Let’s support the Canadian Trucking Alliance and the hardworking transport companies against Driver Inc. | Recently, Trans-West Group and its CEO, Réal Gagnon, issued a call to action for all people in the trucking industry to take a stand against the “driver inc” model. This system significantly harms companies that provide good working conditions for their drivers and creates unfair competition. At Trans-West, this situation in the current economic context has forced them to make a tough decision: to reduce their employees’ salaries by 10%.
“At Trans-West, we invest about 25% of our payroll in benefits and royalties, which amounts to approximately $7 million annually. In comparison, these fraudulent competitors contribute nothing, giving them an unfair competitive advantage,” explains Mr. Gagnon.
To fully grasp the issue, it’s important to understand who these incorporated drivers are. They are workers who exclusively offer their services to a company using the latter’s trucks. They are paid as subcontractors through their own legal entity, the corporation, rather than as direct employees of the company.
Unlike owner-operators, these drivers do not have to pay for the purchase, maintenance, or repairs of the trucks they drive. However, they do not benefit from the protections and social benefits typically granted to salaried employees. They lack insurance coverage, vacation time, salary agreements, or collective bargaining agreements. By hiring incorporated drivers, a company saves on social charges and insurance, unlike other transport companies or owner-operators who bear these costs themselves.
PY McSween, a financial expert speaking on 98.5 FM, described the driver inc model as a perversion for the industry. He added, “I don’t think with an INC, you’re making the tax deal of the century. (…) If you can’t get 50% to 70% more pay to compensate for the lost income and costs elsewhere, you’re making a very poor calculation…”
By not paying royalties and benefits to their employees, companies hiring incorporated drivers reduce transportation costs, making it difficult for other companies to stay competitive. This model directly impacts companies’ ability to offer good working conditions and adequate wages. This practice creates unfair competition against companies that follow the rules, allowing some to bid lower prices on contracts, threatening the balance of road transport.
The Quebec Trucking Association (ACQ) estimates that this model has resulted in nearly $2 billion in lost social contributions for the Quebec government over the past decade. Let’s support the ACQ, the Canadian Trucking Alliance and the hardworking transport companies striving to provide good conditions for their employees. Driver Inc. is an unethical scheme that allows trucking companies to avoid paying their fair share of taxes and source deductions. Let’s put an end to this illegal practice today.
What can we do?
By clicking on this link, you can urge the federal government to take action: https://stopdriverinc.ca/
Your voice can:
- Put an end to tax evasion
- Restore balance in the transport market
- Improve working conditions
- Ensure job security for law-abiding workers
- Every voice counts in the fight against these fraudulent practices. Support our transport companies.
