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  • OTRI.USA
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  • OTVI.USA
    16,895.230
    487.410
    3%
  • TLT.USA
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    0.130
    4.7%
  • TSTOPVRPM.ATLPHL
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    2.3%
  • TSTOPVRPM.PHLCHI
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CanadaNewsTrucking

Celadon’s handling of Hyndman closure prompts criticism from Canadian lawmaker

Federal MP Bryan May laments bankrupt U.S. owner’s treatment of drivers after shuttering of 80-year-old trucking company in his Ontario district.

A Canadian lawmaker criticized Celadon Group’s abrupt closure of Hyndman Transport, calling it a “footnote in their thought process.”

Byran May, a Liberal federal member of Parliament whose Ontario district includes Hyndman, told FreightWaves he found the reports of drivers being stranded and the timing of the closure particularly troubling.

“You would have hoped there was a thought given to these drivers who are out of work just before Christmas,” May said. “It should have been handled differently.”

Hyndman Transport closed on Dec. 9 as Celadon Group filed for Chapter 11 bankruptcy protection in the United States. There was no warning — and drivers, including those in the U.S. — had to race back to Hyndman facilities.

“It was definitely jarring,” May said.

Other Canadian carriers have been aggressively courting Hyndman drivers. May encouraged drivers and other employees to apply for federal unemployment benefits even if they expect to be working soon.

“Even if they think they will get a job right away, they should still get the ball rolling,” May said.

May encouraged those affected by the closure to contact his office for assistance with unemployment or other government resources.

May’s counterparts in the province and local government in North Dumfries have also been working to assist those who lost their jobs at Hyndman.

Drivers, owner-operators and other staff received their final paychecks last week. But many issues remain, including outstanding vacation pay.

“My hope is that everyone gets what they’re entitled to,” May said.

Under Canadian federal law, former employees are entitled to make priority claims for any back pay or vacation pay in bankruptcy proceedings. They can also apply for reimbursement under a federal program.

As of Dec. 16, Celadon did not appear to have made a bankruptcy filing in Canada or to have applied to have the U.S. proceedings recognized. Either could be forthcoming, along with the appointment of a trustee.

May noted that a trustee would make it easier for his office and other government entities to assist former Hydnman drivers and staff.

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Nate Tabak, Border and North America Correspondent

Nate Tabak is a Toronto-based journalist who covers cross-border trucking, logistics and trade for FreightWaves. Before moving to Canada, 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 ntabak@freightwaves.com.

10 Comments

  1. Quote:

    “May said. “It should have been handled differently.”

    Make it a LAW without any loopholes ! And if “they” don’t abide by it , render the penalty extremely stiff . Ie: Can no longer hold a position in Corporate management and personally severely fined which no form of bankruptcy can protect etc. .

    “Words” aren’t worth their weight in gold . Action is !

    In my humble opinion ………….

    1. Furthermore , “Management Liability Insurance ” should no longer be an option , it should be a legal obligation . Just like with “vehicle insurance” .

      In my humble opinion ………………

  2. It was worse than he said many trucks drivers got home at their own expense. A lot of Celadon truck drivers are getting non truck driveing jobs in Ontario Canada. As truck drivers are in surplus in Canada at this time because of so many foreign truck drivers. The freight rates will not work for many companies at current rates.

    1. .

      You’re exaggerating …….

      There are many vacancies in the trucking trade . MANY ! What the industry lacks is proper wages , proper management , proper structure , proper treatment , and proper mentalities . Currently the industry doesn’t lack jobs . You should stop blaming foreigners for the current problems in the trucking industry . It makes you appear ignorant and racist . Stephen , you should know better than to act like that .

      In my humble opinion ………

  3. Stephen , there were just as many if not more foreign truck drivers when rates were rising along with driver wages and sign on bonuses during the midst of the recent cyclical peak . Heck WE couldn’t keep up with demand !!!

    Were “foreigners” to blame then ?

    So if I understand you correctly . According to your hypothesis , when the sun shines and the economy is bursting at the seams , foreigners are not a problem . But once the wind shifts direction and clouds start to appear causing the economy to contract , foreigners are a problem ?

    Please tell me that you didn’t think this through before commenting .

    However, that’s quite an interesting perspective of yours to say the least . And from what I have seen from you so far , YOU are quite an advocate concerning truck driver injustices . Though you yourself are pointing your finger unfairly against “certain” truckers , from my perspective .

    In my humble opinion ………………

    1. There was no need to bring in so many truck drivers from other countries . We could have brought a limited number to run second driver on a team in March of 2018 for 8 months work plus a month of training. We should set a wage rates when came back the second spring of 1.6 times minimum wage rates and the third spring of 1.9 times minimum wage. There are construction jobs that stop at the end of November and I start again in week 2 of April. Many cash crop farmers and staff are also available to drive truck in the winter months. I believe that everyone should be equal but certain trucking companies in Ontario Canada and other places used these ( foreign truck drivers) to keep wages 20 to 30 percent lower than the open market rate with E-LOGS. I can name 4 trucking companies that pay $28.00 to $33.50 per hour plus overtime. Wescan transportation Purolator, Coke and the City of Toronto. They all have very many applications now . I have not heard of one Celadon truck driver getting a job with them since the shut down. The with new truck drivers is the companies can push them to do unsafe things. The truck driver who can leave has a choice between a bad job. The foreign truck drivers do not have that. Choice. I see too many foreign people coming over here and they dropped the rates fora gravel truck from $94.00 per hour to $73.00 per hour and are paying the night drivers that are here as student s 23 percent of the Gross no benefits. The other company was paying $28.59 to $ 30..25 per hour plus overtime and medical benefits plus $20 per day meal allowance when over 100 km from base. One company I know was paying in 2018 $28.50 to 33.10 to haul hazmat their loads. In Ontario in April of this year after giving all the truck drivers 60 days notice sent the Ryder trucks back and leased their trailers to a company that pays $19 to $24.50 per hour to a corporate name no benefits no C P P or UI or W I S B but the truck drivers out their pay. $153.00 per month for private disability insurance. These other truck drivers were able to get other jobs both in trucking and non trucking companies but most took a drop in pay.. In Huron Perth there are many truck drivers out of work or working in factories.

      1. Quote:

        “There was no need to bring in so many truck drivers from other countries .”

        We can say the same in regards to participant entry concerning our own in our Country(s). That’s what we need to limit . But, we must also be positioned to fill demand when the market expands without jeopardizing the industry once it contracts .

        Here in my neck of the woods there is a very well known big trucking school . The course is subsidized by government and lasts 5 1/2 months . The truck driver course is offered in two languages and during the day and another at night . Both classes in both times of the day are always filled to full capacity . And “person” with a certain level of education and a license can take that course for under $150 CAD out of their pocket .

        Very few among attendants are foreigners .

        In your neck of the woods ,Toronto , there are many foreigners . It’s a major city in Canada and the spoken language is English . This in of itself will tend to attract more foreigners . In Toronto foreigners are in all types of trade .

        Granted foreigners chose to integrate the trucking industry and compete among one another as everyone does .

        The key word here is : “some” . Not “all” but “some ” . Just like “some” of us .

        Now in regards to competition . Some of my home land kind offer $20 an hour to haul a tanker . Some offer $25 an hour . THEY ARE FROM HERE , and Caucasian , not foreigners . Some offer $18 an hour to haul dry box , while others offer $23 to $30 .

        This suggests that wages are not based on nationality nor culture , etc . Wages and rates are all over the place . There is no structure . Everyone is trying to earn a buck , competing to earn it , and many pocket it rather than share it .

        Most companies in the trucking transport industry that I saw go under was not due to foreigners . Some lost huge contracts , some were mismanaged , some say it was due to an increase in costs and a decrease in profits , some say it was due to fraud , some say whatever reason they want to give .

        The point is , while you’re complaining about foreigners , who by the way tend to pay a higher per mile rate than average according to my experience , we’re overloading the industry with potential drivers of our own .

        Our own will find a job , some will be abused like most of us are in some shape or form . Then either they will quit the industry or buy their own truck and compete against everyone else in the industry . If they manage their business well , they may potentially expand etc .

        Saputo is a “foreigner” and offers drivers above average pay and benefits . Coca-Cola is a FOREIGNER in Canada as well .

        I will repeat , it’s not a “foreign” problem . It’s a problem due to mentality and a lack of good structure and proper management , period !

        I’m not going to blame “nationalities” .

        In my humble opinion ………….

    1. Speaking of coffee , are regulations going to test us for caffeine content , and ban us from driving do to its consumption ? LOL !

      According to an American scientist , both have similar effects on the brain .

      Quote :

      “Coffee acts just like cocaine , says scientist” . Google it !

      Here is another ,

      Quote :

      “Why is Coffee So Addictive?
      Knowing that a coffee dependence is not as serious as a drug addiction can be comforting, but what happens if you can’t go a whole day without reaching for your favorite coffee mug?

      The first step is to understand why coffee can become addictive. While most of us think of caffeine as a stimulant, it’s more accurate to say that it works in our body to let stimulants run free. It affects the chemistry of our brain, especially when we drink it often.

      When you eat something with caffeine (such as chocolate) or drink coffee, caffeine gets dissolved into your bloodstream. From there, it enters the brain after bursting through the blood-brain barrier. This is not as scary as it sounds — all chemicals that can be dissolved in water and fat-based solutions can take the same path in your body.

      Since caffeine is very similar to adenosine, a molecule in our brains, caffeine can function similarly in the brain, blocking off adenosine receptors in the brain cells. This is how caffeine gives us a jolt. Without caffeine blocking things, adenosine in our brains fits into adenosine receptors and sends signals of “you’re tired” to our bodies. With caffeine already in the receptors, the adenosine cannot do its job, and you feel more alert for a few hours.

      What happens to the adenosine that’s floating around because the receptors are blocked? Often, it sets off production of adrenaline via the adrenal glands. Since adrenaline is also a stimulant, it can produce a jolt of energy, too. On top of that, with adenosine receptors blocked off, dopamine and other stimulants naturally produced in the body work a little better so you feel a bit of a “boost” with coffee or other forms of caffeine.
      So the caffeine in your coffee cup works in two ways:

      1) It cuts off the brain and body’s systems for sending the “I’m tired” signal.
      2) It encourages stimulants naturally in your body to be released.

      Depending on your body, size, age, and health, the caffeine blocks off adenosine receptors for a few hours (four to six hours, usually). As the caffeine gets absorbed and metabolized, the effects wear off.”

      End quote .

      So is coffee dangerous since it blocks off adenosine receptors in our brain cells ? Coffee appears to be very dangerous since it prevents our brains from alerting us to being tired . LOL !

      Quote:

      “adenosine in our brains fits into adenosine receptors and sends signals of “you’re tired” to our bodies. With caffeine already in the receptors, the adenosine cannot do its job, ”

      Next regulation : Coffee/caffeine is banned for truck drivers , ROTFLMAO !

      ENJOY your good ol’ Canadian “Timmies” while you can , LOL !

      In my humble opinion …………..

  4. It’s based on supply & demand . It’s a cycle . The cycle goes from tight(Boom) to loose(Bust) and vice versa .

    Currently due to an economic contraction there is a “glut” . Through this glut ,due to a contraction,(bust)mismanaged Co’s and malinvestments will go bust and or be bought out . People lose their jobs , demand decreases . The market/cycle will then trough and stabilize . The cycle repeats ad nauseam . These are factors regulating price/rates in the “business cycle ” . Supply & Demand !

    Did foreigners cause the “Boom” ? Did they cause the “Bust” ? I don’t think so nor do I share that theory .

    I believe we all cause the Booms & Busts . And here is a quote to explain how and why . We need to educate ourselves and understand how the “system” functions . Otherwise we will be lead like sheep and be CONfused while attempting to point the finger at “Martians” due to our ignorance and unreasonable beliefs .

    Quote:

    “In Austrian business cycle theory, malinvestments are badly allocated business investments, due to artificially low cost of credit and an unsustainable increase in money supply. Central banks are often blamed for causing malinvestments, such as the dot-com bubble and the United States housing bubble. Austrian economists such as Nobel laureate F. A. Hayek advocate the idea that malinvestment occurs due to the combination of fractional reserve banking and artificially low interest rates misleading relative price signals which eventually necessitate a corrective contraction—a boom followed by a bust.

    The concept dates back to at least 1867.

    In 1940, Ludwig von Mises wrote, “The popularity of inflation and credit expansion, the ultimate source of the repeated attempts to render people prosperous by credit expansion, and thus the cause of the cyclical fluctuations of business, manifests itself clearly in the customary terminology.

    The boom is called good business, prosperity, and upswing. Its unavoidable aftermath, the readjustment of conditions to the real data of the market, is called crisis, slump, bad business, depression.

    People rebel against the insight that the disturbing element is to be seen in the malinvestment and the overconsumption of the boom period and that such an artificially induced boom is doomed. They are looking for the philosophers’ stone to make it last.”

    End quote .

    We were not complaining about rates while they were rising during the midst of the cyclical peak . Nor were we complaining about a “glut” of drivers . But now all of a sudden since the cycle reversed , it’s everyone else’s fault except our own ? That’s what we label as mismanagement . Most in the industry don’t understand the cycle and are doomed by this lack of understanding . While the music was playing we didn’t have enough drivers to fill demand and capacity was tight . Now that the music stopped , there are too many drivers and capacity is loose .

    We are the one’s who must find an equilibrium rather than being blindly lead by our emotions .

    When I was warning some when the cycle was peaking , some thought I was nuts because rates were high and demand was strong . Now , clearly I am among the one’s who had the last laugh while most are currently pointing their fingers at “Martians” for the overcapacity .

    In my humble opinion …………..

    .

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