Canada needs 25,000 new truckers by 2023

By Mata Press Service

 

On a wintry evening, in the outskirts of Kamloops, Jaskaran Singh is warming up some rotis and lentil curry at a truck stop, waiting for his mate, Gurjent Singh to pull alongside his rig.

Together here they will spend the evening over a traditional meal, chatting about their Punjab homeland, catching up with their families on whatsapp and exchanging notes about road conditions, before heading out at dawn in different directions to deliver their loads.

For Jaskaran,32, and Gurjent, 27, these occasional road rendezvous’ is a time to reconnect with their past and reflect on their new lives as long haul truck drivers in Canada.

They will in a few months apply to gain permanent residency in Canada and bring their families to join them under British Columbia’s Provincial Nominee Program (BC PNP).

The duo, who have been driving big rigs in the Middle East for the past four years, are the new face of Canada’s trucking industry, which is facing an unprecedented shortage of drivers.

“Under a status quo scenario, i.e. assuming the sector’s ability to recruit and retain workers does not improve, the truck driver shortage would worsen, with vacancies projected to surpass 25,000 positions within the next three to five years,” according to the latest research released by Trucking HR Canada and the Conference Board of Canada.

The truck transportation industry is unable to fill roughly one out of every 15 positions – mostly truck drivers. In fact, the total number of truck driver vacancies in Canada more than doubled since 2016, from an annual average of 8,600 to 20,500 in the first three quarters of 2019, states the study.

“The acute shortage of truck drivers in Canada is felt beyond the trucking industry, confirmed Kristelle Audet, Principal Economist, The Conference Board of Canada. “Trucking is a lifeline for key industries such as forestry, agriculture, auto manufacturing, construction, as well as wholesale and retail.”

“The driver shortage has directly led to delayed planned expansions by trucking operators, and resulted in lost sales in the truck transportation industry by an estimated 4.7% in 2018, equivalent to roughly $3.1 billion in lost revenues…Without meaningful action, vacancies are expected to soar to 25,000 by 2023, an increase of over 25% from 2019,” said the study.

“We are at a pivotal decision and action point,” said Angela Splinter, CEO of Trucking HR Canada, pointing to the fact that nearly one-third (32 percent) of truck drivers are 55 years old or older and nearing retirement.

“Good salaries in a growing sector, better work-life balance, investments in innovative technology and green-friendly initiatives are just some of the approaches we are taking. We need to do more to resolve industry challenges to ensure a stable and reliable trucking transportation network for the road ahead.”

But these initiatives don’t seem to be enough to attract a steady supply of local drivers, said Wesley Richards, whose Vancouver-based Class One Drivers. specializes in providing HR solutions to trucking companies.

“Young Canadians are not lining up to be long haul truck drivers even though the starting salaries are about $70,000, because of certain perceptions about the industry and

work-life balance” said Richards, who is a member of the B.C. Trucking Association.

“Most of the time, I don’t get even a single local inquiry when I put ads for long haul truck drivers,” he said.

Richards turned to recruit foreign drivers for a select group of trucking companies with unblemished pedigrees in the industry, about two years ago.

Jaskaran and Gurjent are two of his recruits working for trucking companies in Delta, B.C.

“I have heard horror stories from some of the foreign truck drivers I meet on the road…they are getting paid very little and not getting proper training…I am fortunate to be working with Mr. Richards …he found me a good boss,” said Jaskaran, who is trained as a chemist and worked as a pharmacist, before shifting to a career in trucking.

“I broke my arm at home shortly after arriving…Mr. Richards helped me with everything including the medical expenses,” said Jaskaran.

“Do your homework and make sure you are working for a good and reliable company,” said Gurjent.

“Also make sure you get the proper training in Canada…I have seen some drivers struggling on the roads in B.C., he said.

Last year, after news reports of the exploitation of temporary foreign workers hired as drivers with little to no training, B.C.’s transportation minister promised a sweeping review which could lead to new training standards being set.

This includes a B.C. specific mandatory entry-level driver training (MELT) program that will

specify the number of required hours for in-classroom, behind-the-wheel, in-yard instruction and mountain driving on the road.

“Development of a commercial driver training standard has been a key priority for our industry for many years, and the government’s decision to meaningfully engage industry early and throughout the process is greatly appreciated. Our shared goal is to ensure that drivers entering the industry meet enhanced training standards, improving road safety outcomes for all road users,”  said Dave Earle, president and CEO, BC Trucking Association.

“We all suffer when miscreants are allowed to damage a program meant to benefit Canadian businesses and immigrants legitimately trying to start a better life.”

For Richards and the trucking companies he represents, the proposed new rules and increased training modules are not an issue.

“The problems we face are with existing policies and rules that are not being implemented in a cohesive manner to help the trucking industry overcome their labour shortages with foreign drivers,” he said.

Richards points to the Labour Market Impact Assessment (LMIA) process to get a document that an employer in Canada needs to get before hiring a foreign worker.

In addition to the backlog in processing times for the LMIA document by Service Canada, the LMIA is only valid for a period of six months.

The LMIA, costing about $1,000 each, is a foundational document for visas to be issued by Canadian diplomatic missions overseas.

But the visa processing times at some of these missions are longer than the validity period of the LMIA.

“In one current case, we have an LMIA for six drivers…three have been approved within the 12 week processing time promised by the High Commission in New Delhi…we don’t know the fate of the other three and the LMIA expires this week. This three have been in the system for the past six months with no outcomes,” said Richards.

“It is a known fact that Canada needs foreign truckers…this profession needs to be LMIA exempt or at the very least, visa officers at the missions abroad need to process them before the LMIA expires.”

Another problem encountered by Richards involves visa processing officers not being familiar with B.C.’s PNP program.

“These drivers come to Canada for a new career and aim to apply for residency under the PNP program…they inform the visa officers of their intention…we have had cases where this is being interpreted by the visa processing officer as the driver applicant not showing an intent to leave Canada after the work permit expires,” said Richards.

“We need a singular, cohesive and enforceable pathway to bring in foreign drivers to alleviate the critical shortage faced by the trucking industry…make all the rules you want to make our roads safer, just make sure everyone is on the same page to keep the industry moving,” he added.

A trucking company owner in Delta said hiring foreign drivers is the last case resort.

“We always try and have always tried to get local drivers first but it has become increasingly difficult and many a time impossible,” said the owner, who has been in the trucking industry for close to three decades.

“From recruitment to landing and training, we have a strict protocol for our foreign drivers…they are not getting into our trucks unless we are absolutely confident about their ability to handle the rigs on Canadian highways.

“Outside of work, we also have a strong HR support system to help the foreign drivers transition to their new lives in Canada,” he said.

Another truck company owner in Delta said he is waiting on a batch of foreign drivers as some of his trucks lie idle in his yard.

“Every aspect of our industry suffers if we do not have trained professional drivers…we don’t take short cuts…we are in it for the long haul,” said the company owner, whose rigs have been on the road since 1988.

Canada’s critical driver shortage by the numbers

• The trucking sector carries an estimated $550 billion worth of goods purchased by Canadians and more than $300 billion worth of Canadian goods destined to export markets.

• It generates well-paying middle-class jobs, employing more than 650,000 workers.

• Connects consumers, businesses and international markets that are vital to our economy’s stability and performance.

• It is integral to Canada‘s nine other critical infrastructure sectors: energy and utilities, information and communication technology, finance, health, food, water, safety, government, and manufacturing.

• It is a key element in our nation’s intermodal transportation network that links trucking, rail and shipping, and provides an essential contingency during disruptions in other transportation modes

• In recent years, the trucking and logistics sector employed 3.6% of Canada’s workforce, which translates into over 650,000 workers.

• Truck transportation industry average job vacancy was 6.8% in 2019; double the Canadian average of 3.3%, and highest among all industries (outside of crop production). Of particular concern - long-haul drivers had an exorbitant 9.4% average job vacancy rate.

• While truck drivers represent 46% of the industry, they account for 63% of its job vacancies.

• The total number of truck driver vacancies in Canada has increased over 138% between 2016 and the first three quarters of 2019 – escalating from 8,600 to 20,500 during this timeframe.

• Without meaningful action, vacancies are expected to soar to 25,000 by 2023, an increase of over 25% from 2019.

• The driver shortage has directly led to delayed planned expansions by trucking operators, and resulted in lost sales in the truck transportation industry by an estimated 4.7% in 2018, equivalent to roughly $3.1 billion in lost revenues.

• Key factors behind the current labour shortage issues include an aging workforce, misperceptions among women and youth, and a high rate of voluntary turnover. While 63% of prospective new hires have a high school degree or less, many are not entering the trucking industry due to the perception that training costs and time are prohibitive.

• Millennial research illustrates that 12% of millennials (approximately 1.1 million Canadians aged 18 to 36) would consider a career in long-haul trucking. But only 50% of trucking industry employers have formal plans to recruit millennials. Of these 1.1 million young people, indigenous millennials represent 187,000 (or 17%) who would consider long haul trucking, while women generally are not considering driving as a career choice.

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