It was to introduce the concept of lawyers.
We had a legal and technological analysis. On October 21, Ritesh Kotak came to share this perspective. We needed this analysis of a more legal nature. We were really looking at the ground level, with drivers, companies and business owners. We took the study a bit further into the political arena when the member critical of Driver Inc. came to speak to us. Now we're dealing more with the legal aspect.
He used words that we need to pay attention to, because this is really about legality. It's about trucking companies misclassifying drivers as independent contractors rather than employees. These words come from a legal expert. He studied the issue closely and told us that it's a misclassification. This model, which classifies drivers as independent contractors rather than employees, is damaging the ecosystem.
I spoke about some of the self‑contracted drivers whom I had the chance to talk to. They told me that they weren't bad drivers because they belonged to Driver Inc. I replied that we never said that. Drivers can be self‑employed. They can have their own truck, incorporate, do their accounting in the evenings and wash and maintain their truck on weekends. They can maintain their truck in the same way as companies, but work for different companies or for the same company for contracts of six to eight consecutive months. They aren't required to become a worker paid directly by the company. They are like subcontractors who become independent of their company. They manage their own companies properly.
Now, in the same context, this truck driver tells us about companies that misclassify their drivers. Truck drivers are classified as drivers in a truck owned by the same company, but that doesn't belong to them. The company imposes certain conditions on the drivers, such as driving for the company and registering with Corporations Canada. It takes over, like a T4A slip that becomes illegal.
For the companies, the goal is to avoid the costs associated with employer obligations. The lawyer explained this to us. According to him, the difference between an employee and an employer is the principle that I just explained to you. The lawyer told us that, under the employer's management, the methods, payroll, legal protection and imposed schedules don't exist. So, from an administrative perspective, all the paperwork, working conditions, insurance and responsibilities disappear. Everything is handed over to an inexperienced driver, who is often an independent contractor.
This is more or less the difference that the witness showed us while answering our questions. The lawyer was asked some excellent questions. He clearly showed us that independent contractors manage their own business, provide their own tools and take on the financial risks. There are no tax deductions or benefits. When a lawyer who knows the law comes to tell us this, we can measure the consequences. The consequences for these drivers are the loss of protection and everything that this entails, such as leave, insurance or safety. The risks are increased, because these drivers are more at risk than any other driver in the field.
The more that we make these drivers compliant, the more unfair the competition. We've had these discussions with an independent lawyer who knows the issue. The discrepancy between compliant companies and companies engaging in unfair competition is up to 30%.
If training and compliance are neglected, the risks are increased. We discussed this a bit with the witness. We discussed some aggravating factors. If I visit the website to incorporate in Canada, in a few clicks I can create a file and incorporate with Corporations Canada. Someone who has received training on the matter, who is comfortable with Canadian government software and who has the ability to register a person can enter the information to incorporate the future truck driver in a few clicks. The highly accessible process places pressure on the drivers. As soon as the information entered meets the requirements, the pressure is on the driver to accept incorporation. Some companies are experts in human resources when it comes to incorporating people. This shouldn't happen.
How do you find the people at fault? Let's make some recommendations in this area.
The lawyer believes that there's a blatant lack of legal education. We know that everything is vague. There's a lack of legal education, so drivers don't know their rights and obligations. Can we make sure that we recommend some form of education and training so that all drivers can have the same understanding of the risk of becoming a Driver Inc. driver and can know the benefits of working for a company? Can we give the provinces the tools needed to educate all the thousands of truck drivers?