Latest news with #CanadianTruckingAlliance
Yahoo
7 hours ago
- Business
- Yahoo
The $1B scam some say is driving Canada's trucking industry into crisis
The national voice of the trucking industry in Canada is renewing calls for the federal government to pump the brakes on what it says is a $1-billion scam it calls "Driver Inc." "We believe that in some parts of Canada at least a third of the companies and the drivers are participating in this, and it's hurting us twofold as a society," said Stephen Laskowski, president and CEO of the Canadian Trucking Alliance (CTA). "Those are taxes that aren't going into our [economy], and on the flip side of it, it's about a 30 per cent advantage in the marketplace." Laskowski described it as a tax evasion scheme where trucking companies purposely misclassify drivers as incorporated workers instead of employees to save money on payroll taxes. But he said those drivers also lose their labour rights including fair pay, overtime and vacation pay, as well as health and safety protections. In 2021, the government made it illegal for federally regulated employers to misclassify employees, and added penalties for non-compliance. In a statement to CBC, Employment and Social Development Canada (ESDC) said that prohibition was strengthened in 2024 by placing the burden on employers to prove a worker is not an employee. However, Laskowski said more needs to be done, identifying Driver Inc. as the biggest current threat to the industry — including the ongoing Canada-U.S. trade war. "We have worked and pleaded with governments to address it, and the reality is they are starting to, but nowhere near to the level that needs to be done. Nowhere near," he said. Companies target newcomers Driver Karanveer Singh agrees there's a lack of enforcement against companies that break the law. Singh came to Canada from India's northern Punjab state as an international student when he was 18 years old. "I'm trying to chase the Canadian dream," he said. But Singh's journey took a detour shortly after he got his commercial trucking licence. He said the first two companies he worked for misclassified him as an incorporated driver, and also never paid him. Singh was able to prove to the Canadian Labour Board that he had been misclassified and the companies were ordered to pay what he was owed. While he was able to collect from one of the companies, Singh said it's unlikely he'll ever see the nearly $40,000 owed by the second company. "Until the government enforces it, it is useless," he said, referring to the court order. "These companies, they know what they are doing…. Most of the time they will find new immigrants, new truck drivers to target because they are so easy to target because every new immigrant is desperate for a job." A difficult problem Part of the CTA's solution involves lifting a moratorium on assessing penalties for failing to complete the fees for service box of the T4A tax slip. Laskowski said that would help the CRA identify and audit companies that rely heavily on incorporated drivers. However, it could also further slow an already sluggish system, according to Ottawa tax lawyer Dean Blachford. "With penalties comes disputes and penalty relief requests that clog up the system even if they are for small amounts," he explained in an email to CBC. "Meanwhile, the companies that are pushing the limits the most with Driver's Inc. still might not comply with the T4A requirement and instead take further evasive means (such as using shell companies) to creditor proof themselves from having to pay the penalty if CRA ever identifies them." In a statement to CBC, the CRA said it's working toward lifting the moratorium before enforcement commences. It also said the agency is not aware of the analysis underlying Laskowski's claim that Driver Inc. has resulted in about $1 billion in lost tax revenue, and "therefore cannot comment." Driving down business The owner of Kriska Transportation Group in Prescott, Ont., is also urging the federal government to act, saying the Driver Inc. model is driving companies that do comply with tax regulations out of business. The unfairness makes owner Mark Seymour's blood pressure rise. "It's widely known, it's not a dirty little secret. It's out of control," he said. Seymour has been in the business more than four decades, taking over Kriska from his late father in 1994. "I have competed as many of us have for many years based on price and service where price should be established from the same ground rules as everyone," he said. "That's paying appropriate taxes, treating people as employees and in the manner that the government would expect." Ron and Francie Langevin own P.A. Langevin Transport in Carleton Place, Ont., and say they, too, worry about the future. "There's so much wrong with this industry right now," Ron Langevin said, adding he suspects the companies that operate under the Driver Inc. model are so focused on profits that they also let safety standards slip. "These issues are falling through the cracks, and the next time you're driving on a highway with a transport truck beside you I want you to look at it and I want you to wonder how safe am I, really," Francie Langevin said. Singh said in his experience, that assessment is true. He recalled being trained by a very inexperienced driver who got them into trouble at the Port Huron border crossing. "He hit the concrete wall over there at the border, and I was so surprised. Like, this is supposed to be my trainer and he just like damaged the truck," Singh said. On his next trip, Singh said he was asked to be the trainer. "They did not [tell] me a single thing and just gave me a new training driver for me to train," he said. "They want their stuff delivered, they want their job done. "I think when these companies are allowed to operate, Canadians are not safe," he said. ESDC said it is taking action, recently entering into an information-sharing agreement with the CRA to help with enforcement and compliance. It also pointed to a dedicated team of inspectors focused exclusively on the road transportation industry across Canada. Since 2023, ESDC said the team has conducted about 540 inspections and held 320 education sessions across the country.
CBC
10 hours ago
- Business
- CBC
The $1B scam some say is driving Canada's trucking industry into crisis
The national voice of the trucking industry in Canada is renewing calls for the federal government to pump the brakes on what it says is a $1-billion scam it calls "Driver Inc." "We believe that in some parts of Canada at least a third of the companies and the drivers are participating in this, and it's hurting us twofold as a society," said Stephen Laskowski, president and CEO of the Canadian Trucking Alliance (CTA). "Those are taxes that aren't going into our [economy], and on the flip side of it, it's about a 30 per cent advantage in the marketplace." Laskowski described it as a tax evasion scheme where trucking companies purposely misclassify drivers as incorporated workers instead of employees to save money on payroll taxes. But he said those drivers also lose their labour rights including fair pay, overtime and vacation pay, as well as health and safety protections. In 2021, the government made it illegal for federally regulated employers to misclassify employees, and added penalties for non-compliance. In a statement to CBC, Employment and Social Development Canada (ESDC) said that prohibition was strengthened in 2024 by placing the burden on employers to prove a worker is not an employee. However, Laskowski said more needs to be done, identifying Driver Inc. as the biggest current threat to the industry — including the ongoing Canada-U.S. trade war. "We have worked and pleaded with governments to address it, and the reality is they are starting to, but nowhere near to the level that needs to be done. Nowhere near," he said. Companies target newcomers Driver Karanveer Singh agrees there's a lack of enforcement against companies that break the law. Singh came to Canada from India's northern Punjab state as an international student when he was 18 years old. "I'm trying to chase the Canadian dream," he said. But Singh's journey took a detour shortly after he got his commercial trucking licence. He said the first two companies he worked for misclassified him as an incorporated driver, and also never paid him. Singh was able to prove to the Canadian Labour Board that he had been misclassified and the companies were ordered to pay what he was owed. While he was able to collect from one of the companies, Singh said it's unlikely he'll ever see the nearly $40,000 owed by the second company. "Until the government enforces it, it is useless," he said, referring to the court order. "These companies, they know what they are doing…. Most of the time they will find new immigrants, new truck drivers to target because they are so easy to target because every new immigrant is desperate for a job." A difficult problem Part of the CTA's solution involves lifting a moratorium on assessing penalties for failing to complete the fees for service box of the T4A tax slip. Laskowski said that would help the CRA identify and audit companies that rely heavily on incorporated drivers. However, it could also further slow an already sluggish system, according to Ottawa tax lawyer Dean Blachford. "With penalties comes disputes and penalty relief requests that clog up the system even if they are for small amounts," he explained in an email to CBC. "Meanwhile, the companies that are pushing the limits the most with Driver's Inc. still might not comply with the T4A requirement and instead take further evasive means (such as using shell companies) to creditor proof themselves from having to pay the penalty if CRA ever identifies them." In a statement to CBC, the CRA said it's working toward lifting the moratorium before enforcement commences. It also said the agency is not aware of the analysis underlying Laskowski's claim that Driver Inc. has resulted in about $1 billion in lost tax revenue, and "therefore cannot comment." Driving down business The owner of Kriska Transportation Group in Prescott, Ont., is also urging the federal government to act, saying the Driver Inc. model is driving companies that do comply with tax regulations out of business. The unfairness makes owner Mark Seymour's blood pressure rise. "It's widely known, it's not a dirty little secret. It's out of control," he said. Seymour has been in the business more than four decades, taking over Kriska from his late father in 1994. "I have competed as many of us have for many years based on price and service where price should be established from the same ground rules as everyone," he said. "That's paying appropriate taxes, treating people as employees and in the manner that the government would expect." Ron and Francie Langevin own P.A. Langevin Transport in Carleton Place, Ont., and say they, too, worry about the future. "There's so much wrong with this industry right now," Ron Langevin said, adding he suspects the companies that operate under the Driver Inc. model are so focused on profits that they also let safety standards slip. "These issues are falling through the cracks, and the next time you're driving on a highway with a transport truck beside you I want you to look at it and I want you to wonder how safe am I, really," Francie Langevin said. Singh said in his experience, that assessment is true. He recalled being trained by a very inexperienced driver who got them into trouble at the Port Huron border crossing. "He hit the concrete wall over there at the border, and I was so surprised. Like, this is supposed to be my trainer and he just like damaged the truck," Singh said. On his next trip, Singh said he was asked to be the trainer. "They did not [tell] me a single thing and just gave me a new training driver for me to train," he said. "They want their stuff delivered, they want their job done. "I think when these companies are allowed to operate, Canadians are not safe," he said. ESDC said it is taking action, recently entering into an information-sharing agreement with the CRA to help with enforcement and compliance. It also pointed to a dedicated team of inspectors focused exclusively on the road transportation industry across Canada. Since 2023, ESDC said the team has conducted about 540 inspections and held 320 education sessions across the country.
Yahoo
23-04-2025
- Business
- Yahoo
Canadian trucking group: ‘Nuclear winter' may hit Canada-US freight
Seven out of 10 Canadian trucking companies have seen loads to the U.S. paused or canceled outright in the wake of recently imposed tariffs, according to a survey by the Canadian Trucking Alliance. In addition, executives at 60% of the CTA's carrier members said a long trade war would pose a serious risk to operations, and 8% reported laying off workers. Key exports that have been delayed or canceled include farm equipment, fertilizer, lumber, tires, food and oil products, the organization reported. 'Many report tariffs are essentially bringing trade to a halt, as customers and suppliers struggle to figure out the actual declared product value, who pays for these additional costs, and customers [adjust] to just-in-time/emergency delivery options to manage costs associated with tariffs,' the CTA stated in a news 70% of carriers said Canada's retaliatory tariffs had had no impact on imports of U.S. goods. The U.S. imposed 25% tariffs on Canadian imports that are not compliant with the United States-Mexico-Canada Agreement, as well as a 10% tariff on energy imports. Canada has imposed 25% tariffs on some $30 billion worth of U.S. goods. 'About 80 percent of Canada-US trade moves by Canadian trucks,' CTA President and CEO Stephen Laskowski said in the release. 'We are now entering a business cycle with a tremendous amount of uncertainty brought on by tariffs. This is further compounding poor economic conditions prior to tariffs being implemented, an underground economy that is wiping out competitiveness in the Canadian trucking industry and an artificial rush to get product over the border to avoid new tariffs. 'Our members' customers are facing a precipitous drop in demand for their goods which could leave trucks parked on the sidelines indefinitely. More bad news could be the breaking point for many in the industry.'Laskowski added: 'Once capacity is drained from the cross-border sector, it will be dumped into the Canadian market, creating unsustainable business conditions and a nuclear winter for Canada-U.S. freight movement. The Canadian economy, and the trucking industry that fuels it, are entering a dangerous point in history, leading to a game of attrition where companies compete to see who can hold on the longest before declaring insolvency.' Related: EU delays US tariffs for 90 days following Trump's pause The post Canadian trucking group: 'Nuclear winter' may hit Canada-US freight appeared first on FreightWaves. Sign in to access your portfolio
CBC
05-03-2025
- Business
- CBC
Trump tariffs could have 'shocking effects,' Canadian truckers warn
Canadian truckers are warning that U.S. President Donald Trump's newly implemented tariffs could deal a devastating blow to an industry that has already faced headwinds in recent years. "Widespread tariffs on our customers' freight to US suppliers and consumers will have shocking effects on our membership and the overall supply chain," Stephen Laskowski, CEO and president of the Canadian Trucking Alliance, said in a statement Tuesday. "The longer these tariffs are applied, the more strain there will be on carriers, which will lead to jobs losses and permanent closures of fleets," he said. The warnings come as union leaders and government officials say that the 25 per cent tariffs on all Canadian goods, which the Trump administration implemented at midnight on Tuesday, could destroy Windsor-Essex's economy, which is highly reliant on cross-border trade. Laskowski said that heading into 2025, the freight market was the worst it had been in 40 years. "We are expecting more layoffs the longer these tariffs are applied," he said. Steve Ondejko Sr., president and owner of On Freight Logistics in Tecumseh, said the tariffs haven't directly affected his business yet, and that "there was a concerted effort" recently to get products across the border before the tariffs kicked in. Still, "everybody's concerned" about the future, he said, and layoffs are not out of the question. "There is a lot of unrest in this industry that is creating hardships for a lot [of carriers]," Ondejko said. "There will be many that will probably not survive an extended tariff issue." The CTA said some companies had already started to lay off employees in anticipation of the tariffs. "In recent fleet surveys conducted by various trucking associations, carriers across Canada report that customers already began cancelling orders in the weeks leading up to the tariffs, varying between 20 and 80 percent at some businesses in certain provinces," the CTA said. "Consequently, carriers have already begun laying off employees. As many as one in three fleets surveyed in Ontario, for example, indicated layoffs – a number which is expected to grow in the aftermath of the tariffs." Ondejko said On Freights' demand has been "fairly decent," but that as costs increase as a result of the tariffs, "consumers are going to buy less, which means there's less to transport, which means less business for people like ourselves and our industry." Gurjit Singh, a truck driver for On Freight, said the tariffs are bad for consumers on both sides of the border, and worries about the effect on his family. "If we're not getting hours, how [can I] put food on my table, right?" he said. Courtney Michinski, a customer service representative for the cross-border trucking company, said Tuesday that it was taking "a little bit longer" for their drivers to cross into the U.S. because they were being pulled into secondary inspection. "We're just dealing with it as we can," she said. How the trade war will hit your wallet (and what you can do) 12 hours ago Duration 5:38 U.S. tariffs will make everything from groceries to manufactured goods to housing even more expensive. CBC's Lauren Bird asks economists and personal finance experts to break down how bad things could get, and what Canadians can do to protect their finances. Both Ondejko and the CTA called on the federal government to repeal the carbon tax to help trucking companies save money. "The removal of the carbon tax, specifically, would save a trucking company between $15,000 and $20,000 per truck per year," the CTA said. Ondejko said he doesn't necessarily believe that Canadian governments should impose retaliatory measures against the U.S., calling it a "tit for tat." "I believe Canada needs to seriously get negotiations started, and those negotiations need to be strong and, and present Canada's case for our country and for our industry and for our locale and our province," he said. "Hopefully all parties negotiate in good faith, and we work out an agreement that works for all and we can continue and carry on."
