Driver Inc. is bad news for just about everyone

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For months now I’ve been trying not to write about this subject, but I’m giving up. Driver Inc., as it’s called, is a scourge on the freight-hauling industry and I can’t ignore it any longer. So-called legacy carriers, the ones who play by the rules and who, by and large, treat their drivers reasonably well, have been joined in the business by a new breed of fleet that does not play by the rules, undercuts rates, and treats drivers like indentured servants, if even that well. And that’s a pretty kind way to describe them.

At the core of this new business model is the misclassification of workers as self-employed so as to cut costs by evading basic labour protections, payroll taxes, and other legal obligations.

If you haul logs in northern Ontario or beef on the prairies, be grateful, because you don’t want to compete against one of these outfits. Assuming this nightmare hasn’t reached you yet. I doubt it, but the spread has been rapid in the last decade or so. A couple of years ago Canadian Trucking Alliance president Stephen Laskowski claimed that Driver Inc. fleets represented 20% of the freight-hauling industry. It can only have grown from there, but I have yet to see credible numbers. There are tangential ways to measure it, however. For instance, in the Greater Toronto Area, I’ve read of data that shows self-employment amongst truck drivers has increased by 172% per cent over the past decade. That simply can’t be, or at least it can’t be legitimate.

Highway 401
(Photo: istock)

So why was I hesitant to write about this? Because many of these newcomer carriers are largely run by immigrants, often South Asian, I’m afraid to say. And I love welcoming immigrants to Canada no matter where they came from, so I’m more than a little reluctant to admit that there are bad players among them. In some cases these newcomers are new to trucking and they usually hire drivers with or without experience from within their own ethnic communities. Those drivers seem to be trained poorly, more often than not, then paid as independent contractors, but they’re by no means owner-operators as we’ve historically known them.

Many drivers don’t know they have a choice

Misinformed, short-sighted drivers are all too ready to accept this independent contractor status and incorporate themselves to earn a few more pennies per mile. Trouble is, in many cases they don’t have a choice or simply don’t know that they have one. They may well be “fresh off the boat” and have been promised trucking jobs and ultimately Canadian citizenship by low-life immigration consultants working in concert with Driver Inc. fleets and often driver-training schools. They pay dearly for such arrangements. Canadian authorities have done absolutely nothing to stop such vicious immigration scams, though that may be changing as the feds have at least acknowledged the problem and have promised action. We’ll see.

Now I know what some of you are going to say after reading all this – Lockwood must be a racist. I’m not. I don’t care what you look or sound like, I just have to respect how you act. I won’t judge any whole group, racial or otherwise, by a few bad folks within it. In these terms I’m about as liberal as it gets.

Oh yeah, and you have to love dogs.

A cost in highway safety

What bothers me most about Driver Inc. is not just the exploitation of drivers, immigrant or not, but also what it means to highway safety. And it means a lot.

The thing is, training of these immigrant drivers is often part of the immigration package and they’re basically promised a licence. They go to sketchy driving schools, some owned by the fleets themselves, and they have only to go by the most basic minimum standard. Many of those schools or fleets have signing authority through, in Ontario, the Driver Certification Program (DCP). Other provinces have similar programs and they’re all recipes for disaster in the wrong hands. Sadly, they’re rarely if ever subject to inspection by the authorities.

Recently a sitting member of the Ontario legislature, Lise Vaugeois (NDP – Thunder Bay), raised the issue of too many truck crashes happening along the TransCanada Highway in her riding. In fact they’ve been happening with increasing frequency throughout northern Ontario and elsewhere for a few years now, many in the mountains of B.C. as well. We’re talking about tough roads to drive, especially in winter, and accidents have become so common that veteran drivers say they’re afraid to drive on them. Not because they can’t handle the conditions, but because the poorly trained newbies can’t. I hear this directly from them all the time. Like pretty much every day. Even from a distance, these accidents often bear the hallmark of inexperience, and my own chats with tow-truck drivers bear this out.

Vaugeois says one of the causes of this mayhem is lousy training, and she takes aim particularly at fleets that train and test their own drivers. After raising her concerns in the legislature, she spoke with a CBC News reporter and noted a 2019 report by the Ontario Auditor General. That report found that drivers licensed by way of the province’s DCP had a significantly higher passing rate than those licensed through its own testing centers. Surprise!

In that CBC interview Vaugeois quoted the report in which the Auditor General said: “We found that between 2014/15 and 2018/19 drivers tested by carriers had a pass rate of 95% compared with just 69% at DriveTest centers. However, 25% of the 106 carriers that test their own drivers ranked among the worst 1% of all carriers for at-fault collision performance.”

Enforcement needed

So where do we sit with all this now? I think federal immigration officials have a hell of a lot to answer for to start with. Not news. As do provincial ministries of education for failing to create and enforce meaningful standards and allowing slipshod schools to flourish. A very old story, that one. And, of course, enforcement officials charged with keeping the roads safe — and the trucks themselves in safe trim — seem to be invisible, often due to budget cuts. Then there’s the Canada Revenue Agency, which appears to have done nothing to define “independent contractor” and then apply a measure of enforcement on those who abuse its meaning in the workplace. Then again, CRA has been trying – and failing — to define the term for decades, ever since a group of Newfoundland owner-operators raised a ruckus and demanded vacation pay 40 years ago.

Some progress has finally been made both provincially and federally, I have to admit, and Deputy Prime Minister and Finance Minister Chrystia Freeland promised Driver Inc. action in her mini-budget last fall. That doesn’t make highways any safer and it doesn’t mean innocent immigrant drivers will be treated any better tomorrow, but it’s a start, if a late one.

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Rolf Lockwood is editor emeritus of Today's Trucking and a regular contributor to Trucknews.com.


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  • Great article
    Well said 100% right on the nose
    I live in the interior of BC and have stopped driving in winter for that reason you have mentioned in your story

  • Great piece Rolf. Hard to hear but it is the truth. I have seen it for years now. Fleets who skirt safety should not be on the road period, fleets and Services who take advantage of new drivers should not be either. New drivers need to educate themselves on the industry and how they should be getting trained from the best schools and fleets with real finishing programs. No one should be skirting safety in any way when it comes to driving on our roads and highways.

    • Driving is next to living!
      Drive safely.
      Trucking for a living.
      With out safe skilled qualified well trained driver no truck moves.
      Each and every one of us need road safety.

  • Well said! But I fear not much will change until truck driving is considered a trade with apprenticeships of at least a year OTR with certified trainers is required before a full AZ or class 1 can be earned also there should be an extra designation for tanks!
    I had driven TT for several years when I got a job hauling “shotgun” tanks I learned really quickly that all the freight hauling I had done had not given me much to contend with “The wash” of several thousand liters of liquid playing around in the tank whenever I braked too hard or was a bit slow on a shift!
    Even though I eventually went back to hauling regular freight that time of “yanking tanks” made me a far better driver!

  • Not many are saying a Professional Driver of a Driver Inc. Carrier pays 11% income tax vs 33% if they work at reputable fleet. That is huge difference.
    I think we need to do two things:
    1) Expose the Shippers who use Driver Inc.
    Carries .
    2) Allow all carriers to use Driver Inc. practices to
    level the playing field & to force the
    government to take action.
    Roy

  • A lot is being said on this topic but I am still looking for a document educating drivers on how they are disadvantaged in such an arrangement. They make the choice after all.

  • Question here is, are only the drivers/companies and from what background they come from are to blame. As we are taking about putting a stop to driver inc model, which runs deeper than just trucking sector.
    Govt. needs to do better in educating and tax recommendations based on service performed and how CRA will identify the services performed, not just how a business/driver decides to pay taxes. Running awareness campaigns, fair wages to drivers and much more needs to be done.

  • Here, here Rolf! I have worked in this industry for over 30 years and never have I seen anything decimate it for the legitimate carriers as much as Driver Inc. I, unlike you, will admit that I am racist. Not against color, creed, religion, ethnicity, or sex but against anybody who takes advantage of someone else. To embrace a business model that devastates an industry that I have put my heart and soul, and my life into for this long, is tremendously discouraging.

  • Amen.

    Thanks for saying what needs to be said.

    However, these driver inc folks also contribute big to the Liberals. So, this isn’t going away anytime soon.

  • The Federal Government has already failed the Trucking Industry on this issue.
    There are only two things left to do as the Canadian Government will only listen when action is taken .
    1) Expose all the Shippers who are using the rip off fleets to haul their freight.
    2) Immediately have all Trucking Operations adopt Driver In. business practices. The Canadian Government will act when they have no choice

    One thing most don’t talk about is the reduction of income tax in the Driver Inc. model.
    Professional Drivers are eager to have this as they pay 11% vs 33% income tax.

    Roy

    • Excellent article…I drove for 30 years and finally had to give it up because of unsafe roads..didn’t want to but my life is more valuable than that

  • One answer might be to require”Driver Inc” employers to withhold an amount commensurate with what an actual employee would have deducted. Kept in a secure, interest bearing bank account that the fleet could not get their hands on and not accessible by the “employee” until close to tax time. Legitimate self employed individuals would, or should, already be doing so and should welcome it and benefit by knowing that the funds they need at tax time would be there for them. The ones attempting to circumvent the tax laws would, in all likelihood be at the least, miffed and many might realize the situation that their fleets have put them in. There will always be the quasi criminal element that will skirt the law no matter what, but hopefully, their numbers would be fewer. Unfortunately, CRA is not likely to tackle such an endemic problem, mores the pity.

  • I’ve been driving for 40 years, this is the result of the industry which includes the
    CTA which represents the big players of not paying a decent wage to real truck drivers that eventually left the industry, now the industry is left and needs drivers even if there are dangerous. I would not run northern Ontario now its just to crazy.

  • Rolf’s articles are always on point. I believe that every driver should be legally obligated to be treated at their provincial testing site, period. Truck driving should be considered a trade, complete with appropriate apprenticeship, and the training should be standardized and more stringently regulated. Only when our levels of government work together for this will we eliminate these shady driving schools and begin to eliminate the heartbreaking carnage on our highways.

  • The cost of repairs going thru the roof and load prices sliding down, Driver Inc. is hardly an option for new imm. A lot of new immigrant drivers have a personal monthly cost overhead which are mostly triple than that of a local son of salt drivers. These are qualified dentist, veterinary doctors, PhDs etc back home, due to sky cost of reeducating themselves here, they turn to menial labour like driving. While they reeducate, driving is a survival job, do not want to but have to. Driven by economic desperation, these newbies are willing to take the riskiest of loads, so training became important. I hardly think MELT is the answer to give them real hands on OTR experience. Driving schools, driving companies, immigration consultants etc r milking them. IT SHOULD BE MANDATORY FOR DRIVING SCHOOLS TO DRIVE TEAM WITH THESE NEWBIES for at least 5k miles. Like a G1, G2, G, car license, they should have similar graded test for truck drivers instead of this MELT rip off. They have classroom train for 3 million hours even, U cannot learn to handle loads, bah! And as a result, these newbie buds are dying on icy roads they never wanted to drive on, far away from loved ones.

  • Thanks Rolf for your statement.
    It is urgent that Senior Journalist like you take position on issue like DriversInc.
    Safety and Security are state of mind / experience, training and attitude are fundamental to accomplish the first two.
    The NEWCOMERS as you call them, on purpose, have chosen a different route to move goods in Canada. Capitalizing on the weaknesses of the systems, labor shortages, ability to identify workers interested to earn money rapidly in a job poorly tracked and monitored, here they are swimming in a sea of opportunities. Not having to report to our traditional institutions and conformist bureaucracy, they are free to operate as they are not registered anywhere. To be monitored you have to be registered. They are and they will stay under the radar for long enough, the regulated carriers will slowly disappear.

  • Rolf, thank you for finally speaking up. It’s hard these days to have an open conversation around so many topics these days. It’s convenient for members of these communities to call the race card, yet over and over we see exposes of fraud in secondary-school applications, mortgages, construction and transportation.

    This is not about skin colour or country of origin or being racist, it’s about protecting our collective values and creating equality for good operators who pay their fair share and maintain safe fleets. Globally, countries have varying degrees or corruption or grift, low versus high trust environments and more or less transactional orientations.

    I encourage people to email Sean Fraser, Minister of Immigration, Refugees and Citizenship Canada (Google his email address), as I have. We need to stop immigration fraud and ensure the people coming here can add to, not detract from our civic standards, established norms and well-being.

  • Tax rates for drivers and loss of deductions created this ongoing problem years ago.
    I understand how drivers get stuck in the middle and driving is less appealing with each passing year.
    Thank you you this article.

  • Ever since test centers went private the quality of driver went out the window. Buy your license,no real training,thanks Ontario I feel safer already.

  • INTERESTING WHY NOT CALL A SPADE A SPADE AND NAME THE POSITION OF THE CANADA TRUCK OPERAT0RS ASSOCIATION
    IN THIS MATTER

  • If Freeland has anything to do with it nothing will get done, immigration pretty well keep’s the Liberal’s in power

  • I sure hope that being compassionate by nature is not the exclusive domain of liberals.

    Legacy carriers and legacy drivers have had the rug pulled out from under them for well over a decade. Driver Inc. is only the visible part of the constant and continued erosion, add to that the money laundering of foreign funds; start up carriers which grow from 1 to 100 trucks and more inside a couple years…

    The damage is done!
    There are a few of us which had predicted the outcome of relaxed and encouraged immigration policies which were meant to feed the growing need for drivers, but every single warning was dismissed as us being racist. That one tactic has managed to disarm every argument and end the conversation before it got started. If I personally choose not to be “liberal”, this is why.

    It is important to remember that the opening of the immigration flood gates was at the behest of the CTA. Their continual messaging of a pending driver shortage started some 20 years ago. The reason I bring this up is because they and their provincial puppets continue to wine and dine government and convince the ministers of the day, that they alone have the “answers”. Answers to the problems they created themselves.

    While they carry on this charade, the rest of us mere mortals must live within the confines of their miscalculations and half thought through solutions. Speed Limiters, E-logs and lets take a collective guess at what’s next – “driver facing cameras”(?).

    All the money spent on technology to curb the growing daily disasters, where are the Rest Areas? Where are the hot meals? Where are the showers?
    Where is life outside the cab of the truck?

    Technology will only ensure the continuous dumbing down of the workforce and reiterate the need for more warm bodies, that is what is chasing the legacy drivers away.

  • I ran Northern Ontario steady for 10 years. I finally got off the Hwy 5 years ago do to too many close calls of head on collisions with new untrained drivers that take chances passing on blind corners and hills. I follow all the social media trucking sites for hwy 11 and 17 and can’t believe how bad it has got since I got off the road and went local. It seems the Hwy is closed in Northern Ontario at least once a day if not more due to collisions. I have been driving truck for 38 years and it scares me to pass a truck on the hwy now a days.
    Something has to happen to make this industry safer. But it seems like the government does not care. It’s a shame. How many people need to die before something gets done.

  • I absolutely agree with everything you have written here. But also, in addition to the safety aspect is the fact that these Companies hiring drivers Inc. Drivers are at an advantage because they do not have to remit taxes, employer health, tax, CPP, EI, even WSIB so those carriers can actually work for cheaper which means they’re cutting rates. And of course, those drivers Inc. drivers are not paying this country the taxes that the rest of us are.

  • Well you said it point on Rolf & your 100% correct this needs to be addressed & I have a few other questions I’d like to know the answers too . Thanks for saying what most of us have been either saying or thinking for a long time now .

  • I drive in and around Toronto Ontario it’s insane out here these days I have been doing it for 30 years and the attitude of all new and old drivers has to change.

  • You hit the nail on the head about everything I’ve been involved in trucking since 18 for 48 years and did all the grunt work 12 to 18 got my grade 12 and sold my trucking bussiness 2 years ran out of ideas to hire real truckers have always respected trucking as started driveing and they have never been paid properly for their sacrifices and the leader of this country never has had respect for trucking and never addressed Ottawa truckers just avoided facing them even the country was comeing to haul at borders and everywhere HEllo where’s reward for hard working trucking industry no respect I wish you guys and next generation to turn this industry around

  • Great Article! It’s about time somebody spoke up about the disgrace the trucking industry has become in Canada.

  • Retired from the Hwy after nearly 50 years on the road and I can say without reservation that it’s become a terrifying place to be. Careless, distracted and not giving a rats behind about others has turned roads into a place of destruction. Unsafe moves, losing control on dry straight roads and the no rules approach to road conditions have made it one of the most dangerous professions to be in. Oh and don’t have a problem you can’t solve because they wont help you.

  • Awesome article !! Your not racist . It’s time that Canadians realize what’s going on . And it’s way past time the federal government puts a stop to this .

  • well said….right on the money…..SOMETHING MUST BE DONE…… this not playing by the rules…or they seem to think rules do not apply to them…is literally killing people….we need more voice !!!

  • I can solve the problem real fast. First thing tomorow. All opp and mto do a blitz on transports. Pull every truck into a parking lot. Make them park funny, then back up 100metres into a coned parking spot. Within 3 or 4 tries and timed. If you fail, automatic downgrade licence.., truck is impounded till a driver can come and do test. Then go to where persson got licence. There permit/licence is pulled to give out licences on the spot. Theres a good start.
    After that, sure tht will help but there are things that could get them off the rd. Videotape everything. Theres no bs challenging it. On the spot licence downgraded.

  • I have been in this industry for 37 yrs now and i would have to say that the last 10 have been the worst. I run mostly southern ontario and a lot of Toronto. The things i see on a daily basis are horrifying. way to many inexperienced truck drivers always in a hurry. The trucks they drive are mostly junk held together with duct tape and straps. They are under powered to be pulling heavy loads and they stay in the centre lane. If they are driving up to date equipment then they pass in the far left which is elegal for commercial vehicles. There is no common curt icy any more. I’ve spoken with some and the admit they are unsure of what they are supposed to do. Why our government would allow this to continue is beyond me. The public is at risk and i for one encourage my family to stay off the 401.

  • I’m a owner operator based out of Kitchener ON. We run western canada and south western USA. I parked my truck for January 2023 and will be parked February and March next year to avoid hwy 17/11 insanity. When I first started running northern Ontario I’m the 80’s it was uncommon to see a wreck and it was a big deal. Now it’s the expectation daily. It’s time for change.

  • Have known you a long time and you always speak it as it is( honestly) you are so right about the northern route, retired after 47 years got run off the road on Hwy 11 by two trucks passing on a blind curve in the woods with my motorhome, until the government makes these large carriers held accountable (JAIL)for the drivers actions or to start n send the people to jail that actually handed them their licenses n said your good to go! Then maybe something would start to change

  • This has been going on far to long !!! Nobody is safe on the roads any more. Whether it’s semis or cars !!! How many people have to be hurt. The professionals that they call themselves ! Is really not making sense.

    And thank you for finally bringing to light what we have all been thinking

  • This business of employees being labelled as “contractors” in order to take away their rights is not limited to the trucking industry. For instance Bell Canada has been doing it for years. No protections, no benefits, no union wages and no company liability if something goes wrong on the job. Perhaps it is time for changes to labour laws to protect ALL workers.

  • What a great article sir well said, Nova Scotia is becoming the next British Columbia our government here is doing nothing accidents are very often now.
    It’s almost like nobody cares Nova scotia’s promised him a faster green card if they come working Nova Scotia.
    It seems that nobody seems to want to hold him accountable for their actions. I think all levels of government should be held accountable for this it’s their mess not ours. I’m not opposed to immigration we do need drivers but we need properly trained drivers people’s lives on the highway are at risk.

  • I have retired from the industry about 4 years as an owner operator i wouldn’t run hwy 11 if i had a choice just for the simple fact that there are to many times the road is closed due to the way a drivers are driving trucks and cars passing on hills and curves etc something has to be done about this and I am trying to be polite and not mentioning new drivers

  • My son has to drive that highway from Dryden to Thunder Bay, every time he’s on the highway I’m afraid, and frankly, so is he…he’s seen transports passing other transports on corners!!! How is that right? Something has to be done, NOW

  • Well said, Dave. I’ve been driving the Coquihalla for years, and it has steadily become more dangerous. Like you, I don’t care where you come from, but unfortunately the vast majority of near misses, insane actions and fatalities involve “new” Canadians. Being passed uphill on a blind curve has become a fairly regular occurrence, tailgating less than 4 or 5 meters in icy conditions, and so it goes. Although I’m not a fan of increased government regulation, I have to reluctantly state that there needs to be a very serious effort to identify these operators/drivers and either retrain them properly, or remove them from the highway altogether. And as far as the “contractor” status goes, you have it right. It’s a false promise, and costs the driver a lot more over time.

  • Good day Sir. This is not new but rehashing the same old same old. Of course our government is to blame, but look at all the other B.S that comes from our almighty leaders. Nothing will ever change. I too don’t drive the Ontario roads just for the reasons you noted.
    I’ve been doing this since 1977 and nothing has or will ever change.
    Sorry for being a pessimist!!

  • The worst carnage on Canadian highways in history that killed 16 young hockey player’s in Humboldt , Saskatchewan was caused by an inexperienced immigrant truck driver. It was 5 years ago and those players who lived many had catastrophic injuries. The parents have to live with this every day.

  • You’re absolutely right, I’m retired now and gladly so with what I read and hear from my driving friends who are still working. I to could tell several stories but I know I would be called racist. Keep fighting the good fight Rolf.
    Peter Weiss,
    Simcoe Ont.