Al pals with MTO truckers on fuel surcharges

Ontario Economic Development and Trade Minister Al Palladini and Transportation Minister David Turnbull said the Ontario government is “leading by example” after it agreed to a $5-7 million deal that will compensate fuel surcharges to independent truckers working on MTO contacts.

The two ministers announced at Queens Park this morning that the surcharges will be paid to the Ontario Road Builders Association before Christmas and then passed on to MTO contracted truckers. The surcharges will be paid retroactively to Sept. 1 of this year, based on a fuel price established as of Jan. 1, 2000. Turnbull said the amount depends on the type of work and amount of diesel used for that operation.

“The amount purely depends on when they’ve signed the contract. If they signed the contract when fuel prices were already high, it would be a different amount to if they signed before Jan. 1.” Turnbull said. “The concern was about the increase in fuel prices. We are giving them the increase of the fuel cost right back to Jan. 1 of this year if they signed the contract on or before that date.”

Palladini says the deal sends a clear message to the rest of the trucking industry that the government is doing its part and that carriers and shippers should follow suit. He also reiterated his plan to regulate fuel surcharges if the industry can’t find a solution on its own.

“I know that truckers are facing a difficult situation, but I must say they need to remain calm and continue to discuss the issues,” he said. “They will benefit far more from industry-led solutions.”

However, it seems the National Trucking Association is no longer buying Palladini’s plan to talk it out. After walking away from the bargaining table yesterday, the NTA said independent drivers are on the verge of strikes and roadblocks as they head into this “make or break’ weekend. The NTA is frustrated in not being able to get a 24% fuel surcharge, based on 1998 averages.
Palladini today came just short of defying a possible strike.

“The people of Ontario won’t support any disruptions, nor will the government allow public safety to become an issue,” he said.