Container Trucking Joint Action Plan – Progress Update

Update
Trucking – TLS Reform
January 27, 2015
Container Trucking Joint Action Plan – Progress Update
Status of the Joint Action Plan

The Joint Action Plan has 15 action items. To date, all items have been completed
or are nearing completion including:
1. Port Metro Vancouver has rescinded licence suspensions, dismissed legal
action and agreed not to commence any further action against drivers for
actions related to the 2014 disruption.
2. The provincial government has enacted legislation that applies rates to all local
movement of containers by TLS trucking companies. The rates apply to union
and non-union company employees as well as owner operators.
3. The fuel surcharge multiplier has been amended from 1% to 2% which results
in a 14% fuel surcharge.
4. With the new Act and its Regulations, the Province of British Columbia has
strengthened the scope of the audit function so that all trucking companies
registered in the trucking licensing system for local drayage are subject to
regular audits conducted in a transparent manner and penalties for rate
violators are severe and include financial penalties, cancellation of licenses for
companies and individual drivers and loss of Port access privileges.
5. Port Metro Vancouver and the province have implemented a whistleblower
program.
6. Port Metro Vancouver has held consultations and announced details of the new
Truck Licensing System for trucks accessing port property. As per the Joint
Action Plan, the new system will include:

Greater accountability on trucking companies to comply with rate and
employment agreements, including a requirement to post a compliance
bond;

Licence charges on trucking companies which will be used to fund the
modified licensing system and enhanced compliance regime (on a cost
recovery basis) as well as contributions to GPS and optimization
technology;

Control over the total number of licensed trucks to avoid a surplus and
support the goals of this action.
7. Terminals at Port Metro Vancouver have extended hours of operations.
8. The Terminal Gate Compliance Fee has been waived when excessive delays
are encountered at a terminal.
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9. The Government of Canada and Port Metro Vancouver have completed the
installation of GPS units on all container trucks permitted to access the port for
local drayage.
10. The enhanced common reservation system is in development for
implementation in 2016.
11. Wait time fees are being paid to drivers remunerated on a per-trip basis.
12. A steering committee is in place and meeting regularly.

Vince Ready has issued recommendations on all points in this action plan.
Details of progress to date
Management and implementation


The steering committing was established to facilitate discussion between the
parties. The members of the steering committee were:
o
Transport Canada
o
B.C. Ministry of Transportation and Infrastructure
o
Port Metro Vancouver
o
Marine terminals
o
Driver representatives (Unifor, United Truckers Association, Teamsters)
o Dockworker Representatives (ILWU)
Vince Ready and Corrin Bell released their final report on October 15, 2014. This
was a follow-up to recommendations released on May 20, 2014.

The federal and provincial governments issued a joint news release on October
15, 2014 announcing new legislation and next steps related to container trucking
in B.C., including plans to reform the port Truck Licensing System.

The provincial government has proposed new legislation and regulations, including
the appointment of a trucking commissioner to oversee the labour aspects of portrelated trucking operations. Details from the province are expected soon.
Port operations and licensing

A staffed call centre has been set up to respond directly to questions from drivers
and trucking companies to assist with truck licensing and permit requirements.

On October 15, 2014, Port Metro Vancouver announced details of reforms to its
Truck Licensing System.

Port Metro Vancouver completed two rounds of consultation meetings to finalize
details of the new Truck Licensing System. Meetings have been held with
representatives of trucking companies, driver unions and associations (Unifor,
Teamsters and United Trucking Association), terminal operators and importers
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and exporters.

Port Metro Vancouver’s Input Consideration Memo was released on December 1,
2014, that focused on the key elements of the new TLS policy framework.

The final details of the new licensing system were announced in December 2014
and it is expected to come into force on February 1, 2015.
o
The goals of the new licensing system are to improve service quality,
efficiency, safety and operating standards, bring stability to the
marketplace, address environmental issues, and increase understanding,
accountability and transparency.

Port Metro Vancouver announced applications to the new Truck Licensing System
would be accepted beginning December 9, 2014. Details are described in the TLS
Handbook, which outlines a list of criteria required by participating trucking
companies, including the ability to pay fees to fund the provincial auditing
program and the new provincial trucking commissioner, and minimum
environmental and safety standards for trucks.

Applications were processed and the list of trucking companies that had been
conditionally approved has been kept updated on Port Metro Vancouver website.

On January 23, 2015, Port Metro Vancouver advised the maximum number of
trucks had been reached and released the final list of conditionally approved
trucking companies.

Provided Port Metro Vancouver does not experience a container drayage sector
labour disruption either prior to or during the program, a transition program has
been offered to qualifying owner operators who will not be participating in the new
system. The program has two components: Depending on the volume of work
they have experienced over the last few months, eligible drivers may qualify for
up to $15,000, to be paid over three months, subject to the arranged deinstallation of the GPS units. Additionally, assistance and support in arrangements
for disposal of the eligible drivers’ trucks by way of auction or salvage, should
they opt to do so.

The BC Container Trucking Act and its Regulations are now in force and TLS
trucking companies are required to compensate all drivers for all local moves in
accordance with the law.
Enforcement

A whistleblower program is in place and, since its introduction in June 2014, most
calls have been forwarded to the B.C. Ministry Container Truck Dispute Resolution
Office.

The provincial government continues to audit companies reported for noncompliance with the law.
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Wait Times

Terminals are required to pay trucking companies when drivers are forced to wait
beyond their scheduled time.

All Port Metro Vancouver-licensed trucks are now outfitted with GPS transponders,
which allow for accurate tracking of wait times and facilitate wait time payments.

Three container terminals (Centerm, Deltaport and Vanterm) have implemented
night gates (extended hours), five days per week effective July 1, 2014.
Reservations


The Government of Canada announced plans to contribute $3 million to fund
development of a common reservation system for all four container terminals at
Port Metro Vancouver. The system will reduce trucker wait times by using new
technologies to better link operations across Port Metro Vancouver’s four marine
container terminals.
A framework for the common reservation system has been developed through
consultation with stakeholders. Development of the system is currently underway.
Background Information
In February 2014, a group of unionized and non-unionized container truckers stopped
serving Port Metro Vancouver over issues including compensation and wait times at port
terminals.
On March 26, 2014, the provincial and federal governments, which are collectively
responsible for all local container movements by truck, agreed with truckers to a 15-point
Joint Action Plan to improve working conditions and fix problems that have plagued the
industry for many years. Some of the actions in the plan are the responsibility of Port
Metro Vancouver.
Implementing the plan has been very complicated because there are many stakeholders
with competing interests. Responsibility for the plan is led by Transport Canada and
shared with the provincial Ministry of Transportation and Infrastructure, Port Metro
Vancouver and trucking stakeholders including container terminal operating companies,
shippers, trucking companies and truck drivers.
The container trucking sector is complex and characterized by instability, not only in B.C.
but in ports across North America. In 2007, an independent review panel described B.C.
container trucking as a failed market. Modest regulation in the sector has been
unsuccessful, and effective change will require the cooperation and patience of all
stakeholders.
More Information
For more information or any questions about the Joint Action Plan, contact Transport
Canada at mailto:at [email protected]@tc.gc.ca.
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For information on the Truck Licensing System, contact 604.665.9333 or
mailto:[email protected]
For media inquiries, contact John Parker-Jervis at [email protected] or 604-665-9267.
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