Thank you very much, Mr. Chair.
I am moving this motion today because the Standing Committee on Transport, Infrastructure and Communities undertook a study and discovered the much-discussed Driver Inc. scheme. Some of the people at this table may not be familiar with this scheme, and so I would like to describe it briefly.
Basically, the scheme consists in integrating someone into an organization as a subcontractor instead of hiring them as an employee. That way, organizations avoid making contributions for various kinds of benefits, such as employment insurance premiums and pension plan contributions and they also avoid paying vacation pay. Normally, organizations are required to cover that. They also don't make income tax deductions because subcontractors are paid in cash directly.
In addition, there is no coverage for work-related accidents. Because the drivers are subcontractors, they have to pay their own insurance, and they are responsible for their own operations. There is also no overtime pay or minimum wages, and as such, no matter how hard they work, drivers don't have guaranteed wage levels. They don't have job security either, because they are subcontractors. Organizations don't need to fire them and instead, they just stop giving them work.
This creates a system that often puts victims of these schemes at a greater disadvantage compared to regular employees. We heard from witnesses who said that this system allows businesses to reduce costs by 30%, 40% or even 50%. Additionally, individuals who are paid through this method believe that they don't even have to pay taxes or report their income. This appears to be a prevalent idea in the sector. Obviously, it puts businesses that have salaried employees and comply with the law at an entirely unfair disadvantage.
The system also leads to all sorts of abuse and exploitation. The required number of work hours comes to mind. There is no compliance with the minimum number of hours, and this contributes to extreme driver fatigue, which in turn contributes to accidents. Indeed, statistics bear that out. In 2020, there were 336 fatalities resulting from collisions involving commercial motor vehicles in Canada. There were 362 fatalities in 2021, 376 in 2022 and 399 in 2023. The number of fatalities increased steadily each year. In Quebec alone, the number of fatalities involving heavy trucks rose by 35% in one year, in 2023–2024.
We often see other issues associated with the Driver Inc. system. I am thinking of unroadworthy trucks that are not properly maintained and of poorly trained and underpaid drivers and immigrant workers who are forced to perform hazardous manoeuvres because of their status. As I said, there is also non-compliance with the maximum number of driving hours. We can also talk about fraud more broadly. There are tonnes of media stories about people who have been caught driving 50 or 87 hours straight. Unfortunately, this is becoming more common.
Let us turn to the statistics. According to Statistics Canada, in 2015, there were 65,000 incorporated drivers in Canada, and over 100,000 in 2025. Quebec had approximately 9,000 incorporated drivers in 2015 compared to 11,000 today. Ontario had 27,000 incorporated drivers in 2015 and 53,000 in 2025. A look at the latest data shows the number rose from 33,000 to 53,000 between 2020 and 2025. That's an increase of 20,000. The number of incorporated drivers in Ontario has virtually doubled in five years, while the number has increased by 1,800 in Quebec and 26,000 in Canada. This means that 20,000 of the 26,000 incorporated drivers that were added between 2020 and 2025 were in Ontario.
Mr. MacKinnon has told us multiple times that this issue falls under Quebec and that the province has to resolve it. However, these data clearly show that the main problem lies in Ontario. Indeed, 85% of the increase across Canada over the past five years is from Ontario. I believe that is as clear as it gets.
Comparing the number of incorporated drivers with the number of employees in the transport sector provides a clearer picture of this situation. In 2025, there were 100,000 incorporated drivers in Canada compared to 200,000 employees. That means that approximately one in three truckers in Canada were incorporated drivers.
There are 53,000 incorporated drivers in Ontario versus 66,000 employees. That's a ratio of 45%. Nearly one in two truckers in Ontario is an incorporated driver. Quebec has 11,000 incorporated drivers versus 47,000 employees, which comes to one in five drivers. Again, it's quite clear that the problem lies in Ontario.
Furthermore, the data show that there were 215,800 trucking jobs in Canada in 2023 and 209,000 in 2025. Over 6,600 jobs were lost in two years. Why are jobs being lost in the trucking sector? Because businesses are literally going bankrupt. They can't support this system, which undermines workers and forces them to work in terrible conditions. Some businesses are following the standard rules, but they are being forced to transition to this system. Some 123 trucking and warehousing businesses in Canada filed for bankruptcy in 2020. The number rose to 424 in 2024. The number of bankruptcies skyrocketed and increased by 245%.
According to the Association des professionnels du dépannage du Québec, 78% of traffic accidents and incidents are linked to low-cost drivers. Members of this association tow these trucks from the road. They are the ones who deal with the problem. They respond to approximately four accidents or incidents a day, and they are losing millions of dollars due to outstanding invoices. Unfortunately, quite often, companies that try to cut spending in any way that they can, including using unroadworthy trucks, underpaying their employees or exploiting immigrants don't pay their bills. As such, there are $3.8 million in outstanding invoices.
A look at the data on temporary foreign workers shows that between 2016 and 2024, 43,000 work permits were issued in the trucking sector alone. That is quite a big number when you look at the overall data. According to some of the documents we received through a request for the production of documents at the Standing Committee on Transport, Infrastructure and Communities, including correspondence between Employment and Social Development Canada and the temporary foreign worker program, 114 of the offending 149 employers were using the temporary foreign worker program. This means that 114, or 77% of the 149 employers that were using the Driver Inc. scheme were using temporary foreign workers, even though this is clearly prohibited. Anyone hiring temporary foreign workers is expected to hire them as salaried workers and not as subcontractors to work in hazardous conditions that put them at a disadvantage.
The government has been aware of this issue for years. The trucking industry alerted the federal government about it and so did the U.S. embassy and unions, but nothing has changed. How come nothing has changed, Mr. Chair? That is our question today, and to some degree, it explains why I am moving this motion at the Standing Committee on Access to Information, Privacy and Ethics today.
We even found that Canada Post also uses low-cost drivers. In addition, through requests for access to information, we found that some agencies, including Ontario's Workplace Safety and Insurance Board, have recovered millions of dollars and some $12 million in unpaid premiums were recovered between 2019 and 2024. Hundreds of millions of dollars in wages have not been reported. This is a systemic problem in Canada and in Ontario.
Some organizations have a vested interest in making sure things don't change, that the system remains in place and that the laws are amended to allow this system, which leads to exploitation. Faced with industry demands, the government decided to implement a pilot project, and in 2021, Employment and Social Development Canada used a pilot project to survey businesses in Ontario to see whether this was an actual problem. A sample found that 60% of the businesses surveyed in Ontario were non-compliant.
The government announced a $26.3‑million investment over five years in the 2022 economic update to address this issue and said that the funds would be provided to Employment and Social Development Canada. That was good news. However, the update also stated that further details would be provided in subsequent economic updates and budgets. What became of that? There was nothing in all subsequent government documents, including the 2023 economic update, budget 2023 and budget 2024, all the way to 2025. The only time something was included was last fall, when an announcement about T4A slips was made after we exerted pressure. I will speak to that later.
A new lobby group was created after the 2022 economic update, and it organized a founding gala and threw a huge party. The lobby group is known as the Canada Truck Operators Association, or CTOA. The association invited a variety of Liberal members. A look at photos from 2023 shows there was swift response to the 2022 economic update. The photos show Liberal members, including Sonia Sidhu, Iqra Khalid, Francesco Sorbara, George Chahal, Maninder Sidhu, Ahmed Hussen, Ruby Sahota, Rechie Valdez and Sukh Dhaliwal. Some of these members are no longer in office. More members may have been in attendance, but those are the ones I could identify in the photos that were taken at the founding gala. Obviously, attending a lobbyist's founding gala is not a crime. It does show that the lobby group is doing its job, that it's engaging with people and trying to influence them. However, seeing a big number of Liberal members attending the launch of a lobby group does raise some questions and can prompt you to dig deeper.
Which businesses or organizations are behind the CTOA? We dug a bit deeper and found a group called Kapow Communications, which manages public communications for the CTOA, an organization that supports the Driver Inc. model and believes that the system has positive benefits, despite the information I have already shared with you. Other businesses include HK United Trucks, Harman Transport, KJS Transport, Sun Transportation Systems, JB Rand Express, Mig Freight, Air & Oceanland, Autobahn Freight Lines, United Group of Companies and Truck Solutions. The spokesperson, Mr. Jaskaran Singh Sandhu, is a close ally of the Prime Minister and used to be with the World Sikh Organization of Canada.
In short, when we looked up the shareholders and senior leadership of these businesses, which are all members of the CTOA, the lobby group that supports the Driver Inc. model, we found that these individuals had something in common: almost all of them are Liberal Party donors. I don't know whether this is a coincidence, but it does raise a few questions, especially since an article published in Le Journal de Montréal last December reported that individuals behind the CTOA had contributed over $85,000. The latest information we could find shows that this amount is now in excess of $100,000.
What business groups are behind the CTOA? Are they trustworthy businesses that can guarantee good, secure jobs? Let us talk about Harman Transport, one of the businesses I named. One of its drivers was involved in an accident on Highway 30 in July 2022 that claimed the lives of 42-year-old Nancy Lefrançois and 11-year-old Loïc. The driver, Baljeet Singh, fled to India and then moved to the United States. He was extradited to Canada and will now stand trial. The same company was involved—