Driver Inc. threat approaching point of no return: CTA
The Canadian Trucking Alliance (CTA) is warning that the labor scheme known as Driver Inc. will become the dominant business model in trucking if regulators fail to act on the issue this year.
“The industry is approaching the point of no return as upwards of 25% of the industry is estimated to be involved in some form of the Driver Inc. scheme already,” CTA president Stephen Laskowski said in a press release.
“Without committed action by the end of the year, this model will likely become solidified as the dominant employment practice as the [federal] government moves ahead with the implementation of Bill C3 – Paid Medical Leave and other planned Labour Code reforms – which Driver Inc. companies claim do not apply to them.”
Under the Driver Inc. model, fleet sidestep employer obligations by misclassifying employees as independent contractors.
By CTA estimates, Driver Inc. structures sacrifice more than $1 billion a year in lost tax revenue through the underground economy. And it says the federal government has fallen short on its commitments to end the scheme.
The alliance says it is in the midst of its largest push to draw attention to the issue and has added a tool in the form of a dedicated website – www.stopdriverinc.ca and www.stopponschauffeurinc.ca – to help highlight the problem.
It’s calling on Employment and Social Development Canada to move to a “robust and proactive” national enforcement approach that sees all regional offices identifying and auditing suspected Driver Inc. companies. And it wants the Department of Finance and Canada Revenue Agency to acknowledge the impact of Driver Inc. on the industry and government revenues, and coordinate an approach with ESDC to eliminate the abuse.
Have your say
This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.
The companies are not abusing employees. They are allowing employees to avoid paying taxes. Big difference! Only an educational campaign directed at these drivers will stop “Driver Inc” from happening. The Driver Inc companies will have huge competitive advantage over other trucking companies once regular companies start paying for sick days. Expect to see more companies utilizing contract drivers as a result. The CRA does not have the resources to enforce it’s own tax laws. Very sad situation and it will only get worse until the media gets it’s facts right and educates the drivers on why they should hire on as employees.
It isn’t just the trucking industries using driver Inc.
Retail companies like pharmaceutical and clothing companies are doing the same …. stop focusing on this industry so much and open your eyes !
The problem is we need better protection for the drivers on payroll. A number of foreign drivers ate coming to Canada driving for 1 to 2 yrs for a larger trucking companies then leave. They are then offered a lease op deal with 3 drivers in 2 trucks or a team truck or solo to a corp account. This is happening because the current model by the large trucking companies does not provide proper medical care or support if sick or injured for ( foreign students) drivers. We need a tiered wage based on experience and hourly overtime pay on payroll. We need to limit companies from bringing in foreign drivers unless they have a written plan to house and look after all sick and injured drivers including those that get covid. Huron Easy Share ( a non-profit group) is pushing for paid sick days and better protection for drivers including uber and delivery drivers and bus and truck drivers. We would like have a wheelchair van outside of the job fairs when possible. We have a R N nurse and a P S Ws that are currently to help when needed. We are having to turn down 20 to 30 calls a week from truck drivers that been left in a bad position as drivers or foreign drivers on work permit. At this time I see no other way to solve this problem without a number of drivers being paid as driver Inc leaving trucking and this could create transportation problems.