Vol. 148, No. 9 — April 23, 2014
SOR/2014-86 April 3, 2014
CANADA MARINE ACT
Regulations Amending the Port Authorities Operations Regulations
P.C. 2014-375 April 3, 2014
His Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to paragraphs 62(1)(b), (d) and (e) of the Canada Marine Act (see footnote a), makes the annexed Regulations Amending the Port Authorities Operations Regulations.
REGULATIONS AMENDING THE PORT AUTHORITIES OPERATIONS REGULATIONS
1. The heading before section 31.1 of the Port Authorities Operations Regulations (see footnote 1) is replaced by the following:
MOVEMENT OF CONTAINERS INTO, WITHIN OR OUT OF PORT METRO VANCOUVER
2. (1) Subsection 31.1(1) of the Regulations is replaced by the following:
31.1 (1) The Vancouver Fraser Port Authority shall not permit access to its port by a truck or other road transportation equipment for the delivery, pick-up or movement of containers into, within or out of the port unless it has issued a written authorization in the form of a licence in this regard and the holder of that authorization is in compliance with the minimum conditions referred to in subsection (2).
(2) Subparagraph 31.1(2)(b)(iii) of the Regulations is replaced by the following:
- (iii) in the absence of a collective agreement referred to in subparagraph (i) and a law referred to in subparagraph (ii), a rate of remuneration that is at least equivalent to the applicable rate set out in the Memorandum of Agreement between Trucking Companies (Owners/Brokers) and the Vancouver Container Truckers’ Association, dated July 29, 2005, plus any increase set out in subsection (2.1).
(2.1) For the purposes of subparagraph (2)(b)(iii),
- (a) the percentage used to calculate the fuel surcharge under paragraph 5 of the Memorandum of Agreement is increased from 1% to 2%; and
- (b) the rates set out in Schedule 2 to the Memorandum of Agreement are increased by 12%.
COMING INTO FORCE
3. These Regulations come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
A trucking dispute at Port Metro Vancouver has disrupted the efficient movement of containers through the port. This is affecting regional and national supply chains which are critical to the national economy and Canada’s trade. To respond to the issues that have been raised by the trucking industry, an action plan was developed by the Government of Canada, the Province of British Columbia, Port Metro Vancouver and trucking industry stakeholders. In the action plan, the Government committed to increasing the regulated trip rates and the fuel surcharge paid to truck owner-operators.
Trucking services at Port Metro Vancouver are provided by trucking companies and independent owner-operators. Trucking companies provide services directly to the shipper, receiver, importer or exporter. Independent owner-operators own a truck and contract their services to trucking companies. There are approximately 800 owner-operators who provide services at Port Metro Vancouver.
Truck operators transport containers into, from and within the port to and from warehouses and distribution centres. Drivers, both employees of companies and owner-operators, can be both unionized and non-unionized.
Section 31.1 of the Port Authorities Operations Regulations (the Regulations) places a legal obligation on Port Metro Vancouver to prohibit access to a truck that is moving containers to, from and within the port, unless the port has issued a licence, and the holder of the licence is in compliance with a minimum set of conditions.
One of the conditions of the licence are minimum rates of remuneration that must be paid to an independent owner-operator of a truck. They cannot be less than the rates set out in the “Memorandum of Agreement between the Trucking Companies (Owners/Brokers) and the Vancouver Container Truckers’ Association,” dated July 29, 2005 (known as the MOA). The MOA is referenced in the Regulations.
One of issues raised by the truck drivers is that the current minimum rates are too low and have not been adjusted since 2006. In the action plan developed jointly by the Government of Canada, the Province of British Columbia and Port Metro Vancouver, the Minister of Transport committed to increase the regulated trip rates paid by trucking companies by 12% and double the current fuel surcharge. These measures, as part of the action plan, secured an agreement to return to work and ensured that truck drivers are paid fair compensation.
The objective of the amendment is to increase the minimum remuneration rates for container trucking movements, to, from and within Port Metro Vancouver, by 12% as well as double the current fuel surcharge.
This amendment to the Regulations increases the rates in the MOA by 12%. This translates into an average trip rate of $147.00, an increase from the current average rate of $131.00.
In addition, the formula for determining the fuel surcharge is adjusted so that the amount paid will be twice as much as the current surcharge.
The amendment to the Regulations also makes minor administrative amendments to update the name of the port to the Port Metro Vancouver to reflect the amalgamation of the Vancouver Port Authority, the Fraser River Port Authority and the North Fraser Port Authority in 2007.
The “One-for-One” Rule does not apply to the amendment, as there is no change in administrative costs to business. None of the businesses involved in this regulatory amendment report to the Government of Canada in any capacity.
Small business lens
Remuneration and fuel surcharges are not considered a compliance cost and there are no other costs associated with this amendment. Therefore, the small business lens does not apply as the amendment does not increase administrative or compliance burden on business.
Port Metro Vancouver and the Province of British Columbia were consulted regarding this regulatory amendment and they agree with it. The proposal has been widely published and owner-operators have requested these changes, which are a condition of their return to work at Port Metro Vancouver.
The regulatory amendment is required in order to increase the minimum rates of remuneration paid to owner-operators who move containers to, from and within Port Metro Vancouver. The amendment will also double the fuel surcharge. These measures address the grievances of the truckers who claim they are not adequately compensated for their work.
This initiative is supported by the federal government’s commitment to expedite its 2014 regulatory framework review of the Port Authorities Operations Regulations in the above-mentioned action plan to assess the current rates and implement the results by mid-2015.
Implementation, enforcement and service standards
There are no additional requirements on the part of the federal government related to the implementation of the amendment. Trucking companies must adhere to the rate increase in order to comply with the conditions of the licence from Port Metro Vancouver. The Province of British Columbia is responsible for a dispute resolution program to address complaints of non-compliance and also conducts random audits of companies. The Port Metro Vancouver is responsible for the enforcement of contraventions found by the Province of British Columbia (the Province).
In the action plan, the Province has committed to strengthen the scope of the audit function so that all trucking companies registered in the trucking licensing system will be subject to audit and in a transparent manner. The fuel surcharge must be paid to owner-operators without exception and this will be enforced through increased and regular provincial audits. The scope of the audit program will be expanded to include union and non-union driver’s movements. The Province and Port Metro Vancouver will work with the industry to define the parameters of the audit program, with a target for full implementation by June 15, 2014.
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