CTA insists Driver Inc. crackdown set to ramp up

TORONTO, Ont. – The Canadian Trucking Alliance (CTA) says it has been assured by various government departments that stricter enforcement of worker classifications is coming. In a letter to CTA, Labour Minister Filomena Tassi confirmed it will soon begin targeted enforcement, roll out penalties and even name-and-shame certain non-compliant companies, the CTA announced. Enforcement is aimed at so-called Driver Inc. fleets, which improperly classify employees to sidestep certain payroll deductions.

The Canadian Trucking Alliance has been leading the charge against Driver Inc.

“New compliance and enforcement tools will enable the Labour Program to impose penalties and publicly name violators who do not comply with the regulations under the Code,” the letter said.  “Furthermore, new legislation will prohibit employers form treating individuals as if they were not employees, especially those who do so in order to avoid obligations or deny employee rights.”

In the meantime, CTA has the ministry has ramped up communication to inform employers and employees of their roles and responsibilities regarding labor standards and occupational health and safety.  The Alliance has received a similar commitment from Transport Minister Marc Garneau, who acknowledged industry data showing a correlation between Driver Inc. companies and poor on-road safety performance. “As we all know, a culture of non-compliance is seldom isolated to just one set of rules,” said CTA chairman Jean-Claude Fortin. “It’s much deeper than that.

These unscrupulous practices are often ingrained in the business models of these companies, pushing them to cut corners wherever and whenever they can. CTA is pleased to see both ministers acknowledge that Driver inc. is a problem and that they are working with their counterparts in other departments to take a comprehensive and proactive approach to enforcement.” 

CTA added that the Minister of National Revenue also has confirmed Canada Revenue Agency will take action related to Personal Services Businesses and Driver Inc. abuse.