Introduction

Presently, Canada’s transportation and warehousing sector boasts a labour force of nearly 1 million.^[1] Statistics Canada’s data for the second quarter of 2022 indicates a job vacancy rate of 5.9% in the sector—an increase from 4.2% in the same period in 2021.^[2] Many other sectors of the Canadian economy depend on modes of transportation and on the people who manage and operate them. Although labour shortages within the transportation network are not new, they remain critical as effects of an aging workforce continue to ripple throughout the country’s supply chains.

Considering the urgent need to fill existing vacancies, provide a steady stream of new entrants into the sector, and ultimately, ensure the future operational wellbeing of Canada’s transportation system, the House of Commons Standing Committee on Transport, Infrastructure and Communities (the Committee) agreed to the following motion on 3 February 2022:

That, pursuant to Standing Order 108(2), the Committee commit to undertake a study focusing on current and anticipated labour shortages in the Canadian transportation sector, for example truck drivers, mariners, maintenance staff, trainers/instructors and various types of engineers and technicians in the aviation sector; that the study would identify the implications of such shortages and look at possible solutions to alleviate problems stemming from them; and that the committee allocate a minimum of six meetings to this study.^[3]

The Committee dedicated six meetings to this study between 5 October 2022 and 2 November 2022. It heard 39 witnesses and received eight briefs. The sections below summarize the discussions with various stakeholders regarding current and anticipated labour shortages and challenges for the truck, air, marine and rail transportation sectors.

Common Challenges Across Transportation Sectors

Among the testimony presented to the Committee throughout the study, there were common concerns shared by representatives from different transportation sectors. These include the recognition and qualification of skilled professionals, the retention of existing employees and attraction of new ones within each sector, and the fostering of diverse, accessible and inclusive workforces.

Recognizing Skilled Professions

Several witnesses indicated that the proper acknowledgement of skilled trades in transportation creates easier pathways for individuals to enter them.^[4] A brief submitted by the Automotive Industries Association of Canada (AIA Canada) indicated that stigmatization of skilled trade careers deters people from even considering one. A few proposed updating the National Occupation Classification (NOC) system to provide better access to information on labour pools and to ascribe value to transportation roles.

Maguessa Morel-Laforce, Director of Government and Stakeholder Relations for the Chamber of Marine Commerce, indicated that updating the NOC system would allow better access to information on the marine industry. Using the example of engineers, he expressed that because the system is not up to date, “it’s very hard to track the labour pool right now.” This difficulty extends to accessing information on their occupational mobility, since he expressed how “[i]t’s even harder to track that labour pool based on where they were before.”

On the road transportation side, Michael Millian, President of the Private Motor Truck Council of Canada, remarked that updating the NOC system would require collaboration between the federal and provincial governments for its eventual implementation and consistent application across Canada, in a similar way to a Red Seal trade.^[5] Angela Splinter, Chief Executive Officer of Trucking HR Canada, added that the trucking industry plays a part in recognizing truck driving as a skilled occupation and needs “buy-in across the industry on what the occupational level standard looks like that makes it a skilled trade.”

Ian Gillespie, Director of Temporary Resident Policy and Programs at the Department of Citizenship and Immigration, confirmed that the NOC system was moving to its next iteration—NOC 2021—and that classifications are shifting, with “a number of [occupations] being bumped up to become considered higher-skilled.”

Immigration and Temporary Foreign Worker Programs

Some witnesses looked to immigrants and temporary foreign workers to help alleviate labour shortages.^[6] For instance, Sean Strickland, Executive Director of Canada’s Building Trades Unions, encouraged the federal government to develop an immigration stream for Canada’s construction sector modelled after the Atlantic Immigration Program.^[7] He also supported truck drivers’ eligibility to apply for immigration via Canada’s Express Entry process and called it “a step in the right direction to address labour shortages.”

Dr. Gillespie declared that last year, the Temporary Foreign Worker Program (TFWP) contributed to almost two-thirds of over 5,000 temporary foreign workers who received permits to fill job vacancies in transportation. In addition, he claimed that:

[T]ransportation jobs can also be filled through the international mobility program, which exempts employers from the requirements of the Temporary Foreign Worker Program when hiring foreign nationals whose work will create broader economic benefits for Canadians. This program facilitates access, for example, to foreign airline personnel and to railway maintenance workers. It also enables faster hiring of international technicians and professionals from countries with which Canada has trade agreements, including for occupations such as engineers, pilots and highly skilled mariners.

The Committee received testimony that questioned such programs. The Council of Marine Carriers explained in its brief that increased immigration is not a global solution, since “[t]aking qualified candidates in through immigration programs to solve our domestic issues takes them out of international shipping pools which service our exports.” Louise Yako, Task Force Co-Chair of the National Supply Chain Task Force, voiced that the TFWP “is designed for temporary shortages.” Omar Burgan, Director of Policy and Research for Teamsters Canada, echoed Ms. Yako and said that the transportation sector should consider “immigrants who are on a path to citizenship” as a more viable option. Unifor, in its brief, described that “[s]ome are advocating for the use of the TFWP to circumvent the collective agreement and erode working conditions to increase profit” and suggested that “granting migrant workers permanent residency status upon arrival” would ensure their equal rights and protections. Kaylie Tiessen, National Representative for the Research Department of Unifor, also suggested enhancing oversight over the TFWP. Lastly, Tim Perry, President of Air Line Pilots Association Canada, underlined that collective bargaining rights must not be undermined by Canadian companies relying on temporary foreign workers, foreign wet leases and improper partnerships with foreign operators.

Immigration, Refugees and Citizenship Canada (IRCC) processing timelines were also an issue raised before the Committee. Serge Buy, Chief Executive Officer of the Canadian Ferry Association (CFA), characterized delays in the processing of immigration applications as a problem that is preventing people who were offered jobs from assuming them. Similarly, Jean Gattuso, Task Force Co-Chair of the National Supply Chain Task Force, spoke about farmers being affected by long processing times for temporary worker applications. According to Mr. Morel-Laforce, these processes are taking an inordinate amount of time due to resources. He remarked that in reality, “[e]ven if many seafaring positions are given priority status […], it takes over two years between the time a candidate is selected by a company that would like to hire that person and the moment when that person has the right to work in Canada.” John McKenna, President and Chief Executive Officer of the Air Transport Association of Canada, welcomed policies that bring forth change, but placed more emphasis on the ability to administer them.

Jean-Marc Gionet, Director General of Immigration Program Guidance of the Department of Citizenship and Immigration, reported that general work permits took approximately 116 days for IRCC to process, whereas Michael MacPhee, Assistant Deputy Minister of the Temporary Foreign Workers Program of the Department, commented that Labour Market Impact Assessments for the TFWP took 31 business days to process. Dr. Gillespie told the Committee that IRCC is introducing measures to address the backlog of applications and processing times, including hiring additional processing staff and exploring technology-based solutions, and is expecting to move closer to meeting its service standards by the spring of 2023. In a subsequent response submitted to the Committee, the IRCC clarified that, as of 31 October 2022, “the total number of [applications] that are exceeding service standards for processing timelines is 1.2 million out of a total inventory of 2.2 million.”^[8]

Foreign Credential Recognition

Representatives from the air and marine transportation sectors emphasized the need for further recognition of foreign credentials to support international recruitment and streamline processes for hiring skilled workers.

Robert Donald, Executive Director of the Canadian Council for Aviation and Aerospace, suggested that Transport Canada should consider foreign licensed aviation maintenance engineers based on their competencies rather than components of their curriculum. Moreover, he requested that two NOC codes—7315 for aircraft mechanics and inspectors and 7244 for avionics and electronic technicians—be added to the list of critical labour shortages to make the hiring processes for foreign aviation maintenance engineers (AME) more efficient and less costly. He noted that in turn, companies would be able to hire as many apprentices as they do with experienced foreign workers. It takes four years to train an AME in Canada which is twice as long as many other jurisdictions. Outdated regulations require training in cloth wing and wood structure aircrafts disqualifying foreign trained AMEs who have had no such training. An AME authorised by Transport Canada to work on Canadian planes in Germany is not recognized by Transport Canada to work on those same planes in Canada. Mr. Donald called for a move to a “competency-based system instead of this methodical bureaucratic approach.”

In its brief, the CFA commended Transport Canada for signing agreements with Norway, France, Georgia and Ukraine to recognize the credentials of their mariners under the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers and recommended additional agreements with key labour origin countries such as the Philippines, Indonesia and Morocco. The Association also asked that the Government of Canada consider whether to recognize foreign marine officer and engineering licences and certifications compliant with International Maritime Organization requirements.

Diversifying and Retaining Labour Forces

Several witnesses advocated for further inclusivity of individuals from underrepresented groups, notably Indigenous people, women and youth, in transportation related occupations.^[9]

With regard to truck driving, Andrew Brown, Senior Assistant Deputy Minister of the Skills and Employment Branch at the Department of Employment and Social Development, expressed interest in learning more about reducing barriers to driver licensing for Indigenous entrants and commented that there is ongoing work in helping Indigenous communities participate in the labour market. Mrs. Splinter suggested that Canada draw inspiration from abroad to address its truck driver shortage. She shared an example of a United Kingdom initiative that encouraged women to transition from courier driving to long-haul truck driving by informing them of higher wages offered for the latter. Despite concerns over truck driving’s lack of appeal to young people, the Committee heard of a few ideas to help promote the trade to those looking for a career, namely through wage incentives and training and insurance funds.^[10]

Julian Roberts, President and Chief Executive Officer of Pascan Aviation Inc., believed that young people today are not as interested in working in the air transport sector compared to previous generations. He called for outreach activities in schools to expand youth knowledge on aviation. Jeff Morrison, President and Chief Executive Officer of National Airlines Council of Canada, referenced the British Government’s Generation Aviation Group^[11] due to similar concerns and encouraged the Committee to explore the potential of replicating such a program for Canada.

Mr. Buy voiced his belief that educational outreach should begin before kids reach high school. He also pointed out that “[a] number of [Canadian Ferry Association] members have programs to attract Indigenous people to the marine sector” and highlighted the Association’s own scholarship aimed at supporting young women who choose to train in it. Mr. Morel-Laforce claimed that the marine industry “is very much active in its outreach” to underrepresented groups and pointed out Canadian Marine Industry Foundation’s dedication in that area.

However, AIA Canada’s brief suggested that most parents have a hierarchical view of the post-secondary education system and noted that “their perceptions shape the tastes and expectations of their children.”

When asked for their opinion on tax credits as a measure to prevent aging labour forces from leaving their field of work prematurely, witnesses were split on the idea; some were in favour, whereas others doubted such an incentive would generate the intended outcome, especially for individuals who are beyond the standard age of retirement.^[12]

Truck Transportation

According to Mrs. Splinter, CEO of Trucking HR Canada, the trucking and logistics sector is the most significant enabler of post-pandemic economic recovery in the country, yet labour shortages within the sector are having a direct impact on over $850 billion of goods a year that are destined for both domestic and international markets.^[13] Witnesses revealed that the number of truck driver vacancies in Canada stood at roughly 30,000 at the end of June 2022 and, with a large percentage of the workforce over the age of 55, is projected to increase to an estimated 48,000 in another two years.^[14]

Among the underlying causes for driver shortages, costly entry to the trade, unlawful business practices and concerns over safety and work-life balance were the principal ones discussed throughout the study.

Barriers to Entry

According to Mr. Millian, individuals interested in entering the trucking trade must undergo mandatory entry-level training that can incur costs exceeding $8,000. He called for the implementation of “an increased and consistent funding model” to assist people who want to become drivers. He presumed that individuals who sign up to be a truck driver through unemployment support funds do not tend to stay in that role since they “are being pushed into the industry” when they may not want to be in it.

As well, Mr. Laskowski reasoned that if an individual has a driver’s license qualifying them to operate a tractor trailer, it does not mean that they are ready to work in the trucking industry. He expressed that unlike other sectors, the trucking sector does not have access to funding for apprenticeship-type onboarding programs. Mr. Millian illustrated the necessity for a consistent onboarding standard. In his words,

If you get entry-level training in Ontario and now you want to drive coast to coast across Canada, […] you have not seen the mountains that you’re going to go through in British Columbia. No matter what region of the country you get your licence in, you’re not going to have seen all the other areas of the country. We need that four- to six-week mentoring program where we have consistent standards and where they get hired on. Then a company mentors them, trains and finishes.

Mrs. Splinter named Trucking HR Canada’s solution “to better bridge the gap between entry-level training and employment readiness” and told the Committee that the organization submitted a proposal to the federal government to support this solution.

In addition to entry-level requirements, Nadine Frost, Director of Policy and Industry Standards at Fertilizer Canada, said that if truckers were to transport dangerous goods such as anhydrous ammonia, they would be required to undergo specialized training.

Furthermore, Bruce Rodgers, Executive Director of the Canadian International Freight Forwarders Association, mentioned that he was not convinced there would be sufficient equipment available to facilitate the entry of a surge of new drivers.

Ending Driver Inc.

Aside from retirement, the Committee was made aware of another major reason why individuals leave trucking companies. According to Stephen Laskowski, President of the Canadian Trucking Alliance, “drivers aren’t leaving the industry; they’re leaving a payrolled, labour-compliant company and going to the underground economy” otherwise known as Driver Inc. He elaborated:

It’s referred to as a personal services business. It’s a technical term for what is really a misclassification scam. It allows trucking companies to organize drivers […] so as not to pay them overtime or give them holiday pay and severance. These companies are then void and allow themselves to be carved out of payroll taxation. It also allows companies and drivers to skirt income taxes.

Mr. Millian criticized companies that engage in this practice for placing “a terrible stain” on the industry’s image. He and Mr. Burgan elaborated on their view that compliant companies and their workers end up being penalized because it is difficult for them to compete with non-compliant companies that charge lower rates. Mrs. Splinter cautioned the Committee of how these companies place workers in unsafe environments and cause the loss of billions of dollars in tax revenue.

Mr. Laskowski stated that the Canadian Trucking Alliance’s recommended approach to addressing the issue requires no new legislation, and requested simply that the Canada Revenue Agency enforce existing laws against misclassified personal services businesses in the trucking sector.

Safety and Work-Life Balance

John Corey, President of Freight Management Association of Canada, attributed high turnaround in the sector to long hours, pressure to deliver and poor rest conditions on the road, among other factors. Some witnesses supported strengthening labour standards for drivers, such as by offering good compensation and benefits and adequate access to rest areas, to reduce employee attrition.^[15]

Apart from increased salaries,^[16] a few witnesses stood by the idea that drivers should be paid by the hour, rather than by percentage, mile or kilometre, to prioritize safety.^[17]

Creative scheduling was a point of contention. On one hand, Mr. Burgan brought up an example where employers worked with employees and their union to create a schedule involving three consecutive 12-hour days followed by four days off. On the other hand, Mr. Laskowski warned that more flexibility with shifts and working hours, in particular for long haul fleets, will require more drivers.

With regard to rest areas, a couple of witnesses stressed that the deficient amount of rest areas, particularly in northern areas of Canada, makes it difficult for drivers to access meals and manage their fatigue while on the road.^[18] They also underscored the need to improve facilities with good lighting and access to showers to make them safer and more accommodating, especially for women.

Air Transportation

At the outset, Mr. McKenna labelled commercial pilot, cabin crew, air traffic controller and aircraft maintenance personnel shortages “at critical levels” and expected them to continue for the foreseeable future. Robert Donald, Executive Director of the Canadian Council for Aviation and Aerospace, provided results from the organization’s newest labour market information study, which projects that the air sector would need 31,800 new workers—including 7,574 pilots and 5,203 aircraft mechanics—by 2028, a number equivalent to 58% of the current workforce.

Witnesses informed the Committee of how stakeholders in the air transportation sector are grappling with funding support, shifting obligations and federal department service delays as they face present staffing levels and prepare for future labour shortages.

Government Resources and Support

As Canada’s aviation sector continues to recover from the impacts of COVID-19, Mr. McKenna expressed gratitude for when Transport Canada allowed for alternate means of compliance for training and licensing processes during the pandemic. He encouraged Transport Canada to embed this method, as well as other proven alternatives accepted by other major international regulators, into the Canadian Aviation Regulations. On the contrary, Mr. Perry expressed his association’s position that “the current situation regarding pilot supply has been compounded by the government’s failure to provide airlines with direct and appropriate aviation-specific COVID financial assistance in a timely manner.”

Considering the high costs required to become a pilot,^[19] a couple of witnesses exhorted the federal government to assume an active role in the training of future airline pilots, such as by establishing a guaranteed loan program or by providing funding support.^[20]

Luc Julien, Staff Representative for United Steelworkers, instanced that in the airports he knew, few new hires are ever expected to stay in the long term, mainly due to salary conditions, insurance, pension plans, rotating schedules and pressure endured on the job. Mr. Julien explained that since screening officers are employed by subcontractors and not by the Canadian Air Transport Security Authority (CATSA), the bargaining process permits union representatives to negotiate solely with the former, which “hurts screening officers’ working conditions.” He believed that representatives should be allowed to negotiate with CATSA on behalf of the workers. He also asked the Government of Canada to provide better working conditions for screening officers by supplying CATSA with the necessary resources to do so.

Ms. Tiessen brought forward the topic of precarious work and contract flipping, which she deemed an unfair common practice in the air sector that leads to labour shortages in, for instance, baggage handling, wheelchair handling and customer service at airports. To address this, she proposed improvements such as “instituting a minimum living wage at airports across the country [and] implementing full successor rights to ensure workers keep their jobs, pay and collective agreements.”

While recognizing that aviation is federally regulated, Andrew Gibbons, Vice-President of External Affairs for WestJet Airlines Ltd., showcased a recent memorandum of understanding between the airline and the Government of Alberta, which included “investments in labour market training programs, pilot training, addressing the punitive costs of aviation jet fuel and building visitor economy.” He also praised the Canada Emergency Wage Subsidy for permitting WestJet to retain many of its employees.

Regulatory and Policy Requirements

In Mr. Gibbons’ words, “an accordion of changing health measures and shutdowns resulted in many employees vacating industry.” He contended for a greater shared accountability structure around air travel disruptions and asked that the government provide stability and transparency as part of it, including clear criteria and metrics for any future restrictions placed on air carriers.

Mr. Roberts and Yani Gagnon, Executive Vice-President and Co-owner of Pascan Aviation Inc., reiterated that changes to regulations concerning flight and duty periods for air operators governed by subparts 703 and 704 of the Canadian Aviation Regulations will place additional strain on small air carriers.^[21]

As for air traffic controllers, Ben Girard, Vice President and Chief of Operations of NAV CANADA, told the Committee that training professionals and unionized operation employees deliver their air traffic services training programs, which can take between two to three years for individuals to complete. Since qualified air traffic controllers need to be retrained to work at another facility in Canada, he propounded that Transport Canada work in collaboration to modernize licensing processes so that qualified individuals are assessed more on competency as opposed to geographic location.

Administrative Delays

Mr. McKenna voiced his discontent with processing delays from federal government departments and the levels of service provided by Transport Canada Civil Aviation due to a lack of experienced engineers and inspectors. Although other witnesses confirmed that Transport Canada had improved its issuance of medical certificates, they nonetheless equated delays with idling equipment and pilots.^[22] Likewise, Mr. Morrison spoke of wait times for Restricted Area Identity Cards for airline crews that prevented them from accessing the workplace.

Rail Transportation

According to the Railway Association of Canada (RAC), railway companies directly employ 33,000 Canadians and indirectly support over 180,000 jobs. In its brief, the RAC stated that the industry is facing job vacancy rates higher than the historical average and that vacancies for railway and yard locomotive engineers can last over 120 days. In addition, nearly 50% of rail industry workers are 45 to 64 years old, which means a significant portion of the labour force will likely retire in the coming years. As regards recruiting and retaining employees, the RAC indicated that it is particularly difficult to recruit skilled workers in rural or remote areas, even though compensation in the rail industry is generous. Retention issues are primarily due to the fact that most positions do not allow for the level of work-life balance that many workers are looking for.

Working Conditions

In addition to the points raised by the RAC—such as the fact that certain positions require physical work, that it could mean moving to a remote region and that the rail industry operates 24 hours a day, 365 days a year—some witnesses mentioned other issues that affect the working conditions of rail employees. According to Mr. Burgan, employees in the rail sector face significant pressures, particularly as regards the disciplinary measures in place at some companies, the fact that workers are expected to be available at all hours, the presence of inward-facing cameras in locomotives and the risks to safety. Mr. Corey said he thought that railways could do a lot more to create a safe workplace. He explained that railways will lay off employees in a bid to save money when freight volumes decrease temporarily, which puts additional pressure on the remaining employees and puts their safety at risk. On that point, the RAC said in its brief that Canada’s railways are among the safest in the world. However, it still recommended that the federal government accelerate the approval and implementation of new technologies to further enhance rail safety and reliability.

According to Mariam Abou-Dib, Executive Director of Government Affairs at Teamsters Canada, despite the fact that new duty and rest rules have been introduced for rail workers in recent years, fatigue continues to be a problem in the sector, exacerbated by the labour shortage. She recommended that the Department of Transport carry out a “very focused” study on fatigue and the regulations relating to it. Similarly, Mr. Corey suggested that railways should provide better working conditions, such as allowing workers to work fewer hours, which he said would result “in safer working conditions and a happier and therefore more productive workforce.” According to Mr. Burgan, when workers are part of a union, they can leverage their collective bargaining power to improve their working conditions.

Labour Disruptions

Witnesses from the agriculture sector emphasized the importance of the rail sector in supplying the agriculture sector and transporting its goods.^[23] As an example, Mrs. Frost pointed out that Canadian fertilizer companies rely heavily on railways, as 75% of fertilizer, by volume, is moved by rail. Witnesses also talked about periods of instability and recent issues with the service provided by Canadian railways. Dave Carey, Vice-President of Government and Industry Relations at the Canadian Canola Growers Association, said that one of the sources of supply chain instability for the grain industry is the relationship between Class I railways and their labour force.^[24] He made the following comment about a labour dispute between one of these companies and a group of workers in March 2022:

[A] shutdown was avoided in the eleventh hour, but there are still ramifications for supply chain fluidity with even the threat of labour action. In advance of labour deadlines, the railways begin curtailing operations, sending a wave of logistical disruptions and delays back through the supply chain. In November 2019, another class I railway did have labour action that affected operations for a full week, with effects reverberating for months after.

Mr. Carey pointed out that 12 Canadian Pacific (CP) and Canadian National (CN) labour agreements would expire in 2022 and recommended that the Government of Canada establish an industry-government labour council to track the progress of collective agreement negotiations and ensure that the supply chain is not disrupted as a result. Erin Gowriluk, Executive Director of the Grain Growers of Canada, was also in favour of establishing such a council, in line with the recommendation of the National Supply Chain Task Force’s final report to the federal government in October 2022:

The Minister of Labour should urgently convene a council of experts to develop a new collaborative labour relations paradigm that would reduce the likelihood of strikes, threat of strikes, or lockouts that risk the operation or fluidity of the national transportation supply chain.^[25]

Ms. Gowriluk also said that the agriculture sector should be represented on the council. She pointed to the damaging effects of work stoppages on the Canadian economy, the livelihoods of workers in the agriculture sector and Canada’s international reputation as a reliable shipper, and she said her organization was in favour of using binding arbitration and back-to-work legislation to ensure that labour negotiations “are never allowed to affect service delivery.” For its part, the National Cattle Feeders’ Association (NCFA) highlighted in its brief that Western Canada cattle feeders rely to a great extent on the CP rail network to provide their supply of feed grain, which makes them vulnerable to rail network disruptions. Given this monopoly, the NCFA called on the federal government to declare rail an essential service to ensure the labour force is present to keep animal feed supplies moving.

Marine Transportation

According to the Canadian Marine Careers Foundation (CMCF), the Canadian marine sector includes over 1,000 employers and employs over 100,000 skilled workers in both the private and public sectors. In its brief the CMCF explains that the marine labour force is aging, with approximately 43% of Canadian seafarers expected to retire in the next 10 years. Projections show that approximately 19,000 new workers will have to be hired during that period. According to Mr. Buy, an internal survey of CFA members in 2019 revealed that 55% to 62% of employees in senior positions would be able to retire within five years. Mr. Buy said the situation is already critical, because there are “increasing numbers of ferry crossings that are cancelled due to labour shortages.”

Promoting the Marine Sector

Some witnesses said that a key issue in marine sector recruitment is that the Canadian public, and young people in particular, are not aware of the job opportunities in the sector and the competitive wages it offers.^[26] A few witnesses mentioned an industry initiative by the CMCF called “Imagine Marine,” which promotes the marine industry. Mr. Buy also said that the operators themselves are going into schools to promote programs to young people.^[27] In its brief, the Council of Marine Carriers recommended that the Government of Canada, in partnership with the marine industry and provincial and territorial governments, develop a national strategy to promote careers in the marine sector.

Ken Veldman, Vice-President of Public Affairs and Sustainability at the Prince Rupert Port Authority, pointed out that addressing labour recruitment issues in the marine sector must be considered in the context of the labour needs of local communities. He said that the labour force in Prince Rupert is fully employed and that local employers, including the port, have trouble recruiting from elsewhere, primarily because local municipalities have trouble meeting the infrastructure needs for both housing and public services. He made the following recommendations to the Government of Canada:

[T]he Government of Canada should consider a more proactive role in providing direct financial assistance to port gateway municipalities to increase capital infrastructure when those increases would outstrip local financial capacity. It should also consider prioritizing local partnerships in those same regions to address labour force supply impacts and issues that result from having national trade move through local gateways.

Training

According to Mr. Morel-Laforce, the status of recruitment for all positions on ships, from the most specialized to the least, is “critical.” He said it can take up to five months to train a sailor and between six and eight years to train a ship captain. Representatives from the marine sector made recommendations to the federal government about training that can be grouped into three broad proposals:

• increase training capacity;
• increase funding for training; and
• modernize training methods.

In its brief, the Council of Marine Carriers recommended increasing marine learning capacity in Canada by increasing the number of primary maritime institutions and providing learning centres in remote areas where entry-level and refresher courses could be offered. Similarly, the CMCF said in its brief that Canada has a limited number of marine training facilities, which makes training difficult to access for many communities and for workers seeking to upgrade their skills. In particular, the CMCF said that training capacity for marine emergency duties (MED) must be increased, because in some cases the MED facilities “have reached the limit of their ability to expand without additional investment.”

According to Mr. Morel-Laforce, the Government of Canada offers little support to training institutes and students in the marine sector. He called on the government to provide regular funding to support the training of new employees, both in the private sector and in the Canadian Coast Guard. In its brief, the CMCF called for increased financial aid for on-the-job training at sea, which would encourage businesses to take on more trainees. When he appeared before the Committee, Mr. Brown mentioned the Sectoral Workforce Solutions Program, which was introduced in Budget 2021.^[28] He explained that the program provides $960 million over three years to “assist workers through training and reskilling.” Similarly, Melanie Vanstone, Director General of Multi-Modal and Road Safety Programs at the Department of Transport, outlined the Marine Training Program, which was renewed in Budget 2022 as part of the Oceans Protection Plan “to reduce barriers to marine training to under-represented groups.”^[29]

In its brief, the CFA pointed out that another way the Government of Canada could support training in the marine sector, particularly for seasonal workers, would be to modify the Employment Insurance rules to better accommodate training for current employees to ensure they can still work enough hours to maximize their EI benefits.

Several witnesses said that increased use of new technologies, such as virtual reality, artificial intelligence or online learning, could streamline marine training while increasing training accessibility and affordability.^[30] In its brief, the CFA called on the Government of Canada to enable marine training institutions to deliver virtual training for portions of the curriculum. The CFA also highlighted that some of the regulations governing the crewing of ferries are decades old, and its President and Chief Executive Officer, Mr. Buy, said that new technologies could mean fewer crew members would be needed, which could help address labour shortages. Both the Council of Marine Carriers and the CFA called on Transport Canada to undertake consultations with marine stakeholders to review and modernize the regulations governing the crewing of ships.

Supply Chains and the Labour Force

Some witnesses explained to the Committee that the supply chain in Canada is highly integrated and that disruptions to any link in the chain, whether caused by labour issues or not, have a cascading effect.^[31] For example, Mr. Carey said that grain is transported from farm to elevator by truck, and then from elevator to port by train, and then from port to the final destination by ship. Similarly, Ms. Gowriluk said that a reliable and efficient transportation system is vital for Canadian farmers, because they are not paid if they cannot deliver their grain to domestic and international markets. In its brief, the NCFA stated that Canadian farmers “compete globally and require governments to maintain a business environment that fosters success.” The NCFA contended that the solution is to address the labour shortage for truck drivers and also to invest in transportation infrastructure such as roads and rail transfer and storage facilities.

Bottlenecks

Witnesses identified a number of bottlenecks that are currently affecting supply chain fluidity. Mr. Morel-Laforce provided one example, criticizing the fact that the St. Lawrence Seaway is currently operating at only 50% capacity. While he acknowledged that it may be difficult to increase capacity due to marine labour shortages, he believes that increased use of the seaway would “alleviate pressure on other modes of transport.”

Mr. Rodgers spoke of truck drivers having to wait in long lineups to pick up containers from rail yards and ports. According to him, traffic congestion is such that some drivers can wait up to seven hours just to get into a yard or terminal. Mr. Corey said that dwell times can be caused by a number of factors, such as inefficiencies at the intermodal yard or an issue on the railway end. As a result, he believes better supply chain coordination between stakeholders is needed. According to Mr. Rodgers, long wait times make it difficult to recruit new drivers. In fact, Julia Kuzeljevich, Director of Policy and Communication at the Canadian International Freight Forwarders Association (CIFFA), said that human resource issues in the supply chain are tied up with “the frustrations of the supply chain itself.” Mr. Rodgers added that CIFFA’s first recommendation to the federal government to address labour shortages in the transportation industry is to address bottlenecks.

Mr. Millian mentioned the Free and Secure Trade (FAST) program, which expedites trade across the Canada–United States border.^[32] He said that the FAST processing centres on the Canadian side have been closed since March 2020, which means that new truck drivers cannot get their FAST certification. As a result, those drivers have to wait longer at the American border, and they cannot haul dangerous goods in the United States. Mr. Millian added that the government officials who conduct the interviews on the Canadian side are U.S. officers, and that a solution must be found to bring them back to the Canadian side of the border to hold interviews again. Similarly, Mr. Morrison said there was a backlog of “over 350,000” applications for a NEXUS card, which speeds up border crossings for low-risk travellers.^[33]

National Supply Chain Task Force

Some witnesses urged the federal government to support the full suite of recommendations in the final report of the National Supply Chain Task Force.^[34] They called on the federal government to implement a national supply chain strategy, as recommended by the task force, to address the labour issues in the transportation sector. Mr. Rodgers shared this view and added that, from CIFFA’s perspective, Canada has “a national trade corridors fund, but [it doesn’t] have a national trade corridors strategy.”^[35] He agreed that the labour component has to go hand in hand with infrastructure investment.

Ms. Yako and Mr. Gattuso both highlighted the importance of a reliable and efficient supply chain for Canada’s economic wellbeing. They advocated for collaboration between the public and private sectors to better understand the current and future labour issues associated with supply chain operations and to find solutions to address them. Ms. Yako also stated that establishing the Supply Chain Office, as recommended by the task force, was needed to ensure better coordination between the various federal departments involved in supply chain operations. She added that the objective is “more efficiency in how those regulations that affect supply chains are developed, monitored and managed.” Mr. Gattuso said that one of the roles of the Office would be to ensure that the federal departments involved have key performance indictors that are oriented to the supply chain. Some witnesses were in favour of establishing this office, or of designating a supply chain leader,^[36] but Mr. Buy did caution that labour shortages were already an issue within government departments, and he was not convinced that “creating a big bureaucracy on top of everything” would be a good idea.

During his testimony, Mr. Gattuso referenced some of the recommendations made to the federal government in the task force’s final report. He said that the following recommendations would address the labour force issues directly:

• establish a transportation supply chain labour strategy;
• expand existing labour programs and examine a way to attract workers from under-represented groups;
• expand the TFWP as it applies to workers in the transportation supply chain;
• expedite refugee and immigrant processing for those eligible to work in supply-chain-related businesses; and
• support organizations and businesses to help newcomers acclimatize to Canadian work environments.

Data Visibility

To improve coordination between all parts of the supply chain, Mr. Corey said it is very important to collect just-in-time data so that shippers and supply chain operators can make decisions based on what is happening in the present. Nick von Schoenberg, President of the Canadian Air Traffic Control Association, said, “We can’t address bottlenecks in the system if we don’t properly identify where they are.” Mr. Morel‑Laforce also pointed to the fact that the National Supply Chain Task Force highlighted “the need for more data sharing” in its report.^[37] According to Mr. Corey, more needs to be done to attract data management workers, because there are many job opportunities for highly skilled positions in the supply chain sector.

In addition to calling for improved data collection to have a better understanding of bottlenecks, some witnesses also called for better labour market data collection.^[38] According to Mr. Morel-Laforce labour market data for the marine sector is scarce, and what does exist is usually out of date. The CMCF recommended in its brief that government agencies and the marine industry partner to establish a standardized methodology and data collection process for workforce data across the marine sector.

Benefits of Technology

During his testimony, Mr. Gattuso said that, regardless of advancements due to automation and artificial intelligence, industry stakeholders believe that “labour will continue to be a limiting factor for a reliable and efficient supply chain.” He expressed doubt that 43-foot trucks would be on the highway without drivers anytime soon. Ms. Vanstone said that the Department of Transport is well aware that the nature of occupations in the supply chain sector is constantly evolving and that integrating new technologies will require advanced skills. She said the department is taking steps to support this shift.

According to Mr. Laskowski, the most significant benefit of technology in the trucking sector is for safety, naming driver-assist technology as an example. While he said “[t]echnology isn’t going to replace truck drivers,” he did say that it “might attract more people, because the trucks will be safer to drive.” Similarly, Mr. Millian said he prefers the term “driver-assisted” to “autonomous,” and added that the industry should promote the technological advances in trucks to attract young people.

Mr. Morrison said that technology can play a role in improving the air travel experience. He gave baggage handling, customs and security as examples of sectors where technology has proven useful in increasing the efficiencies of the “travel system.” He believes that technology should be used more in airports, adding that “biometrics could play a role in addressing labour shortages.” Mr. Girard, NAV CANADA’s Vice President and Chief of Operations, said that NAV CANADA was implementing a number of technologies, and gave the example of trajectory-based operations, which is very useful for air traffic controllers and “increases safety and efficiency.” As regards integrating new technologies in the aviation sector, Ms. Tiessen called for workers to be consulted more in the early stages, as did Mr. von Schoenberg, who said that tech initiatives are promising, but he would like to see more consideration for “human factors.”

Conclusion

Throughout the study, various stakeholders in the transportation sector told the Committee about the current and future labour challenges they are facing. While each mode of transportation has its own particularities, many witnesses made similar suggestions about the need to diversify the labour force, promote jobs in these sectors to youth, improve working conditions, increase financial aid for training, recognize jobs in the transport sector as skilled trades, and streamline processes allowing foreign workers to fill vacant positions. With a view to improving the efficiency and reliability of the supply chain, some witnesses called for greater coordination between stakeholders and emphasized the importance of collecting data to identify bottlenecks and labour needs in real time.