Why Driver Inc. is doomed
On most Friday nights, I cruise to the cottage carefree with the classic rock blasting. Not after the National Recruiting & Retention Symposium (NRRS).
That second Thursday in May, I had moderated The Industry Hot Topics panel at the NRRS with my pals Mark Seymour from the Kriska Group and Stephen Laskowski from the Ontario Trucking Association.

Virtually every issue we talked about stemmed from Driver Inc.
Hiring. Safety. Training. Professionalism. Exploitation.
I started my drive up north the next day in a Driver Inc.-induced brain fog.
By the time I got to the lake, the clouds had cleared. I realized that Driver Inc. is slowly and systematically falling apart. Here’s why:
Stupidity is not sustainable
First, the money is getting smarter.
Just before the NRRS panel, I had finished up my June column on how undercapitalized Driver Inc. fleets were dropping like flies. Suppliers cannot continue lending money and selling trucks to companies that are risky both on the books and on the road. Not in this environment.
Second, the culture is changing.
The next generation will be smarter than their parents. They’re growing up in Canadian society and schools where they’re learning democratic values and moral norms. Like every other kid in this country, they’re experiencing acculturation with every swipe of a screen. They want no part of illegitimate contract work or indentured servitude. They’ll opt for real jobs with real pay and real opportunities like their Canadian pals.
Provinces are fed up
Provinces are starting to flex their muscles.
Quebec is increasingly scrutinizing “Chauffeur Inc.” The strength of their political will is matched by their desire to crack down on tax cheats and unfair competition against law-abiding carriers.
In Northern Ontario, community leaders and MPPs joined forces to put forth legislation to “hold drivers accountable.” They want drivers tested by the Ontario Ministry of Transportation to prove they are more than just steering wheel holders.
British Columbia has been the most aggressive, coordinating enforcement among multiple agencies. In May, they launched roadside inspections targeting companies suspected of misclassifying drivers. The early results were so concerning that agencies are now conducting site audits, and non-compliant carriers are getting their operating certificates terminated.
ELP in the USA
Imagine moving to Italy to drive a truck without knowing the language. You’re in the Dolomites when you pass a sign that says Curva Ripida Pericolosa. You keep barreling along because you have no idea the sign is warning you about a steep, dangerous curve. Your first day on the job might be your last!
Poor language skills can impede a driver’s ability to understand signage, rules, or communicate in emergencies.
The United States agrees.
Starting in June, the U.S. will enforce English Language Proficiency (ELP) requirements for truck drivers. Drivers who can’t read or speak English sufficiently can be put out of service, including drivers from Canada operating in the U.S.
Finally, some teeth where it matters.
For the better part of a decade, Canada’s trucking industry has focused on hitting Driver Inc. as cheats and scammers.
It hasn’t worked.
Exploitation business models can be profitable when enforcement is weak, demand is high, and everyone is engaging in similar practices. Complex business structures and identity fraud make it even tougher to track down bad guys.
Spot checks, coordination across agencies and jurisdictions, out-of-service orders, and heavier fines can finally bring shady operators into the light.
What’s next?
Expect litigation from at-fault accidents. And a talent drain as the better drivers avoid the toxic fleets. Good Driver Inc. fleets (yes, there are many) will turn T-4-legit so as not to lose their authorities. The carriers unwilling or unable to adapt will be forced out of the industry.
So turn up the music — the end is near. For the sake of my grandson Isaac, it can’t happen fast enough.
Have your say
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The Canadian government should’ve crack down on that at least 15 years ago or so. I retired last year after 30 years on the road, 20 in the USA. The last 5 years I was looking for a job around Toronto & 95% of the companies wanted me to be incorporated to get hire because they don’t want to pay any benefits at all, no 4% vacation pay, no stats holidays, dental & vision care, & if you get hurt on the job, you’re on your own! No workers compensation. They are screwing up the trucking industry badly! That should be ILLEGAL!!!
Well it’s about time!, Isn’t it amazing how these
New Canadians we will call it. Started up trucking companies have gotten away with this for years, ripped the Canadian Government for for millions if not hundreds of millions, mean while it all put legitimate trucking companies who have ran up down roads for years
At a disadvantage to Drivers Inc.
How is this right?
Rick Wick
Courtright Ont
You people have been beating this dead horse for well over a decade to absolutely no avail. It won’t ever change until the Federal Government wants it to! Until then, you and your buddy Lazkowski are going to have to find something different to whine about!
We need to look at a lot the lease agreements ( to purchase) the ont gov and Alberta have done very little to stop or enforce proper treatment
We need truck drivers that are fairly treated. When I and others have pushed for this I was called ra_st but certain people who didn’t care about fair treatment and proper pay. Some of the newer people to Canada fought to be able to haul cheaper freight often to appear to make $ on the short term. If I comments about some these people did this I would be banned from certain sites. Unless shippers and receivers work together to refuse to give freight to these companies it will continue
Good article Mike
Hopefully lots of The Driver Inc. crowd will read and head you article and realize that the Driver Inc. Model is just a way to exploit new to the country drivers into MODERN DAY SLAVERY, holding the individual’s hostage because of “paperwork ” issues.
The last 10 years has been the most challenging I’ve seen in my 48 and 1/2 years in the business because of the unscrupulous participation by LENDERS lending money to Companies with no idea of what they are doing.( Other than taking advantage of the opportunity of fleecing people)
Capitalism is a great system as long as everyone can make MONEY, and we all pay our share of taxes, as REX MURPHY said we WON the lottery of life to be born on this CONTINENT and to be able to have immigrated here.
Credit is a WONDERFUL TOOL if used PROPERLY
as well if everyone respects it.
The Principals of these Companies raid the revenues for a HUGE paycheck and walk away with a BAG Full of MONEY, looking for the next industry to take advantage of, leaving CREDITORS SCRATCHING there heads? Some deserving of the crime (because they new it would happen) but mostly it’s the unsuspecting small business guys and the DRIVER INC. People with no paycheck that are HURT the most.
You are a very SMART Man to have looked in your Crystal Ball and knew when to get out of the crazy business of Trucking
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This is a Government/Licensing problem.
How can the “Government” licence a “professional driver” to drive a Big Truck SAFELY if the truck driver cannot read & write sufficient English, or French ? How do they read road signs? How can someone illiterate in the language read road signs ?
How do you TEACH SOMEONE who doesn’t understand a word you say ?
To be a “professional driver” a minimum level of fluency & knowledge on how to Drive A Truck, maintain a truck , Safety Rules… Emergency Procedures is required… On SNOW & ICE.
We have been hearing for over 16 years or more i think that CRA was going to be cracking down on these Driver Inc. trucking companies still hearing crickets we all know this problem is primarily from a certain group but nobody wants to address this idea because that group comes back to play the race card just like MTO enforcement inspections this is clearly a tax avoidance issue to the tune of billions of dollars each year so when people complain they are getting adequate government services like Healthcare this is a huge revenue loss for the treasury this scam has to stop there is no need to fund a study audit every trucking companies payroll enough is enough enforcement needs to be stepped up and do your job!!!
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Simple have a min hourly special tax of a min of $90 per week for driver Inc and or lease ops based on $2 hr off the elogs to be sent in with the fuel tax returns every 3 months and proof of disability insurance and good medical insurance if they cross into the U S I am getting tired of new people to Canada being taken advantage of and the taxpayers having to cover the costs.
Driver inc should have been shut down right from the start!
The Government didn’t do anything when we started complaining about driver inc!
Now they lost a lot of revenue and have a bigger mess to shut down !
Sorry, but yeah right. I’ll believe it when I actually see it. I have ZERO faith that this industry has the ability to actually suck less.
From: Canadian Skilled Truckers Alliance:
Re: Drivers Inc…
Drivers are becoming more aware and finally listening. It is one thing to be an Owner-Operator and learn the legalities of that alone.
Drivers Inc… gets you nowhere from no EI benefits to no Severance Pay, the loss is immense. I’m glad to see the back end of it, and hope those who have been tricked understand it is illegal here in Ontario, and you can take that company to court over your losses… If you do not, then the best thing to do is repolot the company and allow ESDC and others to do the job they need to do.
Next look at the driving schools that are breaking every rule they can and cutting rates as a result. There appears that no one is willing to get tough on them. Those that are doing a good job are suffering under this umbrella and drivers are getting licenses that don’t deserve them.
It is also time to shame the shippers, who have played a significant role enabling Driver Inc.
Call a spade a spade.
Great article Mike.
There is one more issue that no one wants to talk about. Owner/op versus lease operator. The undocumented hours that every single owner/leaser is NOT putting in their e-logs.
This practice is illegal and also detrimental to the employee only fleets. These fleets are the only ones that are following the law in the entire industry.
Forever it has been easy to scale a trucking company with lease operators. Lease operators are not owner/operators. That is an important distinction that needs to be brought forward. A lease operator does not have control of work. They cannot just contract to another company when running someone else’s authority/insurance/safety program. UNLESS the leasing company is the contracting party, and it get’s a piece of the revenue and controls the deal. How is that a true contractor? Per the CRA you are either an employee or a contractor. There is no 3rd official version. Our data has shown for over 2 decades that it is mathematically impossible for a single 1 person show to manage every point of the business, have all that recorded in the e-log as it happens and have enough hours left to drive the truck and earn a living. Every commercial driver can only have 1 record of duty status. Everyone in this industry knows this is going on but no one talks about it…I’m just pointing out that if we are getting all high and mighty, let’s go the full distance.
it has been a long time comming over half the driver now work as a contractor they get the gross pay with no deduction
I operated under Driver Inc. For a number of years, while trying to establish a different business.
The difference was I treated it as a business, not a gig.
I had my own WCB coverage, I charged carriers a premium rate because of the contract concept.
At the time, if it was an hourly pay, I charge five dollars an hour more than they paid their own drivers. On a mileage basis, I charged a nurse to five cents a mile. I also complied with all the CRA requirements to be a contractor.
This is NOT what is happening in the driver ink model today
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I am seeing good companies paying $31 to $37 per hour on payroll with with overtime in oil related services but seeing TFWs that came as students doing local work in that $21 to $28 per to a Corp account after a so called lease and expenses n sick days no CP P no WSIB no deductions for taxes and I am seeing good companies closing because of these companies that are using much cheaper driver Inc for local work gravel food delivery to certain large businesses
How can they allow drivers with no mastery of the Englush language to operate big rigs? Bravo to the US for making the drivers be able to speak Englush. I can’t see any of our governments having the guts to do the same.