'98 Year in Review: American Trucking Associations

They might as well post a sign at the entrance to the Alexandria, Va., headquarters of American Trucking Associations, saying “Welcome to the New ATA.”

The trade association is far different today than it was just a year ago. In 1998, a new chief executive officer took control, the association underwent a top-to-bottom review and leaders among the membership began the process of reshaping the 65-year-old organization.

“We have streamlined our operations, we have instituted efficiencies and we have made investments in extraordinarily capable people,” said Walter B. McCormick Jr., who assumed the organization’s presidency at the first of the year.

The changes came fast and furiously. The new administration laid off 10% of ATA’s 280 employees in late February, cutting a wide swath through senior staff ranks. Some of the layoffs came suddenly and without notice in what quickly became known at ATA as “Black Thursday” (3-2, p. 1). Numerous other longtime employees left on their own, leaving the organization hovering near the 200-person level.

The salary savings helped ATA eliminate a $750,000 deficit. The departures also gave the new president the opportunity to hire a team of what he called “policy entrepreneurs,” who he said would help make ATA “best in class” in advocacy for the industry (4-27, p. 13).

ith the approval of the Executive Committee, Mr. McCormick also began revamping the business operations. He hired the association’s first chief financial officer, created a new information services division and increased services to state trucking associations (10-26, p. 22).

To help bolster the bottom line, ATA launched a membership drive in October, part of its goal to increase membership by 400% by 2002. ATA is working with state trucking associations, some of which are selling memberships in their own organizations. The National Tank Truck Carriers conference and the Truckload Carriers Association — which both initially opposed the restructuring plan — are now urging their members to join ATA.

This has given the campaign a needed boost. Mr. McCormick said 250 new members had joined ATA since August (11-16, p. 4).

The coming weeks will prove crucial for the national association, as members receive invoices reflecting the new dues structure that took effect Jan. 1. Many members will see their dues reduced, but others should expect higher bills, at least for the short term (7-27, p. 1).

Seventy-five members agreed to pay the new dues even before the invoices went out, Mr. McCormick said. He repeated his pledge that ATA will not offer discounts to members who don’t like the new fee schedule.

“I have committed to the members there will be no dues deals,” he said.

That refusal to budge on the rates set by the Executive Committee resulted in the departure of one of ATA’s largest members in October. Landstar System quit the association rather than pay the new dues, a decision Mr. McCormick said he hopes the company will reconsider in 1999 (10-19, p. 1). He also addressed rumors that other large members are considering quitting the association by saying he is confident no other major departures are pending.

For the full story, see the Jan. 11 print edition of Transport Topics. Subscribe today.