CTA ramps up campaign against trucking industry “lawlessness”
The Canadian Trucking Alliance (CTA) is launching a new campaign aimed at ending lawlessness in the Canadian trucking industry.
It comes with a new website – stopillegaltrucking.ca – and is a national effort assisted by its provincial association members. The campaign aims to end human trafficking and other illicit schemes, which, it says, are destroying the industry and costing Canadians billions of dollars.
The misclassification of drivers – which CTA dubs Driver Inc. — is among the illegal activities the campaign is looking to stop.
“Essentially, we know that companies that routinely cut corners when it comes to tax and labor compliance, will most definitely do the same in all areas of their operation, including disregarding public safety by carelessly putting unfit equipment and untrained or poorly qualified drivers on the road,” says Marco Beghetto, vice-president of communications, CTA.
“Canadians are now waking up to what we have been warning about for many years – the industry is in crisis. This lawlessness is an extensional threat to our industry and puts Canadians at severe risk. It must end immediately.”
The CTA notes new laws or regulations aren’t needed – but enforcement of existing laws and standards is.
“This isn’t just an industry fight – it’s a public safety and fiscal crisis,” CTA chairman Greg Arndt said in a release. “When companies hide behind the Driver Inc. model, lives and livelihoods are put at risk and vital public services lose billions. Our federal government needs to end the negligence once and for all and put an end to this systemic lawlessness.”
CTA and the provincial trucking associations have been campaigning against Driver Inc. for years, but are expanding their focus beyond tax and labor abuse to better reflect the overall lawlessness throughout the industry.
The associations will leverage social media to spread word of the campaign.
“Responsible carriers and drivers pay their taxes, follow labor laws and prioritize safety – and they are being punished by a system that tolerates cheating,” said Arndt. “Canada can no longer afford to stand by and watch. The lawlessness we all see must end now.”
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Blaine
You have a excellent idea of what the federal government should do
You have a excellent idea of what the federal government should do but it would take a long time for the government to get enough people to do the audit the multiple small businesses that are doing this. I was offered to drive for this company if I had a hst number and a registered company as the only way he could hire me. I definitely would be surprised if the government could find all the different types of driving jobs that only pay this way
Time to end the Driver Inc Tax Avoidance Pay Model!!
Driver Inc. — Penalty & Enforcement Policy Brief
End Driver Inc. — Fair Warning, Then Firm Penalties
Compliance Window
• 3-month grace period for any carrier found non-compliant.
• Carrier is placed on a watch list and must file corrective T4s, pay CPP/EI/WSIB, and remit back taxes.
• If fully corrected within 3 months → no fine applied.
• If ignored → penalties begin
Penalty Ladder
First Offence (after grace):
• $50,000 fine per truck, per year.
• Immediate reassessment for back CPP, EI, WSIB, tax arrears + interest.
• Carrier listed on a public non-compliance register.
Second Offence (repeat violation):
• $100,000 fine per truck, per year.
• Automatic revocation of CVOR/NSC authority.
• Prohibition on registering new plated trucks.
• Civil liability exposure for damages to compliant carriers (~$45,000 per misclassified driver, per year).
Enforcement Authorities
• CRA: enforce T4 obligations, reassess, collect arrears.
• Provincial WSIB: collect unpaid premiums.
• Transport Canada / Provinces: suspend or revoke CVOR/NSC.
• Banks & Insurers: deny financing, insurance renewals for listed carriers.
• Public Register: shippers and brokers see who is non-compliant.
The cleanest test for identifying Driver Inc. carriers is the T4 slip requirement:
• If a company has plated and insured company trucks on the road, every driver operating those trucks must be an employee.
• That means the carrier must issue a T4 slip showing employment income, CPP/EI contributions, and taxes withheld.
Why This Works
• Fair: every carrier gets one clear chance to clean up.
• Firm: if they ignore, first strike is costly; second strike ends their business.
• Balanced: pairs the Carrot (Carrier Integrity Pact) with the Stick (penalties + license revocation).
Press Headline
Government Must Stop Driver Inc.: 3-Month Warning, Then $50,000 Per-Truck Fines and Automatic Revocation for Repeat Offenders.