There isn’t a lot of recruiting going on at the moment in trucking. The threat of tariffs from south of the border and resulting economic uncertainty are some of the hot topics giving industry leaders sleepless nights.
Stephen Laskowski, president of the Ontario Trucking Association (OTA), said that the group’s members are having trouble keeping the lights on. They are dealing with a shrinking economy exacerbated by competitors using the Driver Inc. model to offer lower rates and skip compliance as freight dwindles, he told attendees at the National Recruiting & Retention Symposium in Burlington, Ont.
Mark Seymour, CEO of Kriska Transportation Group, said that the focus is on retention. “Recruiting doesn’t have to be aggressive if retention is more aggressive,” he said.
He added that his strategies include investing in employees, mining out future leaders, and offering them opportunities to grow while being transparent and communicative.
The Kriska leader noted that people work for people they like and trust, they don’t work for a company. Leaders should focus on their human resources because people leave people, not companies.
Laskowski said the rapid push to move freight before the tariffs hit provided artificial stimulus for a while. As a trade war looms, there may be a silver lining. The U.S. president’s executive orders may assist compliant carriers, pushing the non-compliant ones out of the equation.
Dwindling freight
The OTA president noted that the U.S. is Canada’s No. 1 trading partner, and if you add up the trade from the remaining 19 of the Top 20 trading partners, it doesn’t add up to our trade with the U.S.
“There is talk about shifting trade partners, there will be nothing left of my membership,” he said. “We need to figure this out with the U.S.”
Seymour said that things have quietened down in May, after induced activity in March. As freight volumes dwindle, companies are exploring pivots and looking for “corners that have not been swept.”
He added that workers who depend on hours or miles for income are victims who are suffering as there is no consistency. “This keeps me up at night, I feel responsible as a leader. It just sucks that we are in this situation,” he said.
Lack of enforcement
Both Laskowski and Seymour bemoaned the lack of enforcement of regulations against companies that misclassify drivers and benefit from that business model by avoiding taxes. They urged the government to step in to assist carriers who are doing the right thing and following the rules.
Noting that in the best of times, trucking is a 5% margin business, Seymour said that Driver Inc. companies can hit the ground running because it is easy to secure financing, equipment, insurance, and customers. They play the short game and are anxious to make a quick buck. Carriers doing things by the book and playing the long game are at a disadvantage.
Safety concerns on Northern Ontario highways
Switching to another hot topic, discussion moderator Mike McCarron of Left Lane Associates highlighted the “demolition derby” taking place on Highways 11 and 17 in Northern Ontario.
Laskowski said that a survey of about 680 truckers conducted last year, about 80% didn’t want to drive on those roadways due to the conduct of other commercial drivers. He called for increased enforcement and permanent staffing at the $30-million truck inspection station just east of Thunder Bay built last year.
“A growing number of trucking companies don’t care about safety or compliance,” he said.
Red Seal
Over the past couple of years, there has been a push on making truck driving a Red Seal trade. Seymour said it is a great idea but is not going to work because the “market underbelly” – referring to Driver Inc. companies – is providing an alternative.
He added that Red Seal is a patient, step-by-step process. Speed to market matters to those focused on quick earnings, and this hurdle lies on the path towards Red Seal certification.
Laskowski said the OTA is keen on raising the bar on training and safety. An endorsement-type of system used in the U.S., accompanied by an upscaled training program already available in the province, could be twinned to boost professionalism in the industry. He added that it is a challenge for multiple provinces to move along the Red Seal path at the same time.
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