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CTA highlights efforts on Driver Inc. during BCTA conference


KELOWNA, B.C. – The Canadian Trucking Alliance (CTA) has taken several strides in its attempt to reign in Driver Inc. in an attempt to help level the playing field for carriers across the country.

CTA president Stephen Laskowski brought B.C. Trucking Association (BCTA) AGM and Management Conference attendees up to date today in Kelowna, B.C., saying Driver Inc. is a focal point for the alliance, which includes ensuring the industry and drivers know what the effort entails.

In a nutshell, Driver Inc. involves incorporating a driver who is operating a company truck. They do not own, lease, or operate their own vehicle and receive payment from the carrier without proper tax deductions. Unlike owner-operators, which Laskowski described as a “true small businesses where risk is involved,” those operating under Driver Inc. claim tax deductions as a small business would, with many going into a black hole and not claiming any taxes at all.

Laskowski said Driver Inc. is not about finding quality drivers, but rather about gaining a competitive advantage in the marketplace, an advantage that is non-compliant with Canadian tax regulations and not a source of pride for the industry.

“It’s going to be a continuous battle when it comes to Driver Inc.,” said Laskowski. “Tax evasion is not a model to attract new employees. The message has to be that there are consequences of non-compliance.”

Canada Revenue Agency has clarified that incorporated drivers do fall under the category of personal services businesses, and are not eligible for any small business deductions. This means carriers must issue T4As to all self-employed drivers.

Educating drivers and those in the industry about Driver Inc. is one effort Laskowski said needs to continue. Many drivers looking to become owner-operators are lured into Driver Inc. because they believe it is an easier path to achieving their goal with none of the risks of being a small business owner.

“I can tell you that in the carrier community, their patience on education is getting less and less because they are losing drivers,” said Laskowski.

Enforcement and awareness of Driver Inc. are the CTA’s goals moving forward in 2019.

Laskowski also provided an update for attendees on the Canadian electronic logging device (ELD) mandate, saying he expects an announcement in the near future.

The coming year will also bring full ELD enforcement in the U.S., which moves away from automatic on-board recording devices (AOBRDs), which are a less sophisticated option compared to ELDs.

Laskowski said U.S. enforcement is looking forward to full enforcement, as it will simplify what has been a complex issue that has involved various types of devices.

“I expect an interesting next year in the U.S.,” said Laskowski.


Derek Clouthier

Derek Clouthier

A university graduate with a degree in English, I have worked in the media industry as an editor, reporter and now as editor of Truck West. I have several years of management experience in journalism, as well as hospitality, but am first and foremost a writer, both professionally and in my personal life, having completed two fiction novels. derek@newcom.ca @DerekClouthier
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5 Comments » for CTA highlights efforts on Driver Inc. during BCTA conference
  1. Noble1 says:

    Quote:

    “Unfortunately, those limits on driving often come up against truckers’ desire to please their bosses and trucking companies’ desire for ever-greater profits. As a result, drivers often drive more than they’re supposed to and keep inaccurate or otherwise inadequate records.”

    https://www.preszlerlaw.com/blog/truck-crashes-ontario/

    Check out this lucky driver ! Lucky driver because the fuel he was hauling didn’t ignite !

    UPDATED: Tanker spills 23,000 litres of fuel on Hwy. 401 Mississauga

    https://www.mississauga.com/news-story/9403962-updated-tanker-spills-23-000-litres-of-fuel-on-hwy-401-mississauga/

  2. Noble1 says:

    Quote:

    “None of the people who oversee the federal laws that govern truck drivers were ever truck drivers themselves”

    https://www.businessinsider.com/no-fmcsa-administrator-was-truck-driver-2019-1?utm_source=msn.com&utm_medium=referral&utm_content=msn-slideshow&utm_campaign=bodyurl

  3. Noble1 says:

    Quote :
    June 3 2019
    “11 incredible facts about the $700 billion US trucking industry”
    https://markets.businessinsider.com/news/stocks/trucking-industry-facts-us-truckers-2019-5-1028248577#in-2017-the-american-trucking-industry-posted-revenues-higher-than-the-gdp-of-more-than-150-nations-1

    Without truck drivers , carriers and trucking associations become powerless …………. What about a Country ?

    What a shame that truck drivers are so underappreciated and exploited . But this can change . Truck drivers can change this !

    It’s grand time to really level the playing field . Wouldn’t you agree ? Drivers need to unite and create their own association(s) just like carriers have . That would certainly level the playing field . Then we’ll see who will “control” who .

    It’s not rocket science ! It’s simply “clever” ………

    The question is : Are truck drivers clever ?

    In my humble opinion !

  4. Noble1 says:

    Quote:

    “The message has to be that there are consequences of non-compliance.”

    You mean like carriers not paying drivers for ALL their HOS ?

    LOL !

    People who live in glass houses shouldn’t throw stones !

    Gotta love the hypocrisy of trucking associations operated by “carriers” preachin’ ethics !

    ROTFLMAO !

    In my humble opinion ……………

  5. Noble1 says:

    Where’s the driver shortage CTA ???

    Quote:

    ” Job growth continued to stall in the trucking industry, which added just 300 workers to payrolls in May.

    The trucking industry added an impressive 44,000 jobs in 2018, as rising demand and surging rates helped propel hiring throughout the year.

    Some of this momentum carried over into January 2019, which saw an impressive 4,400 jobs added to start the year. Since then, hiring has stalled within trucking, as only 400 new jobs have been added from February to May combined.

    With conditions on the goods side of the economy performing far worse than the overall economy, it is unlikely that hiring within trucking will re-accelerate any time soon. ”

    https://www.freightwaves.com/news/trucking-hires-continue-to-stall-as-job-growth-cools-in-the-economy

    ROTFLMAO !

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