The B.C. Supreme Court has upheld new licensing rules that limit independent operators (IOs) in the Lower Mainland drayage sector to a single truck and prevent them from hiring full-time replacement drivers.
In it’s Sept. 17 decision, Justice Kirchner dismissed a judicial review application from operators Paul Uppal and Waldemar Zawislak filed against the Office of British Columbia Container Trucking Commissioner (OBBCTC), confirming that independent operators must personally drive their truck ‘most of the time’ and cannot rely on indirectly employed operators (IEOs) to cover for them beyond 90 days. Kirchner ruled that the Commissioner acted within a ‘broad statutory mandate’ to stabilize the port trucking industry.
In B.C.’s container trucking sector, a licence — or a truck tag — issued by OBCCTC is needed to access the port of Vancouver. The tags, tied to company trucks or IOs, are limited and are issued on a two-year basis, and they give permission to haul containers in and out of the port.
End of two-truck model
In the Uppar v. British Columbia case, both petitioners had run two-truck operations for the past 20 years. Before the 2024 licence changes, Paul Uppal had a sponsorship agreement with Jete’s Lumber and Waldemar Zawislak had one with Maresk Logistics & Services Canada, according to a document detailing reasons for Kirchner’s ruling.
Each was issued two independent operator tags — one for each of their two trucks — through separate sponsorship agreements. They hired one or two indirectly employed operators to drive the trucks, paid above the prescribed rates, and had no compliance issues. This allowed them to grow the business without becoming a licensed carrier.
However, reforms introduced in May 2024 changed the standard form licence conditions across the industry and since then, only one sponsorship agreement can now be issued per IO. At the same time, new language in the agreements stops IOs from using relief drivers indefinitely, capping it only at 90 days.
The OBCCTC said in an email to trucknews.com the reforms were aimed at preventing misclassification of truck tags. The office issues two types of tags: company tags for carriers that own trucks and hire full-time drivers, and independent operator tags for drivers who own and operate their own trucks. The office said that issues arose when some IOs stopped driving altogether and hired full-time replacement drivers, effectively turning their IO tag into a company tag.
“The goal of these changes is to prevent the misclassification of independent operators and preserve the truck tags set aside for them. Independent operators own and operate their vehicles and, from time to time, hire an employee as a relief driver. If an owner of trucks no longer wants to operate their vehicle, they are required to have [a] licence under our [Container] Act and apply for truck tags like every other company owner and [be] accountable for ensuring their drivers are paid the regulated rates,” commissioner Glen MacInnes wrote in a statement. “I am committed to ensuring that the Lower Mainland container trucking sector operates on a level playing field, with fair opportunities for all participants.”
Operators argue they are ‘phased out of the industry’
The changes were originally proposed on Jan.16 and industry consultations followed, with written submissions accepted until Feb. 26 and meetings held in March. Paul Uppal filed submissions pointing out the changes would prevent him from operating two trucks as he always had. His submissions reviewed some changes in the licensing terms since 2020 and stated he was being “phased out of the industry”, court documents read.
On May 2, 2024, the Commissioner released a consultation report announcing what changes would be made for the coming licensing term, judge Kirchner writes, adding that “despite the new conditions set by the commissioner, Mr. Uppal entered into two separate sponsorship agreements with Jete’s, as he had done in the past. Mr. Zawislak did the same with Maresk as he too had done in the past.”
In decisions dated Nov. 20, 2024, the Commissioner advised that only one tag would be issued for each petitioner for the coming two-year licensing term, which began on Dec. 1, 2024.
On Nov. 22, 2024, Unifor wrote to the Commissioner on behalf of Paul Uppal, arguing that under its agreement with Jete’s Lumber, “owner-operators with more than one truck in operation as of July 1, 2005, are grandfathered in.” The union asked the Commissioner to “respect the existing agreement” and permit Uppal to continue operating two trucks. Four days later, the Deputy Commissioner rejected the request, saying it would be “contrary to the purposes of the Container Trucking Act” to allow an IO to hold two tags.
Judicial review application
The two operators later argued in the judicial review application that the Commissioner’s decision was “patently unreasonable”, claiming it conflicted with the regulation’s wording, lacked a valid legislative purpose, ignored their individual circumstances. They also claimed the Commissioner failed to consider one petitioner’s submissions.
Justice Kirchner rejected those claims, stressing that neither licensees nor IOs have a right to renewal of truck tags from one term to the next.
Commissioner’s rationale
OBCCTC told trucknews.com that the changes followed “extensive industry-wide written and in-person consultation” and were ‘largely supported’ by independent operators because they protected access to the limited number of IO tags.
The office claims the changes are not about restricting opportunity but preventing misuse and protecting the integrity of the licensing system so that IOs can continue to thrive in a competitive and fair environment.
The OBCCTC also confirmed no further changes to Sponsorship Agreement rules are planned at this time, though any future adjustments would be subject to consultation.
Since 2022, roughly a dozen sponsorship agreements have been cancelled where IOs were found to rely on full-time IEOs. When asked about what mechanisms are in place to monitor whether an IO is truly driving ‘a majority of the time’, trucknews.com was told: “OBCCTC does not identify specific enforcement techniques. However, the office can confirm that field investigators and auditors actively review payroll records and investigate complaints to ensure that licensees are in compliance with the requirement that IOs drive the majority of the time.”
