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TForce Integrated Solutions - Freight Transportation Shipping Services - News & Updates - Fuel Surcharge

Provincial Labour Surcharge

December 15, 2017

Dear Valued Customer:

We take great pride in providing comprehensive and specialized distribution solutions to the Canadian marketplace and we thank you for your continued support in our business partnership. As you know, we continue to strive to be the premium solution provider that you and your customers have grown to trust and count on over the years.

As you are likely aware, the Ontario provincial government has introduced significant changes to the minimum wage threshold in 2017 and again heading into 2018. Ontario has moved from an hourly minimum wage of $11.40 to $11.60 in October and will now increase by an additional $2.40 per hour to $14.00 on January 1, 2018.

For more details, please visit the following provincial website:
www.ontario.ca/page/minimum-wage-increase

TForce has closely examined and analyzed the impact of these substantial changes to our business. They are impactful, as we employ people at various wage levels in line with all provincial minimum wage parameters Again, we have closely reviewed options that are both fair and representative of these cost increases impacting our business.

Effective January 1, 2018, TForce will be implementing a labour surcharge, only for shipments originating and destined for Ontario A 0.5% fee will be applied to the base shipment charge on all shipments originating in Ontario (i.e. the shipment cost before any selected accessorial fees, fuel and taxes). Subsequently, a 0.5% fee will be applied to the base shipment charge of shipments destined for delivery in Ontario.

Under this approach, the labour surcharge will only be applied to shipments that are being impacted by our increased costs. Again, we believe this to be an equitable approach to the new provincial legislation.

To learn more about this change, please visit:
www.tforce-solutions.com.

Thank you for your business and we look forward to continuing to work with you in solving your transportation solution requirements in Canada.

Sincerely,

Mike Hover
Vice President and General Manager

2018 Labour Surcharge FAQs

  1. Why is TForce implementing a new labour surcharge?

    As you are likely aware, the Ontario and Alberta provincial governments have introduced significant changes to their respective minimum wage thresholds in 2017 and again heading into 2018. Ontario has moved from an hourly minimum wage of $11.40 to $11.60 in October and will now increase by an additional $2.40 per hour to $14.00 on January 1, 2018. For more details, please visit the following provincial website:
    www.ontario.ca/page/minimum-wage-increase

  2. Why does the surcharge only apply to shipments originating and destined for Ontario?

    After analysis and consideration, applying a surcharge only to the shipments where we are impacted by the increased labour costs, was the most fair and equitable solution for our customers. We prefer this solution option vs. implementing a general fixed increase to all customers or all shipments.

  3. What is the Labour Surcharge and how does the new surcharge work?

    TForce will be implementing a labour surcharge, only for shipments originating and destined for delivery in Ontario. A 0.5% fee will be applied to the base shipment charge on all shipments originating in Ontario (i.e. the shipment cost before any selected accessorial fees, fuel and taxes). Subsequently, a 0.5% fee will be applied to the base shipment charge of shipments destined for delivery in Ontario.

    • Scenario #1: A shipment originating in Ontario destined for delivery in Ontario. Working example: A base shipment fee = $10. The origination surcharge is calculated as: $10.00 x 0.5% = $0.05. The destination surcharge is calculated as: $10.00 x 0.5% = $0.05. The total surcharge is $0.10.
    • Scenario #2: A shipment originating in Ontario and destined for delivery in a province other than Ontario. Working example: A base shipment fee = $10. The origination surcharge is calculated as: $10.00 x 0.05% = $0.05. The destination surcharge does not apply. The total surcharge is $0.05.
    • Scenario #3: A shipment originating in a province other than Ontario that is destined for delivery in Ontario. Working example: A base shipment fee = $10. The origination surcharge does not apply. The origination surcharge is calculated as: $10.00 x 0.5% = $0.05. The total surcharge is $0.05.
    • Scenario #4: A shipment originating in a province other than Ontario that is destined for delivery in a province other than Ontario. Working example: A base shipment fee = $10. The origination surcharge does not apply. The destination surcharge does not apply. There is no additional surcharge.

  4. When does the new surcharge become effective?

    The new Ontario minimum wage legislation takes effect on January 1, 2018, so the new surcharge will also commence accordingly on January 1, 2018.

  5. What changes to electronic/EDI invoicing with TForce?

    Customers receiving the TForce CSV Invoice format(s) or traditional ANSI X12 EDI 210 invoices, please note the following changes are being implemented to include the additional TForce accessorial surcharge codes for the Provincial Labour Surcharge. These changes will be included in the January 10, 2018 electronic invoicing cycle.

    CSV Invoice formats: Two additional columns will be added to the CSV format directly before the “Sub-Total” column. The new column headers will contain the description “Prov. Labour Surcharge Origin” and “Prov. Labour Surcharge Destination”.

    ANSI X12 EDI 210 Invoices: The new accessorial surcharges will be included in additional L1 segments with the qualifier code of: Provincial Labour Surcharge Origin - L1.08 = “500” (Miscellaneous - Origin) Provincial Labour Surcharge Destination - L1.08 = “260” (Delivery Surcharge)

    Please advise your internal AP departments and/or 3rd Freight Payment companies of the above changes. If your organization requires ANSI X12 EDI qualifier codes other than specified above, contact TForce EDI Support to ensure these changes are implemented as soon as possible to minimize disruption to the reconciliation process.

    TForce EDI Support can be contacted on the following group email address: edisupport@tforce-solutions.com

For additional information, please contact your TForce Business Development Manager or Account Manager.