CTA campaign to educate shippers about cost of non-compliance

TORONTO, Ont. – The Canadian Trucking Alliance (CTA) is launching a broad awareness campaign in a bid to convince shippers and receivers to consider the “cost of compliance” when choosing transportation providers.

The program, anchored by a social media campaign, is asking those who purchase transportation services to ensure that carriers are not cheating on taxes, cutting corners on safety, or willfully polluting the environment.

The CTA has been a public opponent of Driver Inc. – a business model that involves misclassifying employees as independent contractors – and those who bypass emissions controls using so-called delete kits, among other issues.

“The cost of transportation services includes the cost of compliance. This includes labour, tax, safety and environmental costs. Remove these compliance costs from the price of transportation, and you have a lower transportation cost figure. This is not rocket science,” CTA president Stephen Laskowski says in a related press release. 

A related document found here highlights concerns about the ways some carriers are manipulating ELD data, misrepresenting their activities in a bid for lower insurance rates, and the risks such activities present to shippers.

“It has been commonly known for some time there is a strong correlation between driver misclassification and a disregard for safety. Recent data now shows that carriers who have been charged with Driver Inc. offenses in Ontario, through the Workplace Safety and Insurance Board (WSIB), are also found to have poor on-road safety performance and high rates of non-compliance violations in the areas of hours of service, speed and vehicle maintenance,” the support material notes.

“Think about it: If a carrier ‘s business model is built on ignoring labour law to keep costs artificially low and gain market share, it’s likely they’ll dodge important safety regulations as well.”

Many shippers and receivers already have mission statements that commit companies to environmental, workplace safety, and compliance standards, the CTA adds.

“The prime mandate of this CTA campaign is to encourage CEOs of these organizations to pause and ensure their goods are moving by safe and compliant trucks and not by transportation companies whose business strategy is to lower costs by illegally circumventing compliance,” said Laskowski.  

The association is encouraging carriers to share the campaign information with customers, and to contact executives with leading shippers, particularly those who are responsible for corporate images.

John G. Smith is the editorial director of Newcom Media's trucking and supply chain publications -- including Today's Trucking, trucknews.com, TruckTech, Transport Routier, Inside Logistics, Solid Waste & Recycling, and Road Today. The award-winning journalist has covered the trucking industry since 1995.

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  • This is double talk. The C T A had defended their own members against truck drivers claims for back wages owed. We need a minimum standards of wages and treatment before we come down on incorporate drivers
    Some of the same companies 20 years ago went to driver services to. save on the cost of drivers wages.

  • Yes, you are right, this is a big problem that we can not ignore, in addition:

    1. The biggest problem is within the trucking brokerage industry is that in order to get the most profit possible brokers offer the lowest cost for services killing the good carriers; the brokers are always looking for the biggest profit, hiring the cheapest ones. Almost all of them are always hunting for the cheapest deal; this industry is like the wild west.

    2. Due to lack of education and knowledge in the industry a huge number of carriers have no idea about the CPM for their companies and also the trucks (owners or owner operators). This situation makes them extremely vulnerable and brokers take advantage of them and create an environment of cheaters and non compliant companies.

    The solution: to regulate the trucking brokerage industry and only approve qualified carriers that have business and industry knowledge.

    • I agree anytime a broker charged over 10 percent they should have to the shipper and the trucking company. We need better protection for truck drivers and a gov insurance for small trucking companies along with rules to run by to get gov insurance.

  • Excellent report John & CTA,
    We appreciate you for taking the time to shine a light on sub standard trucking companies.
    Another area where you can focus is municipalities and provinces. They both contract a lot of trucking work and usually fall back on the lowest price, provided by sub standard fleets. We need to include municipalities and provinces as significant shippers in the trucking industry. Much of our collisions and our weak safety and compliance, exists in fleets serving towns and provinces.

    Keep up the good work and if we can help in any way we will.
    Roy & TRANSCOM – Edmonton