Higher fuel prices hurting LV bus, taxi operators

Thursday, May 4, 2000 | 11:16 a.m.

Some Las Vegas taxicab drivers say they are starting to feel the pinch of higher gas prices on their paychecks.

But because the way drivers are compensated varies by cab company, there's no unified effort to seek higher fares in the form of a fuel surcharge from the Nevada Taxicab Authority.

That could change later this month, as a union leader says she'll raise the issue with the Taxicab Authority.

Taxicab Authority Administrator Robert Anselmo said his office has not received a request from anyone within the industry to raise rates, though fuel costs spiked in late winter and at one time were nearly twice what they were a year ago.

The price of regular unleaded fuel has eased into the $1.65 range from $1.80 in late February and analysts have given mixed readings on what lies ahead for the summer. Some say the prices will continue to fall gradually; others say prices could go up again around Memorial Day.

Many cab companies and drivers are absorbing most of the higher fuel costs -- not customers.

But customers are paying more for local bus charters thanks to higher fuel costs because companies operating buses are deregulated and acted quickly to raise rates to reflect the greater expense.

Cab companies and their rates are regulated by the Taxicab Authority. There are several reasons why the 13 cab companies operating in Clark County haven't pushed for a fuel surcharge like the one Taxicab Authority allowed six years ago:

But that's no consolation to drivers with Whittlesea Blue Cab Co. and its sister company, Henderson Taxi, who have seen their take-home pay drop by about 10 percent as a result of higher fuel costs.

Whittlesea Blue, the area's No. 2 taxicab company by total monthly trips, has a per-trip charge to drivers. Drivers say the company has raised that by a nickel per trip to share paying for the higher cost of gasoline.

But a representative of the United Steel Workers Union, which represents Whittlesea Blue drivers, said the per-trip increase has nothing to do with fuel costs.

Don Hazel, financial secretary for the USW, said the nickel increase helps pay for higher insurance premiums the company is paying.

A different union, the Industrial Technical Professional Employees Union, meanwhile, represents Henderson Taxi drivers and it says drivers with a year's experience now must pay the company $1.39 per trip, while cabbies driving for less than a year pay $1.67.

Representatives of Whittlesea Blue and Henderson Taxi would not comment on their rate structure and how it affects drivers.

Mike Jones, a driver for Henderson Taxi, said drivers for that company are getting hammered on all sides because of the rise in fuel costs.

Not only are drivers paying 75 percent to 100 percent of the gas, depending on seniority, Jones said, but they're also driving some of the least fuel-efficient vehicles on the road.

Jones serves as chief steward for the Industrial Technical Professional Employees Union.

"The higher price of fuel double-hits us," said Jones, explaining that Henderson drivers not only have to pay more on the job, but, like everybody else, must pay more at the pump for gas for their own vehicles. "I'm convinced Las Vegas is being gouged. Drivers talk to people from all over the country and we're hearing that gas costs $1.14 or $1.10 just about everywhere else."

Jones said that between the high fuel costs and Whittlesea's decision to operate Ford Explorer sports utility vehicles, drivers are paying $7 more a day than they did a year ago. On an average day, Jones said a driver will make $80 after expenses.

He added that what a driver makes varies dramatically by company, since some companies allow drivers to work longer shifts. Also, large conventions in town will enable drivers to make considerably more per day.

Drivers say the Whittlesea companies make it more expensive and less comfortable for them.

Jones said Whittlesea and Henderson require their drivers to turn off their engines when they're waiting in a cab line at a hotel or at the airport. While this saves fuel in the gas-guzzling SUVs, it also rankles some drivers that they have to sit in sweltering heat in the summer months with the air conditioning off.

Drivers can get out of their cabs when they're in "the pit," the line at McCarran International Airport, but they have to stay with them at hotel lines. Whittlesea has supervisors in the field who make sure drivers turn off their engines while they wait their turn to pick up a passenger.

"It doesn't cost them for us to run the engine, it costs us, but we don't have a choice," Jones said. "You can't leave a dog or a cat inside a car in the summertime, but you can leave a taxi driver."

Jones said drivers are threatened with suspensions if they fail to comply.

Meanwhile, the largest cab company in the valley, Yellow-Checker-Star Cab Co., hasn't been hit as hard by the fuel crunch because it operates a fleet fueled by propane.

Bill Shranko, operations manager of Yellow-Checker-Star, said propane costs have started to creep up recently. But they didn't go up as drastically as gasoline.

Shranko said propane has about the same fuel efficiency as gasoline, but vehicles have fewer operational problems, lowering costs overall.

Anselmo, the administrator of the Taxicab Authority, said because the largest company hasn't been hit as hard by fuel costs, there has been no push to increase taxi rates to compensate for the added cost of fuel.

He added that some companies purchase their fuel wholesale in large quantities and are just starting to see the impact of higher costs after using up all the cheaper gas.

But some of the smaller companies buy gasoline at the pump and have felt an immediate impact.

The Taxicab Authority authorized a fuel surcharge six years ago when fuel costs climbed and raised operating expenses.

Two different unions represent cab drivers at some companies while others operate nonunion shops. The unions have been silent on fuel issues, but T. Ruthie Jones (no relation to Mike Jones), vice president of the ITPEU, said that will change this month.

Ruthie Jones said the union has been silent because 1,400 of its 1,600 local members are with Yellow-Checker-Star and not affected by gasoline prices. But she said she plans to bring the issue to the Taxicab Authority at its meeting later this month to see what kind of reaction it gets.

"I'm going to bring it up as public comment," Jones said. "We want to open it up for discussion and see what the commissioners are thinking on it."

The Industrial Technical Professional Employees Union represents drivers at Henderson and Yellow-Checker-Star, while the United Steel Workers represents drivers at Whittlesea and its bus divisions plus Ace, Union, Vegas-Western and ANLV cab companies. Hazel said his union represents about 1,800 cab and bus drivers.

While cab drivers and companies are feeling the brunt of higher fuel prices, passengers are paying more on charter tour buses operating in the Las Vegas area. Major charter bus operations have begun adding a 5 percent fuel surcharge to their contracts.

Kim Wyman, director of sales for Superior Tours, the largest charter and tour bus company operating in Las Vegas with 65 vehicles, said the surcharge could be dropped if fuel prices come back down.

The charter bus industry has been deregulated, so local agencies don't monitor fares. The Transportation Services Authority of Nevada, which oversees the regulation of tour and charter buses in the state, only performs safety and insurance checks on buses.

But bus charter costs have been going up and charter customers and their passengers are paying more.

To charter a bus to Los Angeles from Las Vegas, for example, costs about $1,650 for a weekend run, Wyman said. The surcharge increases the cost of chartering a 57-passenger bus by about $83.

Gerry Jordan, director of sales and marketing for Travelways, a national company headquartered in Howell, N.J., that has 50 vehicles operating in the Las Vegas area, said customers, including schools, churches and organizations needing shuttles for conventions, have been understanding about the increase.

"Some people give you a little fight, but by and large, most people are pretty understanding," Jordan said. "We started doing it in the middle of February when fuel prices got to such proportions that we hadn't projected the added expense in our budget. But most people realize they're paying an extra $8 to $10 to fill their car gas tanks."

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