Over The Road March 2020

FOR

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FR

JOBS

EE

March 2020

WE TAKE PRIDE IN A JOB WELL DONE

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T H E

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ORE LEARN MW EBSITE

HIRING COMPANY DRIVERS A-Z AND OWNER OPERATORS A-Z, D-Z

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career

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JOBS FOR TRUCKERS • 3

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18 • OVER THE ROAD

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MARCH 2020

DRIVER TURNOVER IS A PROBLEM THE GOOD NEWS IS THAT YOU CAN DO SOMETHING ABOUT IT Learn how to determine WHY your drivers are leaving.

Learn how to FIX these reasons.

ENGAGE your staff to follow the tried and tested DRIVER RETENTION PLAN.

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to rhaight10@gmail.com your options.• and let’s discuss JOBS FOR TRUCKERS

9

MAKING YOUR MILES COUNT Robert D. Scheper

It’s Your Money, Your Business, Your Life!

The Driver Inc. issue is a responsibility born from individual drivers making individual decisions.

Even though a significant amount of the Ontario driver market has subscribed to the practice, it appears that most of the other provinces do not see much of it. However, since the CTA continues to present it as a “national” issue, many carriers and drivers believe it to be so.

Choosing the path of incorporation rather than T4 requires a very deliberate commitment.

Managing a corporation rather than an after-tax paycheck is a conscious choice to complicate your finances. A choice such as that assumes that someone convinced them that the added costs and inconvenience is worth it. However, I fear that advice was not given with full disclosure.

The biggest disadvantage (among many) is carrying liability. When two corporations (the trucking company and the incorporated driver) have a disagreement, it is categorized as a civil dispute and would not be under the protection of a labor board (so it would have to be settled in court). With the driver being incorporated, the employer portion of costs becomes the liability of the driver, not the carrier. If/when CRA audits and reverses any business “expenses” from the “business” (classifying the business as a Personal Service Business), any tax advantage disappears also.

The great thing about Canada is the individual freedoms we live with. We have opportunities to live our lives with any orientation we so desire.

This freedom is not without responsibility.

Every choice we make has natural restrictive consequences. We cannot take the advantages of one orientation and neglect to acknowledge/ embrace its natural disadvantage. In business 10 • OVER THE ROAD

terms it’s called opportunity costs. Choosing one opportunity means that a different opportunity with its inherent advantages was rejected which also applies with our income tax systems. When we choose to be incorporated, we are forced to abide by the rules of the incorporated system.

The difficulty with the Driver Inc. situation is that many participants who set up a corporation were not informed of all the rules associated with such a choice. The participants were ill informed. Whatever benefits they thought they were getting may very well have been presented in error.

Being that our freedoms allow us to choose independently, we must accept that it is our personal responsibility for the outcomes. The only exception is when those who have given this advice, have done so in error or in fraud.

Would the party who convinced a driver to incorporate now bear the costs associated with that choice? My guess is probably not. My opinion about the growth of Driver Inc. is that those who advised drivers to do so will not take responsibility for its ultimate costs.

So, if you find yourself in this situation (as a Driver Inc.), I advise you to find the proper advice from an appropriate individual. In business (even the tax business) it is often essential to get your advice from a trained expert or professional who has appropriate insurance. In other words, do not take advice from someone who has nothing to lose by being wrong. Make sure your liability is covered.

Allow me to give you my opinion on what will be happening in the future. For the short term, few (if any) Driver Inc’s will be audited (the industry is still in the “notification” mode).

MARCH 2020

to take my advice. I have nothing to gain by your choice. My advice in 2007 was for operators to incorporate and use NTB. The application for drivers to incorporate is beyond the scope of my advice.

However, sometime after a short period of time, a group of Driver Inc.’s will be audited in mass (anywhere from 25 to maybe 100 at most). Once the results of these audits are published, the door is officially open for independent CRA auditors to descend on the industry in a random wave. This same pattern occurred in March 2007 when CRA applied the IC73-21R9 rule to 25 trucks from Moncton N.B. Within six months accountants from across Canada were telling their operators to save meal receipts rather than use the TL2 simplified method (which was successfully used for well over 20 years at the time). Over the next decade the industry settled down into a new “normal” of compliance with this issue. I believe this will also be the future of Driver Inc.

If you have trouble converting your carrier to provide you T4 earnings, I suggest finding another carrier to work for. It’s your career, it’s your money, it’s your future. That is the beauty of our country; we can vote with our free market feet.

About the Author: Robert D. Scheper is a leading Accountant and Consultant to the Lease/Owner operator industry in Canada. His first book in the Making Your Miles Count series “taxes, taxes, taxes” was released in 2007. His firm exclusively serves Lease/Owner Operators across Canada. His second book “Choosing a Trucking company” is the most in-depth analysis of the operator industry available today. He has a Master degree (MBA) in financial management and has been serving the industry since he and his wife came off the road in 1993. His dedication, commitment and strong opinions can be read and heard in many articles and seminars.

What to do now? I strongly advise that if you are using Driver Inc. that you dissolve your corporation immediately. Begin working for a T4 income and pray your dissolved corporation will not be audited. I can assure you that there will be some individuals who will not get audited and who will continue to be “uncaught” for some time (or maybe even indefinitely) but they will be rare. And, it would be very presumptuous of you to plan that you would be one of them.

You can find him at www.making yourmilescount.com or 1-877-987-9787.

In 2007 I wrote: “Making Your Miles Count: taxes, taxes, taxes”; the industry’s only tax book that deals with all the independent operator’s tax issues. I humbly advise you

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JOBS FOR TRUCKERS • 11

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JOBS FOR TRUCKERS • 13

SPEAKING FROM EXPERIENCE Ray J. Haight

Have You Created a Rut? The following comes from Seth Godin, whose daily newsletter I have subscribed to for some time now. I share this because it hits the mark when it comes to what I observe when I get face to face with trucking company employees during my workshops that are focused on Driver Retention.

It goes like this: Again, and again, ruts don’t dig themselves. Most of the time, we’re in a rut because that’s precisely where we put ourselves. Actions become habits and habits get repeated because they feel safe. The easiest way to make things more interesting is to simply stop repeating your habitual behavior and that often comes from reacting to triggers. Remove the triggers and you can alter the habits by tiny changes and different ways to keep score. Tomorrow comes daily.

But we don’t have to take the same route to get there.

The fundamental concept behind a severe reduction in driver turnover is, first, acknowledge that the ruts that relate to your company’s high turnover are of your own collective making. You must own them; you can’t allow the folks in your company to play the blame game with each other. The rut looks like this: recruiting is hiring the wrong drivers; operations are to blame for our issues; they don’t make them like they used 14 • OVER THE ROAD

to and on and on. Playing the internal and external blame game is usually rampant in high turnover companies.

The absolute only way to make a change to a company’s high turnover that is sustainable is to begin with everyone in the business grasping this reality. No one came into your business and designed policies and procedures to make your workforce uncomfortable to the point that your turnover is where it is today. Your folks did that so own it, or it will never change.

Allowing your inside the walls folks to play the blame game lets everyone off the hook. I always preface this by saying that the journey to becoming a company where drivers want to work is not an exercise in finding bad guys. What it is, is following a project plan that is designed to get out of the ruts that are holding your company back and onto a successful track to lower your turnover significantly. “The chains of habit are too weak to be felt until they are too strong to be broken.” This quote is from Samuel Johnson and it applies nicely to this situation.

It’s as simple as “it takes what it takes.” You must be ready to put the work in. High driver turnover is an ugly reality of our industry and to separate yourself from the crowd, you need to look at it from a different paradigm.

Willing a different result will not accomplish MARCH 2020

we have the folks that get homesick, didn’t understand what they were getting into, who thought this industry was perfect for them and now feel otherwise, etc. I believe this number is between 15–20%; the rest of it is yours to own. You are hiring to fill seats rather than for a good fit for your company’s needs and you don’t express or request expectations of your new hires on paper that are reviewable by operations regularly.

Promises are made during the recruiting process with little chance of them ever happening for the new hire.

what is necessary to address the situation, continuing with an apathetic approach will achieve nothing and the consequences are just too extreme to not act.

On the trucking company side, high driver turnover results in a company that has higher insurance costs, usually because their accident rates and CSA scores are in worst shape than they should be. They will have a higher percentage of unseated trucks; they will have a higher turnover rate of people inside the walls. Their operating ratio will be less than acceptable, and their culture will be suffering, to name but a few residual effects of high turnover.

I ask this question of all attendees to the workshops I do. If you were a driver looking for a job, would you come to work at this company? Usually there are no hands in the air. I challenge you to do the same thing with your folks; find a way for your people to vote anonymously and see what the results are.

If this exercise doesn’t open your eyes to what the culture is at your company, I don’t know what will. Success can happen, but “It Takes What It Takes!”

On the driver side, leaving a company or being asked to leave a company results in a disruption to their families, their cash flow is disrupted, mortgage payments and car payments continue to steam in. Medical cost continues to come and a possible disruption in coverage causes stress. All this plus the noticeable kick to one’s self-esteem. If any of you have ever lost a job, you will know what I mean. Every day we create situations where people have to go home and tell their families that they have lost their jobs. We are disrupting families and there is no reason for it but our apathy or disbelief that you can make changes.

If you would like to know more about the TCA TPP Retention Project Plan feel free to contact me at ray@tcaingauge.com Safe Trucking Ray J. Haight Ray Haight TCA Retention Coach ray@tcaingauge.com www.tcaingauge.com

Watch this short video about your drivers that expresses very well the empathy required: www.youtube.com/ watch?v=91DWO39PLqA Turnover beyond your control is likely 1-2%; this is mostly due to the drivers that retire or might have health or family issues. Now MARCH 2020

JOBS FOR TRUCKERS • 15

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MARCH 2020

SAFETY DAWG Chris Harris

Personal Conveyance – Can Canadians Use it Legally?

A little over a year ago, the FMCSA clarified

for me, my truck and cargo. And off you

(PC) in the USA. And with this new wording,

way, you remain in the off-duty area of the

the law regarding ‘Personal Conveyance’

it changed the use of PC significantly. The

changes can be a massive benefit to drivers.

Just enormous benefits!

So, what did the FMCSA allow? Let me

paraphrase it this way: When a driver needs

go. You mark this as PC in your ELD. In this Hours of Service. You get to the truck stop and you go back into your sleeper-berth

for the remaining six and a half hours. This completes your ten hours off-duty. You are legal in the United States.

to move the truck, trailer and load while

But what happens when that same driver

unit to the nearest point of safety.

legal here in Canada after having used the

being off duty, they can. They can move the This is easily demonstrated by an example.

crosses the border into Canada? Is that driver Personal Conveyance rule in the USA?

A driver is at a receiver’s facility and goes off-

I hate to tell you, but in the above example,

into the bunk and goes to sleep. Three hours

could be put out of service (OOS). Ugh!

duty in the receiver’s yard. The driver heads

into the ten hours of off duty, there is now a

knock on the door and the driver is told that

the company is locking up the gate and that they must move their truck.

If you know about the personal conveyance rule for the USA, you might think, okay, I

will move to a truck stop just thirty minutes

down the road. It is the closest safe location

18 • OVER THE ROAD

when that driver gets into Canada, he/she Since the PC USA rule was changed, I

thought the example above was legal in the United States and in Canada. But I

was wrong. Here is the problem and what the Canadian enforcement officers see.

The enforcement people in Canada don’t

recognize this use of Personal Conveyance that is legal in the USA. That thirty-minute

MARCH 2020

drive to the truck stop, by Canadian rules, is

for thirty minutes and then you must go

which, of course, is on-duty and it broke

and a half hours but, you go back in for a

not off-duty! It is viewed or ruled as ‘driving’

back into your sleeper-berth for not just six

up the driver’s 10-hour of off-duty period.

complete seven hours. That is the sacrifice.

Do you see what the enforcement officer

This costs you thirty extra minutes. Not the

is seeing? This is not pretty! If you use the

best solution, but it is the only one that I can

PC rule while in the USA, as in the above

think of.

example, you are not legal when you are

The best thing for a Canadian driver to do

back in Canada!

is not to use the Personal Conveyance rule

So, can a driver legally use PC in the USA and

while in the United States. It is difficult to

be legal in Canada as well? I asked a Director

be legal in Canada if you do use the PC

for the MTO this question. The answer is

law in the USA, then use it as the Canadian

no! The response was that you could use

law says: Personal Use. I don’t know of any

“Personal Use” as we Canadians call it, but

drivers that have tried my sleeper-berth

this means bobtail only; no trailer and no

example, but I have heard of many tickets

cargo. Well, in the above example, you are

being written and drivers being put out of

not going to leave your trailer behind so the

service here in Canada when they use the PC

move to the truck stop would be illegal. The

rule in the USA.

enforcement officer told me that they would

So, it is best to avoid using it while in

look at today’s logbook and go back fourteen

the USA. It will make your driving life

days.

more complicated and who needs more

Is there any way that a driver can use PC

complications in their world?

in the USA and then follow the rules while

Let me know what you think? If you have

in Canada?

successfully used the sleeper-berth example,

I believe that with a slight variation to the

please let me know that too.

above example, a driver might be able to

Be safe, and legal!

make it legal. But it involves a sacrifice.

My suggestion is a little complicated, it

Chris Harris Top Dawg, Safety Dawg Inc. 905-973-7056 chris@safetydawg.com @safety_dawg (twitter)

involves using the Canadian Split Sleeperberth rule. In the above example, you are

in your sleeper-berth for three hours, drive

MARCH 2020

JOBS FOR TRUCKERS • 19

Index Anvil Ring . . . . . . . . . . . . . . . . . . . . 13

Genesis Express . . . . . . . . . . . . . . . 22

Total Logistics . . . . . . . . . . . . . . . . . . 8

Atlantis . . . . . . . . . . . . . . . . . . . . . . 12

Keypoint Carriers . . . . . . . . . . . . . . . 3

TRANSAM Carriers . . . . . . . . . . . . . . 2

AYR Motor Express . . . . . . . . . . . . . 21

Keystone Western . . . . . . . . . . . . . 23

Trans-frt McNamara . . . . . . . . . . . . . 6

Carmen Transportation Group . . . . 3

Ray Haight Consulting . . . . . . . . . . 9

TransWest . . . . . . . . . . . . . . . . . . . . 13

Chris Harris - Safety Dawg Inc. 18,19

Renagade Transport . . . . . . . . . . . 11

Travelers . . . . . . . . . . . . . . . . . . . . 20

CNTL . . . . . . . . . . . . . . . . . . . . . . . . 24

Robert Scheper Article . . . . . . 10,11

Truck World . . . . . . . . . . . . . . . . . . . 7

Dicom Transportation Group . . . . . 4

Speaking from Experience . . . 14,15

Truckdriver.com . . . . . . . . . . . . . . . 22

Drive Star . . . . . . . . . . . . . . . . . . . . 17

Tenold . . . . . . . . . . . . . . . . . . . . . . . . 5

Walmart . . . . . . . . . . . . . . . . . . . . . 16

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MARCH 2020

JOBS FOR TRUCKERS • 21

• • • • • • •

22 • OVER THE ROAD

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JOBS FOR TRUCKERS • 23

CNTL HAS OPENINGS FOR TRUCK OWNER OPERATORS IN

Moncton, Montreal and Quebec City

If you are an Experienced, Safe, Owner Operator, now is the time to look at CNTL!

CNTL is CN’s Trucking Subsidiary, the continuing growth of Intermodal freight means we always have the moves available that meet or exceed your revenue objectives.

Ask about our Safety Bonus, and Safety Awards!

Keep more of your earnings with your fuel price capped at 35 cents per litre. Take advantage of our Tire, Bunk and Engine Heater programs, and Group Truck Insurance.

If you would like to talk about joining our team please contact us Phone 1-866-239-9889 Email cntljobs@cn.ca Fax 1-866-803-2702 24 • OVER THE ROAD

CNTL.ca

MARCH 2020