The B.C. High court has actually upheld new licensing policies that restrict independent drivers (IOs) in the Lower Mainland drayage industry to a solitary truck and stop them from hiring full time replacement chauffeurs.
In it’s Sept. 17 choice, Justice Kirchner rejected a judicial review application from operators Paul Uppal and Waldemar Zawislak filed versus the Office of British Columbia Container Trucking Commissioner (OBCCTC), confirming that independent operators have to personally drive their truck ‘the majority of the moment’ and can not rely on indirectly used drivers (IEOs) to cover for them past 90 days. Kirchner ruled that the Commissioner acted within a ‘broad statutory mandate’ to support the port trucking market.
In B.C.’s container trucking sector, a licence– or a vehicle tag– issued by OBCCTC is required to access the port of Vancouver. The tags, tied to business trucks or IOs, are minimal and are issued on a two-year basis, and they permit to carry containers in and out of the port.
End of two-truck design
In the Uppar v. British Columbia instance, both petitioners had run two-truck operations for the previous 20 years. Before the 2024 licence modifications, Paul Uppal had a sponsorship agreement with Jete’s Lumber and Waldemar Zawislak had one with Maresk Logistics & & Provider Canada, according to a file detailing factors for Kirchner’s judgment.
Each was provided two independent operator tags– one for each of their two vehicles– via separate sponsorship agreements. They employed one or two indirectly utilized operators to drive the vehicles, paid over the recommended rates, and had no compliance problems. This permitted them to expand business without becoming a certified carrier.
Nonetheless, reforms presented in May 2024 altered the common type licence problems throughout the market and since then, just one sponsorship agreement can currently be released per IO. At the very same time, new language in the contracts quits IOs from using alleviation drivers forever, topping it just at 90 days.
The OBCCTC claimed in an email to trucknews.com the reforms were targeted at stopping misclassification of truck tags. The office concerns two types of tags: business tags for providers that own trucks and hire full-time drivers, and independent driver tags for chauffeurs who have and run their very own trucks. The office stated that issues arose when some IOs stopped driving entirely and hired full-time substitute chauffeurs, effectively transforming their IO tag into a business tag.
“The objective of these modifications is to prevent the misclassification of independent drivers and maintain the truck tags alloted for them. Independent drivers very own and run their automobiles and, periodically, work with a worker as an alleviation chauffeur. If a proprietor of vehicles no more wants to run their automobile, they are called for to have a licence under our [Container] Act and make an application for truck tags like every other firm proprietor and be accountable for ensuring their motorists are paid the regulated rates,” commissioner Glen MacInnes composed in a declaration. “I am committed to guaranteeing that the Lower Landmass container trucking field operates a level playing field, with fair opportunities for all individuals.”
Operators argue they are ‘eliminated of the sector’
The changes were originally proposed on Jan. 16 and market examinations adhered to, with written entries accepted till Feb. 26 and conferences kept in March. Paul Uppal submitted entries explaining the modifications would certainly prevent him from operating two vehicles as he always had. His entries evaluated some adjustments in the licensing terms given that 2020 and mentioned he was being “terminated of the sector”, court files check out.
On May 2, 2024, the Commissioner launched a consultation report introducing what changes would certainly be made for the coming licensing term, judge Kirchner writes, including that “regardless of the brand-new problems established by the commissioner, Mr. Uppal became part of 2 separate sponsorship contracts with Jete’s, as he had done in the past. Mr. Zawislak did the exact same with Maresk as he too had carried out in the past.”
In decisions dated Nov. 20, 2024, the Commissioner encouraged that only one tag would certainly be issued for each and every petitioner for the coming two-year licensing term, which began on Dec. 1, 2024 [
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On Nov. 22, 2024, Unifor contacted the Commissioner in support of Paul Uppal, arguing that under its contract with Jete’s Lumber, “owner-operators with greater than one vehicle in operation since July 1, 2005, are grandfathered in.” The union asked the Commissioner to “appreciate the existing agreement” and allow Uppal to continue operating 2 vehicles. 4 days later on, the Deputy Commissioner turned down the request, stating it would be “as opposed to the purposes of the Container Trucking Act” to enable an IO to hold 2 tags.
Judicial evaluation application
Both drivers later said in the judicial testimonial application that the Commissioner’s decision was “patently unreasonable”, asserting it contravened the law’s wording, did not have a legitimate legal function, neglected their specific situations. They additionally declared the Commissioner failed to take into consideration one petitioner’s submissions.
Justice Kirchner declined those insurance claims, worrying that neither licensees nor IOs have a right to revival of vehicle tags from one term to the next.
Commissioner’s reasoning
OBCCTC informed trucknews.com that the modifications adhered to “considerable industry-wide written and in-person assessment” and were ‘mainly supported’ by independent operators because they shielded accessibility to the limited variety of IO tags.
The workplace claims the adjustments are not around limiting opportunity but preventing misuse and shielding the honesty of the licensing system to ensure that IOs can remain to prosper in a competitive and fair atmosphere.
The OBCCTC also confirmed no additional adjustments to Sponsorship Contract regulations are prepared currently, though any future modifications would certainly undergo assessment.
Considering that 2022, roughly a lots sponsorship contracts have actually been terminated where IOs were found to rely upon full-time IEOs. When inquired about what systems are in area to monitor whether an IO is absolutely driving ‘a bulk of the moment’, trucknews.com was informed: “OBCCTC does not identify certain enforcement strategies. Nevertheless, the workplace can verify that area detectives and auditors actively examine payroll records and investigate problems to make certain that licensees remain in conformity with the need that IOs drive most of the time.”