Over the Road May 2020

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May 2020

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JOBS FOR TRUCKERS • 3

BUSINESS OFFICE 18 Parkglen Drive, Ottawa, Ontario K2G 3G9 1.800.416.8712 • 613.224.9947 Fax: 613.224.8825 Email: otr@otrgroup.ca

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www.overtheroad.ca Publisher Peter Charboneau

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A message from Peter Charboneau Publisher of Over the Road I have been proudly publishing Over the Road magazine for 26 years, and during this time I have only included a message in the magazine a few times. The last time was for our 25th Anniversary edition. That was a celebratory message; this one is in response to all that has been happening in the world these past few weeks.

I will start by saying that I hope that everyone reading this right now is doing OK and staying healthy and well. These are unprecedented times and it has been hard to keep up with how much has changed in our lives, with our families, in our communities and in our businesses over the past few months. My heart goes out to everyone that has been affected by COVID-19 and everyone that has lost a loved one. Our thoughts and prayers are with you.

It goes without saying that we all owe a big thank you to the health care workers that are working so hard right now and who are putting themselves and their families at risk during this difficult time.

We are so grateful. I also want to extend a huge thank you to every one of you in the Canadian trucking industry that are working so hard to keep freight moving; especially the Drivers and Owner Operators that are out on the roads, day in and day out, transporting groceries, paper products, medical equipment and everything else that our country needs to survive this pandemic.

I have always had a huge amount of respect and admiration for what you do, but now, with so much of our country shut down, I am extra grateful for all that you do. Thank you for keeping our grocery stores stocked and for all that you are doing to keep things moving.

In your hands right now (or on your phone/ laptop) is the May edition of Over the Road.

As you have likely noticed, it is much smaller than usual – it is just 16 pages this month. Our magazine has only been 16 pages at three points in the past 26 years; when I first started the magazine in 1994, then at the height of the recession and the global financial crisis in 2009, and now during the COVID-19 pandemic, we find ourselves again with a 16-page magazine. It may be a small edition this month, but given all that is happening right now, we are very proud to be publishing a May edition. In our 26 years of May 2020

publishing Over the Road, we have never missed an edition and it is our goal to continue to be here for you through the pandemic and beyond, each and every month.

What is important to note about the May magazine, is that this edition of Over the Road features 9 Canadian trucking companies that are currently hiring. If you are a Driver or an Owner Operator who is looking for work, please read through the ads and reach out to these companies, as they have freight for you to haul and they need drivers!

Also note, that on pages 10. 11 & 12 you will find an excellent article by Robert Scheper outlining how Operators, and others, can take advantage of the four financial assistance programs that the government has recently launched. On page 9 you will find an Infinit-i WorkForce Solutions ad highlighting a free resource for COVID-19 training videos and a new program that gives 30-days of complimentary access to the Infinit-i WorkForce online training platform. Please be sure to read both as you will likely find them helpful right now.

Each month, Over the Road is printed and distributed into Canadian truck stops including the Flying-Js. Each edition is posted on our website (www.overtheroad.ca) and it is sent out electronically to all our digital subscribers.

Whichever way it is that you are reading this, we thank you for reading Over the Road. We will continue to do our best to keep you updated on everything related to the Canadian Trucking industry through the pandemic – in our monthly magazine and on our website and through our social media sites throughout the month.

On behalf of the Over the Road team, thank you again to all Drivers and everyone in the Canadian trucking industry for all that you are doing right now to keep the country moving. If there is anything that we can do to help or support you, please let us know.

Drive safely and keep your distance – both from other vehicles and from each other. Stay healthy and stay safe! Our thoughts are with all of you.

Best regards, Peter

JOBS FOR TRUCKERS • 5

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May 2020

DRIVER TURNOVER IS A PROBLEM THE GOOD NEWS IS THAT YOU CAN DO SOMETHING ABOUT IT Learn how to determine WHY your drivers are leaving.

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1501 Industrial Park Drive, Cornwall, ON 6800 Maritz Drive, Mississauga, ON May 2020

Keep Your Drivers Safe with COVID-19 Safety Training During this crisis, it is our privilege to offer you free access to several of the coronavirus safety training videos produced by Infinit-I Workforce Solutions.

The following videos can be accessed by visiting www.infinitiworkforce.com/coronavirus-videos

CABIN SANITATION In a pandemic, it is vital to maintain and sanitize your equipment to protect both your drivers and your customers. This video covers acceptable disinfectants and effective ways of sanitizing a truck cabin during the COVID-19 pandemic.

GENERAL HEALTH TIPS Good hygiene is crucial to maintaining your health in the current crisis.

Learn how to practice good hygiene etiquette and do your part to stop the transmission of COVID-19.

GENERAL INFORMATION This video aims to present known facts about coronavirus disease 2019 (COVID-19) according to the CDC and World Health Organizations.

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ADDITIONAL COVID-19 CONTENT AVAILABLE ON INFINITI-I WORKFORCE: SELFASSESSMENT

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Learn what to look for when self-assessing symptoms for COVID-19 and what to do if you believe you may be infected.

Learn steps you can take to plan for life on the road during the COVID-19 pandemic.

This video briefly discusses how to protect freight during the COVID-19 pandemic and what to do if you get sick while hauling freight.

HOS EXEMPTION PDF Document (3-pages) Specific exceptions to hoursof-service regulations and related stipulations during the pandemic are covered in this Emergency Declaration issued by the FMCSA.

Let us support you in the effort to improve the health and safety of our industry during these difficult times. To help companies who are not currently Infinit-I Workforce Solutions customers, we are offering 30-day complimentary access to our system to assist them in maintaining driver safety training, including tracking and reporting. Please contact me to schedule a consultation at ed.novoa@verticalag.com or call me at 647.227.5966.

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JOBS FOR TRUCKERS • 9

MAKING YOUR MILES COUNT Robert D. Scheper

COVID-19 Federal Support Programs During this unprecedented experience in our economy, the Federal Government (as with all/ most free nation Governments) is providing help to those who need it. Though I would not classify it as slow, I would define it as unclear, foggy, blurry, changing, and confusing. Up until April 8th, I decided not to produce anything describing what was being offered because it was vague, arbitrary, and shifting. But finally, some clarity came out in written form. Here is a summary of what you may be able to take advantage of. However, I’d like to state that I summarized it as it applies to Independent Operators only.

TRUCKING is considered an essential business and therefore is exempt from virtually all mandatory quarantine situations. Using this fact as the basis for negotiating government programs, it is and will always be subject to at least some form of interpretation. I won’t guarantee the application of ANY benefit requested… but it doesn’t hurt to ask or apply.

THERE ARE FOUR PROGRAMS 1. Temporary Wage Subsidy 2. Emergency Wage Subsidy 3. CERB or Canada Emergency Relief Benefit 4. CEBA or Canadian Emergency Business Account “WARNING” Abuse of these programs can result in fines or penalties of up to 225% of any benefits received.

At the time of this article, abuse has been defined and advertised as anyone who has claimed both Program 2: (Emergency Wage Subsidy) and 10 • OVER THE ROAD

Program 3: (Canada Emergency Relief Benefit).

We cannot determine if the rules will change further. Many people think that dealing with the Canada Revenue Agency (CRA) is an absolute science. At times IT IS NOT, especially now with these programs. There may well be unique assumptions applied to it BUT, we also trust it will have some form of consistency.

1. Temporary Wage Subsidy (10% of wages).

I believe that most of all Independent Operators should be able to qualify for this program; all you need is an active payroll account as of March 18, 2020.

Simply put… it’s 10% of last month’s gross wages (our firm includes non- taxable benefits because of how WE read the allowances). It does say to include them. HOWEVER… this may be subject to interpretation. This 10% total is calculated as a taxable wage subsidy (maximum of $1,375 per employee).

Let’s use an illustration: $1,000 salary plus $2,000 non-taxable benefits at 10% is $300.

This subsidy reduces your next month source deductions by $300 for the first of three months.

If you have a management bonus before June 18th, 2020 you can include that “gross” into your subsidy calculation as well. So, if you also declare a $4,750 bonus in June you will save $300 in April, $300 in May and $775 in June… or a total of $1,375 (maximum allowable per employee).

Remember, the subsidy must be claimed as taxable income.

This application may require a fair bit of additional work (for 3 months and early in 2021).

Though our firm is not charging for the work and application, it would be reasonable for any firm May 2020

to do so. If done properly the operator should still come out ahead several hundred dollars per employee. We are pretty sure this subsidy calculation is accurate but... so far… the rules keep changing too much for me to be 100% confident.

To apply for this subsidy most accountants will charge extra; I know we do.

The limit of your claim is the lesser of 75% of pre-crisis wages or $847 per week ($3,388 per month or $10,164 over 3 months) provided the revenue remains depressed.

Remember, it’s the responsibility of the employer to defend their drop in income period over period. There are various formulas for this but the bottom line is, if your income returns during the three month period you will lose your applicable subsidy and may even be required to repay any previous subsidy if they deem it non-COVID-19 related.

Due to this, I suggest making sure you apply for both the Temporary and Emergency if you’re going to try for the Emergency. That way, if the Emergency is rejected, you always have the Temporary.

2. The 75% Canada Emergency Wage Subsidy (CEWS) This is very different from the Temporary Wage Subsidy. Even though you can claim both simultaneously, the Temporary (10%) will be deducted from the Emergency (CEWS 75%) so the Temporary will become irrelevant.

In my opinion, most/many operators will NOT fully qualify for the CEWS. Only those who have significant drop in revenue (30%+).

Most of our clients have not experienced nearly that much drop… at least so far.

Additionally, the amount of documentation and defence required to qualify is substantial.

In THIS program there are also some nonarm’s length restrictions (since the owners are usually the only employees, the relationship is classified as non-arm’s length). Therefore, the interpretation of qualifying or not could be subjective. The program is designed to keep employees being paid… not necessarily working. Sending someone home claiming it’s because of COVID-19 and paying them must all be justified… every month… in an essential industry… as non-arm’s length. We will probably see different regions in Canada apply these restrictions differently.

For example, you must provide documented evidence that your revenue dropped 30% because of COVID-19 as well as documenting your pre-virus payroll as the 100% standard.

Here-in lies some of the problems; as an essential industry, finding a drop of 30% will need to be defended consistently, month over month using the same method of calculation.

So, if your income drops in one period but returns the next… it may weaken your argument that COVID-19 even caused it.

The subsidy only applies to wages… nothing else. Since most operators need to make their truck payments by driving… they usually try and find the work. The application must be applied for through the My Business Account portal and some of the application process has not even been developed at the time of this writing.

Without a doubt, some Operators have lost big time, such as auto parts haulers or delivery drivers to restaurants. But most long-distance operators, in my opinion, may have difficulty justifying their application… especially if YOU supplement your wage while others at your carrier didn’t even drop in revenue. If you can PROVE you are dramatically affected, this may well be an option for you… however… if you have to massage your numbers to make it work, you may be heading down greedy street which may have penalties parked on it.

May 2020

3. The Canada Emergency Relief Benefit There is another alternative some operators have chosen to use. It’s an all or nothing approach. Basically, firing (laying off) their spouse (or even themselves) and collecting the Canada Emergency Relief Benefit.

JOBS FOR TRUCKERS • 11

The CERB provides up to $500 per week ($2000 month) for those who get laid off due to the pandemic. By far it is the easiest of all benefits to collect with virtually no documentation other than an on-line application. However, someone must STOP working. Also, due to the non-arm’s length status of “firing” a shareholder or director (or spouse)… it may get people in trouble when CRA audits the application for compliance. It’s easy… but actions MAY need to be defended.

4. CEBA or Canadian Emergency Business Account Basically, this benefit is an interest-free $40,000 loan (with some qualifications and restrictions).

If qualified, up to 25% of it can be forgiven. That means you may only have to pay back $30,000 of the $40,000. Not too bad if everything goes according to plan. Different lending institutions may require slightly different terms so talk to your banker.

QUALIFICATIONS: You must have a payroll that grossed $20,000 or more in 2019 (website said $50,000 but the Prime Minister just announced a reduction that has not been updated as of the time of this writing). The vast majority of all Operators should be able to qualify for this program. It is designed to pay for general expenses of your business during the COVID-19 crisis. Two general things to understand: First it is interest-free UNTIL December 31, 2022 (18+ months). Second, it may NOT be paymentfree for that entire time. You must follow the rules outlined by your financial institution. For example, if you have not paid 75% of the loan back on or before December 31, 2022, you will not have the balance “forgiven”. This means, you must time your payments according to THEIR schedule to maximize your “debt forgiveness”.

This is a loan and most institutions will probably work to extend the loan beyond the December 31, 2022 deadline… for a fee of course. Find out from your bank what terms they are providing.

success can be defined as debt-free living, not playing with easy credit. My suggestion is MAKE SURE you have the FULL $40,000 available to repay before December 31st, 2022… or don’t do it.

These four programs all have advantages, disadvantages, qualifications, restrictions and even deadlines. Check with your accountant on which program he/she may think best fits your needs. You can also go to our website and watch a video on these options. Unusual times call for unusual measures.

If you have questions or concerns, please feel free to email me.

About the Author: Robert D. Scheper is a leading Accountant and Consultant to the Lease/Owner operator industry in Canada. His first book in the Making Your Miles Count series “taxes, taxes, taxes” was released in 2007. His firm exclusively serves Lease/Owner Operators across Canada. His second book “Choosing a Trucking company” is the most indepth analysis of the operator industry available today. He has a Master’s degree (MBA) in financial management and has been serving the industry since he and his wife came off the road in 1993.

His dedication, commitment and strong opinions can be read and heard in many articles and seminars.

You can find him at www.making yourmilescount.com or 1-877-987-9787.

Personally, I believe, this loan can be a trap. It must go to pay operating expenses, yet it must be paid back from future operating income. Financial 12 • OVER THE ROAD

May 2020

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Index AYR Motor Express . . . . . . . . . . . . . . . . . . . . . . 15

Robert Scheper Article . . . . . . . . . . . . 10,11,12

Chris Harris Article . . . . . . . . . . . . . . . . . . . . . . 18

Scotlynn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

CNTL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Total Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Drive Star . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

TRANSAM Carriers . . . . . . . . . . . . . . . . . . . . . . . 2

Infinit-i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

TransWest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Ray Haight Article . . . . . . . . . . . . . . . . . . . . . . 16

Travelers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Ray Haight Consulting . . . . . . . . . . . . . . . . . . . 7

Walmart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

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JOBS FOR TRUCKERS • 15

SPEAKING FROM EXPERIENCE Ray J. Haight

Strategic Planning – Do I Need It? As a consultant to the trucking industry, I have had the privilege of being able to “take a look under the hood” so to speak, of numerous trucking companies. I have also been fortunate enough to have had very personal and honest conversations with both the leadership and the general personnel working at these companies.

Through these conversations, we developed several solutions which we added to our current offering and will be of significant benefit to the future of the trucking industry. Specifically, we now have a basic, trucking-specific, Strategic Planning Blueprint. What I have witnessed during my visits with carriers is that owners often enjoy growth and success which come from hard work, determination and passion for their business and the trucking industry. However, as a company grows, there is more required than just sheer determination. Once a company starts to expand, some entrepreneurs begin to struggle because of the ongoing growth.

Some can no longer wrap their arms around the entire operation. Consequently, they need others within the organization to step up. Often, well-intentioned people are put in necessary roles without the training and proper tools to do the job. The selected candidates for these positions require a role description as well as a pre-determined explanation of what success can look like.

What is often lacking is a formally structured business blueprint showing where the owners want their business to be in the coming years.

Also lacking is a functional, corporate structure including the role descriptions mentioned above, as well as a three to five-year visionary business plan. In addition, there needs to be a twelve-month plan that includes financial goals, 16 • OVER THE ROAD

action items and personnel accountability in relationship to the financial budget. In short, an Owner must allocate enough of the right resources to properly run each segment of the business, thus guaranteeing a successful future for the company, management and employees.

The lack of a formal plan while building a solid organizational structure for a company can lead to a variety of issues. Examples are substandard financial results, high driver turnover, poor accountability of staff at all levels, CSA scores that cause concern, pressure on credit facilities and finally, no real corporate direction.

Many years back I experienced all these issues when I ran my business and I almost slid into bankruptcy because of my ignorance on how things should have been done. It was like I had blinders on. I was just not aware of the importance of a well thought out Strategic Plan.

What exactly is Strategic Planning? Simply, it is a systematic process for developing an achievable plan for the business in order to optimize its future success. It is a commitment in writing!

Unless you have unlimited time, money, and people in your company, you can’t afford not to have a strategic plan. Strategic Planning is not an option but a priority. If you are committed to seeing your organization move forward, now is the best time to create a Strategic Plan that will get your team on the same page and moving in the right direction.

When my parents passed away, I was left three trucks. I was a young man in my early twenties, and I thought the objective was straight forward.

I had been driving for a few years and knew how to get things done on the road. Namely, May 2020

* All of this should be captured in a Corporate Strategy Binder which will become the fiscal or annual playbook. Every month, department financial results are filed in the binder which will eventually show the financial results for all 12 months of the year. From month to month, each department’s numbers will be compiled to give a consolidated and complete company financial blueprint to date

pick it up on time, deliver it on time and then go back to work and do it again. And, equally as important, try to make a few bucks along the way. This worked for a while but, before long, we were running 20, then 30, then 40 and then 50 trucks. The truth be known, at first, I did not recognize when things started to go south on me. So, I had what they call a near-death experience and almost went bankrupt. Man, if you ever get close to that edge, you will never want to be close to it again. Thankfully, for me, I was able to turn things around.

* After 12 months you should review the results, correct the shortcomings, and prepare a new, achievable budget based on the last year’s performance

A well-executed Strategic Plan in trucking unfolds in a systematic way that should result in a solid playbook for all to follow. It should lay out the entire game plan for the company and should include the following:

Planning for it in this fashion does not necessarily mean a successful future because unforeseen things can happen that will affect performance. However, statistics show that the companies who do the heavy lifting with Strategic Planning are far more successful than those who do not. Easy, no! Rewarding, yes… if success is your end game.

* An outline from ownership as to where they would like the company to be in 3 to 5 years, complete with comments and recommendations from senior managers

The title for this column is “Strategic Planning Do I Need It? The answer is Yes!

* A statement regarding the fiscal year or next 12 months, again with contributions from senior managers and involved shareholders, outlining what they can do to achieve the annual target

On a final note, thank you to all the Knights of the Road for keeping things going and putting yourself in harm’s way for all of us. I hope the positive vibes outpouring towards our industry coming from John Q. Public lasts long after the virus is gone.

* An organizational chart with job descriptions for those people who have specific responsibilities to achieve the 12-month plan or annual budget. This chart should tell you if the right people are in the right areas to achieve the goals. If not, you either must recruit the right individuals or train them in-house

Safe trucking my friends.

Regards, Ray J. Haight Ray Haight TCA Retention Coach ray@tcaingauge.com www.tcaingauge.com

* Each department should submit a detailed outline of the goals they will try to attain as part of the overall target * There needs to be monthly management meetings with each department manager who reports on progress to date * There also needs to be a periodic performance review for each employee which speaks to their contribution to their department May 2020

JOBS FOR TRUCKERS • 17

SAFETY DAWG Chris Harris

Congratulations to All Truck Drivers It’s very clear that during this COVID-19 Pandemic, you have given all truck drivers a good name. Strike that - a GREAT NAME! Back in the olden days when I was a driver (more than 40 years ago), truck drivers were the “White Knights” of the road. You need to remember that back then there were no cell phones and truck drivers were the ones that would stop and help someone when a car was broken down. We would change a flat tire for a motorist and then we got thanked. That was our payment; a simple and sincere ‘Thank You!’. We were respected!

In recent years, that glowing luster has been lost. Being a truck driver over the past few years is no longer respected and revered the way it once was. (Yes, truck drivers were once respected and admired.)

I am happy to say that the drivers of TODAY have once again brought respect back to trucking due to the

18 • OVER THE ROAD

tremendous job that all drivers have been performing during this pandemic. The public has once again been reminded about the critical role that you and your fellow truckers play in getting our basic supplies to the stores and to everyone’s home.

But also, in this article, I want to think about what long term changes might happen because of all of this. Where once you were not allowed to use a washroom, this frustration has been recognized as an issue and many companies are now welcoming truck drivers. Will this be a permanent change? I sure as heck hope so.

But what else might change for the truck driver in our society? Could you get more and better parking? We all know that in North America, there is a parking shortage for big rigs.

Receivers and shippers are locking the gates and throwing trucks out into the streets to find their own parking spot.

Might the shippers and receivers once again welcome drivers and encourage

May 2020

a truck driver to park in their safe and secure parking lot? For years, shippers and receivers have been encouraged by their lawyers to not allow you to park on their premises because of the potential liability that the shipper/receiver takes on. How about the cars that you share the road with? Could those drivers appreciate you and your truck just a little more?

Will they give you just a little more room on the roadways? Or will traffic quickly return to the selfish ‘me-first’ driving attitude? I think that long term there may be less traffic on the highways. Many companies have now figured out that having their staff work from home is productive, efficient and profitable. The employee saves money and time by working from home. The company/employer can reduce its office space and overhead.

And how about sales professionals?

Many of them are now realizing that they can stay in touch and make their sales in other ways, rather than face to face selling. This, too, can reduce traffic for you, the professional driver.

And if traffic is reduced, it would also reduce pollution and wouldn’t that be awesome! Less traffic for you and reduced pollution for all of us. That is a win, win!

May 2020

Lastly and perhaps the most important. The general public now know that truck drivers perform an essential service. You drivers are not a menace on the road but you are out there sacrificing your home time and family life so that we can all enjoy our lives with all the comforts that truckers deliver on a regular, reliable basis.

Am I dreaming or wishing too much?

Will the public have long term memories of the outstanding service that truck drivers performed during this crisis? Or will things just return to normal when this is over?

Let me know your thoughts. Send me an email and, thanks for everything that you do!

Chris Harris Top Dawg, Safety Dawg Inc. 905-973-7056 chris@safetydawg.com @safety_dawg (twitter)

JOBS FOR TRUCKERS • 19

CNTL HAS OPENINGS FOR TRUCK OWNER OPERATORS IN

Moncton, Montreal and Quebec City

If you are an Experienced, Safe, Owner Operator, now is the time to look at CNTL! CNTL is CN’s Trucking Subsidiary, the continuing growth of Intermodal freight means we always have the moves available that meet or exceed your revenue objectives.

Keep more of your earnings with your fuel price capped at 35 cents per litre. Take advantage of our Tire, Bunk and Engine Heater programs, and Group Truck Insurance.

Ask about our Safety Bonus, and Safety Awards!

If you would like to talk about joining our team please contact us Email cntljobs@cn.ca Fax 1-866-803-2702 20 • OVER THE ROAD

CNTL.ca

May 2020