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.
CTA has developed social media tools to help members draw attention to Driver Inc. practices. (Illustration: CTA)
“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.
