The B.C. High court has supported brand-new licensing policies that restrict independent operators (IOs) in the Lower Landmass drayage industry to a single truck and stop them from working with permanent substitute drivers.
In it’s Sept. 17 decision, Justice Kirchner dismissed a judicial testimonial application from operators Paul Uppal and Waldemar Zawislak filed against the Office of British Columbia Container Trucking Commissioner (OBBCTC), verifying that independent drivers need to directly drive their truck ‘a lot of the moment’ and can not rely on indirectly employed operators (IEOs) to cover for them beyond 90 days. Kirchner ruled that the Commissioner acted within a ‘wide legal mandate’ to support the port trucking industry.
In B.C.’s container trucking sector, a permit– or a truck tag– issued by OBCCTC is required to access the port of Vancouver. The tags, linked to firm trucks or IOs, are restricted and are provided on a two-year basis, and they allow to haul containers in and out of the port.
End of two-truck model
In the Uppar v. British Columbia case, both petitioners had run two-truck procedures for the past 20 years. Before the 2024 licence changes, Paul Uppal had a sponsorship agreement with Jete’s Lumber and Waldemar Zawislak had one with Maresk Logistics & & Solutions Canada, according to a document detailing reasons for Kirchner’s judgment.
Each was released 2 independent operator tags– one for every of their two vehicles– via separate sponsorship agreements. They employed a couple of indirectly employed drivers to drive the vehicles, paid over the suggested rates, and had no compliance problems. This permitted them to expand business without becoming an accredited provider.
Nonetheless, reforms introduced in May 2024 changed the common kind licence conditions throughout the sector and since then, only one sponsorship arrangement can currently be issued per IO. At the same time, new language in the agreements stops IOs from using relief chauffeurs indefinitely, covering it just at 90 days.
The OBCCTC claimed in an e-mail to trucknews.com the reforms were targeted at preventing misclassification of truck tags. The workplace problems 2 types of tags: business tags for service providers that possess vehicles and work with permanent motorists, and independent operator tags for vehicle drivers that have and operate their own vehicles. The workplace said that issues arose when some IOs quit driving altogether and hired full-time substitute drivers, successfully transforming their IO tag right into a company tag.
“The goal of these adjustments is to prevent the misclassification of independent drivers and maintain the truck tags reserved for them. Independent operators own and operate their vehicles and, every so often, work with a worker as a relief chauffeur. If a proprietor of vehicles no more wishes to operate their vehicle, they are needed to have [a] licence under our [Container] Act and apply for truck tags like every other company proprietor and [be] liable for guaranteeing their drivers are paid the regulated prices,” commissioner Glen MacInnes composed in a declaration. “I am committed to guaranteeing that the Lower Mainland container trucking field operates on an equal opportunity, with reasonable chances for all participants.”
Operators argue they are ‘eliminated of the industry’
The adjustments were originally proposed on Jan. 16 and sector consultations complied with, with composed entries accepted up until Feb. 26 and conferences kept in March. Paul Uppal submitted submissions mentioning the modifications would certainly prevent him from operating two trucks as he constantly had. His entries reviewed some changes in the licensing terms considering that 2020 and stated he was being “phased out of the market”, court files check out.
On May 2, 2024, the Commissioner released an assessment record introducing what changes would be made for the coming licensing term, court Kirchner composes, adding that “despite the brand-new conditions set by the commissioner, Mr. Uppal entered into two different sponsorship arrangements with Jete’s, as he had done in the past. Mr. Zawislak did the very same with Maresk as he also had actually performed in the past.”
In choices dated Nov. 20, 2024, the Commissioner suggested that only one tag would be issued for each petitioner for the coming two-year licensing term, which started on Dec. 1, 2024 [
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On Nov. 22, 2024, Unifor contacted the Commissioner on behalf of Paul Uppal, suggesting that under its arrangement with Jete’s Lumber, “owner-operators with more than one vehicle in operation as of July 1, 2005, are grandfathered in.” The union asked the Commissioner to “respect the existing contract” and allow Uppal to continue running 2 vehicles. 4 days later on, the Deputy Commissioner denied the request, stating it would certainly be “contrary to the objectives of the Container Trucking Act” to permit an IO to hold two tags.
Judicial testimonial application
The two operators later suggested in the judicial review application that the Commissioner’s choice was “patently unreasonable”, declaring it contravened the policy’s phrasing, lacked a valid legislative function, disregarded their private conditions. They additionally declared the Commissioner fell short to think about one petitioner’s entries.
Justice Kirchner rejected those claims, stressing that neither licensees nor IOs have a right to renewal of vehicle tags from one term to the following.
Commissioner’s rationale
OBCCTC told trucknews.com that the modifications complied with “extensive industry-wide composed and in-person appointment” and were ‘largely sustained’ by independent operators since they safeguarded access to the minimal number of IO tags.
The office claims the adjustments are not about limiting opportunity yet preventing abuse and safeguarding the integrity of the licensing system to make sure that IOs can continue to flourish in a competitive and reasonable atmosphere.
The OBCCTC additionally confirmed no additional modifications to Sponsorship Agreement regulations are planned right now, though any future adjustments would go through appointment.
Considering that 2022, approximately a lots sponsorship contracts have actually been cancelled where IOs were discovered to rely upon permanent IEOs. When inquired about what systems are in location to keep an eye on whether an IO is truly driving ‘a majority of the time’, trucknews.com was told: “OBCCTC does not determine details enforcement strategies. Nonetheless, the office can validate that field detectives and auditors actively review payroll documents and explore complaints to make certain that licensees remain in compliance with the need that IOs drive the majority of the time.”