No. H201/05
For release October 28, 2005

TASK FORCE COMPLETES REPORT
ON BRITISH COLUMBIA TRUCKING DISPUTE

VANCOUVER — The governments of Canada and British Columbia today announced that they have received the final report of the task force appointed to review issues associated with the port container trucking industry in British Columbia.

The task force report contains recommendations for a long-term strategy to facilitate industry relations and ensure the efficient movement of containers at the ports of Vancouver and Fraser River in the Lower Mainland of British Columbia, which could ultimately help improve the effectiveness and reliability of the regional and national transportation network. The report will be released by the federal and provincial governments on November 4, 2005, in Vancouver.

“I would like to thank the task force members for their work,” said Transport Minister Jean-C. Lapierre. “I look forward to reviewing the recommendations they have made based on their deliberations and consultations with stakeholders. I am also committed to working closely with the Province of British Columbia and ports in Vancouver to implement the actions needed to bring about a lasting solution. The province and ports are key partners in ensuring stability within the container trucking industry in the Lower Mainland.”

“Our port system is a valuable element of the economies of British Columbia and Canada,” said B.C. Transportation Minister Kevin Falcon. “It is essential that all parties work together to find a long-term solution that will ensure our port system can operate smoothly to take advantage of the expanding opportunities that lie ahead.”

“The task force report is an important step in identifying how to make the port system work more effectively,” said Minister of Industry and co-Senior Minister responsible for British Columbia, David L. Emerson. “The ports in Vancouver are vital for local and national economies and a key part of our Pacific Gateway Strategy, so we need to ensure they can run as seamlessly as possible.”

“The most important thing is to keep people working and having a viable system at the ports that enables us to achieve this goal,” said Labour and Housing Minister Joe Fontana. “We will seriously consider the recommendations, and as a government we are committed to working in partnership with the province, the port authorities and the labour and business sectors to find long-term solutions.”

The Government of Canada will give the task force report full consideration with the Province of British Columbia and ports of Vancouver and Fraser River before a framework to provide long-term industry stability is fully developed and implemented.

As a transitional measure, the Government of Canada has approved a further order-in-council under section 47 of the Canada Transportation Act, for a period of 90 days, to ensure that all truck owner/operators can meet the conditions stipulated by the ports to obtain a license without the risk of contravening the Competition Act. This order-in-council will also provide both levels of government with an opportunity to evaluate the task force recommendations and to develop a framework that offers a more permanent solution.

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BACKGROUNDER

PORT OF VANCOUVER TRUCKERS’ DISPUTE

On June 27, 2005, owner-operator truckers withheld services in the movement of containers at ports in the Lower Mainland of British Columbia due to a dispute with truck companies and brokers over rates and other conditions. The dispute had a significant impact on the ports and had begun to affect the efficiency of the national transportation system. The Government of Canada therefore decided to take action designed to help resolve this dispute and to protect public interest.

On June 30, 2005, the federal Minister of Labour and Housing Joe Fontana and the British Columbia Minister of Labour and Citizens’ Services Mike de Jong jointly appointed Mr. Vince Ready as facilitator to assist the parties in reaching an agreement. Both sides welcomed this appointment and worked with Mr. Ready. Despite the efforts of the facilitator, there were a number of issues the parties were unable to resolve.

By its fourth week, the dispute was having a significant impact on the Port of Vancouver and repercussions were being felt within the national transportation system. On July 29, 2005, Transport Minister Jean-C. Lapierre, together with Industry Minister and co-Senior Minister responsible for British Columbia David L. Emerson, announced federal action to help reach a negotiated settlement of the trucking dispute at the Port of Vancouver and other ports in the Lower Mainland of British Columbia.

The Government of Canada approved action under Section 47 of the Canada Transportation Act, which established a special time-limited opportunity of 90 days for the parties and other interested groups to discuss and develop an agreement without risking violation of the Competition Act.

On August 5, 2005, the two ministers announced that the Government of Canada had approved further action under Section 47 of the Canada Transportation Act, requiring the Vancouver Port Authority and the Fraser River Port Authority to follow through with a system of licensing for the delivery, pick-up or movement of containers at the ports.

This action also required the applicants for licences to be signatories to the memorandum of agreement between the container trucking companies and the Vancouver Container Truckers’ Association dated July 29, 2005. In addition, the applicants were required to accept the dispute resolution process outlined in the memorandum of agreement and that the Vancouver Port Authority and the Fraser River Port Authority prohibit access to the ports if the above requirements were not met.

On August 8, 2005, Ministers Lapierre, Emerson and Fontana, along with the Province of British Columbia, announced the creation of a three-member task force to review and report on underlying transportation and other structural and representational issues associated with the trucking dispute at ports in the Lower Mainland of British Columbia.

The task force was mandated to examine transportation and industrial relations issues affecting owner-operator truckers and trucking operators. In particular the task force:

• examined and made recommendations on the roles of affected port authorities, brokers, freight-forwarders, shippers, trucking firms, truck owner-operators, as well as the provincial and federal governments with regard to optimizing efficiency in the movement of containers in the Lower Mainland of British Columbia, including movements into and out of the Ports of Vancouver, Fraser River and North Fraser;
  
  
• examined and reported on possible synergies and optimization in the operations of the various port authorities, as well as the application of licensing systems at the ports;
  
  
• examined and provided options and recommendations regarding legislative and/or regulatory frameworks available to the federal and provincial governments and how these may be applicable; and
  
  
• examined the industrial relations between the trucking companies and container truck drivers serving the Ports of Vancouver, Fraser River and North Fraser, including the process for determining rates and other contract terms and conditions and the process for resolving disputes.

In October 2005, the task force submitted its final report concurrently to the federal Transport Minister and federal Labour Minister, British Columbia Minister of Labour and Citizen’s Services and to the British Columbia Minister of Transportation. The Government of Canada will give the task force report full consideration with the Province of British Columbia and ports of Vancouver and Fraser River before developing and implementing a framework to provide long-term industry stability.

As a transitional measure, the Government of Canada has approved another order-in-council under Section 47 of the Canada Transportation Act, for a period of 90 days, to ensure that all truck owner/operators can meet the conditions stipulated by the ports to obtain a license without the risk of contravening the Competition Act. This order-in-council will also provide the two levels of government with an opportunity to evaluate the task force recommendations and to develop a framework that offers a more permanent solution.

October 2005