Canadian Trucking Alliance criticizes Fall Economic Statement
The Canadian Trucking Alliance (CTA) is criticizing the federal government’s Fall Economic Statement issued on Nov. 21 because of its lack of steps to tackle the business model known as Driver Inc.
“We’re extremely disappointed the federal government didn’t focus on this critical issue which is dramatically impacting an essential industry in our country,” CTA president Stephen Laskowski said. “The fall economic update was a pivotal moment to mobilize public support and begin to take action against the concerning operation of Driver Inc., and I fear the moment has been missed.”
Driver Inc. models involve incorporated drivers who don’t own or lease their vehicles but are still paid without source deductions.
“This practice is harming individual truck drivers throughout the country who are experiencing exploitative working conditions and abuse. Despite having an employer-employee relationship, they are unfairly deprived of rights and benefits that all employees are entitled to in Canada,” CTA said in a statement.
In a recent presentation to the Truckload Carriers Association Bridging Border Barriers conference, Laskowski said Driver Inc. fleets save as much as 30% on their labor costs by circumventing certain payroll taxes.
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What the industry needs is a set of standard for driver treatment and pay like many of us are pushing for. The large trucking companies pushed for and got speed limiters. Thinking that it would bring drivers back then they pushed for E logs which caused large numbers of experience truck drivers and owners ops to leave. The large trucking companies then lobbies to bring in cheap foreign drivers. These people stayed long enough to get their P R . Many of these drivers were other jobs before coming to Canada and had many more winter crashes in my opinion. Many of these drivers after getting their P R went back to school and took non trucking jobs but put $ into buying used tractor and trailers. This was often done through a group of them . These people have become competitive to the larger trucking companies and driven rates down below cost of operating a truck. Many of these lease ops are now sending their children back to India as they can not afford rent in ont or Vancouver
I see many truck drivers that came over set up lease agreement and their own fuel card through the O O I D A and lower cost than buying fuel and tires through a large company that they were working with. In my opinion unless we get a tired wage based on yrs of safe driving at the same or more than the average wage per hour plus paid sick days and overtime like California is pushing for these driver inc / lease ops will continue to grow in numbers. When the U K tried to do away with lease ops 20 percent of more left the industry the same could happen in Canada. In my opinion right now we have over 7000 drivers or trucks parked and still have over 8000 too many for current freight volume. If the the trucking companies got over 20 000 to leave the industry what is their plan so we do not have a shortage next April till Dec for truck drivers in construction and agr?