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In an attempt to make Canada’s roads safer for travel, The Ministry of Transport, Ontario is all set to roll out its own ELD mandate by the end of this year. ELD, which stands for Electronic Logging Device, was announced by the Canadian Transport Minister Marc Garneau in an attempt to make the truck drivers less susceptible to fatigue.
According to the recently issued statement by the Ontario Provincial Police, the number of transport truck collisions has gone up significantly in 2018. There have been several fatal transport truck collisions last year which have resulted in an alarming number of casualties throughout the country, thus resulting in questions being raised regarding the safety of Canadian roads.
Canada’s commercial insurance market is witnessing an intense competition between insurers, brokers, and trucking companies. Owing to the high percentage of claims of continuous under-pricing, insurance companies are struggling to stay afloat. This desperate situation has led insurance companies to undertake different measures such as rate hikes by 30% to 50% and stricter safety-screening practices for fleets even before issuing quotes. Canada’s trucking industry is bearing the brunt of these rate hikes.
Canadian Trucking Alliance (CTA), the body which has been developed to address the federal trucking concerns, has labeled the controversial Driver Inc scheme as an unfair means to evade taxes. Under the Driver Inc scheme, the truck drivers work as independent contractors for companies by setting up a PSB (Personal Service Business). They have also issued a T4A income tax slip by the companies. This model mostly incorporates the truck drivers who do not operate, own or lease their own trucks.
Written by Sayantan Banerjee - Safety & Compliance Auditor - Vagans Inc
Canadian trucking companies are bracing for the worst-case scenario- not enough men and women to transport freight across the continent, with a projected driver shortage of more than 30,000 by 2020.