Bill C-3 passed yesterday the house of commons with a unanimous vote which now sends it to the Senate. There the senate is not expected to debate it long to enact this Bill.
If passed the Canada Labour Code will be amended so that Federally regulated companies which includes most trucking companies that cross provincial or federal borders will be required to pay their employees 10 paid sick days. Its a novel idea and I understand the idea behind it would be to assist those who are sick with their budget but I estimate that this additional benefit will increase truck rates by at least 4%.
This kind of legislative change, along with the additional federal statutory holiday introduced last year is tough on carriers who employ truck drivers in the proper manner as employees. Once again, the carriers who utilize the Driver Inc. model will skirt this requirement and will be able to keep their costs constant until enforcement comes in against them. Customers and brokers should take some time in the new year to look at their carrier base and identify which carriers are paying their employees properly and who utilizes Driver Inc. Those customers who use carriers which uses Driver Inc may find themselves without a carrier in a pinch.
Please keep this in mind when doing your rate reviews in the new year.
Below is the parliament document for C-3
If passed the Canada Labour Code will be amended so that Federally regulated companies which includes most trucking companies that cross provincial or federal borders will be required to pay their employees 10 paid sick days. Its a novel idea and I understand the idea behind it would be to assist those who are sick with their budget but I estimate that this additional benefit will increase truck rates by at least 4%.
This kind of legislative change, along with the additional federal statutory holiday introduced last year is tough on carriers who employ truck drivers in the proper manner as employees. Once again, the carriers who utilize the Driver Inc. model will skirt this requirement and will be able to keep their costs constant until enforcement comes in against them. Customers and brokers should take some time in the new year to look at their carrier base and identify which carriers are paying their employees properly and who utilizes Driver Inc. Those customers who use carriers which uses Driver Inc may find themselves without a carrier in a pinch.
Please keep this in mind when doing your rate reviews in the new year.
Below is the parliament document for C-3
Government Bill (House of Commons) C-3 (44-1) - Third Reading - An Act to amend the Criminal Code and the Canada Labour Code - Parliament of Canada
Government Bill (House of Commons) C-3 (44-1) - Third Reading - An Act to amend the Criminal Code and the Canada Labour Code - Parliament of Canada
www.parl.ca