Transport Committee on Oct. 7th, 2025

[The Chair, Liberal, Peter Schiefke]

Welcome to meeting number nine of the Standing Committee on Transport, Infrastructure and Communities.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Thursday, September 18, the committee commences its study on the changing landscape of truck drivers in Canada.

Today's meeting is taking place in a hybrid format pursuant to the Standing Orders. I would like to make a few comments for the benefit of the witnesses and our members before beginning.

Please wait until I recognize you by name before speaking. For those participating by video conference, please click on the microphone icon to activate your mic, and please mute yourself when you are not speaking. For those on Zoom, at the bottom of your screen you can select the appropriate channel for interpretation: floor, English or French. For those in the room, you can use the earpiece and select the desired channel.

All comments should be addressed through the chair.

For members joining us in the room, I have two placards. If I lift up the yellow placard, it means please wrap up your remarks. If I hold up the red placard, it means that I will have no choice but to cut you off to ensure that we have equal time given to all members of all parties.

I would now like to now welcome our witnesses.

Appearing with us today from the Canadian Trucking Alliance, we have Stephen Laskowski, president and chief executive officer; Geoffrey Wood, senior vice-president, policy; and Jonathan Blackham, director, policy and public affairs. From Trucking Human Resources Canada, we have Angela Splinter, chief executive officer. From the Women's Trucking Federation of Canada, we have Johanne Couture, executive director; and Shelley Walker, chief executive officer.

Welcome to you all.

I'd like to thank you all on behalf of all members for appearing today. I will turn the floor over to Mr. Laskowski.

You have five minutes for your opening remarks.

[Stephen Laskowski, President and Chief Executive Officer, Canadian Trucking Alliance]

Thank you, Mr. Chair.

Thanks to all the committee members for committing to studying the crisis that is destroying our industry, causing carnage on our highways and robbing our social network of billions of dollars each year.

The CTA comprises seven provincial trucking associations, and our membership has over 5,000 carrier and supplier members from across the country. In turn, these companies employ over a quarter of a million Canadians.

I want to lead my brief opening comments with what I believe you will quickly realize about this issue, that the Driver Inc. crisis in our industry is not a problem without clear and identifiable solutions. It's simply a crisis without the necessary political will to solve the problem.

The issue the committee is examining is not a new one to our sector, nor should it be to the federal government. CTA has been sounding the alarm with the federal cabinet and provinces about this issue since 2018. The problems identified in 2018 have since been left to grow unchecked, and in 2025 they have evolved into a full-blown crisis of compliance, road safety, drug trafficking, human rights abuses, rampant labour law and tax fraud. It's been allowed to become out of control.

In the 2022 fall economic statement from the federal government, the issue of Driver Inc. was addressed by name, with over half of a page dedicated to the issue. The statement spoke about the tax and labour abuse taking place, and it stated that further details, particularly as they relate to taxation, would be revealed in the 2023 budget. At the time, the industry took this to represent the government's acknowledgement of the issue and their commitment to fix it. However, when the 2023 budget arrived, it was completely silent on the issue and has left the industry questioning why ever since. Nonetheless, we are hopeful that this study sheds a light on this issue and why it is being allowed to persist for nearly a decade.

What is Driver Inc.? As the name suggests, it simply means incorporated drivers, but, of course, it is much more than just that. Driver Inc. was born in 2011, and is the offspring of the PSB tax classification, the introduction of a temporary moratorium on T4As and the knowledge that unscrupulous trucking owners have had for a long time, which is that there is significant lack of enforcement and coordination among the federal departments of labour, CRA and their provincial labour and tax equivalents.

This issue does not stem from a lack of education or knowledge about the industry or governments. It's a well-thought-out scam that has expanded over the years to now incorporate immigration fraud, driver training fraud, human trafficking, the movement of contraband and illegal cross-border shipments. This growing scam furthers the deterioration of highway safety across the country and the bankruptcies of many legitimate law-abiding trucking companies that are critical to the fabric of your communities. The unfortunate truth about this scam is that bad actors are not only winning; they are also taking over the industry and the Canadian supply chain.

How does it work? Different departments have different independence tests, but some of the key components of all of them include ownership of tools, control integration and the opportunity for profit and loss. In trucking, a Driver Inc. driver fails all of these and is virtually indistinguishable from a traditional employee. They work under the direction of the company and the driver of the company trucks. The only difference is that they are coached or coerced or they elect to incorporate themselves in an attempt to masquerade as something other than an employee. For the company, they use this justification to strip workers of all their labour rights entitlements under the federal labour code. Together, this allows the company owner to pocket at least $20,000 to $30,000 per year, per driver.

On the flip side, exploiting CRA blind spots created by the T4A moratorium and the historical lack of interest in PSBs provide the opportunity to commit tax evasion. This is not hyperbole. It is verifiable fact. However, ESDC and CRA have studied the issue, and both have found rampant non-compliance centred in the trucking industry, exactly as labour has been saying for years.

We have submitted a brief to the committee that explains the problem in detail, provides glimpses of the mountain of evidence that has surfaced over the years and provides details on what is needed.

These solutions include ending the T4A moratorium immediately; implementing a part three to the CRA's work on PSBs; coordinating with all federal and provincial governments and agencies on a national misclassification blitz in the trucking industry with real penalties; deploying CRA, RCMP, ESDC and IRCC to truck inspection stations across the country; implementing new security measures for Canadian and U.S. trucks crossing the international border to end criminal ownership, which has infiltrated Canadian fleets; and expediting the completion and investment into the national database by Transport Canada that will create necessary oversight and knowledge of who owns and operates these fleets and their safety records in all provinces and territories.

There are also a host of other solutions that are in that larger document that you all have.

Thank you again for the opportunity to address this committee, and I look forward to discussing these issues with you here today. This is a critical issue for our industry.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Mr. Laskowski.

Ms. Splinter, the floor is yours. You have five minutes, please.

[Angela Splinter, Chief Executive Officer, Trucking Human Resources Canada]

Good afternoon and thank you for the invitation to speak here today.

We welcome this timely study on the examination of issues impacting Canada's trucking and logistics sector. Trucking HR Canada is a national workforce development council that works collaboratively with stakeholders in commercial transportation, public policy, training and economic analysis, ensuring Canada's freight transportation network has the skilled workforce it needs. We offer a range of HR-related programs and resources, and we are the industry's national authority on labour market information.

As a national not-for-profit, we are funded through federal and provincial grants and contributions and our own sustainable programming. We engage over 10,000 stakeholders through our communication and outreach initiatives.

As the dominant mode of transportation in Canada's supply chain, the trucking and logistics sector is the most significant enabler of Canadian growth and prosperity. Our labour market data shows that 340,000 truck drivers are currently operating in Canada, reaching into every community nationwide. When we consider the priorities of Canadians today, expanding international trade, strengthening internal trade, driving economic growth, meeting housing and grocery needs, and curbing inflation, the trucking and logistics sector is key as these priorities all rely on effective goods movement.

While our nation's supply chain, stability and economic viability rely on a strong trucking sector, we continue to experience more job vacancies than other industries.

Driver Inc. is a clear violation of tax and labour compliance practised by unethical trucking companies. Why is this a significant industry issue? It represents a black market and illegal rogue practice within the Canadian trucking sector, characterized by the deliberate misclassification of truck drivers as independent contractors rather than employees.

I will speak to three specific areas of concern.

The first is the impact on employee protections. This misclassification is strategically deployed to circumvent mandatory tax obligations and labour regulations, enabling companies to avoid remitting income and payroll taxes, EI, CPP contributions and other statutory employee benefits. It also circumvents obligations related to overtime pay and fundamental employee benefits. As a result, many truck drivers under this model lose vital protections, including job stability, retirement benefits, sick leave and holiday pay. These employment standards are core to Canada's labour culture, and essential to fairness and equity in the workplace. Their erosion puts employees at risk and weakens the foundation of our social safety net.

The second is the impact on our industry's ability to recruit and retain workers. The Driver Inc. model is directly impacting the long-term sustainability and stability of our workforce. This negative reputation fostered by these unethical practices is prompting new entrants and existing workers to seek opportunities elsewhere. There is a growing concern that the lack of labour protections will have a profound impact on the availability of skilled workers in the future. The Driver Inc. model is a well-known practice within the industry, leading to more candidates inquiring about the model. This makes it harder for compliant fleets to recruit in an already small pool.

The third is the impact on Canadian priorities. With the current economic climate and trade issues, it is more important than ever that our country has a safe, secure and compliant transportation infrastructure. This model directly impacts government tax revenue streams and contributes to an uneven competitive landscape within the trucking industry, disadvantaging compliant carriers who adhere to labour and tax laws. The Driver Inc. model is creating a rigged market where compliant carriers struggle to compete against those exploiting the model for cost savings and profit.

A serious concern here is that without adequately addressing the issue, compliant carriers may be tempted to take an “if we can't beat them, join them” stance.

Canada's truck drivers keep our economy and our daily lives moving. They deserve fair treatment, safe working conditions and employers who play by the rules. The Driver Inc. model undermines all of this.

It is not just a labour issue, it's a matter of ethics, equity and national integrity. We owe it to every legitimate carrier, every worker and every taxpayer to end this practice once and for all, and build a stronger, fairer industry together.

Thank you.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Ms. Splinter.

Next we'll go to Ms. Couture.

The floor is yours. You have five minutes, please.

[Johanne Couture, Executive Director, Women's Trucking Federation of Canada]

Thank you.

Good afternoon, Mr. Chair and members of the committee.

My name is Johanne Couture. I serve as the executive director of the Women's Trucking Federation of Canada.

I've been a professional driver for 31 years, 27 of those as an owner-operator. I haul dangerous goods in a liquid chemical tanker for cross-border trade contracted to one of Canada's largest carriers. I've travelled throughout all 10 provinces and the lower 48 states in every imaginable condition. That experience makes me a subject matter expert in road safety, and I am here to speak about how Driver Inc. is eroding it.

I'm not just an advocate today. I am the voice of thousands of professionals, owner-operators, small carriers, instructors and drivers who are being pushed out of the industry by the unchecked spread of Driver Inc.

Financial pressure is being placed on those who follow the rules while profit-driven actors cut corners on safety, maintenance and training. They don't care about the drivers they put in the trucks or the public sharing the road—that's your family and mine.

Driver Inc. is not innovation. It's exploitation disguised as flexibility. It misclassifies employee drivers as independent contractors, stripping them of basic protection while allowing carriers to dodge source deductions that fund social programs. These drivers lose out on benefits and face added liabilities in the event of a workplace accident. This model rewards evasion and punishes compliance.

For small and mid-sized carriers, Driver Inc. is a death sentence. They're forced to compete with operators who underbid contracts by cutting corners. Owner-operators are pressured to accept rates that don't even cover costs. That's not competition; that's coercion.

Insurance premiums are rising not because of individual risk but because of an overall increase in claims. Some insurers have even pulled out of the commercial market entirely.

As for safety, when drivers are misclassified, there's no employer oversight. No one is checking hours of service, vehicle maintenance or training. We're seeing more fatigue-related accidents, poorly maintained equipment and unnecessary risks on our roads. This isn't just a labour issue; it's a public safety issue. What message are we sending to the next generation?

Young people see instability, exploitation and lack of respect for the profession. A step forward is coordinated action from all levels of government. Consistent enforcement across all jurisdictions is a must. We need a national trucking credential that protects workers, supports compliant carriers and restores integrity to our sector—a credential that educates everyone on their rights and responsibilities. Fixing the financial deficiencies of Driver Inc. will have a mirror effect on fixing highway safety for all users.

Thank you for your attention.

I look forward to your questions.

[The Chair, Liberal, Peter Schiefke]

Thank you, Ms. Couture.

Ms. Walker, you have the floor.

[Shelley Walker, Chief Executive Officer, Women's Trucking Federation of Canada]

Good afternoon, Chair and members of the committee.

My name is Shelley Walker. I'm the CEO of the Women's Trucking Federation of Canada. I've been a professional driver for over 30 years and now lead national efforts to promote safety, equality and integrity in trucking. Through WTFC, I support women, youth, newcomers and under-represented groups in building sustainable careers, and I lead the Know Human Trafficking campaign to educate our industry and the public about exploitation and forced labour. Trucking is uniquely positioned to be both a target of exploitation and a frontline defence against it. That's why I'm here today, to call for an end to predatory misclassification schemes like Driver Inc. that destabilize our industry and create fertile ground for trafficking.

Let me be clear. We fully support the lawful owner-operator model, but Driver Inc. is entirely different. It misclassifies employee drivers, strips them of protections, shifts liability onto individuals and rewards carriers who cut corners at the expense of safety and fairness.

Only 4.3% of truck drivers in Canada are women. Under Driver Inc., maternity leave, predictable schedules and workplace accommodations disappear, making it nearly impossible for women and other under-represented groups to build lasting careers. If we're serious about equity, we must ensure that every driver has the security that only employee status provides.

We're also seeing a rise in labour trafficking. Vulnerable drivers, often newcomers, are lured into fee-heavy arrangements and then trapped by withheld passports, phantom surcharges and threats. This is debt bondage in motion, a stain on our industry and a threat to Canadian values.

Predatory carriers gain up to a 30% cost advantage by outsourcing wages, benefits and safety obligations. Honest operators can't compete. Investment in training and maintenance dries up, and road safety suffers, with more fatigue-related collisions, mechanical failures and risk for Canadian families.

WTFC has submitted a proposal for a national trucking credential, a practical, enforceable solution to restore integrity, protect vulnerable workers and raise professional standards across Canada. The time for consultation has passed. What we need now is decisive action. By funding and implementing this credential, Canada can send a clear message that exploitation has no place in our supply chain, and trucking will remain a profession built on fairness, accountability and pride.

Thank you for your time and attention.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Ms. Walker.

Thank you, Ms. Couture.

Thank you both for your steadfast dedication to the trucking industry and serving Canadians for decades by moving our economy forward.

We begin our line of questioning today with Mr. Albas.

Mr. Albas, the floor is yours. You have six minutes, sir.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Thank you, Mr. Chair.

Thank you to all of our witnesses for being here today.

Canadians are feeling unsafe on the roads, and they are feeling unsafe in their communities. I hear the language from all of our witnesses here today, things like "criminality", "exploitation", "forced labour" and "chaos". These are not things that I would usually associate with the trucking industry, which used to be a job that could put food on the table for a family. The companies that I know in my area, like Berry & Smith Trucking, have great reputations as family generational businesses.

Mr. Laskowski, you said that there is neglect after 10 years of successive Liberal governments. Can we start with where the neglect has been most acute in your industry?

[Stephen Laskowski]

From a federal perspective, it's twofold. The major responsibility at the federal level is at the CRA with the PSB and the T4A and then on the labour side with misclassification.

I'll start on the tax side. With the T4As, the moratorium went in in 2011. It was supposed to be temporary. We're now moving on 14 years. The definition of temporary, I don't believe, is 14 years. It is an open gateway for misclassification and tax evasion. There are no records of these folks, so they were able to hide. That is why there are many drivers participating in this. Some are forced and some are coerced, as you've heard, and then others see it as winning the lottery and the government doesn't care.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Earlier this spring, Mark Carney called an election, and that killed some important parliamentary authorizations that would have allowed CRA to do this work, to be getting on the misclassification.

What's the CTA's opinion of this setback?

[Stephen Laskowski]

We need that legislation back. It is critical that the CRA and the ESDC work together. They've committed to us to do that, and that's an important step. It's a step, not the whole solution, but a step.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

I've heard that 85% of the complaints regarding the Canada Labour Code stem from the trucking industry. Is that about right?

[Stephen Laskowski]

The short answer is yes, but I'm quite verbose, as you're about to all find out over the next hour.

I think you and others who have said it are shocked that this isn't your father's trucking company anymore. We are all here as long-serving trucking industry members. It gives us no great pride to come here to talk about our industry the way you just heard it. We need this industry cleaned up, and the reality is that the answer is yes.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

In your opinion, there are some very bad actors out there who are ruining your industry and who are making our highways unsafe and your industry chaotic.

Would you also say that the government has been adding fuel to the fire by its continued inaction? What are some of the tangible steps that it should immediately take to secure our roads?

[Stephen Laskowski]

Bring back the T4As, enforce PSBs and start going out with serious teeth to enforce misclassification at the federal level.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

I'd like to go to Ms. Walker at the Women's Trucking Federation of Canada.

You mentioned exploitation and forced labour earlier. Those are shocking words to me. Who are these people who are being abused and how, in this day and age, are we allowing this kind of conduct?

[Shelley Walker]

I think what might be shocking for the committee members to hear is that these are people who are coming to Canada through legitimate pathways. They're coming as TFWs through LMIAs. They're recruited over in their own home countries.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Are you saying that our immigration system is fuelling this?

[Shelley Walker]

Yes.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Explain that, please. How is the lack of action at the Canadian government level allowing this kind of gross behaviour?

[Shelley Walker]

A lot of times for most of these immigrants, when they come over here and they're on a work placement, they have to work at one place. They don't know what that employer is like other than what they're told when they're recruited.

I have drivers now who I have helped who had been living inside a truck, which is a little box. They're being paid 38¢ a mile. The rest of the fleet is being paid 70¢ a mile. They don't have their passports. They're run in Canada only.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

I only have limited time, but I just want to say thank you to all of you for being brave and coming forward to say something. I know that you've all had a great career in this industry, so it must sadden you.

Canada's Conservatives believe this can be fixed but only if the government starts taking action now.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Mr. Albas.

Next we'll go to Mr. Kelloway.

Mr. Kelloway, the floor is yours. You have six minutes, sir.