TTSAO working with Ontario to raise $40 hourly cap
Along with representation from carriers, insurance and the PMTC, the TTSAO has met with Ontario’s Ministry of Advanced Education and Skills Development (MAESD) about raising the $40 hourly cap 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 hourly cap on tuition by the MAESD for all private carrier colleges in Ontario.
A recent TTSAO report shows the $40 hourly cap is outdated and must be addressed by the Province. There has not been an adjustment to the cap since 2009. The report lists other rising costs since including the leasing of equipment (+45%), instructor wages (+15%), and maintenance fees (+20%). Other increases include administration staff wages, auditing fees, rent and marketing. As a result of these rising costs, educational facilities are having a hard time staying afloat.
Mike Millian, PMTC President, told MAESD officials the cap must be raised, saying, “There has been no increase to this cap in eight years – this has simply not kept up with today’s truck training world. If schools can’t make enough money to cover their costs, they’ll be forced to cut costs in other areas to stay in business.”
Guy Broderick, Driver Training Supervisor at APPS Transport Group and Chairman of the TTSAO Carrier Group, told 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 cap seems unreasonable for any kind of operation.”
With the introduction of MELT, the expenses to deliver the required standard have 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 per hour cap.
The TTSAO recently formed the TTSAO Insurance Group led by Chair Lisa Arseneau of Staebler Insurance. She stated, “In an industry rife with financial increases, I find it hard to believe that a cap such as this remains unchanged. If the cap isn’t increased to reflect today’s economy, we run the risk of losing many of the best private 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 is going through the analysis process. This could take time, but the government needs to expedite the process. This issue requires immediate attention. If the $40 cap is not dealt with trucking schools will be forced to train on outdated equipment, reduce instructors’ wages, and 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