Checker Cab drivers demonstrate against costly insurance increase

Roughly 150 Checker Yellow Cabs drivers demonstrated in their employer's parking lot on Thursday, Feb. 3, 2022.

Roughly 150 Checker Yellow Cabs drivers demonstrated in their employer's parking lot Thursday, angry over steep increases to their costs.

The increase come as a result of changes to Alberta's third party insurance regulations, which company owners say put them on the hook for as much as $1.8 million in claims each year.

The company says Alberta's shift to DCPD - or a direct compensation for property damage model - failed to take into account the impacts for some commercial insurance.

"We have a very high non-fault accident ratio. It's increased our insurance costs dramatically, which I've had to pass on to my drivers," said Checker Yellow Cabs president Kurt Enders on Thursday. "My drivers are extremely upset with the downturn in the economy and COVID-19, it's an extra expense they can't afford to do and we can't afford to do it either."

Taxi drivers are organized as contractors to the cab company, paying fees that cover license and administration costs that add up to roughly $1,800 per month, according to drivers. There is no pension, no paid sick or vacation days. The fees do not include gas and a two per cent transaction feed.

"These drivers are family people, they have children to feed," said driver Mohammed Ali. With business down, many drivers were expecting a drop in their fees, instead he says, there was a $40 a week increase.

Already most drivers work 12 hour shifts six or seven days a week. By the time they cover their costs, their income only starts around their fifth day of work.

"Business is not the same as it used to be," Ali said.

Insurance changes have been passed on to the drivers, who say they will now be charged $2,500 by the taxi company for any crash where they are not at fault. The company says the money is to cover the high deductible.

"If someone hits you and runs away you have to pay $2,500 and you have to take the car to a body shop and they charge you," Ali says.

If the driver is at fault they now pay fees totalling $4,500, which includes a "risky driver" charge of $1,500.

Following a meeting with management, drivers say they've been promised an answer from the company in a week, but vow to take labour action if they are not satisfied with the result.