Ottawa's Fall Economic Statement took aim at Driver Inc. employers
In November 2022, the federal government proposed $26.3 million over five years to act against transportation employers that misclassify drivers.
On Nov. 3, 2022, the federal Fall Economic Statement, delivered by Finance Minister Chrystia Freeland, committed to stronger action against trucking employers using the Driver Inc. model.
Under Driver Inc., drivers are encouraged to incorporate and work as independent contractors instead of as employees. The statement said this denies drivers rights and entitlements under the Canada Labour Code, such as paid sick leave, health and safety standards, employer Employment Insurance and Canada Pension Plan contributions, and provincial or territorial workplace injury coverage.
What Ottawa proposed
- The statement said a recent pilot enforcement project had found that more than 60% of federally regulated transportation employers were misclassifying drivers.
- It proposed $26.3 million over five years, starting in 2023, for Employment and Social Development Canada (ESDC) to act against non-compliant employers.
- The Canada Revenue Agency would work with the transportation industry to raise awareness of the practice.
- More details were promised in the 2023 federal budget.
The Canadian Trucking Alliance (CTA), a long-time critic of Driver Inc., welcomed the commitment. President Stephen Laskowski said the CTA wanted hard enforcement to start across the country as soon as possible. The CTA also welcomed $137 million for border staffing and a plan to raise immigration to 500,000 people a year by 2025.