Canada’s Trucking Industry Calls Driver Inc. a $1 Billion Scam

Canada’s trucking industry is sounding the alarm on what it calls its biggest current threat — and it’s not fuel costs, driver shortages, or trade disputes. It’s something the Canadian Trucking Alliance (CTA) calls Driver Inc., a practice they say is costing the country over $1 billion annually in lost taxes and harming both drivers and compliant businesses.

What Is Driver Inc.?

Driver Inc. refers to the misclassification of truck drivers as independent contractors, rather than as employees. By doing this, companies can avoid paying payroll taxes and other employment-related expenses.

Under this model, drivers are often required to incorporate themselves, but they don’t receive the benefits or legal protections of being an actual independent business. Instead, they lose access to overtime pay, vacation days, employment insurance, and safety coverage.

The CTA says this scheme gives non-compliant companies a 30% cost advantage, pushing honest operators to the edge of collapse.

The Legal Side — and Its Loopholes

In 2021, Ottawa made it illegal for federally regulated companies to misclassify workers. In 2024, the law was tightened further — now the burden of proof is on employers to show a worker is not an employee.

But critics argue enforcement remains weak.

Stephen Laskowski, president of the CTA, says governments haven’t done nearly enough to enforce the rules. He believes as many as one-third of drivers in parts of Canada are still working under this model.

Who’s Being Affected?

Newcomers to Canada are often the ones most vulnerable to Driver Inc. abuse.

Karanveer Singh, who came from India in 2018 as a student, says two of his early employers misclassified him and failed to pay him. One still owes him nearly $40,000, despite a court order.

“These companies target new immigrants,” Singh said. “We’re desperate for jobs, so we’re easy to exploit.”

Singh even recalled being trained by someone who crashed into a wall at the U.S. border — and then, on his next run, he was asked to be the trainer, despite having little experience himself.

Impact on Honest Operators

Business owners who follow the law say they’re being driven out of the industry.

Mark Seymour, CEO of Kriska Transportation Group, says it’s impossible to compete when others can undercut rates by skipping taxes and safety standards.

“It’s widely known. It’s out of control,” he said.

Ron and Francie Langevin, who own a trucking company near Ottawa, worry that Driver Inc. operators not only undermine business ethics — but compromise road safety as well.

“These companies don’t care,” said Francie. “And the next time you’re on the highway beside a transport truck, ask yourself — how safe am I really?”

What’s Being Done?

The CRA and Employment and Social Development Canada (ESDC) say they are now working together to improve enforcement. Since 2023, ESDC’s transport-focused team has conducted 540 inspections and 320 education sessions.

Still, Laskowski wants more. He’s calling for the lifting of a moratorium that prevents penalties tied to missing T4A tax slip data — a move he says would help track and audit violators.

But Ottawa tax lawyer Dean Blachford warns that more penalties could also clog the tax system, as companies file disputes or avoid detection through shell companies.

The Bigger Picture

Driver Inc. isn’t just a problem for truckers — it’s a problem for Canada’s entire labour and tax system. With companies dodging regulations, workers being exploited, and safety potentially compromised, industry leaders are pleading for stronger action.

“Until the government enforces it, it is useless,” Singh said. And many others in the industry seem to agree.

Do you think the federal government is doing enough to stop this kind of exploitation in Canada’s trucking industry?

More…

• https://www.cbc.ca/news/canada/ottawa/driver-inc-scam-drives-truck-industry-crisis-1.7569716 
• https://www.youtube.com/watch?v=6o3nQxO4nQs&themeRefresh=1
• https://www.bisontransport.com/why-bison/understanding-driver-inc-what-shippers-need-to-know