Staffing Shortages and Insurance Costs
Trucking companies are grappling with extensive staffing shortages while simultaneously facing financial hurdles in hiring new candidates due to the increased costs of insuring them.
Praise for On-the-Job Training
Jamie Mullens, an owner-operator at Keltic Transportation in Moncton, mentioned in a recent interview that her company can afford to hire new drivers at a manageable insurance rate, unlike many others. “Most companies I hear about won’t even consider hiring newbies unless they have two years of experience,” she stated.
Challenges for New Drivers
Mullens highlighted that while her company provides on-the-job training, many others find the expense of employing less experienced drivers prohibitive, particularly since there are scarce insurers willing to cover long-haul drivers.
Impact on Employment Barriers
According to Jean-Marc Picard, Executive Director of the Atlantic Provinces Trucking Association, this situation creates significant employment barriers for newcomers to the industry, worsening Canada’s supply chain problems amid ongoing staffing challenges.
Concerns Over Costs
“Hiring a number of individuals under 25 can become financially burdensome if they lack substantial experience,” Picard noted in a Wednesday interview.
Factors Affecting Insurance
Amanda Dean, VP Atlantic for the Insurance Bureau of Canada, clarified that age isn’t the sole factor affecting insurance costs; rather, it includes a mix of previous driving history and the type of training received by drivers. “Currently, the inconsistency in training programs and the claims history of new drivers makes discussions around insurance more challenging,” she explained.
Evaluating Driving Schools
Mullens cautioned that the quality of driving schools varies significantly. “The duration of the training course matters as well. We prefer programs that last between eight to twelve weeks, rather than those where individuals can obtain their licenses in just a day or two,” she advised.
Advice for Aspiring Drivers
Individuals seeking to enter the trucking industry are encouraged to conduct thorough research on reputable driving schools and financial assistance options provided by the government. Picard suggested starting with local deliveries to gain experience, gradually progressing to long-haul opportunities. He also advised new drivers to apply to multiple companies that might be able to accommodate their insurance costs.
