The Canadian Trucking Alliance (CTA) is calling on provincial and federal leaders to introduce immediate relief measures for the trucking industry amid the U.S.-imposed tariffs.
In a letter to the Council of the Federation, which includes 13 of Canada’s provincial and territorial premiers, CTA called for urgent action. This includes suspending the carbon tax increase set for April 1, reducing the federal excise tax on diesel, and more.
“Canadians can only hope the U.S. government sets clear and definable objectives to end this trade war; and that it’s in our collective powers to meet those demands. Each day this trade war lasts is one too many,” CTA wrote in the letter, which was signed by each provincial association. “We applaud the actions to date, but the crisis is now upon us. Aside from the tariffs, the industry is currently experiencing the worst freight market in 40 years due to overcapacity, poor North American market conditions, and an out-of-control underground economy that is driving compliant fleets out of business.”
In addition to suspending the carbon tax increase and removing or reducing the federal excise tax on diesel, CTA is asking for a comprehensive tax relief program for the trucking industry. This program would include reductions in provincial fuel taxes, lower plate and licensing fees, and rebates for previously paid amounts, CTA says.
The alliance is also calling on governments to ensure that truck transportation contracts are not awarded to companies operating in the underground economy.
To address the financial strain on drivers, CTA wants the federal government to increase the on-road meal allowance deductibility to 100% for truck drivers facing reduced freight demand. It is also calling for stricter eligibility requirements for government relief programs to ensure that only payroll employees and independent contractors who have voluntarily opted into Employment Insurance (EI) can access the support.
“There is much work that needs to be done to address the threats and potential long-term damage from a persistent tariff war,” CTA writes. “The provinces and the Government of Canada are working with the trucking industry on medium and long-term plans through the intra-provincial trucking pilot. What we need now is a more immediate response for our sector.”
Following last week’s introduction of temporary flexibilities to the Work-Sharing Program — which provides partial EI benefits to employees who agree to work reduced hours due to reduced business activity beyond their employer’s control, aiming to prevent layoffs — CTA president Stephen Laskowski warned against potential abuse, particularly by companies operating under the Driver Inc. model.
“This is a good step. But to be clear, Driver Inc. and companies that operate in the underground economy do not qualify for EI and, therefore, are ineligible for these types of programs,” Laskowski said in a statement.
“Only workers on proper payroll or true independent contractors who have voluntarily opted into EI qualify for this program. During the pandemic, we spotted many Driver Inc. companies illegally taking advantage of wage subsidies provided by the government. We don’t want to see this government make those kinds of program errors again when dealing with tariff-related aid.”
Credit: Source link
