A national shortage of qualified drivers has trucking firms in Alberta and B.C. turning down work and poaching employees as the industry gropes for innovative strategies to bring new blood to an aging workforce.

“I’ve had to turn down some loads,” says Steve Islaub, vice- president of Vedder Transport of Abbotsford, B.C., which specializes in hauling edible liquids such as milk and wine. Vedder also has operations in Prince George, Vernon, Creston and Calgary.

The driver shortage “is the worst I’ve seen” in 28 years in the business, he adds.

“We advertised for a week for a driver in Calgary and had three replies, none of them acceptable to us — two of the guys were over 60 and one who’s had seven jobs in five years.”

Wayne Pederson, president of Pederson Transport Ltd., a 30-driver outfit based in Claresholm, says at one time in its history, the company didn’t advertise for drivers “for fear the sheer volume of replies would overwhelm us.”

“Now we advertise desperately to try to get a handful of qualified drivers to be able to make a selection,” says Pederson.

Bayne Stanley photo, Business Edge
Sukh Brar of Advance Freight in Surrey, B.C.

Carriers are fishing in a shrinking pool of qualified employees, notes Ray Barton of the Canadian Trucking Human Resources Council (CTHRC). “What we have now is musical chairs recruiting,” he adds.

In 2002, the latest statistics available, there were 34,800 Alberta truck drivers and 32,800 in B.C, respectively just over 12 per cent and just under 12 per cent of the national total.

Over the next five years, Canada will need an average of 37,300 new, qualified drivers each year to accommodate industry growth and driver retirements, the CTHRC found in a 2003 study of the national driver shortage.

Statistics Canada figures for 2002 showed Alberta and B.C. together employ nearly a quarter of all Canada’s truckers, meaning each province needs an average of nearly 5,000 qualified drivers annually.

But although ‘truck driver’ was the most frequently listed occupation among men in the 2001 national census, few are qualified to pilot the big rigs.

As it gathered data from drivers, unions, industry associations and 1,400 fleet managers for its report, Canada’s Driving Force, the CTHRC was able to pinpoint the factors behind the shortage – an aging population, static pay levels, lifestyle issues and preference among young people for white-collar careers.

And job hopping is also becoming very common.

“It has not been unusual to have over 100-per-cent churn per year” in companies relying on owner/operators, says Paul Landry, president of the B.C. Trucking Association.

The average age range of drivers is 45 to 52, notes Kim Royal, executive director of the Alberta Motor Transport Association.

“We have a high number of retirees and . . . logistical problems recruiting young persons because insurance rates are prohibitive if you hire drivers under 25 or with less than three years experience.”

At Vedder Transport, Islaub notes he has seven or eight employees who will turn 65 in the next few years.

Two-thirds of the fleet managers interviewed for the survey reported a shortage of qualified drivers, and said pay was the major problem. (The remainder believed the problem is either an oversupply, or under-loading, of trucks. However, trucking associations say low margins are trimming the number of companies and contend today’s ‘just-in-time’ inventory control systems have turned less-than-full loads into a permanent industry reality).

In Canada, drivers’ pay has been static since 1997 — ranging from $20,000 to $42,000 in B.C. – while the job has become more technologically challenging and the work week longer. Drivers at the top of the income scale routinely work an 80-hour week. That’s not much of an incentive, says Pederson, “for the 20-year-old who can make more with his fingers on a keyboard.”

But the CTHRC study also found lower turnover rates in small, private fleets. Larger fleets were more likely to offer benefits such as pension plans, life insurance and guaranteed days off. Hardest hit are the medium-sized, long-haul companies that have lost the ‘family’ feel with employees and haven’t yet instituted benefits programs. “We’re all trying to figure ways around it,” says Islaub.

Vedder Transport has just signed a contract with a B.C. union representing 75 of its drivers for a 19-per-cent increase in hourly pay and mileage increases over four years, noteworthy in a competitive environment that has seen other companies offering employees rollbacks.

“We pay top dollar, we run good equipment and have a good reputation,” adds Islaub.

“Yet we get people with terrible records or no experience and we just can’t take a chance carrying food products.”

Pederson says his company, established in 1966 with terminals in Calgary and Lethbridge, is kept deliberately small, with good salaries and well-maintained equipment. “It’s more manageable, more flexible,” he says. “It’s easier to know your employees one-on-one. You’re not a number.”

One B.C. company’s business strategy includes worker retention. Sukh Brar, operations manager for Surrey-based Advance Freight, says higher salaries, safety bonuses and bi-weekly pay help keep employees loyal to the five-year-old company, which runs 25 trucks across North America.

The second phase of the CTHRC study, expected to begin this fall, will propose methods to overcome the shortage and provide a steady stream of new employees. “We want to do a ‘best practices’ manual and investigate how to recruit and maintain employees,” says the CTHRC’s Barton.

While carriers try to hang on to employees, industry associations are busy investigating long-term solutions:

Immigration, industry wide changes to rate structure, training programs and changing the public attitude toward the occupation.

Immigration is one strategy Canada has used in the past to cope with labour shortages, and although it offers some relief, the industry doesn’t see it as a long-term solution.

Truck driving is deemed an unskilled occupation under federal immigration policy, making it difficult for drivers to garner minimum points to immigrate. As well, the largest pool of potential immigrants – the United States – is also in the throes of a driver shortage.

The U.S. needs as many as 100,000 drivers, according to the Federal Motor Carrier Safety Administration. The Wall Street Journal reports the supply of qualified drivers lags demand by as much as 10 per cent.

U.S. shipping rates have increased up to six per cent as carriers raise pay and benefits, offer signing bonuses and initiate training programs. Some shippers have been left in the lurch, their goods piling up in warehouses awaiting a carrier.

In Canada, the Immigration and Refugee Protection Act allows agreements with provinces to address specific skills shortages. Saskatchewan was the first to strike an agreement in 2002, having truck driver included in the list of key job skills required for the province.

But such agreements require carriers to demonstrate first what steps they’ve taken (recruiting, training) to find qualified drivers in Canada before they can recruit in another country – in other words, a ton of paperwork, says the B.C. Trucking Association’s Landry.

It would be better if the federal government included truck driving as a skilled occupation for immigrants, the associations say.

“Over the last 10 to 15 years driving has become a more skilled occupation,” says Barton.

“There’s a lot more government regulations, a lot more electronic and environmental equipment, just-in-time delivery, and since 9/11, border crossing and shipper demands have become more complex.”

But the industry says home-grown solutions, such as new driver education programs, recruiting so-called non- traditional employees, and finding new ways to address pay and quality-of-life issues are better than relying on immigration alone.

What’s being done:

* Training: In Alberta, the Alberta Motor Transport Association is working to establish a new apprenticeship program at certified driving schools involving one year of intensive training that would include an industry mentoring component.

“Even insurance companies would consider this level of training the equivalent of three to four years of experience,” says the association’s Kim Royal. Such a program with continuous intake could provide a steady stream of young drivers. “We are anticipating by the end of 2005 to have the first 100 graduates. It’s a model we hope can be adopted across Canada.”

Meanwhile, individual firms are investing more in training.

Advance Freight has brought on two intermediate drivers in a new company mentoring program that pairs seasoned drivers with new employees on long-haul runs.

“It’s worth investing in,” says Brar. “Out of every 20 applications we get, maybe one guy has the potential to develop.

We want to retain our good drivers.”

* Non-traditional recruitment: The CTHRC identified women, aboriginal people and recent military retirees as pools of potential employees.

“Aboriginal communities have exactly the opposite demographics of the rest of Canada,” says Barton. “They have a high percentage of people under 30.”

But carriers and associations haven’t begun targeting specific groups for recruitment.

* Pay: Stiff competition and small margins have restricted wage increases, but “there’s a market correction coming,” says Islaub. Rates have been kept low as carriers have cut costs through increases in efficiency, and now there’s no more efficiency gain to be had.

“Costs are now starting to go up,” says Islaub of Vedder Transport. And rates can’t be far behind – beginning with carriers and shippers in industries where quality is more important. Advance Freight’s produce customers, for example, are willing to pay more to ensure product quality.

“The food industry will pay more because it wants the job done right,” says Islaub. Food shippers strapped by a shortage of drivers from their regular carriers are having trouble finding alternates who can deliver product in good condition. Higher rates are less a concern than on-time deliveries of fresh produce and uncontaminated food.

“Our customers understand our rates are fair,” adds Brar. “They know if somebody approaches them offering lower rates, either the service is not going to be there, or the company’s not going to be there.” Still, he says, “Competition is cutthroat. If you ask customers for higher rates, you know there are always 10 guys behind you” offering lower rates.

While food shippers are willing to pay for quick delivery of fresh produce, other haulers are finding their costs climbing due to delays picking up and unloading. Waiting time can easily double a driver’s working hours with no extra compensation, says Landry. The B.C. Trucking Association suggests carriers levy a surcharge for the time a truck is idle at warehouses or yards – an idea that is perhaps before its time in an industry marked by tough competition and hammered by fuel surcharges and insurance hikes.

* Respect: Surcharges for wait times also address the big issue among drivers: Lack of respect, says Landry. Drivers routinely “show up on time for a scheduled appointment and find they have to wait hours – without restrooms, meals or water.”

There appears to be no simple solution. Changing public perception could begin with recognizing the benefits of driving as an occupation.

Two-thirds of drivers enter the industry because “they love to drive and love being around big trucks,” says the CTHRC’s Barton. Other reasons drivers cite for choosing their occupation is they love to travel and meet people, and want to see the country. Only seven per cent said it was the only job available at the time.

“Yet it’s perceived as the career of last choice,” he adds.

Getting the federal government to recognize truck driving as a skilled occupation and common big-rig training standards might also help shine the image.

But the most important place for respect to grow is in the workplace. Mutual respect is an important company ethic.

“We don’t want disgruntled drivers on the road,” says Brar. “We have to trust them with a quarter-million dollars’ worth of equipment.”

“Drivers are the company,” adds Pederson, noting he offers profit-sharing to his employees.

“When they go to my customers, they are my company. Respect is important.”

(Sharon Adams can be reached at sharon@businessedge.ca)