The head of Canada's largest trucking firm says rampant driver misclassification is harming companies like his as well as drivers, a problem felt all the more acutely in lean economic times. A transport truck carries a cargo container at port in Vancouver, on Friday, July 14, 2023.THE CANADIAN PRESS/Darryl Dyck
MONTREAL – The head of Canada’s largest trucking firm says rampant driver misclassification is harming companies like his as well as drivers, a problem felt all the more acutely in lean economic times.
Alain Bédard, chairman and CEO of TFI International, is calling the phenomenon known as Driver Inc. a “disaster” for truck outfits because rule-breaking rivals gain a competitive advantage.
Driver Inc. refers to the misclassification of workers as self-employed, which means the company does not pay benefits, basic labour protections and payroll taxes.
The so-called contractors who drive for only one company and exert no control over their schedules is illegal – and risky, since workers do not receive basic entitlements such as workers’ compensation, overtime, holiday pay or severance.
Bédard says the disadvantage will diminish when demand ramps up again after a tough year, but insists the federal and provincial governments must do more to clamp down on scofflaws.
While Ottawa has taken some steps toward tamping down the problem, truckers and owners alike say the crisis continues to grow amid lagging enforcement.
This report by The Canadian Press was first published Feb. 9, 2024.
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