The Canadian Trucking Alliance (CTA) applauds the federal government’s actions to combat labour misclassification and is encouraged by the continued commitment from Employment and Social Development Canada (ESDC) and federal, provincial and territorial ministers to address this critical issue.
In a recent response to CTA, ESDC has confirmed officials are actively establishing the working group the ministers committed to earlier this year to address misclassification in the trucking industry. In addition to federal-provincial cooperation, the group will include other key federal departments, including Immigration, Refugees and Citizenship Canada and Transport Canada, and is expected to develop recommendations for ministers’ consideration this fall.
“We are pleased to see ministers, and federal Minister of Jobs and Families Patty Hajdu in particular, continue to show leadership on this file,” said Jon Blackham, CTA Director of Policy and Public Affairs. “Labour misclassification remains one of the most significant challenges facing Canada’s trucking industry. It undermines fair competition, erodes worker protections, creates compliance risks, and threatens the long-term sustainability of law-abiding carriers. We are encouraged that governments remain focused on developing solutions.”
CTA extends its appreciation to Minister Hajdu and her provincial and territorial counterparts for their attention to the issue and their commitment to a collaborative approach. The Alliance also reiterates the trucking industry remains ready to contribute its expertise as governments develop solutions that strengthen compliance, protect workers, and restore a level playing field for carriers operating within the rules. CTA looks forward to updates on the working group’s progress and to reviewing any recommendations that may be brought forward for ministers’ consideration this fall.
“Labour misclassification will only be eliminated when enforcement is sustained, coordinated and backed by meaningful consequences,” said Blackham. “Enforcement activity by ESDC, such as recent enforcement actions in Beloeil and Montréal, Quebec, and the GTHA in Ontario continue to confirm what the industry has been saying for years – that the scope of this problem is far greater than many originally believed.”
Governments now have an opportunity to build a comprehensive enforcement framework that allows agencies to share intelligence, coordinate investigations and apply penalties significant enough to change behaviour.
CTA is also looking forward to further updates from the Canada Revenue Agency (CRA) regarding initiatives aimed at addressing Personal Services Business (PSB) misuse and the results of renewed T4A enforcement activities within the trucking sector. While Driver Inc. continues to distort labour markets and harm compliant employers and workers, it also represents a significant tax compliance issue that requires sustained attention from governments and enforcement agencies.