No. H 142/07
For release August 1, 2007

Federal and Provincial Measures Boost Stability of Port Trucking Operations

OTTAWA — The governments of Canada and British Columbia today announced a joint initiative to maintain stable wages and working conditions for independent owner-operator truckers serving Lower Mainland ports.

The Government of Canada has passed a regulation directed at the Vancouver and Fraser River Port Authorities. The regulation will ensure that independent owner-operator truckers are compensated at no less than the rates of remuneration set out in the Memorandum of Agreement (MOA), which was recommended on July 29, 2005 by Mr. Vince Ready, a facilitator appointed by the Government of Canada and the Province of British Columbia.

On June 19, 2007, the Government of Canada pre-published its proposed regulation requiring that owner-operator truckers not subject to collective bargaining be paid at rates of remuneration that are equivalent to those set out under collective agreements that are binding on unionized owner-operators. Under the revised regulation, independent owner-operators are to receive rates of remuneration that are set out under collective agreements, as long as the rates of remuneration are higher than or equal to those established in the MOA. The Port Authorities are required to incorporate this measure into their licensing regime.

"During the pre-publication consultation period, we received submissions from a number of stakeholder groups with a wide range of views on this matter," said the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities. "The regulation was amended to provide a higher level of stability of rates for independent owner-operators, who during consultations, clearly indicated that rate sustainability is of utmost importance."

During the summer of 2005, disruptions at ports in the B.C. Lower Mainland led to the creation of the MOA, which was put forward on behalf of the Lower Mainland container trucking industry by Mr. Ready for a two-year term. "The MOA may have expired as a living document, but its rates of remuneration that have been so important to this industry for the past two years will continue by way of this regulation," said Minister Cannon.

Other changes that have been made to the regulation include the specific exclusion of owner-operator truckers engaged in the long-haul industry, the requirement that collective agreements be posted on the Vancouver Port Authority's website, and the requirement that this measure be reviewed by the Minister of Transport, Infrastructure and Communities within two years of its coming into force. "The review will not only allow us to assess the success of this measure, but the overall state of the local container trucking industry as well," added Minister Cannon.

In addition, the regulation was revised to allow independent owner-operators to be compensated according to rates of remuneration contained in collective agreements that are amended or renegotiated in the future. While the compensation negotiated in these agreements can move upward over time, the rates of remuneration contained in the MOA will remain the minimum that may be paid to independent owner-operators.

The Province of British Columbia will develop and manage a fair and effective dispute resolution mechanism to support the new federal regulations. This will include investigation and adjudication of alleged contraventions of rates paid to owner operators, including any allegations of companies undercutting minimum collective agreement rates.

"Our ports have to remain open and reliable if we're going to capitalize on the economic opportunities associated with growing Asian trade," said B.C. Transportation Minister Kevin Falcon. "We welcome the federal regulations, and I'm confident the dispute resolution system will ensure appropriate enforcement."

"With these new regulations in place, the B.C. trucking industry will become an even more active partner in the growing success of the Asia-Pacific Gateway," said David Emerson, Minister of International Trade and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics. "I believe international shippers will look favourably upon Canada's efforts to ensure the stability and efficiency of this strategic transportation corridor."

The Province, with support from the federal government, established a stakeholder forum in April 2006 to address concerns of the container truck industry. Forum members, representing businesses, unions and ports, have been developing logistical solutions to improve the reliability, efficiency and productivity of the Lower Mainland container transport system.

The Province has developed a website to support the work of the forum (www.bctruckingforum.bc.ca) including an informational on-line calculator that helps truck owner operators better understand their costs and compensation.

The governments of Canada and B.C. remain committed to ensuring long-term stability for trucking operations at Lower Mainland ports and to ensuring that these ports continue to function efficiently and reliably within the Asia-Pacific Gateway and Corridor Initiative.

The federal regulation will be published in Canada Gazette, Part II on Thursday, August 2, 2007.

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