Non-compliant carriers are gaming the system and gaining market share, warned Stephen Laskowski, president of the Canadian Trucking Alliance (CTA).
He observed that the government is not taking the issue seriously and wants rules enforced.
Laskowski said the industry members are getting increasingly frustrated about enforcement regarding personal services businesses and employee misclassification.
“Why isn’t the law being applied? Is a political calculus being applied to the law?” he asked. “We are entering an era where we have seen decisions made that don’t factor in the application of the law exclusively. Enforcing the rules is not black and white anymore.”
Speaking on the sidelines of Atlantic Provinces Trucking Association’s annual general meeting and conference in St. John’s, Newfoundland and Labrador, the CTA executive said choices are being made in the trucking industry to the disadvantage of compliant carriers. The government has a role in stopping it, he added. “They don’t need new rules, just enforce the existing ones. They know where the fires are, they need to put them out,” he said.
Business plan skirts the law
Historically, the trucking industry was dominated by carriers who put safety first. Not anymore, he added.
“Some carriers don’t put safety first, and they don’t prioritize compliance. They build a business plan around all these things,” he said.
The alliance’s members who make up the majority of carriers in the country, are suffering because of companies that skirt the law, Laskowski said. Some have been put out of business as they can’t compete with non-compliant carriers.
Driving down safety
There is a part of the industry that puts profit ahead of everything, and this is driving down safety. A carrier must comply with rules including labor, safety, drivers and equipment. It is challenging and costs money, Laskowski noted. Some companies aren’t looking to comply and are finding ways around it.
“When you take those costs away it gives them an unfair advantage 100%. They can offer much lower bids for freight,” he said.
He urged CTA and provincial trucking association members to reach out to their lawmakers and aspiring lawmakers as federal elections approach to highlight their grievances and challenges.
“With enforcement, a semblance of order will be restored to the trucking industry, and hopefully the tide will turn to where not complying comes with a cost.”
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