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Canada wage subsidy could reach more trucking companies

Government’s scaled approach to aid welcomed by country’s largest carrier organization.

A tractor-trailer drives along a street in Toronto, Canada. (Photo: Nate Tabak/FreightWaves)

Canada’s wage subsidy likely would reach more trucking companies struggling with the impacts of COVID-19 under a proposed revamp announced by the federal government on Friday.

Companies showing less than 30% drop in revenue would be eligible for the Canada Emergency Wage Subsidy under the proposed changes, Finance Minister Bill Morneau said during an appearance in Toronto. The subsidy amount would gradually reduce based on the amount of the revenue decline. 

Proposed changes came as welcome news to the Canadian Trucking Alliance, or CTA. The country’s largest carrier organization has been pushing for a scaled approach to the subsidy, joining a growing chorus of from other industries.

“We like it,” Jonathan Blackham, the Canadian Trucking Alliance’s director of public policy and public affairs, told FreightWaves. “We’re still combing the details, but on the surface, it looks consistent with what our members have wanted.”

Current wage subsidy doesn’t capture many carriers, CTA says

Many trucking companies have utilized the emergency wage subsidy, most prominently Mullen Group, one of Canada’s largest transportation and logistics companies.

But those not meeting the 30% decline haven’t been eligible. In June, the Canadian Trucking Alliance said up 50% of trucking companies did meet all of the qualifications. 

“There’s a huge proportion of our members that fell just below that 30%,” Blackham said.

The Canadian government has paid out about C$20.4 billion (a Canadian dollar is worth US$0.74) to more than 667,000 employers. The wage subsidy covers up to 75% of an employee wage up to C$847 per week (US$624).

Under the proposed changes, the subsidy would also be extended until December 19. Additional support would be available for companies seeing larger drops in revenue. 

Despite the wage subsidy and other federal aid related to COVID-19, carriers continue to face cash flow problems and looming debt payments. The CTA has also pushed for a suspension of payroll tax deductions to free up cash for carriers.

Click for more FreightWaves articles by Nate Tabak.

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  1. Tranexamic Technologies

    Tranexamic Technologies here to determine or solve the transport or travel of goods and company’s products from one place to another with the heavy machinery. The issue of Canada trucks is on the trends because some different and new laws, rules, or regulations are passed by the Government, and license issues also included in the new law.

  2. Waistcoat Pakistan

    The content is all about the truck like most of the companies are travel to another place. they are transferring the products and stuff through trucks in a bulk. Well in Canada truck issue is getting higher because of some new rules and regulation or license issues facing by the multi companies. The government should solve the issues for the peoples that will beneficial for all.

  3. Stephen Webster

    This shows that well placed lobbying is better than caring about the little people. This wage subsidy will push out many more small trucking companies and owner ops. This so wrong when truck drivers got injured and are stuck at homeless shelter and Money is made available to larger companies and I see people whom had their own insurance claims delayed for years fir on the street.5195239586

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Nate Tabak

Nate Tabak is a Toronto-based journalist and producer who covers cybersecurity and cross-border trucking and logistics for FreightWaves. He spent seven years reporting stories in the Balkans and Eastern Europe as a reporter, producer and editor based in Kosovo. He previously worked at newspapers in the San Francisco Bay Area, including the San Jose Mercury News. He graduated from UC Berkeley, where he studied the history of American policing. Contact Nate at [email protected]