HAMILTON, Ont. — The TTSAO recently met with the Ministry of Advanced Education and Skills Development (MAESD) to discuss raising the $40 hourly cap currently put on training facilities.
Since 2009 insurance costs for insuring trucks and trailers at truck training facilities has risen 200%. .
A recent report released by the TTSAO outlines clearly that the $40.00 hourly cap is outdated and needs to be addressed by the province. There has not been an adjustment to the cap since 2009. In the TTSAO report other rising costs since 2009 include: a rise in the lease of equipment by 45%, instructor wages have risen on average by 15%, maintenance fees have increased by 20%. Other increases include administration staff wages, annual auditing fees, rent and marketing. As a result of all these increases, the educational facilities are having a hard time staying afloat.
Mike Millian, PMTC president, spoke with MAESD officials and made it clear the $40.00 hourly cap must be raised.
“There has been no increase to this cap in eight years which has simply not kept up with today’s truck training world. If schools can’t make enough money to cover their costs, they will be forced to cut costs in other areas to be able to stay in business,” he said.
Guy Broderick, Driver training supervisor at APPS Transport Group and the chairman of the TTSAO Carrier Group, commented: “The transportation industry has seen many increases across the board for years. When you factor in the cost of fuel, insurance and wages for your staff and other capital expenses the $40.00 cap seems unreasonable for any kind of operation.”
With the introduction of Mandatory Entry Level Driver Training (MELT) the expenses to deliver the required standard has also increased. The recent TTSAO report outlines that it is impossible to deliver the mandatory training needed to obtain a Class AZ license with a $40.00 per hour cap.
MAESD committed to get the report in front of the Policy and Program Design Division and they are going to go through the analysis process.
If the $40.00 hourly cap is not dealt with in a timely manner trucking schools will be forced to train on outdated equipment, reduce instructors wages, cut corners on maintenance among other things, the TTSAO said.
“This could lead to more accidents and a reduction in road safety for all road users,” Millian warned.