(Montreal) Canadian truckers will “lose paying jobs” because of “unfair” competition from “drivers inc.” », Warns the boss of the Quebec trucking giant TFI International.
The president and CEO, Alain Bédard, even admitted to wondering about the future of the Canadian activities of the Montreal company, during a conference call on Friday, aimed at discussing the company’s results.
“This is the question we are asking ourselves,” replied the leader. Do we want to have 200 million assets in an industry where we compete with guys who are not fair, who don’t pay benefits to their employees? »
The “driver inc. ” refers to a misclassification of workers as self-employed, meaning the company does not pay benefits or provide basic labor protections, even if the trucker works for a single employer.
This situation is denounced by many industry players, including the Quebec Trucking Association (ACQ) and the Robert Group.
In Quebec, nearly 2 billion in contributions have not been paid to the Quebec state since the beginning of the phenomenon, 12 years ago, according to a brief filed in November by the ACQ. The estimate is based on modeling by Cain Lamarre.
The inability of smaller companies to compete with “drivers inc.” » could offer opportunities for small acquisitions for TFI, but overall, the regulatory context is unfavorable for the company, believes Mr. Bédard.
“The overall size of our activities will decrease [à plus long terme] and people will lose paying jobs because of drivers inc. “, he warns.
This is not the first time that the manager has denounced “unfair” competition from drivers inc. He expressed his impatience with the governments’ response.
After years and years, elected officials continue to make promises, but they do not deliver the goods.
Alain Bédard, President and CEO of TFI International
In Quebec, the Minister of Labor, Jean Boulet, says he takes the situation “very seriously”. “My ministry is analyzing what would be the best way to modify the legislative framework in order to adapt it to cases that escape CNESST inspectors [Commission des normes, de l’équité, de la santé et de la sécurité du travail] “, he wrote in a statement.
Last year, the CNESST set up a denunciation line to counter the phenomenon. “Thanks to these denunciations, checks were carried out with transport companies in order to note the application of the laws regarding financing for the occupational health and safety aspect,” adds the minister.
A year ago, federal Labor Minister Seamus O’Regan’s office said the government was focusing on an “education-led approach to ending this discriminatory practice”.
“Employers who continue to knowingly break the law after being informed and made aware will be held accountable,” Hartley Witten, press secretary to the federal labor minister, said in an email in May last year.
It was not possible to obtain an immediate reaction from the office of the federal labor minister.
Results below expectations
TFI revealed results below analysts’ expectations during the first three months of the year in a difficult context for the trucking industry.
“I never anticipated that 2024 would be this difficult. If you had asked me for my forecast six months ago, I never would have predicted it would be this bad. It’s probably one of the worst markets of the last 30 years,” said Mr. Bédard.
The trucking industry was already experiencing a headwind in 2023 due to the economic slowdown which is dampening demand and inflation which is putting pressure on costs, particularly wages.
In the first quarter, the company’s net profit decreased by 17% to 92.8 million. Adjusted diluted earnings per share were $1.24. Revenues, for their part, stood at 1.87 billion, compared to 1.85 billion during the same period last year.
Before the results were released, analysts expected earnings per share of $1.36 and revenue of $1.9 billion, according to financial data firm Refinitiv.
Although lower than expected, the weak results were expected and are similar to those of the rest of the industry, said Kark Gupta of Scotiabank. On the other hand, this setback overshadows operational progress within American activities, he adds. “Management notes a positive inflection in the United States with an improvement in service which led to an increase in weight and revenue per delivery. »
Mr. Bédard reiterated the broad outlines of the company’s strategy, which acquired a former division of United Parcel Service (UPS) in the United States in 2021. The operational indicators of this division are lower than those of Canadian business and industry activities.
For several quarters, TFI has been devoting its energies to making this division more efficient.