A new driver survey highlighted in the Globe and Mail echoes the concerns The Canadian Trucking Alliance has repeatedly raised with governments and officials for a decade – that worker misclassification, labour abuse, wage theft and deteriorating safety conditions are systemic problems spreading throughout the trucking industry, that demand sustained enforcement and reform.
According to the survey of more than 400 truck drivers across Canada, conducted by Parkdale Community Legal Services, Labour Community Services of Peel, and driver advocacy organizations, nearly 70 per cent of long-haul drivers report experiencing wage theft. The average amount of unpaid earnings cited was about $10,000 per driver. The findings point to illegal deductions, unpaid hours of work, misclassification of employees as Driver Inc. contractors, and unsafe operating conditions.
Supporting CTA’s claim the Driver Inc. scheme is rampant in trucking, more than 65 per cent of surveyed drivers reported being misclassified as independent contractors, a tax-evading practice by companies which also deprives workers of basic protections and legal entitlements.
Alarmingly, nearly one third (29%) report their employers frequently pressure them to take risks on the road; while 60 percent say they are forced to often drive trucks that are not properly maintained. This reinforces CTA’s long-standing claim there is a direct correlation between Driver Inc companies that evade taxes, commit labour abuses, steal workers’ wages and threaten public safety by pressuring drivers to break highway and commercial trucking laws while operating unsafe equipment.
“These findings are deeply troubling, but they are also not surprising,” said Stephen Laskowski, president of the CTA. “The report supports years of CTA warnings that the culture of non-compliance and overall lawlessness in trucking is growing. There is clearly a systemic association between tax fraud, labour abuse and the deterioration of driver and public safety we are all witnessing on our highways. We drastically need intervention from all levels of government to save this industry.”
During recent testimony before the federal transport committee, CTA explained how Driver Inc carriers can illegally save up to $30,000 per driver by misclassifying workers.
The Globe article further underscores that trucking represents just 17 per cent of federally regulated employment, yet accounts for 85 per cent of federal labour code violations between 2017 and 2022.
“For years, CTA and responsible industry partners have said that weak or non-existent enforcement and minimal penalties create a business environment where non-compliance is normalized, putting the travelling public at risk while undermining responsible, compliant trucking companies,” said Laskowski.
While CTA has welcomed recent federal investments and changes aimed at improving enforcement, including additional resources for inspections and action against misclassification, the Alliance is emphasizing that more must be done to ensure timely investigations, meaningful penalties, and consistent application of the law.
“We hope governments will continue to listen to those trying to fix these problems – including driver advocates, legal clinics, and industry groups committed to fair labour practices and competition – rather than continue being distracted by voices that insist there are no problems here. These denials aim to obscure the strong correlation between misclassification, labour abuse and safety violations; while obstructing progress to undermine hard-working drivers and reputable trucking companies.”
CTA reiterated its call for stronger enforcement of existing labour laws, adding ESDC’s misclassification team will be critical in combatting many of the problems highlighted in the report. CTA says additional budgetary measures are still needed to ensure this group has the sustained funding and resources needed to curb the rampant noncompliance and labour abuse.