Canada Cartage Customer Newsletter - Connections - Spring 2024

CONNECTIONS

News and Updates from Canada Cartage

Spring 2024

WELCOME TO CONNECTIONS

Welcome to CONNECTIONS, our newsletter for customers of the Canada Cartage group of companies.

As an important part of your supply chain, we want to keep you up-to-date on what’s new at our company, and in our industry. We hope you find it valuable!

NEWSLETTER HIGHLIGHTS

CELEBRATING 110 YEARS !

2024 marks the 110th anniversary of the founding of Canada Cartage. From a single horse and cart in 1914, we ’ ve grown to become one of the largest and most trusted transportation and logistics companies in North America. We’re proud of our past, our people, and the long-lasting relationships we ’ ve built with our customers We can’t wait to see what’s next!

Canada Cartage Expands Into U S with Strategic Acquisition of The GTI Group

Going Green In Warehousing and Fulfillment at CCLS

The Growing Concerns Surrounding Driver Inc In Canada

Fleet Technology: Improving Safety and Reducing Cost

Escaped Kangaroo Caught on Dashcam

CANADA CARTAGE EXPANDS INTO U.S. MARKET WITH STRATEGIC ACQUISITION OF THE GTI GROUP

We’re excited to announce that Canada Cartage has acquired The GTI Group, a Montreal-based company offering a wide range of supply chain services in Canada and the U S This includes freight brokerage, transportation management, freight forwarding, drayage, intermodal, warehousing, and specialty trucking for oversize and heavy haul project freight

With the acquisition, not only are we expanding service offerings to our customers, but it marks our entry into the U.S. market for the first time in our 110-year history. GTI has a substantial U.S. customer base and market presence, with offices and terminals in Houston and Arlington, Texas; Des Moines, Iowa; Kansas City, Missouri, Cedar Rapids, Iowa, Franklin, Tennessee, and Cincinnati, Ohio.

If you are interested in learning more about our new service offerings and U S capabilities and how they could help your supply chain efficiency, contact your Canada Cartage account representative for more details

GOING GREEN IN WAREHOUSING AND FULFILLMENT AT CCLS

With 11 facilities across Canada, Canada Cartage Logistics Solutions (or CCLS) has grown to become one of the country’s leading providers of fulfillment and distribution services. And as we ’ ve opened new buildings and upgraded existing ones, environmental sustainability has been a key consideration in the design and operations of these facilities This is not only good for the planet, but also for the bottom line, as many upgrades are also cost-saving features for CCLS and our customers

Below are just a few of the green initiatives we ’ ve implemented at CCLS:

Energy savings:

Our fulfillment centers have been upgraded to LED lighting, which reduces energy usage by 40 to 60 percent compared to traditional fluorescent bulbs. Additional energy savings come from installing motion sensors and timers in aisles, which activate lighting only during stocking or picking activities

Packaging reductions:

In collaboration with our customers, we ’ ve transitioned packaging materials from plastic air bubbles to paper stuffing, which has significantly reduced the use of plastic. One customer partnership involves shipping unpackaged goods in bulk to CCLS centers, where they are packaged individually, minimizing waste and packaging time.

A pilot project with a major retailer has been launched to return Styrofoam in bulk, which is then consolidated and sent for recycling

Recycling:

CCLS centers have comprehensive recycling programs, including cardboard and pallet recycling. Some locations feature on-site corrugate compactors, making recycling cardboard more efficient and cost-effective.

Facility design:

Our newest facility in Nisku Alberta, just south of Edmonton, incorporates a rainwater capture system for toilet flushing, solar panels, LED lighting, and enhanced roof insulation to conserve energy

The facility aims for Silver LEED® (Leadership in Energy and Environmental Design) certification, reflecting its commitment to sustainable building and operational practices.

In an era where natural resources are diminishing and carbon emissions are rising, partnering with an environmentally conscious business like CCLS can help to reduce your company ’ s carbon footprint

In our next edition of CONNECTIONS, we’ll share some of the ways that Canada Cartage’s truck fleet is “going green ” with environmentally-friendly best practices and truck design

Understanding the Driver Inc. Model

THE GROWING CONCERNS SURROUNDING DRIVER INC. IN CANADA

In recent years, the Canadian transportation industry has seen the rise of a controversial employment model known as "Driver Inc." This model, which involves classifying truck drivers as independent contractors rather than employees, has sparked significant debate and concern within the sector. Shippers using transportation companies that use this model should be wary of the legal and ethical implications that come with it.

At its core, the Driver Inc model is a way for trucking companies to classify company drivers as independent contractors, even though they work just like regular employees Unlike owner-operators, these drivers do not own their own tractor; they are driving a company-owned asset just like a “ company driver”

However, the difference is that these drivers are not considered employees. They are typically responsible for their own taxes, insurance, disability coverage, yet they have little control over their work schedules or routes, resembling traditional employees.

The appeal for trucking companies using this model lies in the significant cost savings, as they avoid paying various employee benefits and contributions, such as Employment Insurance (EI), Canada Pension Plan (CPP) contributions, and employer health taxes

Legal and Regulatory Implications

The legal landscape in Canada is becoming increasingly hostile to the Driver Inc. model. Government agencies, including the Canada Revenue Agency (CRA), Employment and Social Development Canada (ESDC), and provincial workplace safety insurance providers (such as the WSIB in Ontario) are cracking down on companies misclassifying employees as independent contractors Misclassification can lead to substantial penalties, back-payment of owed contributions, and damage to the company ' s reputation

Moreover, as this model skirts the boundaries of legal employment standards, trucking companies might face lawsuits from drivers seeking compensation for benefits and protections they would have been entitled to as employees. This legal uncertainty makes reliance on the Driver Inc. model risky for any business.

Ethical and Social Considerations

Ethically, the Driver Inc model is contentious It often places the financial and operational burden on drivers, who may not fully understand their rights or the implications of being classified as independent contractors This arrangement can lead to precarious working conditions, financial instability for drivers, and a general erosion of fair labour practices in the industry

DRIVER INC. CONTINUED

From a social perspective, the widespread use of this model can undermine the standard employment framework, contributing to a decline in job quality and stability in the sector. It also threatens the public purse, as fewer contributions are made to social programs like EI and CPP

What Can You Do?

Trucking is a low-margin, highly-competitive industry If you ’ re receiving freight quotes that are significantly lower than what is quoted by other transportation companies, that should set off red flags Some questions you should ask your carriers include

What are the carrier’s labour practices? Ask them how they pay their drivers and if they use ‘incorporated drivers’ who operate the carrier’s equipment. Ownership of ‘tools’ – in this case a truck – is a key component of the WSIB’s, ESDC’s, and CRA’s test for independence. True owner-operators (independent contractors) will own or lease their truck while incorporated drivers that do not have a financial stake in their ‘tools of the trade’ will likely be considered employees by regulatory authorities.

Ask the carrier if they are making all appropriate source deductions and if they are remitting their share. If the company does not have true owner-operators, ask if they are holding and remitting income tax on behalf of their employees? Are they also paying the employer portion of CPP and EI? Companies not meeting these requirements for their employees are committing serious offences

If you can find advertisements for the carrier online (on their website, postings on job boards, etc.), have a look at their pay packages for drivers. If the job is a seemingly normal driving position, but indicates that the employer pay “+HST” or they “ pay to corporations”, this is a signal the carrier may be a Driver Inc company

When drivers who would normally be considered employees incorporate and participate in Driver Inc., there is a chance the company is not paying the driver’s WSIB premiums as well. This means when your firm utilizes these drivers and/ or they are on your property, you might be putting yourself in a precarious position. It is also not unusual for Driver Inc. companies to register a very small percentage of their drivers in order to produce a clearance certificate. To limit your liability exposure, it is good practice to ensure your carriers have coverage for all of their workers.

If the company has incorporated drivers, ask if they issue each driver a T4A for tax purposes. They should be doing this if their drivers are incorporated and operating as personal services businesses (PSBs) And don’t forget – even if this is being done, if these are Driver Inc drivers, and not true owner-operators –the carrier may still be in violation of labour laws

Other questions you might want to ask Have you ever had a WSIB audit? If so, what was the outcome?

What is your WSIB certificate number? And how much did you pay in WSIB premiums last year?

Please provide proof your Employer Health Tax (EHT) remittances were paid last year How many employees were the EHT remittance for?

How many company trucks do you have? And what is your total T4 payroll expense?

How many CVORs do you operate and what are the numbers?

Every company wants to save money. But ask yourself this: if low cost carriers are cutting corners and knowingly mistreating workers, what other ways are they breaking the law? Are they endangering public safety by cheating on hours of service rules (as did the company involved in the Humboldt Broncos crash)? Are they intentionally disengaging green, anti-emissions technology on commercial trucks? The old adage “ you get what you pay for” has never been more true in today’s trucking market

DID YOU KNOW…NEW CALGARY FACILITY

Canada Cartage has opened a new state-of-the-art terminal and cross-dock at 135 High Plains Drive, Rocky View County, Alberta. This 66,000-square-foot facility, featuring 30 advanced dock doors and hightech maintenance bays, is ideally located to serve key cities in Western Canada, enhancing the efficiency of Canada's leading dedicated transportation provider

FLEET TECHNOLOGY

HOW CANADA CARTAGE IS IMPROVING SAFETY AND REDUCING COST THROUGH A CONNECTED FLEET

The U S National Highway Traffic Safety Administration (NHTSA) states that 90% of accidents involving cars and commercial trucks are typically caused by the car Common causes include cars driving in a truck's blind spot, unsafe merging, or turning left in front of a truck. In accidents, the determining factor often boils down to the car driver's word against the trucker's.

In 2022, Canada Cartage equipped our fleet with Omnitracs' SmartDrive® in-cab camera systems. These cameras provide an unbiased record of events surrounding an incident, protecting against wrongful blame, unnecessary demerit points, increased insurance premiums, and protracted legal battles

We also use the SmartDrive® system for driver coaching The system triggers video recordings when an action such as hard braking, quick acceleration, speeding, U-turns, erratic lane changes, or following too closely is detected. Once triggered, an email with an MP4 video clip of the incident is sent to the driver’s supervisor and our safety and compliance team. This footage, along with the telematics data captured during the event (speed, engine throttle, braking) is used to customize safe driving training programs, enhancing overall road safety. Similar to a sports team reviewing game tape footage, drivers and their supervisor can review videos of their driving performance to call out great performances, or identify and correct errors

Canada Cartage has invested millions of dollars in fleet technology to help improve road safety, accountability, and ultimately lower insurance premium costs for us and our customers Our SmartDrive® camera systems are an important component of this strategy, providing concrete evidence in the event of an incident and serving as an educational tool to refine driving skills, ultimately leading to safer roads for everyone.

ESCAPED KANGAROO CAUGHT ON CANADA CARTAGE DASHCAM

Canada Cartage drivers see a lot of wildlife on the roads. Now we ’ ve seen everything.

Back in December, 2023, a kangaroo named “Nathan” made worldwide headlines when he escaped from handlers while en route to a zoo in Quebec. On the lam for three days in the Oshawa, Ontario area, the free-range fugitive managed to avoid capture until local police safely subdued the hiding hopper.

While out on deliveries in the early morning hours of December 4th, Canada Cartage driver Manpreet had a close encounter with Nathan. The runaway roo appeared out of the dark and hopped across the road directly towards the truck Luckily, Manpreet was driving under the posted speed limit and was able to safely brake in time for Nathan to hop back to safety at the side of the road.

Canada Cartage dashcam technology recorded the event, which provided some entertainment for operations and safety team staff who viewed it later that day If you’d like to view the video of the renegade roo, click here

We hope you enjoyed CONNECTIONS! Your feedback is important to us to help tailor the newsletter content to best suit your interests

We'd love to hear from you Please take a moment to let us know what you think by filling out a quick survey here You can also suggest topics for future editions of CONNECTIONS

CONNECTIONS is published 3-times per year, and is intended to provide company and industry news to customers of Canada Cartage’s group of companies

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