CTA Demands Federal Crackdown on Labour Abuse and Tax Evasion in 2025 Pre-Budget Submission

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The Canadian Trucking Alliance (CTA) continues to call on the federal government to take decisive action against growing lawlessness in the trucking industry.

In its 2025 pre-budget submission, the Alliance is urging Ottawa to confront rampant labour violations, tax evasion, and regulatory gaps that are driving compliant carriers out of business and undermining Canada’s supply chain.

At the heart of CTA’s submission are sweeping recommendations targeting systemic non-compliance across the industry. The Alliance points to enforcement data showing that nearly 65% of companies in certain segments are breaking federal labour laws – with widespread wage theft and labour abuse, denial of safe working conditions, and instances of forced labour becoming alarmingly normalized.

“This is not just regulatory slippage – it’s the breakdown of the rule of law in parts of our industry,” said CTA president Stephen Laskowski. “When companies can openly steal wages, deny paid sick leave, ignore safety laws, and easily rebrand to dodge penalties with no consequences, the message being sent is clear – that crime pays.”

While CTA welcomed recent steps by Employment and Social Development Canada (ESDC), including the creation of a misclassification enforcement team and an information-sharing agreement with the Canada Revenue Agency (CRA), the Alliance insists that far more aggressive action is needed.

Specifically, the CTA is calling for:

  • A major expansion of ESDC’s enforcement team, with increased funding and national coverage;
  • Faster resolution of wage theft claims and better collection of unpaid penalties;
  • Aggressive pursuit of companies that dissolve or rebrand to avoid enforcement;
  • CRA-led investigations into employers flagged through the ESDC partnership; and
  • A coordinated, sector-wide crackdown on the abuse of Personal Services Business (PSB) designations, which are being misused to avoid taxes and labour obligations.

“There’s growing concern in the industry that enforcement will never reach the required level because of political roadblocks within all three parties,” Laskowski added. “That cannot stand. What’s happening is the hollowing out of the legitimate economy and threatening the livelihoods of hard-working Canadians, who are already under significant pressure from tense trade relations with our biggest trading partner.”

Beyond enforcement, the Alliance’s pre-budget submission outlines broader recommendations to strengthen safety, oversight, and industry competitiveness. These include:

  • Establishing a centralized database of motor carrier safety and compliance information to increase transparency and help shippers avoid non-compliant operators;
  • Creating a national framework to ensure consistent safety oversight across provinces and territories, in line with the National Safety Code (NSC);
  • Improving the movement of oversized and overweight vehicles;
  • Expanding truck rest areas to better support drivers;
  • Modernizing the Canada Border Services Agency’s IT systems to reduce cross-border delays; and
  • Introducing Permanent Full Expensing to align Canadian tax policy with U.S. incentives and support fleet investment.

“With trade talks front and centre throughout political circles, I wonder who decision makers think will carry all of our internal and international trade?” asked Laskowski. “If the federal government is serious about supporting the supply chain, protecting workers, protecting businesses and ensuring fair competition, it’s hard to believe Ottawa doesn’t agree that now is the time to act on these important measures.”

The CTA maintains these recommendations are necessary for the health of the trucking industry and the broader economy. With more than 300,000 Canadians employed in the sector and nearly every part of the economy relying on trucking, the Alliance warns that inaction is no longer an option.

Quick Links

CTA Pre-Budge Overview: https://cantruck.ca/cta-calls-for-urgent-action-in-2025-pre-budget-submission/

Permanent Full Expensing: https://cantruck.ca/cta-urges-permanent-full-expensing-to-maintain-industry-competitiveness/

Driver Inc. and Noncompliance: https://cantruck.ca/ccmta-announces-steps-to-restore-safety-confidence-law-and-order-in-trucking/

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