From a labour perspective, most trucking companies are federally regulated because they operate beyond their provincial boundaries. The federal Canada Labour Code (CLC) governs the labour practices of “federally regulated entities” such as banks, airlines, railways, the federal public service and the trucking industry. However, unlike other sectors that are governed by the Code, which are made up of a few large employers, the trucking industry is fragmented and made up of many companies. Part III of the CLC covers such things as hours of work, overtime pay, vacation pay and statutory holiday pay.
A wide-ranging review was announced by the federal Labour Minister in December 2004. A Commissioner, expert advisers from academia, law, business, and labour and a full-time secretariat have been appointed to conduct the review.
The review commission – touted as the first comprehensive examination of labour standards since the original legislation was enacted in 1965 – was created to produce recommendations for legislative changes to modernize federal labour standards and ensure that they remain relevant and effective in the 21st century. As part of its mandate the commission can also make recommendations of a non-legislative nature for consideration by government as well as business and labour organizations.
CTA has met with the Commissioner several times and has made a substantial formal submission. CTA has cautioned the Commission that most trucking companies are small to medium enterprises, usually without human resources professionals on staff, so the new labour standards rules must be certain and relatively simple to implement.
The CTA's top three recommendations are as follows:
- That the federal government create a separate law for truck drivers, distinct from the general provisions of Part III, to recognize and accommodate the underpinnings of labour standards in the trucking industry.
- That the distinction between employees (company drivers) and entrepreneurial actors (owner-operators/leased operators/independent contractors) be maintained; certain guidelines should be set out which, if followed, would guarantee parties that their selection of independent contractor status (if they are owner-operators) will be respected.
- That the overtime thresholds for employee drivers should remain as they currently are – 45 or 60 hours per week, depending on the characteristics of the driving task; that the overtime rate should remain at time-and-a-half, but the distinction between the drivers who get overtime at 45 and those who get overtime at 60 hours be clarified, with language that is easy to understand for both employer and employee.
Any changes to the CLC Part III will have a substantial impact on all federally regulated trucking operations. This industry is a key component of Canada's economic success, both in domestic markets and internationally.
The Review Commission’s report was expected in January 2006. There is no indication what the new report release date might be.