Question Period Note: Labour Shortages in the Trucking Sector

What is the Federal Government doing to resolve Labour Shortages in the Trucking Sector

• The Government of Canada is aware of the challenges in the trucking sector, including supply constraints, strong demand, and inflationary pressures.

• Our labour market programs, including the Sectoral Workforce Solutions Program, connect Canadians with the training they need to access good jobs, including those in the trucking sector.

• The Temporary Foreign Worker Program helps employers to fill jobs on a temporary basis when Canadians are not available, while supporting the protection of foreign workers while in Canada.

• The Program has worked closely with the Canadian Trucking Alliance to help ensure incoming foreign truck drivers can become fully licensed and qualified to operate safely on Canada’s highways.

The Canadian Trucking Alliance (CTA) participated in the National Supply Chain Summit hosted by Transportation Minister Omar Alghabra on January 31 2022.

The CTA requested the Government of Canada’s actions the on labour shortages to deal with challenges and opportunities in Canada’s supply chains.

On labour shortages, the Alliance indicated its interest to work with the Government of Canada to attract Canadians to the trucking sector, with specific initiatives suggested as follows:

• Amplifying a 3-year national public relations and social media campaign;
• Developing known-employer program for the Temporary Foreign Worker Program (TFWP), which would streamline Labour market Impact Assessments (LMIA); and
• A training support fund for the sector that would be accessible for trusted ‘known employers’ (Temporary Foreign Worker Program).

On supply chain constraints, the Alliance requested that:
• Canadian carriers be allowed to move in-transit between Canada and US;
• The Government promote better utilization of trucking equipment; and
• That the Government of Canada, including Employment and Social Development Canada and the Government of Ontario, continue to crack down on the underground delivery economy, where carriers are using unethical payment schemes to mislead drivers away from the sector.

The CTA holds that the labour shortage in the trucking industry was already a problem before the pandemic, with the industry forecasting a shortfall of 55,000 drivers by the end of 2023.

• This forecast is holding true, with fourth quarter of 2021 already surpassing 23,000 truck driver vacancies.

Minister Alghabra invited other federal ministers to lead themed discussions on the challenges facing supply chains, including the:
• Minister of Innovation, Science and Industry;
• Minister of Agriculture and Agri-Food Canada;
• Minister of International Trade, Export Promotion, Small Business and Economic Development; and
• Minister of Employment, Workforce Development and Disability Inclusion.
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A recent media article raised the issues of labour shortages and supply chain constraints in the Trucking sector:
Url: https://cantruck.ca/cta-industry-stakeholders-seek-labour-shortage-solutions-with-ottawa/

In 2021, Employment and Social Development Canada (ESDC) launched the pilot of a significant enforcement campaign in Ontario to end the illegal practice of making make drivers work for cash and unpaid benefits in order to become permanent residents. Known violators of the labour misclassification scheme who operate within the underground economy will be inspected, audited and face regulatory and legal consequences of a variety of labour contraventions.
Trade/Mainstream Media Take Aim at Labour Abuse in Driver Inc - Canadian Trucking Alliance (cantruck.ca)

Sectoral Workforce Solutions Program

In Budget 2021, the Government of Canada announced $960 million over three years, beginning in 2021-22, to Employment and Social Development Canada for a new Sectoral Workforce Solutions Program (SWSP). The Government also committed to make it easier for women and vulnerable groups to access training by requiring the Program to include wrap-around supports (e.g. transportation, childcare, etc.). The SWSP builds on the successes of the Sectoral Initiatives Program, which will be folded within the new Program.

The SWSP will help employers and workers in key sectors of the economy by developing and implementing workforce solutions to address their current and emerging workforce needs. Through contribution agreements, the Program will fund large-scale sector-specific projects delivered by third party organizations that develop and implement a range of industry-driven activities, such as:
• Training and reskilling to help workers gain skills for the changing needs of industries. These types of projects could also help workers transition to in-demand jobs or growing sectors;
• Solutions to help employers, in particular small and medium-sized businesses, attract and retain a skilled and innovative workforce.
• Initiatives to reduce barriers and help equity-deserving groups, including women, persons with disabilities and Indigenous Peoples, get the skills they need to find work and succeed in key sectors;
• Other creative solutions to improve the labour market and help employers, job seekers, students, and educators better understand skills and employment issues and make good decisions.

The SWSP will prioritize early investments in the health sector, sectors aligned with the clean economy and other key sectors that can quickly contribute to recovery. It will also help address workforce challenges in key sectors such as agri-food; construction; information and communication technologies; manufacturing; natural resources; tourism; and, transportation.

Eligible organizations will be able to apply for project funding through a call for proposals as of January 31, 2022. The SWSP will also leverage targeted measures to identify and fund high-impact projects.

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