure you that there is no additional bonus to anyone for not paying dead head miles. That rumor is false. We are aware that our drivers are our biggest asset. It is very expensive for Dillon Transport in time and money to have dead miles, just as it is for drivers. We will continue to make every effort to reduce or eliminate those unproductive miles. Drive safely.


DEAD HEAD MILES
(NOVEMBER 2011)

A new driver from Georgia has suggested concern over not receiving payment for 1,000 dead head miles. Dillon Transport makes every attempt to review all tickets for fairness and proper compensation. That being said, 1,000 dead head miles without pay does not seem possible. We need more details supplied, including the lane(s) that were run, so we can investigate appropriately.


NEW TRUCKS
(NOVEMBER 2011)

A driver delivering new trucks to Houston and San Antonio noticed two safety issues with the convex mirror on the bottom side of the mirror assembly - a small blind spot in the viewing area between the upper and bottom mirrors on both sides of the truck and a reflection that impedes the clear viewing of road and objects beside the truck. He emailed corporate through this suggestion box area on the web site with details to the issues, the many steps he took to correct the issues and his recommendation as to how to resolve the issue. We would like to thank him for his concern, for going the extra mile to try to solve the problems and for bringing it to the attention of corporate so we can address and correct the concerns, as driver safety is a priority. We will have the maintenance department look into the issues of the new trucks and make the appropriate changes. We take your opinions and input into serious consideration.


RATE CHANGE
(SEPTEMBER 2011)

A question was asked of a rate changing on a load mid-contract – specifically from Hunt Sandersville to Hunt Tuscaloosa and the rate was $125 and now it is paying $105. In response, all loads are paid in gallons so the rate did not change mid-contract, it changed in the last bid...we will rebid at the end of the year.


ONE DRIVER'S PERSPECTIVE
(SEPTEMBER 2011)

While we're critical of ourselves and always striving to be stronger and better, we wanted to share some positive feedback we received from one of our drivers in Geogia. Here's what was said -

"Seems like most comment and/or suggestions on this page are for or about drivers. As a driver myself, I applaud so many people standing up for us as drivers. However, despite me being a driver, I appreciate the great work everyone does behind the scenes. An individual can only accomplish so many things alone, but as a team we can accomplish anything together and what a great team we have. Let's keep up the great work and keep these trucks rolling. Thank you everyone, especially the outstanding terminal leader in Savannah, wonderful dispatchers in the office and the great mechanics that keep our equipment and trucks rolling and DOT compliant. Sorry corporate, haven't had a chance to meet or talk to any of you, but I know you do a wonderful job as well. I've only been here a short time, but what a wonderful future I'm looking forward to having with this company. Thank you everyone."


PER DIEM/DEAD HEAD MILE PAY
(AUGUST 2011)

A driver questioned bringing back Per Diem or dead head mile pay to compensate sleeper drivers for going further out to pick up and deliver product. We make every effort to compensate for dead head miles so the suggestion that it is not taking place is concerning. Please provide specifics as to route being run and not being compensated for miles so we can address appropriately.


HEIDELBERG MECHANIC SHOP
(AUGUST 2011)

It was asked what the timeframe is for the terminal in Heidelberg to have a mechanic shop. It should be operational within the next 12 months. Thanks for the question.


24/7 SERVICE
(AUGUST 2011)

The question was posed that if Dillon Transport has 24/7 drivers then why don't we have 24/7 dispatch or shop(s)? We are working on an overnight dispatcher that will handle all terminals in the southern region. As we continue to grow, there may be needs for 24 hour shops in some locations. We are looking at that also.


DRIVER TREATMENT
(June 2011)

A driver commented that things have come a long way in the 6 years he's been with Dillon, but he feels that more emphasis is put on customers and revenue and less on the employees, especially the drivers and the sacrifices they make to uphold Dillon standards. Dillon Transport is very aware of the importance of our drivers to the future success and growth of our company. Outlined below are a few points that demonstrate our concern for our drivers.

•Our drivers are driving one of the most up-to-date fleets in the country. This is to ensure your comfort and safety. We feel like high quality and well maintained equipment with the latest safety and comfort features are important to you.

•We make every effort to ensure you return home safely to your family by adhering to hours of service and NEVER asking you to run "Outlaw" and are in a safe vehicle. Our safety department is one of the most recognized in the tanker industry.

•We also offer a 401K retirement plan that is THE BEST offered in the trucking business. This is done to enable drivers to double their retirement benefits, at considerable cost to Dillon Transport.

•We also offer free uniforms and laundry service. This also demonstrates our concern about your comfort.

•From our surveys, we find that our drivers are very fairly compensated for their efforts.

With that said, these are trying times and demands are put on us, by our customers, that require us to complete difficult tasks. With everybody working together we are able to meet our customers expectations. By meeting those expectations, we are able to continue the benefits mentioned above.

We value your feedback and would like to know, in your opinion, what we can do to reduce our driver turnover and increase driver satisfaction. Driver turnover disrupts individual's families and is not good for our company. We would value your suggestions on how to improve relationships with our drivers. Drive Safely.


DAY CAB WORK
(April 2011)

A driver requested that local/day cab work be offered to senior drivers before the newer drivers because senior drivers have done their time and wish more time at home. In response, the Dillon Transportation position on this is that if you have been with Dillon Transport in a sleeper and performed well and you wish to move to day cab work you have that option when one becomes available. Keep in mind that given some business conditions day cab work slows down, but the sleeper work keeps running. Also, the sleeper drivers, as a rule, make more money than day cab drivers.


HAULING ACID
(March 2011)

There is concern that drivers in Florida are not being paid what was promised by corporate for hauling acid. In addition, the drivers in Florida are taking issue with treatment they received from a Dillon safety employee on a recent visit. The only promise offered regarding pay was that there would be a minimum pay of $600 per week. We anticipate that our Ace drivers will earn 35% more than the average Tampa driver. We expect our Ace Team to be our safest and highest paid drivers in our Tampa operation.

As far as treatment by the safety employee, safety initiatives Dillon Transport instituted are the only reason we earned the Acid work from Mosaic. We apologize if any thoroughness by our safety employee came across too strictly. Our safety department was the key in getting you this work and was just providing guidelines to try to ensure you return home safely at the end of every work day.


DEADHEAD MILES
(February 2011)

A question was raised regarding "fair" payment for deadhead miles. Specifically the point was made that some deadhead miles are considered regular runs but aren't paid for while other runs that are not regular are being paid. In response, when we price loads we make every effort to include pricing, in our rate, to cover the positioning (deadhead) miles. This is done so our drivers are compensated as fairly as possible. There are times however, due to competitive conditions, where the rate required to get the business will not allow us to include all the positioning miles. In some cases, where the positioning miles put an excessive burden on our drivers, we do help.

If you have some specific situations where you feel you have been unfairly compensated please let us know and we will review. Keep in mind, if you are running empty those empty miles between pick up and delivery are included in the rate. All driving hours are included in HOS whether positioning, deadhead or loaded. We do not have the option for off duty driving.


DRIVING SPEED:
(February 2011)

Received the following comment regarding driving speed: I will start by saying this is not a complaint. I have been with the company for almost two years and I'm very pleased with the job. That being said, I can't understand why Dillon is under the illusion that 68mph is a "safe speed". The only reason I bring it up is because there are a number of runs that fall into the 6 to 7 hundred mile range. I often times find myself pushed to make my destination. It sounds minor, but 4mph on an 11 hour work day will net the driver another 40 miles, which in some cases will make all the diffrence in the world. This is not a matter of being the fastest trucks on the road, its a matter of practicallity. If a driver cant safley operate his vehicle at 72mph, he couldnt have operated it at 68mph either. I know Dillon is obligated to the motoring public to be as saftey oriented as possible, in this case I believe 68mph may be counter productive.

Corporate Response: Your concern is an extremely valid one, and, admittedly, is often difficult to justify without a lengthy explanation....especially to a safe driver who obeys the rules and operates responsibly.

But here it is: There are two large areas which we, as a motor carrier, must focus on that are often confused. Safety and Compliance. They are not one in the same. "Safety" is the policies, programs, rules, regulations, practices, training, and accountability that we put in place to ensure the health and well being (in terms of injuries sustained from motor vehicle accidents) of the entire motoring public as well as that of our own employees. Compliance simply means following federal, state and local regulations with the intent of keeping the company in business and free from fines, suspensions, citations, and revocation of operating authority. A compliant motor carrier is not necessarily a safe one, just as a safe motor carrier is not necessarily compliant.

Our decision to limit individual truck speeds to 68 MPH was a risk management/business decision which addresses potential problems in the areas of both Safety and Compliance as well as decreasing fuel costs.

COMPLIANCE: We have had significant problems with drivers receiving DOT "warnings" for speeding violations. These violations have had a very negative impact on our Unsafe Driving score under the new CSA motor carrier rating system (and are now visible on individual driver's DOT inspection records). This has far reaching implications in both our ability to gain new business as well as sustain current work. This information is visible to the public. To date, disciplinary action, safety incentives and informative literature have been shown only modest success in reversing this trend.

SAFETY: A large percentage of our physical damage/injury accidents over the last 3 years have been a result of lane change/side swipe collisions. Even in cases where we did not cause the accident, I was able to determine that our vehicle was in the LH lane attempting to pass a slower moving vehicle. We also have entirely too many violations for following too closely. It is an industry-substantiated fact that the relative damage sustained during a crash increases with each MPH of speed that the CMV was travelling. Many of these accidents would not have taken place if the driver was not in a position to where he felt justified or obligated to pass. In other words, by staying in the right hand lane and moving just a bit slower than traffic, we reduce the chance of having these types of accidents, or if they do occur, they are not as costly or severe.

The most effective method of reducing a hazard associated with a given risk (in this case, the hazard being speeding and the risk being speed related crashes), is to implement a static control, something that cannot be altered and does not rely on intervention or assistance from an outside source (in this case, our drivers, changing regulations and other motorists). There is no doubt that this approach works although to what degree we succeed is often difficult to measure, as there is no quantitative way to "record" the crash that never happened because a driver did not have the available speed to attempt a pass. Our insurance company realizes this also, and discounts our premiums in part because we mechanically limit the speed of our tractors.

One final note, after all of the above discussion, is that just last week, FMCSA just released a notice of proposed rule-making (see the full rule here: http://www.gpo.gov/fdsys/pkg/FR-2011-01-03/pdf/2010-33057.pdf) that, when passed, would limit the speed on CMV's with 26,000 or more of GVWR to 68 MPH. This is likely less than a year away, putting us and other responsible motor carriers way out in front of the change.

It is a brave new world since CSA came upon the motor carrier industry landscape just this year. FMCSA is getting a microscopic look at motor carriers that they did not have visibility to under the previous measurement system. Their relentless pursuit to reduce highway deaths associated with commercial vehicle crashes is being felt far and wide.....by responsible motor carriers and drivers alike!


SETTLEMENT STATEMENTS:
(November 2010)

The question was asked if we could make a site where an employee could get a settlement statement online. We actually have the ability to automatically email a settlement statement directly to an employee on a weekly basis. All we need is your email address to set up automatic email notification. If this is of interest to you please send your email address to lcozzens@dillontransport.com


MCCOOK SLEEPER DRIVERS:
(November 2010)

A comment was made that in the winter the sleeper drivers in McCook are required to share the sleeper work with local drivers which means sacrificing their paychecks. In response, we make every effort to have a fair and equitable dispatch in McCook and in all of our terminals. Sleeper drivers are hired for sleeper work so day cab drivers are not taking work away from sleeper drivers. At our McCook terminal sleeper drivers earn considerably more per year than our day cab drivers.


HOUSTON TERMINAL:
(October 2010)

A suggestion was made for a potential location for a terminal in Houston, Texas. We appreciate the input and have considered a facility in Houston. At this time we are looking into securing enough business to warrant a Houston terminal.


DRIVER RETENTION:
(October 2010)

Frustration was expressed in an email received stating that drivers in some terminals run on paper logs while others have to toe the line on the rules and that it seems like anything that would help a driver make money for him and his family is frowned upon. The question was asked if there is anything being done regarding driver retention.

In response, one terminal, Dallas, has a few drivers on paper logs because Texas offers an HOS exception that is not supported by Qualcomm HOS. The rest of the drivers in that terminal not working in oil field service under the exception use Qualcomm and follow the HOS regulations prescribed by the Federal Motor Carrier Safety Administration (FMCSA) as all Dillon Drivers are required to do.

Dillon Transport's model is such that as the driver is successful the company is successful. Dillon Transport would never frown on the success of one of its employees but must also operate within the parameters of the regulatory environment.

Our goal at Dillon Transport is to have top notch drivers that provide excellent, safe service to our customers. The drivers are the backbone of the company. Dillon Transport understands that a good driver is worth 3 average drivers that is why we provide great equipment, strong benefits and an open work environment. If we can reduce turnover, the resources for recruitment can be utilized for other areas in the company like driver retention. We are very concerned about driver retention and we encourage any ideas you may have that would improve driver morale and retention.


DRIVER INSURANCE & BENEFITS:
(September 2010)

Per an email received, there seems to be some confusion regarding insurance for drivers, specifically for sleeper drivers. It was also suggested that per diem is now gone and sleeper drivers are finding it challenging to make the money they once did. To clarify, Dillon Transport pays two thirds of the driver's insurance premium and the driver pays one third. We understand the sleeper driver situation and we are reviewing our options to make the position more attractive. Thanks for the email.


DILLON TRANSPORT PERSONALIZED PRODUCTS:
(September 2010)

Is it possible to have more Dillon Transport products, such as a 1/32 scale model truck and trailer available for the employees? Yes, it is possible. We will work on it and thank you for your interest.


TOOL AND EQUIPMENT ACCESS FOR DRIVERS:
(September 2010)

Is it possible to make tools and equipment available to drivers during non-regular maintenance hours? We understand that drivers start very early in the morning, and we want to ensure that you have the tools you need. That is why at every one of our shops, there is a location right outside or inside the shop where drivers have 24-hour access to supplies such as washer fluid, air, engine oil and antifreeze. We have found this to be the safest and most effective way to provide supplies when the mechanics are not available. According to law, certain class liquids that are stored in bulk must be kept no less than 10 feet from fuel storage vessels and fuel dispensing equipment. Engine oil and antifreeze fall into those classes. Also, please note that crow bars or any other prying device are not recommended for opening the top dome lid. Please see your local mechanic to have the dome lid seal looked at or replaced if you have an issue opening or closing the lid. Thanks for the question!


MICHIGAN CITY DRIVER FAIRNESS:
(August 2010)

There was the suggestion that how work is allocated in Michigan City is unfair and that some drivers are getting more work than others. In response, there are multiple factors that affect dispatch, such as hours of service, equipment availability, driver training and customer orders just to name a few. Dillon Transport's goal is to dispatch to meet the customer's needs, but due to all of the factors involved that is not always perceived as fair by the drivers.


REINSTATING PER DIEM AND DISCLOSING RATES:
(August 2010)

Some drivers asked if Dillon Transport has considered reinstating the Per Diem for road drivers. In addition there was a comment of rates not being disclosed to the drivers and that they are hauling for less than in the past. In response, Per Diem is not a common benefit and will not be coming back. We are attempting to do other things to make life on the road better for our sleeper drivers (e.g., satellite radio/TV). Sleeper drivers also have the ability to make more money than a local driver which is the incentive for going on the road. Regarding rates, Dillon Transport does not hide rates from drivers. The new software we utilize does not allow us to print pay statements with all the rate information visible, so to know a rate, simply ask. As far as rates being less, we have had to make some rate concessions due to the economic downturn, but for the most part have held our rates over the last 2 years.


TEAM DRIVERS:
(August 2010)

An inquiry was made asking if anyone has given thought to team drivers (husband and wife)? The answer is yes, we do consider team drivers if we have the right move and the right team. If you would like to offer a team idea, please mention it to your terminal leader. Thanks for the inquiry.


DRIVER COMPENSATION:
(August 2010)

We received an email from a driver complaining about being cheated out of pay and benefits being poor for drivers. If any driver finds a discrepancy in their pay, please contact our payroll department at 630-230-5719 for resolution. As far as benefits, we feel our dental and medical benefits are fair and vision is more than fair with it being free. Nobody offers a more generous 401k plan in the truck transport business than Dillon Transport. Because we value all of our employees, we strive to provide the most comprehensive benefits package available.


DRIVER SAFETY BONUS - PART 4:
(July 2010)

It was suggested that Dillon is being intentionally over critical about driver safety which is having a direct, negative impact on driver safety bonuses. Furthermore, it was stated that corporate isn't in tune with what it takes to be a truck driver. We appreciate the comments, but need more specific information to be able to take action. Dillon Transport strives to be THE safest tanker company in the country. In order to encourage our drivers to drive professionally and return safely, we offer bonuses and make every effort to administer the bonus program fairly to all drivers.


LOADING AT "HUNT" REFINERIES (Part 3):
(July 2010)

To follow up on the Hunt loading issue, Roger Hamilton has investigated this concern and has been working with Ron James from Hunt Refining. Both agree that a counterweight is needed on that loading arm in order to make it easier for drivers to position the spout in the truck. Hunt Refining, Inc. began installation of a counterweight on the AC loading rack on Monday, July 26, 2010 and installation should be completed by end of week. Looking toward the future, the AC rack is scheduled to be completely overhauled beginning sometime in 2011.


LOADING AT "HUNT" REFINERIES (Part 2):
(July 2010)

A 2nd request was made to speak to Hunt regarding the loading arm and what could be done to make it more safe for drivers to pull in a trailer for loading. There is concern for physical injury. Dillon management will be at the plant this week to review this issue. The safety of our drivers and your well being is our top priority and we take this issue very seriously. We thank you for your concern, drive safely.


LOADING AT "HUNT" REFINERIES:
(July 2010)

According to a recent suggestion received, it is a challenge and potential safety hazard loading at "Hunt" Refineries. It is difficult for a driver to get close enough to the loading pipe without damaging his catwalk & sleeper, and the Hunt employee that is to assist new drivers at their plant with loading has not been helpful. We thank the driver for your input on this matter because we have not had issues until your comment came to us. Your safetey, as always, is of the utmost important to Dillon Transport. We are looking into this situation and interviewing drivers to take action to correct any issues.


COMPENSATION POLICY:
(June 2010)

It was asked why pay is a percentage not hourly? Dillon Transport's compensation policy has been commission based since we started 30 years ago. There is no plan on changing this policy at this time.


MCCOOK CONCERNS:
(May 2010)

A driver from McCook has indicated that there are threats being made by another driver at the McCook terminal as well as guidelines are not being followed regarding wearing required uniform. Dillon Transport does not tolerate threats or intimidation. Our organization strives to provide safe equipment and a safe work environment for all employees. If you are ever threated with physical violence by another Dillon employee PLEASE contact our HR department immediately to report the incident at 630-230-5716. Regarding uniform requirements, we are resolving existing issues with uniforms at our McCook terminal. All drivers should wear uniforms every day, when on duty, unless the problems have been reported to the terminal manager.


PREFERENTIAL TREATMENT AT MCCOOK (PART 2):
(May 2010)

It has been suggested that there is preferential treatment being shown by dispatching at our McCook terminal - giving higher pay loads to specific locations (such as asphalt to plants up North in McHenry) to specific drivers no matter their seniority. The corporate office has reviewed pay sheets, specifically those to McHenry, and have found no signs of favoritism in the dispatch records. Corporate will continue to monitor the dispatch logs to ensure fairness.


DRIVER DISPATCHING:
(April 2010)

The question was asked as to how drivers are dispatched for loads because it seems like there are instances when newer drivers have been given "good" loads instead of senior drivers? The answer is that drivers are dispatched according to hours available and the work that needs to be completed at that time. We do not rate runs as good or bad and our intent is for drivers to make money on every run.


TRUCK SPEED:
(February 2010)

A driver questioned the speed at which our trucks are driven, stating that it seems that some are able to go faster than others and with our technology all should be set to go at the same speed. In response, all trucks are supposed to be govern at 68MPH. This setting though, will not slow the vehicle down (especially when loaded) if it is allowed to gain speed beyond 68 MPH due to downhill grades. It is the DRIVER'S responsibility to operate his/her vehicle at or below the legal speed limit.


SAFETY BONUSES - PART 3:
(February 2010)

A concern was expressed about the distribution of the yearly safety incentive in regards to who determines which drivers fulfilled or did not fulfill the requirements and are deserving of the incentive. In response, the safety bonus program is outlined very clearly in the program handout. Disqualification criteria are published and applied equitably throughout the company. A driver is disqualified as a result of an accident or incident, violation of company policy, DOT regulation or state/local law. Awards are based on 4 calendar quarters, and while one quarter's disqualification will not disqualify you from future quarterly awards, you must qualify all 4 quarters fo the year in order to receive the year-end bonus. The year-end safety bonus was not designed to be an entitlement nor was it designed to be easy to achieve. Only the safest and most conscientious drivers should qualify. That being said, the safety department/Terminal management can only disqualify drivers for reasons that we know about. rquirements to receive the yearly safety incentive is not being followed by those who distribute the bonus.


SAFETY BONUSES - PART 2:
(February 2010)

There was a concern expressed regarding the safety bonus money and who is eligible to receive it - that it should be for the drivers and should not be shared, in part or full, with other parts of the organization including safety. To carlify this matter, the safety bonus money is designed for drivers only and has NEVER been awarded to anyone excepts drivers.


SAFETY BONUSES:
(February 2010)

There has been a request to re-assess the "safety bonuses" to be a two-tiered approach. Half the bonus would be for D.O.T. compliance (safety) and the other half would be for adhering to company policy. For example, if a driver gets a ticket or a D.O.T. reportable offence he loses the $200 for that quarter pertaining to safety. If the driver fails to get his dispatch or some other company policy he then loses the $200 designated for that. By splitting the bonus, the wish is that a driver always has the opportunity to get a bonus. We feel we have improved the system award arrangement for this year and we are too far into the year to author a change now. We are alwasy seeking ways to make Dillon Transport a safer company. Your ideas will be reviewed and when we draft next year's program we will implement ideas that will encourage our drivers to keep safety in the front of their mind.


PREFERENCIAL TREATMENT AT MCCOOK:
(February 2010)

A concern was expressed regarding dispatching giving preferencial treatment to a particular driver out of the McCook facility as well as there just being morale issues at McCook. We do care about our employees and wish to address all concerns.

PLEASE ATTEND THE DRIVERS MEETING IN MCCOOK AT 2:00PM FRIDAY (FEBRUARY 5, 2010)...THESE ISSUES WILL BE DISCUSSED.


PAYROLL DISTRIBUTION:
(January 2010)

Concerns have been expressed as far as the timeliness of paycheck distribution and perks being taken away, creating less take home pay. In response, there have been no significant changes in payroll at the corporate office. If anyone is unclear about the payroll procedures please contact Sue at 630-281-7093 ext 7851.


DILLON TRANSPORT EMPLOYEE:
(January 2010)

It was suggested that there is a particular employee that should be fired because Dillon Transport is a reputable company that should not have employees who are horrible people. We would like to act on this suggestion, as we do on all suggestions, but it was provided via an anonymous email and we need some additional details to take action. You can send details to the suggestion box or click here to send an e-mail to Phil Crofts in confidence.


VACATION PAY:
(December 2009)

The following request was asked regarding vacation pay: Vacation pay should be based on 1/52nd of a year's pay. The more a driver hauls, the more he makes, hence a higher paycheck for vacation shall be. The comment went on to suggest that this is a great motivator and morale booster that should take effect immediately. In fact, Dillon Transport's vacation pay formula is basically what has been suggested: It is the previous year W2 wages divided by 52 weeks; or however many weeks the driver was employed in that year. Thanks for the suggestion.


DRIVER DISPATCHING:
(November 2009)

With the minimum being cut, the question was asked as to how our organization will ensure drivers are dispatched evenly and fairly in these trying economic times. Dillon Transport is and will continue to monitor this exact situation at the corporate office. We will make every effort to ensure a fair distribution of the work and thus earnings.


SALES FORCE IN THE SOUTHEAST:
(September 2009)

The question was raised as to having a sales person in the Atlanta, area to cover Georgia, Alabama, Mississippi and Tennessee to help grow business in those areas. We currently have a southeast salesman based in Florida. He is responsible for the business growth in the states mentioned. If anyone has leads on potential customers we are very interested in growing our business. Please click here to e-mail us with contact information and we will follow up aggressively. If you have a suggestion for a sales person you believe could represent Dillon Transport please let us know that too.


MCCOOK TERMINAL PAYROLL CONCERNS:
(September 2009)

It was questioned how payroll is handled specifically at the McCook terminal when the admin person is not present. The terminal leader in each location is responsible for handling payroll issues, regardless of whether or not there is an admin person that it is turned into. McCook's terminal leader should be made aware of all payroll issues and will handle promptly.


TAKING TRUCKS HOME:
(September 2009)

Taking a truck home is an opporutnity our drivers and Dillon Transport can both benefit from, it's a "Win-Win" situation. The policy is if a driver takes his truck home, there is no minimum pay benefit. The reason for the policy is that, if the business conditions change, and Dillon Transport has to pay out of route miles for the truck, the situation is no longer a "Win-Win". Drivers are welcome to return their trucks to the terminal and commute like our other employees and drivers. Then they would enjoy the same benefits as the other drivers.


POLICY ON HIRING NEW DRIVERS:
(June 2009)

It was questioned why we are hiring new drivers when current drivers are not working to capacity. We are constantly looking to hire new drivers as we continue to grow. There are multiple factors that determine our need for drivers which may or may not be visible at the terminal level. We do appreciate our senior drivers and look forward to their continued service with Dillon Transport. Favoritism or discrimination is in no way tolerated at Dillon Transport. If you have a specific concern please forward to Human Resources and an investigation will be conducted to address your concerns.


COMPUTER USE AND MANAGEMENT COMPENSATION & RESPONSIBILITIES:
(June 2009)

There was an inquiry from a driver regarding appropriate use of computers as well as what the responsibilities of management are and how they are compensated for their positions. The personal use of computers at Dillon Transport is monitored and covered under the Employee Handbook. If there is a violation of the computer policy, it will be addressed with appropriate action.

In an effort to remain a competitive employer, Dillon Transport reevaluates our pay scales on a yearly basis taking into account industry averages and other factors. It is our goal to attract and retain the best people by offering a competitive package which pay only happens to be one facet of the total benefits.

Terminal Leaders are not necessarily tasked with generating new business, that function falls to Business Development/Sales. The current economy has impacted our customer base of roofing and road construction in a negative way, but we continue to develop new opportunities to keep all the drivers working at an acceptable level.


OUT OF SERVICE (OOS) PROCEDURES:
(June 2009)

It was brought to our attention that it can sometimes be hard to identify trailers that are out of service. With drivers working 24 hours and the office and shop not working these same hours it is not ideal to rely on verbal communication in regards to OOS equipment. The suggestion was made to provide drivers with tags that could be attached to each piece of equipment so that anyone, at any time, can cleary identify the OOS equipment. Our current out of service (OOS) procedure is as follows: Once the shop tells dispatch that any equipment is OOS, the information should be transferred onto a dispatch sheet that should be refreshed daily. The mechanics are also equipped with lock out/tag out locks and cards that should be placed on all OOS equipment. These tags and locks are designed to prohibit another driver from hooking up to or starting the piece of equipment. As far as giving tags to the drivers, this is a great suggestion. Dillon Transport will work on putting a procedure in place so that drivers can tag a piece of equipment OOS for safety reasons. Dillon Transport values our drivers and in no way would want to put someone in harm's way. Thank you for your suggestion. We take suggestions seriously and look to improve every part of our business.


EZ PASS AND AUTO TRACTOR RESPONSE:
(May 2009)

Getting an EZ Pass - EZ Pass is assigned to tractors that use the Midwest to the Upper Eastern toll roads. There are only a few states that utilize EZ Pass: IL, IN, MI, PA, WV, VA, NH, NJ, MA and NY. Ohio will be coming online with the EZ Pass in the fourth quarter. If you are currently paying for tolls in these states, please contact your terminal leader.

Why Auto instead of Manual tractors? Because Dillon Transport is striving to be as environmentally responsible as possible, the company has decided to go with the Peterbilt 384 and 386. These tractors are approved through Smart Way and ensure better MPG with their aerodynamics. This helps reduce our carbon footprint on the environment.

Dillon Transport has gone to automatics in the day cabs because they are more vocational. These tractors go into the cities where shifting becomes harder. We want the drivers to pay more attention to the road and traffic than shifting gears. Automatics are proven to lessen fatigue of the driver, allowing him/her to stay more alert and relaxed behind the wheel and making him/her more productive throughout the day. Automatics may cost more up front, but have proven over time to cost less in the maintenance department, which means less time in the shop and more time on the road.


DRIVER TRAINING RESPONSE:
(May 2009)

There were serveral points brought up regarding driver training. Following are the comments and our responses to them provided by Mark Brinkman our Director of Saftey.

1. McCook Trainers are not on the same page. Only one trainer at McCook has ever received formal training on how our training process is to be implemented. This has been a known deficiency. We will be conducting a Lead Driver meeting on June 06, 2009 to go over our training process and documentation in depth. This should add some consistency as well as expediency to the process, and should help in getting everyone paid as soon as possible after training is complete.

2. The whole purpose of the last day of training is for the trainee to prove he knows what to do. You are 100% correct however, we have provisions in the training program where, if a trainee is not performing up to standards on the last day, he will be assigned additional days without penalty. You have the option of turning the last training day into a regular training day, and postponing the road test/evaluation. This must be coordinated through the Training Coordinator AND Terminal Leader.

3. When training, I end up pulling less loads due to teaching the trainee the ropes. You obviously take the training mission very seriously. This is an unintended consequence of any effective training process. When not training, the trainer "knows the ropes", and is able to perform his job efficiently without compromising safety. When assigned a trainee however, the trainer must frequently pause and explain a process to the trainee to aid the trainee in understanding. As the trainee gains knowledge and he naturally becomes more efficient, the "ball and chain" effect should diminish as the training process proceeds. The $75/day training pay is designed to compensate for this as well as reward the trainer for his extra effort.

My suggestion to all trainers is to be resourceful and creative. By industry standards, OUR TRAINING PROGRAM IS SHORT! All time spent with the trainee should be utilized to its fullest advantage. Drill the trainee on the procedures for the next facility over and over in the cab PRIOR to arriving at that facility. Narrate him through the procedures while at the facility, and then summarize after leaving the facility. One of the most satisfying aspects of training someone is watching that person develop and succeed due to your instruction and influence.

4. I might see the training pay in 1-2 weeks, but if I wasn't training that person my pay would be higher. Coming out of the winter season, I need to maximize my pay. Just as it is very important that the training be performed properly, it is equally as important for DOT compliance purposes that it be documented properly. That is the reason for the delay. Once the training process is consummated by a verification of proper documentation, I am committed to ensuring the trainer is promptly paid. Excepting very inexperienced trainees who require more training time, a trainer should not have to wait longer than 5-10 days for his training pay. I am aware that driver wages ebb and flow with the seasonal demands of the industry, and apologize for any temporary lapse in pay you may have experienced due to training during the transition out of the winter season. We will expect the late spring and summer months to be busier than ever in Chicago this year.


McCOOK TERMINAL ISSUE RESPONSE:
(April 2009)

Based on a driver's meeting held in McCook two weeks ago, there was much feedback provided from different sources about the equipment situation. The two biggest cocerns that have been expressed are that drivers have to share trucks because there are currently more drivers than trucks and secondly, when they share trucks cleanliness and functionality of equipment is not kept at a high standard.

We would like to say thank you for the comments and rest assured that we are aware of the issues and are working with maintenance and terminal leadership to get these concerns addressed.


DILLON HATS AND T-SHIRT REQUEST RESPONSE:
(April 2009)

It was requested to provide Dillon hats that are low profile and black in color so as not to show the dirt of the asphalt. We can get a different style and color hat and we will consider this for the future. However, we currently have a 6 months supply of our camouflage hats we must use first. We do like the idea of Dillon on the back of the hats, but might be able to incorporate Tank Yanker above the strap in the back as requested.

In regards to t-shirts, since we all wear uniforms now, the existing Tanker Yanker t-shirts are not as compelling as they once were so we will not be ordering any additional supply of these shirts.


PRODUCT DIVERSIFICATION RESPONSE:
(April 2009)

It was suggested that we need to diversify our products for year round hauling at good rates. We are well aware of seasonality in our business. We are also aware that we are a specialized carrier. We are continually searching for other dry or liquid bulk customers. Diversity of product is one of our goals. We will pursue any opportunities that we feel are appropriate. We are looking into bulk oil, colinal chemicals, vopak, general chemical and dry bulk as suggested. Thanks for the valid suggestion.


DRIVER HIRING ISSUE RESPONSE:
(April 2009)

It was suggested we are hiring when we have drivers who are idle and not working. If historical trends continue, our business will increase dramatically in May and continue through the rest of the Summer and into Fall. In anticipation we need to hire and train drivers prior to the increased demand. If we do not do that, we will not be able to service our customers as they expect. When customers are not services correctly; bad things happen to all involved.


INSURANCE ISSUE RESPONSE:
(April 2009)

Dillon Transport currently pays approximately 73% of the cost of medical insurance for the employee. If the employee elects any dependent coverage, the cost for that dependent coverage is paid for by the employee 100%. Dillon Transport goes to bid each year to obtain the best rates that insurance companies will offer us. Being operational in multi-states and not being a "large" company by insurance standards, our choices are limited. We have to be able to offer insurance plans with in-network providers in each area we are located. Our rates are also determined by the percentage of employees electing the insurance, as well as claim history. Each terminal does not have a separate policy. Dillon Transport continually strives to bring the best coverage at the lowest cost to our employees at Dillon Transport.