Trucking industry | Low wages and difficult working conditions perpetuate the crisis

While driving on the asphalt that crosses western Montana, Jason Junk wonders how long he will remain in this profession which has been his livelihood for 29 years.

“No one wants to do this anymore, because we don’t make enough money,” explains the Edmonton truck driver. It’s no longer worth the trouble. ”

Stagnant wages, harsh working conditions and a perceived lack of public appreciation are all factors in the decision, says 49-year-old Junk.

Independent owner-operator, he switched to a less strenuous schedule under contract with a new company last month, but many truckers have decided to quit the industry altogether since the COVID-19 pandemic hit.

Trucking is an industry in crisis. As the demand for drivers skyrocketed during the pandemic, with the increase in online sales, the number of people entering this industry fell, due to stagnant wages, changing work habits. and prohibitive insurance policies that prevent new truckers from earning a decent living.

In October, about 332,000 truck drivers were plying Canada’s roads, roughly in line with pre-pandemic levels. Still, the industry had around 18,000 vacancies in recent months, as young people, women and retired workers left the job, according to Trucking HR Canada. Forecasts point to some 55,000 vacant positions for 2023.

Despite the scarcity of drivers, wages remain stubbornly low, especially because of the very tight profit margins in this sector, said Stephen Laskowski, president of the Canadian Trucking Alliance. “It’s a hyper-competitive industry,” he said. Salaries reflect the cost of services to the trucking industry itself. ”

The price of inputs, ranging from increasingly digitized vehicle components to repair services and fuel, continues to rise amidst tight supply chains and rising inflation.

Another barrier to getting new drivers is training – courses cost between $ 6,000 and $ 12,000 for programs lasting two to three months. Salaries for some truckers are as high as $ 44,850, based on a median wage of $ 23 an hour, according to the federal job bank – although experienced truckers can earn more than double that. annual income, according to drivers.

Pawan Kaur, who runs the Toronto Truck Driving School, says the number of students per month has increased slightly to around 25 in the past year. But she notes that recent graduates can only find jobs with lesser-reputable companies that pay meager salaries and require longer stays away from home.

“The problem we face is that companies are looking for experienced drivers. Nobody wants to hire new drivers, ”she said, noting that only half of the 103.5 hours of training required in Ontario were given behind the wheel.

The vicious circle of insurance

On paper, obtaining a heavy semi-trailer permit authorizes its holder to get behind the wheel of a heavy truck. “But that doesn’t mean you’re actually ready to drive a 53-foot trailer on the highway,” said Angela Splinter, Managing Director of Trucking HR Canada.

Insurance premiums reflect this situation. They are in fact a key part of the industry’s labor problem, remaining inaccessible to beginners, or offered at prohibitive prices.

“It is no longer possible to give them the keys to vehicles of $ 175,000 to $ 200,000 and send them on the road – with $ 100,000 more in cargo in the trailer,” said Lisa Garofalo, vice-president. President of the Trucking Division at insurance broker Baird MacGregor Insurance Brokers.

The result is a vicious cycle: you have to have experience to drive a truck, but you cannot drive a truck without experience – usually at least two years. “It’s serious, it’s a real problem at the moment,” said M^me Garofalo.

One way out of this deadlock is to use very large fleets, which have training programs approved by insurers for new drivers. But for smaller parks, insurance companies are sifting driver teams to remove newbies.

For some, the lack of respect for trucking workers, who are key players in an economy that depends even more on them during the pandemic, has been the last straw.

“When they closed everything, I would go away for two or three weeks and not have meals outside the truck,” Junk recalls. We go to customers to unload or recharge, and we are not even allowed to use their washrooms. ”

Drivers can spend long hours and up to 14 straight days on the road, sleeping a few nights in the sleeping cabin or along the pavement. Many are paid by the kilometer, which means that hours spent in congestion or waiting for delayed cargo represent lost income.

Just as some young people turned away from low-paying retail jobs, young trucking candidates began to look beyond the freeway for more attractive work. More than 40% of the trucking workforce is over 55, according to Trucking HR Canada.

Changes in sight?

The industry has redoubled its efforts to attract truckers.

A few companies are moving to a pay model by the hour, rather than by the kilometer, to provide employees with greater salary stability. The Canadian Trucking Alliance has launched a social media campaign to showcase the changing face of the industry to young Canadians.

Meanwhile, a federal youth employment grant can help cover the cost of training. And Ottawa’s Temporary Foreign Worker Program, which brings in about 1,500 drivers a year, could be better exploited, observers say.

But none of these measures can fill the current vacuum. Experts believe the profession should be regulated as a skilled trade, opening up more avenues for government funding, immigration, and training.

The Canadian Trucking Alliance also says the federal and provincial governments must crack down on fleets that circumvent regulations, including pay and caps on daily driving hours.

Meanwhile, the role of truckers in efforts to get supplies to flood-ravaged areas of southern British Columbia has highlighted their critical importance – and the urgency to increase their numbers -, a noted Barry Prentice, professor of supply chain management at the Asper School of Management at the University of Manitoba.

“It speaks to the pressing need people have at this stage to move goods,” he said, citing an old saying: “If you bought it, a truck brought it to you.”