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
- 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
- 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.
- 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.
- 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.
- 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.