Good afternoon, committee members.
The PMTC would like to thank the Government of Canada for putting this committee together. We are very appreciative of the invitation to address the group on the shortages we are facing in today's trucking sector.
While there are shortages across the board in many fields in the transportation sector, for today's purposes I will concentrate on the position of the professional Canadian truck driver.
The Canadian trucking industry is crucial to our economy. According to Statistics Canada, trucks move more than 70% of the freight value in Canada, employ more than 300,000 drivers and generated $39.55 billion in revenue in 2018. These numbers show how vital the sector is to our economy, as well as to the supply of the essential needs and services that Canadians require.
While many people, I believe, understand that truck drivers deliver essential items such as food, water, clothing and daily supplies for our households, I believe that society as a whole may not fully comprehend everything that truck drivers touch. Trucks deliver blood and medical supplies needed by hospitals. They deliver medicines and vaccines to our pharmacies and hospitals. They deliver heating fuels for our homes and businesses. They are needed to maintain and repair critical infrastructure such as hydro networks, telecommunications and roads. These are just a few items, but it is safe to say that almost everything we need or want at some point in time is on a truck—or the service is delivered by a truck—and delivered by a professional driver.
The labour shortages we are currently facing endanger our economic recovery, as well as the current and future supply of these goods and services. A recent LMI report by Trucking HR Canada highlights the current deepening shortage. As of the end of June, there are 28,210 job vacancies in Canada. This means we have over 28,000 trucks sitting idle as a result of no one being able to fill the seat. The vacancy rate is 9.2%, well above the national average of 5.2%. Over 50% of the vacant positions have been posted for over 90 days, indicating this is not an issue of seasonal peaks and valleys. Compounding these issues is that the average age of a truck driver is over 51, with 32% of drivers over the age of 55. These numbers are a clear indication that the shortage will only become worse going forward if it is not addressed.
While there is no silver bullet that can solve the labour shortages immediately, there are a number of actions that can be taken to begin addressing the shortage in both the short and near terms. Action must be taken swiftly. While we know that the labour shortage is a country-wide issue and that the industry is competing with many other fields for labour, we must act to prioritize the position of the truck driver to ensure that our fragile supply chain can supply our nation's essential services and goods while continuing to support the rebuilding of our economy.
Here are some of the priority items that the PMTC would like to see implemented.
Funding needs to be opened up for training. Unfortunately, the position of a truck driver has not yet been classified as a skilled trade, which means that obtaining grants and student loans is not an option for most. With the introduction of mandatory entry-level training across the country, the cost of a training program for a class 1 driver is in excess of $8,000. This is a barrier to many interested individuals who would like to enter the industry. We need an increased and consistent funding model available to help people enter the industry.
One solution that can be acted on quickly, as identified in the national supply chain task force report, is the expansion of Trucking HR Canada's career expressway program. As a signatory in support of this program, we are in complete agreement with the task force on this recommendation. We would also like to see work continue to be done to elevate the position of truck driver to that of a skilled trade. We also need to continue to support and increase access to temporary foreign workers for the position of truck driver, with the goal being a pathway to permanent residency. This program is important, as immigration is required to fill labour shortages.
Just as crucial, however, is to ensure the program has proper oversight. We must ensure that we only use companies that have proven safety records, written policies and procedures and formal initial and ongoing training, and that abide by proper labour standards. We must properly assess the employer who wishes to bring a worker in if the program is to provide a long-term solution to the industry and not endanger road safety at the same time. A Globe and Mail investigative report showed, in 2019, that if oversight is not properly done, the consequences can be severe.
We need to reopen the fast processing centres on the Canadian side of the border. These centres were closed in March 2020 in response to COVID-19. The centres have been reopened on the U.S. side of the border, but the ones on the Canadian side remain closed, with no opening time announced.
We also need to find a way to expedite current processing times, as there is a backlog of 10,500 drivers waiting to have their interview completed.