While the industry still has a lot of unanswered questions about compliance with the GHC’s Service Contract Act requirements, here’s one thing we do know – there will be some sort of penalties if the new rules aren’t followed.
But we’re not sure, for instance, whether the SCA will be enforced in a way that puts the burden on the employers or the prime contractor. This could mean that all penalties (civil or otherwise) for SCA violations would be levied against the moving agency (or driver if he employs helpers) servicing the shipment.
We’re not saying accountability is wrong – if you knowingly violate regulations, you should continue to face consequences to help ensure that the military families who serve us all receive the very best moving services. But how can businesses be expected to stay between the lines when they don’t know where those lines begin and end? Herein lies the ongoing problem of more and more unanswered questions.
TRANSCOM and the prime contractor don’t seem all that worried about how the SCA will play out. Maybe that’s because they’re expecting us to figure out the ins and outs of how to apply the SCA to our unique industry. But without any compliance guide or comprehensive information from TRANSCOM or the Department of Labor, we’re left wondering how to move forward. The list of unknowns is getting mighty long – even as we’re getting mighty close to the GHC’s scheduled takeover.
We have already talked about how this is the first time the SCA will apply to long-distance interstate moves handled by van line operators who are also independent contractors.
Expecting businesses to immediately comply with the complexities of the SCA would be like having the Wright Brothers tell someone else to fly their plane for the first time and follow strict protocols, even though no one has fully explained how to do it. At least Orville and Wilbur flew the plane only after it was built – movers are being asked to fly this plane while the controls are still being designed.
An evaluation of the GHC by the Government Accountability Office (GAO) is urgently needed to make sure this plane can fly.
