This morning, the Hon. Patty Hajdu, Minister of Jobs and Families, appeared before the House of Commons committee tasked with exploring concerns over the misclassification of truck drivers where she announced measures to restore fairness to the sector and ensure workers receive the benefits they deserve.
The announcement included:
- $77 million over four years: Starting in 2026-27, to enhance compliance and enforcement activities
- Ending the moratorium on T4A penalties: The Canada Revenue Agency to lift the moratorium on the penalties for failure to report fees for service transactions
- Information sharing: Closer collaboration between government departments
- Targeted measures: Additional steps to combat misclassification and ensure that employers and drivers follow the rules
“We applaud this announcement as a step toward a stable, sustainable sector essential to Canada’s economic performance, and look forward to working with the Government to ensure fair employment and a strong workforce,” says Angela Splinter, CEO, Trucking HR Canada.
Hon. Steven MacKinnon, Minister of Transport, also spoke at this morning’s announcement where he emphasized the vital role truck drivers play in our economy and communities across the country. Minister MacKinnon stated the Government’s commitment to fair working conditions and safety in the trucking industry, highlighting the need to address employee misclassification under the Driver Inc. model.
Driver Inc. refers to a practice where trucking companies misclassify their employees as independent contractors, leading to tax evasion and the denial of labour protections.
Angela Splinter appeared before the House of Commons Committee exploring issues around the misclassification of drivers on the first day of hearings. She advised the committee: “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.”
The Federal Budget will be announced on November 4.