Along with representation from Carriers, Insurance and the Private Motor Truck Council of Canada (PMTC), the TTSAO recently met with the Ministry of Advanced Education and Skills Development
(MAESD) to discuss raising the $40 hourly cap currently put on training facilities.
Since 2009 insurance costs for insuring trucks and trailers at truck training facilities has risen 200%. This was an example of one of the many rising costs since the implementation of a $40.00 hourly cap on tuition by the MAESD for all Private Carrier Colleges in the Province of Ontario.
A recent report released by the TTSAO outlines clearly that the $40.00 hourly cap is outdated and needs to be addressed by the Province. There has not been an adjustment to the cap since 2009. In the TTSAO report other rising costs since 2009 include; a rise in the lease of equipment by 45%, instructor wages have risen on average by 15%, maintenance fees have increased by 20% just to name a few. Other increases include administration staff wages, annual auditing fees, rent and marketing. As a result of all these increases, the educational facilities are having a hard time staying afloat.
Mike Millian, PMTC President, spoke with MAESD officials and made it clear the $40.00 hourly cap must be raised. “There has been no increase to this cap in 8 years which has simply not kept up with today’s truck training world. If schools can’t make enough money to cover their costs, they will be forced to cut costs in other areas to be able to stay in business.”
Guy Broderick, Driver Training Supervisor at APPS Transport Group and the Chairman of the TTSAO Carrier Group, commented to the MAESD “the transportation industry has seen many increases across the board for years. When you factor in the cost of fuel, insurance and wages for your staff and other capital expenses the $40.00 cap seems unreasonable for any kind of operation.”
With the introduction of Mandatory Entry Level Driver Training (MELT) the expenses to deliver the required standard has also increased. The recent TTSAO report outlines that it is impossible to deliver the mandatory training needed to obtain a Class AZ license with a $40.00 per hour cap.
The TTSAO has recently formed the TTSAO Insurance Group and elected a new Chairperson Lisa Arseneau from Staebler Insurance. Lisa attended the meeting on behalf of insurance members and echoed the thoughts of other TTSAO representatives “In an industry that is rife with financial increases, I find it hard to believe that a cap, such as this, remains unchanged. If the cap is not increased to reflect today’s economy, we run the risk of losing many of the best Private Career Colleges truck driver training schools due to underfunding and cost prohibition.”
MAESD committed to get the report in front of the Policy and Program Design Division and they are going to go through the analysis process. This could take time but the government needs to expedite the process. The $40.00 hourly cap requires immediate attention.
If the $40.00 hourly cap is not dealt with in a timely manner trucking schools will be forced to train on outdated equipment, reduce Instructors wages, cut corners on maintenance among other things. “This could lead to more accidents and a reduction in road safety for all road users” Millian added.
For more information, contact:
Charlie Charalambous – Director of Communications and Public Relations, TTSAO – firstname.lastname@example.org
Lisa Arseneau – Commercial Producer – Staebler Insurance – email@example.com
Mike Millian – President, Private Motor Truck Council of Canada – firstname.lastname@example.org
Guy Broderick – Driver Training Supervisor at APPS Transport Group – email@example.com