Thursday, June 12, 2008

Trucking companies risk closing if government doesn't take action, Teamsters say

Dozens of Canadian trucking companies risk closing, if the federal government doesn't create a national rebate program to mitigate the soaring price of fuel, Teamsters Canada warned today.

The union, which represents thousands of Canadian truckers, today called on the government to use budget surpluses to assist the transport industry. The practice already exists provincially; the Quebec government gives independent drivers protection against rising gas and fuel costs, the Teamsters said.

"One thing is sure: current gas and fuel prices will have dire consequences for the health of Canada's economy," predicted Teamsters Canada President Robert Bouvier. "The federal government must take action to protect the future of transportation-industry workers and all Canadians.

According to transportation experts across the country, the prices of gas and fuel-which has surpassed the $1.50 per litre mark in several regions of the country, imposes a perilous cost on trucking companies, brokers and owner-operators, the Teamsters said.

"In my 40 years in this business, I have never witnessed such a critical situation. It is only a matter of weeks before companies will begin to disappear," says Robert McAulay assistant director of the union's central division freight and tank haul division.

Since the vast majority of goods arrive at Canadian stores by truck, higher fuel prices could further inflate food prices, which are already on the rise.

"Even a minor rise in gas and fuel costs impacts the price of produce, goods and services," said Richard Van Grol, assistant director of the union's freight and tank haul division in Western Canada.

"In the long term, customers will suffer the consequences."

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