AMTA
Early 2025, the Alberta Motor Transport Association (AMTA) released a series of three videos highlighting the scourge that is Driver Inc. This model of business is taking advantage of industry employees and the Canadian public and is a blight on the morals of commercial carriers who do the right thing.
Driver Inc. is a scheme where unscrupulous employers convince employees to act as independent business operators to take advantage of them. Commercial drivers falling under the model might be impacted by unsafe equipment, hours of service violations, and unsafe driving conditions.
On June 25, the CBC website posted an article: Ever heard of Driver Inc.? Canada’s trucking industry is calling it a $1B scam
The article highlighted that in 2021, the government made it illegal for federally regulated employers to misclassify employees and added penalties for non-compliance.
In a statement to CBC, Employment and Social Development Canada (ESDC) said that prohibition was strengthened in 2024 by placing the burden on employers to prove a worker is not an employee.
However, the Canadian Trucking Alliance believes more needs to be done, and AMTA, and our western counterparts agree.
These drivers may be denied overtime, vacation, holiday, or sick pay. They may be denied Employment Insurance (EI), the Canadian Pension Plan (CPP), or even Workers’ Compensation Board (WCB) coverage.
Drivers who approach their employer with concerns for their workplace safety are met with employers suggesting they’re in breach of their contract, the implications of which could result in pay reductions, no pay at all, or being blacklisted from a particular carrier.
Immigrants new to Canada are especially vulnerable to the Driver Inc. scheme. Canadian citizens, a new immigrant, or temporary foreign worker in Canada may be convinced or coerced by an employer to become a Driver Inc. operator. The employer may put on a show of telling them about the many benefits they will receive from being incorporated, especially about how low the taxes will be; but they are only telling these drivers a part of the story, and not about the drivers financial risk – or the benefits the employer is getting on the drivers’ behalf.
In 2024, the United Nations released a report referring to Canada’s temporary foreign workers program as a ‘breeding ground for contemporary forms of slavery’. On top of illegally paying for work in Canada these employers may require the worker to pay for their training, which is also illegal.
When it comes to pay under the Driver Inc. model, a principled company pays almost $30,000 in benefits, including CPP/EI/WCB/vacation and stat holiday pay. In the Driver Inc. model, the scheming company doesn’t pay benefits, and the employee is convinced to avoid $30,000 of personal taxes. A driver is paid less on each load to get the same net pay, and the driver is also paid $8,000 of GST, financed by taxpayers. The GST paid on interline freight is GST fraud perpetuated against taxpayers when paid to Driver Inc. companies.
If the Canada Revenue Agency (CRA) audits the driver the driver could be liable for taxes and many of their deductions will be denied. In addition, as the driver pays CRA for that big opportunity they were promised, they will then realize that they’ve missed out on overtime, stat holiday pay, and/or vacation pay.
So, what can we do to fight Driver Inc?
In May, the British Columbia Trucking Association (BCTA) and provincial and federal agencies of the province, began a coordinated roadside campaign – starting in Kamloops – to focus on labour violations in the province. In tandem, in July the Alberta and Federal Governments began attending local vehicle inspection sites in a similar campaign to continue the crack down on Driver Inc, and other provinces continue to follow suit.
As we contemplate the impacts of Driver Inc. on the industry’s drivers and those responsible carriers that that treat their employees fairly, AMTA asks that you consider contacting governments and asking them to take the steps necessary to fight Driver Inc, on behalf of commercial drivers and industry.
As well:
- Demand Members of Parliament or Members of the Legislative Assembly pass regulations that challenge and fine heavily employers who engage in Drivers Inc. which exploit employees.
- Demand that governments only register companies to drivers who have purchased their vehicles and financed them independently in a way that will provide the operator with the opportunity for reward, as well as the risk of owning and operating their own vehicle.
- Demand government agencies follow-up complaints from one individual and investigate an entire corporation when they find it being abused.
- Change regulations where one government department or agency finds abuse can and must share information with other government agencies.
The trucking industry needs your support to end Driver Inc. Please help industry today; your road safety in your community, your province, and your country depends on it. To view our video series please visit the AMTA YouTube channel