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.