Trucking associations in Canada are raising alarms over the perceived misuse of the Labour Market Impact Assessment process by some carriers to recruit foreign workers.
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Trucking associations in Canada are raising alarms over the perceived misuse of the Labour Market Impact Assessment (LMIA) process by some carriers to recruit foreign workers. The Canadian Trucking Alliance (CTA) and other industry leaders have reported irregularities, including instances where carriers possess a disproportionate number of approved LMIAs relative to their fleet size. Industry participants also have concerns about reports of foreign workers paying exorbitant fees, with some reports saying up to $60,000, to obtain these LMIAs. Many industry participants believe that these practices increase the risk of worker exploitation, with reports of underpayment, forced labour and threats of deportation. Industry executives are calling for stricter vetting of participating companies and better enforcement of the program to protect workers and maintain the integrity of the LMIA process.
In the wake of the U.S. Supreme Court's Chevron decision, the regulatory landscape for truck speed limits and hours-of-service rules faces scrutiny, with the Owner-Operator Independent Drivers Association (OOIDA) opposing the Federal Motor Carrier Safety Administration's (FMCSA) proposed speed limiter rule, potentially capping speeds at 60 mph. OOIDA advocates for more flexibility in hours-of-service regulations and eliminating the Department of Labor's overtime exemption for truckers, arguing that current rules disadvantage small carriers and are influenced by special interest groups.
The Canadian government, through the Canadian Food Inspection Agency (CFIA), is engaging with the U.S. Centers for Disease Control and Prevention (CDC) to clarify and address concerns over new U.S. dog import rules that were to take effect in August 2024. These regulations, aimed at preventing the spread of rabies, have raised concerns due to Canada’s rabies-free status and the potential impact on cross-border travel, especially in border communities. The Canadian Trucking Alliance (CTA) has requested an extension of the enforcement period, citing challenges these rules pose to the transportation sector and potential disruptions to trade. The current requirements include a dog's healthy appearance, microchipping and specific documentation, which the Canadian government is seeking to modify or exempt certain cases from.
The Manitoba government recently announced significant changes to improve truck driver training within the province. These changes, which will begin to get rolling in August 2024, will centralize the oversight of driving training under a single regulatory body. This move is intended to enhance driver and public safety by improving the regulation and monitoring of training standards, testing and outcomes. The changes were prompted by recommendations from a report commissioned by a joint government-industry steering committee, which identified over 40 policy options to strengthen the trucking industry's workforce. These include recruitment, training accessibility, regulatory oversight and testing standards. The Manitoba Trucking Association has welcomed these changes, viewing them as the beginning of a new chapter for the industry.
A recent report from Statistics Canada highlights a divergence in container shipping rates between rail and trucking over the past year. The cost of moving intermodal containers by rail has risen by 2.5% as of July 2024 compared to the previous year, while rates for general freight trucking have dropped by 3.7% from March 2023 to March 2024. The report also notes a slight increase in the volume of freight moved by intermodal containers on rail, despite a decrease in the overall number of freight cars. These trends reflect shifting dynamics in the transportation industry, influenced by factors such as supply chain challenges, geopolitical tensions and infrastructure barriers.
