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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.
Regular CONSULTATIONS to keep you on track.
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to firstname.lastname@example.org your options.• and let’s discuss JOBS FOR TRUCKERS
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
A M I S S I S S AU G A- B A S E D C A R R I E R
OPPORTUNITY FOR OWNER OPERATORS & COMPANY DRIVERS Immediate need for Toronto & Montreal based Owner Operators to Run U.S. & Canada W E O F F E R A N A B O V E AV E R A G E PAY PA C K A G E I N C L U D I N G
$1.50 per mile Plus Fuel Surcharge | Paid Insurance Company Fuel Cards Available | Paid Plates | Paid Permits | Tolls & More WE REQUIRE
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12 â€¢ OVER THE ROAD
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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 email@example.com Safe Trucking Ray J. Haight Ray Haight TCA Retention Coach firstname.lastname@example.org 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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JOBS FOR TRUCKERS • 17 1-855-781-3787 email@example.com
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
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
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
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
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 firstname.lastname@example.org @safety_dawg (twitter)
involves using the Canadian Split Sleeperberth rule. In the above example, you are
in your sleeper-berth for three hours, drive
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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Over 7 Locations: Brampton* Midland* Wallaceburg* Prescott* Fergus* Hamilton* Carignan PQ A CANADIAN CARRIER SINCE 1985 20 â€¢ OVER THE ROAD
Class 1 â€“ AZ Company Drivers Required Both Teams and Singles to run Canada/USA Special Need for 2 Day Cab Drivers in Brampton, ON
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Special Need for Canada/US Owner Operator Teams for Scheduled Weekly Runs
WE REQUIRE 2 years verifiable experience Clean abstract / Criminal search
Please contact our Recruiting Department for more details Amanda Durling | email@example.com Andrea Grant | firstname.lastname@example.org Janice Bryson | email@example.com
I have been with AYR Motor for nearly 20 years and I have obtained 3 million safe miles. I enjoy the good miles and the equipment. The pay is regular and on time. There is a good benefits package and the people are good to work with.
Woodstock, New Brunswick T 1-800-668-0099 / 1-506-325-2205 F 1-877-325-2952 Brampton, Ontario T 1-800-668-0099 F 1-877-325-2952
Paul Moss, Truck #905
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JOBS FOR TRUCKERS â€˘ 21
• • • • • • •
22 • OVER THE ROAD
Great Pay Package All Miles Paid Weekly Permits/Tolls/Heavy Tax Paid General Insurance Paid Fuel Cards & Border Cards Pick Up & Delivery $50 Flexible Fuel Surcharge
JOBS FOR TRUCKERS â€¢ 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.
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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.
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Who is Recruiting in March 2020 www.overtheroad.com