CTA Offers Plan & Caution Regarding Short-term Plan to Support Trucking Amid Tariffs
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(TORONTO, March 10, 2025) – The Canadian Trucking Alliance (CTA) wrote to the Council of the Federation – composed of the premiers of each of Canada’s 13 provinces and territories – and
(TORONTO, March 10, 2025) – The Canadian Trucking Alliance (CTA) wrote to the Council of the Federation – composed of the premiers of each of Canada’s 13 provinces and territories – and urged leaders to implement measures that provide the trucking industry relief in the face of US tariffs while restoring competitiveness and productivity.
CTA commended the council for working to meet the US President’s request to deal with certain border security issues and while the decision to implement the tariffs was not justified, fair or proportional, Canada was immediately focused on supporting our beleaguered sectors, especially the trucking industry, says CTA.
“Canadians can only hope the U.S. government sets clear and definable objectives to end this trade war; and that it’s in our collective powers to meet those demands. Each day this trade war lasts, is one too many,” CTA wrote in the letter, which was signed by each provincial association. “We applaud the actions to date, but the crisis is now upon us. Aside from the tariffs, the industry is currently experiencing the worst freight market in 40 years due to overcapacity, poor North American market conditions and an out-of-control underground economy that is driving compliant fleets out of business.”
CTA proposed the following immediate measures:
- Accelerate/implement solutions to inter provincial trade barriers trucking pilot.
- Announce the immediate removal of the carbon tax, especially on the eve of another slated increase for April 1;
- Along with suspending the carbon tax, CTA is calling on the federal government to remove or reduce the federal excise tax on diesel – a tax that serves no useful policy purpose.
- Develop an immediate trucking tax relief program related to such measures as reducing the current level of on-road provincial diesel fuel taxes and reducing the base cost of plates/fees or providing rebates for previously paid amounts related to plates/fee associated with the trucking industry.
- Ensure government procurement practices related to truck transportation are not awarded to participants in the trucking underground economy.
- Government of Canada increase on-road meal allowance deductibility to 100 percent for truck drivers facing reduced demands for their service.
- Ensure that any relief packages or program, like the work sharing program, will only be available to individuals on payroll or independent contractors who have voluntarily opted into EI. These programs cannot be exploited by the underground economy and carriers who violate labour and tax laws, as occurred with the COVID wage subsidy programs.
“There is much work that needs to be done to address the threats and potential long-term damage from a persistent tariff war,” writes CTA. “The provinces and the Government of Canada are working with the trucking industry on medium and long-term plans through the intra-provincial trucking pilot. What we need now is a more immediate response for our sector.”
Subsequently, late last week Ottawa introduced temporary flexibilities to an existing employment insurance (EI) program called the “Work-Sharing Program”, which provides partial EI benefits to employees who agree to work reduced hours due to a decrease in business activity beyond their employer’s control.
Work-Sharing helps employers and employees avoid layoffs when there is a temporary decrease in the normal level of business activity that is beyond the control of the employer. It works by bringing together an employer, their employees (and union, if applicable) and Service Canada in an agreement to share the available work among employees. Workers who are eligible for Employment Insurance (EI) work a temporarily reduced schedule while the employer recovers, and the employees receive EI benefits to partially replace lost income (up to 55% of average weekly insurable earnings) over the timeframe of the agreement.
“This is a good step. But to be clear, Driver Inc. and companies that operate in the underground economy do not qualify for EI and therefore are ineligible for these types of programs,” said CTA president Stephen Laskowski. “Only workers on proper payroll or true independent contractors who have voluntarily opted into EI qualify for this program.
“During the pandemic, we spotted many Driver Inc. companies illegally taking advantage of wage subsidies provided by the government. We don’t want to see this government make those kinds of program errors again when dealing with tariff related-aid.”