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A 14-Week Parliamentary Break in Ontario While the Trucking Industry Faces a Crisis

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Ontario Legislative Assembly building at Queen’s Park in Toronto, featuring the text on the graphic: “A 14-Week Parliamentary Break in Ontario While the Trucking Industry Faces a Crisis”, highlighting concerns about the trucking industry, road safety, and government inaction in Ontario.

Ontario’s legislature is preparing to take a 14-week winter recess, less than two months after returning from a 19-week summer parliamentary break.

The announcement comes as concerns continue to mount over the province’s ability to address urgent and ongoing issues affecting public safety and key economic sectors.

According to Government House Leader Steve Clark, the Legislative Assembly at Queen’s Park will not resume sitting until March 23. Opposition parties have criticized the length of the break, arguing that extended interruptions reduce the legislature’s capacity to debate pressing matters and hold the government accountable at a time when multiple crises remain unresolved.

Under normal circumstances, Ontario MPPs return to Queen’s Park in mid-February, following Family Day. Steve Clark defended the schedule by stating that parliamentary work continues outside the chamber, through constituency duties and the implementation of legislation already passed. Still, in 2025, the Ontario legislature will have sat for only 51 days — a figure the opposition says is insufficient to properly address complex issues tied to public safety and economic stability.

This prolonged pause comes as Ontario’s trucking and road transportation sector faces mounting challenges. For months, groups such as the Caledon Community Road Safety Advocacy Group (CCRSA) have been raising alarms over the growing presence of the Driver Inc. scheme, illegal trucking yards, unregulated training operations, and the increasing number of drivers operating on provincial roads without adequate training or oversight.

“How are we going to get anything done? How much time do these people get holiday? So how are we going to get these illegal yards shut down?” according to Carmela Anzelmo-Palkowski of CCRSA.

For CCRSA members, the issues extend well beyond regulatory non-compliance. They describe a pattern of negligence with potentially deadly consequences, affecting both road users and the communities where these operations are concentrated. In Caledon, located on the edge of Brampton — often identified as a hotspot for the Driver Inc. phenomenon — these concerns are especially pronounced.

The Ontario Trucking Association (OTA) has also acknowledged on multiple occasions that the industry is facing serious challenges, particularly in areas related to driver training, regulatory compliance and road safety. These systemic issues continue to place strain on an industry that remains essential to Ontario’s economy.

In Northern Ontario, the situation takes on an even more severe dimension. Highways 11 and 17, frequently cited among the most dangerous routes in the province — and even nationally — are critical corridors for freight movement and for the survival of remote communities. As winter conditions set in, these already deadly highways become even more unpredictable. For many in the transportation sector, the issue is no longer just infrastructure or weather, but the cumulative impact of long-standing failures that place human lives at unacceptable risk.

Against this backdrop, transportation stakeholders are increasingly concerned about the disconnect between the severity of on-the-ground conditions and the slowdown of legislative activity at Queen’s Park. While trucking remains vital to Ontario’s and Canada’s economies and to regional supply chains, the combination of unsafe practices and harsh winter conditions continues to heighten safety concerns.

For truck drivers and the general public alike, winter marks the beginning of a high-risk period — one where the structural problems facing Ontario’s transportation system remain largely unresolved.

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Driver Inc., Road Safety and Trucking: Ottawa Under Pressure

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Donald Trump pointing toward the camera, standing in front of a semi-truck. The TruckStopCanada.com logo appears at the top left. Large text on the image reads: “Driver Inc., Road Safety and Trucking: Ottawa under pressure,” illustrating political pressure and road safety concerns linked to the Driver Inc scheme in the trucking industry.

U.S. authorities are sending a clear message to the Canadian government and the trucking industry: the regulatory laxity surrounding certain practices in Canada, including the Driver Inc scheme, poses a real risk to road safety, the labour market and cross-border security.

As the House of Commons Standing Committee on Transport, Infrastructure and Communities continues its study of the Driver Inc scheme, these concerns are now taking on an international dimension. American diplomats closely monitoring the committee’s work have recently expressed serious concerns, noting that issues within the Canadian trucking sector go far beyond taxation alone.

According to U.S. representatives, inadequate driver training, precarious working conditions, unfair competition and even potential risks of cross-border criminal activity are now central issues. They are particularly concerned about road safety as an increasing number of poorly trained drivers operate between Canada and the United States. They also point to the vulnerability of workers who are often heavily indebted and trapped in business models described as unfair. If some drivers are forced to work under such conditions, questions arise about what other activities they could be pressured into participating in.

Canadian Industry Calls for Tighter Rules

Stephen Laskowski, CTA
Stephen Laskowski

On the Canadian side, the Canadian Trucking Alliance (CTA) says it has been sounding the alarm for several years. The CTA is now seeking to work with both Canadian and U.S. authorities to review, and potentially rebuild, cross-border safety programs that ensure fleets and drivers comply with safety, labour and regulatory standards, and operate without links to criminal organizations.

CTA President and CEO Stephen Laskowski recalls that following the September 11, 2001 attacks, security programs were implemented to mitigate transportation-related terrorism risks. He argues that today’s environment requires a new approach adapted to modern realities, including a rigorous screening system for all cross-border carriers and drivers to protect citizens on both sides of the border.

However, road safety and training remain complex issues in Canada due to the division of responsibilities between the federal government and the provinces. Stephen Laskowski acknowledges that this complicates consistent enforcement but notes that discussions are underway. Transport Canada and provincial deputy ministers of transportation have initiated a process aimed at improving trucking safety and harmonizing regulations. The CTA expects announcements related to a national approach during the first quarter of 2026.

The Ontario Trucking Association

In Ontario, the Ontario Trucking Association (OTA) describes the situation as a full-blown crisis of legality affecting both the industry and communities. The OTA is calling for immediate action, including a temporary suspension of the Ontario Immigrant Nominee Program to allow for reforms, 24/7 operation of weigh stations, and systematic carrier inspections similar to those required in the food and restaurant sectors.

According to Geoffrey Wood, Senior Vice-President of Policy at the OTA, the commercial driver licensing system must also be overhauled to more closely resemble a true professional licence. The objective is to protect Ontarians and to demonstrate to Canada’s largest trading partner that trucking is a serious, well-regulated and safe industry.

The OTA says it has already submitted a detailed plan to the Ontario government and supports the CTA’s vision for stricter rules governing carriers and drivers operating across the border.

Quebec Trucking Association

Marc Cadieux, ACQ.
Marc Cadieux

In Quebec, Marc Cadieux, President and CEO of the Quebec Trucking Association (Association du Camionnage du Québec – ACQ), recently met with federal Transport Minister Steven MacKinnon. He emphasized the importance of continuing efforts to make the trucking sector both safer and fairer. While certain adjustments have been made, particularly on the fiscal side with the T4A form to counter the Driver Inc model, Cadieux stresses that many issues remain unresolved.

Interprovincial licensing and recognition continue to pose serious challenges, allowing drivers or carriers to operate in another province despite suspensions or serious violations elsewhere in the country. Cadieux also highlighted to the minister that insurers could play a key role by more effectively sharing information about insured — or no longer insured — companies and vehicles, thereby strengthening oversight and road safety.

Minister MacKinnon has indicated openness to making changes and acknowledges the scale of the challenges. It remains to be seen whether these intentions will quickly translate into concrete action, or whether Canada will continue to lag while the United States moves ahead with sweeping regulatory crackdowns. In California alone, more than 61,000 truck drivers could lose their commercial driver’s licences due to tightened U.S. federal rules, particularly regarding legal status and English language proficiency, illustrating how far authorities are prepared to go.

According to the Trump administration, the era of half-measures is over and Ottawa must follow suit. For industry associations, the time has come to eliminate bad actors in order to secure roads, protect North American supply chains and restore the credibility of a sector essential to the economy.

The Liberals have the power to act. The question now is whether Mark Carney and his government will finally take decisive steps to protect the lives of Canadians on our roads, and whether provincial governments are prepared to assume their share of responsibility for deaths linked to regulatory laxity and negligence that are now widely acknowledged.

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Driver Inc.: Transport Committee Work Finally Resumes in Ottawa

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Image of Xavier Barsalou Duval (Bloc Québécois), smiling and facing the camera, placed in front of a faded background showing a large semi-truck at sunset. The logo “TruckStopCanada.com” appears in the top-left corner. The text on the image reads: “Driver Inc: Transport Committee Work Finally Resumes in Ottawa.”

After several weeks of deadlock in Ottawa, the Driver Inc. file has reached a turning point.

The work of the House of Commons Standing Committee on Transport, stalled since November 6, will finally resume.

This will allow key witnesses to be heard as part of the study on this scheme, which affects both road safety and the integrity of the labour market.

As Xavier Barsalou-Duval explained on Truck Stop Quebec radio :

“The Liberals have ended their obstruction of the committee’s work, which had been going on since November 6. They must have had a revelation from the Holy Spirit, it seems, with the recent news in the Journal about their organizers who are close to Driver Inc.”

The ongoing study at the Transport Committee was launched by the Bloc Québécois, at the initiative of MP Barsalou-Duval, elected in the riding of Pierre-Boucher—Les Patriotes—Verchères.

The adopted motion will open the door to hearing victims of accidents linked to the Driver Inc. model, a key step in understanding the human and economic impacts of the phenomenon.

Several provincial associations that had not yet been heard will now testify. Among them, the Caledon Community Road Safety Advocacy (CCRSA) Group, representing a community heavily exposed to the consequences of the scheme due to its geographic situation; the Joy Smith Foundation, which addresses human trafficking in the trucking industry; and Canada Post, which will also be called before parliamentarians.

Committee members are also demanding greater transparency from the government and from organizations involved in the debate.

According to Barsalou-Duval:

“The government will also have to provide us, within 60 days, with the documents and correspondence they have on non-compliance in trucking, and the CTOA will have to send us its list of members—this was also revoted.”

This step is considered essential to obtain a complete picture of internal communications regarding enforcement, as well as to better understand who is actually behind the groups involved in the controversy.

The CTOA (Canada Truck Operators Association) is central to this saga. The organization claims to represent drivers registered under the Driver Inc. model. The proximity between certain CTOA leaders and the Liberal Party has drawn significant media and political attention, further reinforcing the need for parliamentarians to obtain the association’s official membership list.

This debate is unfolding in an unusual international context. The Trump administration has recently urged the Liberal government of Mark Carney to “take concrete action” to curb the Driver Inc. phenomenon. U.S. diplomats have argued that the rise of poorly trained drivers, misclassification practices, and labour exploitation poses a risk to border security.

Washington is calling on Canada to take a much firmer stance—strengthening roadside enforcement, using better technological tools to detect risks, and monitoring truck-driving schools more closely. According to the Trump administration, the era of encouragement is over: strict rules and penalties are now required to correct the situation.

The coming weeks should shed light on the inner workings of the scheme, the true extent of its political influence, and the measures Ottawa could take to restore fairness, transparency, and safety in the trucking industry.

And even if Ottawa has taken a first step by requiring mandatory declaration of professional fees in box 048 of the T4A, there is still a long road ahead to address the Driver Inc. problem in a meaningful way.

A Carney Ally Moves to Shield “Driver Inc.” Operators as Ottawa Faces Growing Pressure

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Image featuring Tejpreet Dulat and Prime Minister Mark Carney on the left, placed in front of a background with a highway and a white semi-truck driving through a desert landscape. The title “A Carney Ally Moves to Shield ‘Driver Inc.’ Operators as Ottawa Faces Growing Pressure” appears across the bottom, with the Truck Stop Canada branding at the top.

A growing controversy is unfolding in Ottawa as Tejpreet Dulat — a long-time Liberal donor and close ally of Prime Minister Mark Carney — takes the lead as spokesperson for the Canada Truck Operators Association (CTOA).

The group represents drivers tied to the Driver Inc. system, which government agencies say is costing billions in lost tax revenue and is linked to a rising number of serious truck-related accidents.

Trans-West CEO Réal Gagnon reacted strongly to the situation, saying that when an illegal system is allowed to grow by the government, honest drivers and carriers are the ones who pay the price.

Dulat is not an ordinary spokesperson. He has worked inside Liberal political circles for years, helped with Carney’s leadership campaign, and was present at the prime minister’s private swearing-in ceremony. Several other CTOA leaders are also major Liberal donors.

Bloc Québécois MP Xavier Barsalou-Duval said the close financial and political ties between the association and the Liberal Party are worrying, especially considering how widespread the Driver Inc. problem has become.

While this debate grows, Ottawa is facing pressure from multiple sides. Federal agencies, industry groups and even U.S. officials have urged Canada to tighten enforcement to prevent poorly trained drivers from entering the industry and crossing the border. At the same time, the CTOA has held several meetings with political advisers and MPs, even though the association is not yet registered in the federal lobbyist registry.

The group opposes new CRA penalties for companies that fail to report payments to incorporated drivers and is resisting stricter immigration rules that affect international students and temporary foreign workers — two groups heavily represented in Driver Inc. operations.

All of this is happening amid worsening safety data. Quebec reported a 35% increase in deaths involving heavy trucks in only one year, and recent cases — including the arrest of a driver who had reportedly driven 87 hours without rest — have intensified the focus on the system. Mandatory truck-driver training in Quebec will only take effect on December 15.

With an estimated 120,000 incorporated drivers nationwide and annual tax losses reaching up to $5.2 billion, the federal government is being pushed to act. But with the CTOA gaining political influence, reforms to the Driver Inc. model may become one of the most challenging policy fights in Canada’s trucking sector.

Réal Gagnon, Trans-West.

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CVSA Releases 2025 International Roadcheck Results

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Close-up view of two semi-trucks parked side by side with sunlight shining between them. Text overlay reads: “2025 International Roadcheck Results – A total of 810 drivers were placed out of service across Canada and the U.S. for lacking a valid CDL,” with the TruckStopCanada.com logo at the top.

The Commercial Vehicle Safety Alliance (CVSA) has released the results of its annual International Roadcheck, conducted from May 13 to 15, 2025, across Canada, the United States, and Mexico.

In just 72 hours, inspectors carried out 56,178 inspections of trucks, drivers, and cargo. While most were found to be in compliance, nearly one in five trucks had violations serious enough to be placed out of service.

This year’s campaign focused on tire safety and logbook falsification.

On the mechanical side, brake system defects once again topped the list of violations, accounting for over 40% of all serious infractions, followed by tire issues at 21%. Among drivers, hours-of-service violations and missing or invalid commercial driver’s licenses (CDL) represented more than half of the 3,342 driver out-of-service orders issued.

A total of 810 drivers were placed out of service in Canada and the U.S. for not having a valid CDL. In the United States, this infraction ranked second overall, with 808 drivers (25.7%) taken off the road, compared to only 15 cases in Canada (8.7%). The difference is mainly due to the higher inspection volume south of the border, where roughly 80% of all checks took place.

In total, 10,148 trucks and 3,342 drivers were placed out of service during the operation. Tire violations alone accounted for nearly 2,900 out-of-service orders, often due to flat, excessively worn, or improperly repaired tires. About 10% of driver violations involved tampering with or falsifying electronic logging devices (ELDs).

In Canada, the most frequent issues involved brake systems, cargo securement, and hours of service. Inspectors also noted ongoing concerns about seat belt use, with 726 violations recorded during the three-day blitz.

Overall, the 2025 International Roadcheck results show that despite progress within the trucking industry, vigilance remains essential. Proper brake and tire maintenance, compliance with hours-of-service regulations, and accurate logkeeping must stay at the core of every carrier’s safety practices.

Each year, this large-scale CVSA operation serves not only as an enforcement effort, but also as a snapshot of road safety across North America’s trucking industry.

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Xavier Barsalou-Duval surrounded by industry leaders including Marc Cadieux, Jean-Claude Daigneault, Éric Gignac, Yvan Domingue, and Réal Gagnon at a Bloc Québécois press conference in Ottawa on trucking reform.

Trucking: End of Cross-Border CDL Recognition Between the U.S., Canada, and Mexico?

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Trucking : U.S. Representative Beth Van Duyne introduces the Protecting America’s Roads Act in the House, proposing to end CDL reciprocity with Canada and Mexico.

A bill introduced in the U.S. House of Representatives could redefine certain aspects of cross-border trucking between Canada, the United States, and Mexico.

Titled the Protecting America’s Roads Act, the proposal—introduced by Texas Representative Beth Van Duyne—seeks to codify recent Department of Transportation (DOT) rule changes governing how commercial driver’s licenses (CDLs) are issued and verified for foreign nationals.

Section 3 of the bill directs the Federal Motor Carrier Safety Administration (FMCSA) to “terminate any existing reciprocity agreements that recognize foreign commercial driver’s licenses in the United States or permit holders of foreign commercial driver’s licenses to operate a commercial motor vehicle in the United States, unless expressly authorized by statute.”

However, according to clarifications provided by Van Duyne’s office to LandLine Media, this measure would not affect Canadian or Mexican commercial licenses recognized under the U.S.–Mexico–Canada Agreement (USMCA), since that arrangement was already authorized by Congress.

In practice, the provision aims to ensure that only Congress—not federal agencies—has the authority to establish or maintain reciprocity agreements with other countries. It would primarily impact any other administrative agreements that FMCSA or DOT may have approved outside of the USMCA framework.

The legislation also proposes several amendments to Title 49 of the U.S. Code, which governs commercial driver licensing. Applicants for a CDL would be required to provide proof of U.S. citizenship, lawful permanent residency, or authorized employment status, along with proof of domicile in the state where the license is issued.

States would be required to use the Department of Homeland Security’s SAVE system to verify the legal status of non-citizen applicants. A non-citizen’s CDL or learner’s permit would expire no later than the date indicated on their I-94 document or one year after issuance, whichever comes first. All renewals, transfers, or status changes would have to be completed in person.

The bill further mandates that states revoke or downgrade a CDL if a non-citizen driver no longer meets legal status requirements. It directs the Secretary of Transportation to create a penalty system for states failing to comply and authorizes agencies participating in the federal 287(g) immigration enforcement program to report foreign nationals operating commercial vehicles illegally in the U.S.

If adopted, the Protecting America’s Roads Act would take effect six months after being signed into law.

This article has been updated at 6:55 pm following clarifications provided by Representative Beth Van Duyne’s office to LandLine Media, thanks to OOIDA.

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The trucking industry and Mr. Barsalou-Duval call for an investigation and reform measures in Ottawa

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Xavier Barsalou-Duval surrounded by industry leaders including Marc Cadieux, Jean-Claude Daigneault, Éric Gignac, Yvan Domingue, and Réal Gagnon at a Bloc Québécois press conference in Ottawa on trucking reform.

The Bloc Québécois held a press conference yesterday morning in the foyer of the House of Commons in Ottawa to highlight abusive practices within the trucking industry.

At the initiative of MP Xavier Barsalou-Duval, the party unveiled ten proposals aimed at better protecting truck drivers, combating the “Driver Inc.” scheme, and restoring fair competition across the sector.

Réal Gagnon, président of Trans-West, in Ottawa at a Bloc Quebecois's conference for trucking industry.“Trans-West pays over $5 million a year in fringe benefits that support our hospitals and schools — we are a legitimate business. We can no longer compete with companies that don’t follow our tax rules and don’t play by the same standards. I urge other carriers to denounce this scheme,” said Réal Gagnon, President of Trans-West, a long-haul refrigerated transport company founded in 1988, that has repeatedly been recognized for its high standards of compliance and safety.

 

The event brought together several influential voices in the transportation community, including Marc Cadieux, President and CEO of the Association du camionnage du Québec (ACQ), and Jean-Claude Daigneault, President of the Fraternité des constables de contrôle routier du Québec.

Executives from major trucking firms such as Trans-West, Transport Grayson, Transport Hervé Lemieux, DFS, and Groupe Guilbault were also present to denounce the unfair and unsafe practices plaguing the industry.

Ten concrete proposals

The Bloc’s plan includes:

  1. An official inquiry into driver exploitation in the trucking sector.
  2. A ban on hiring temporary foreign workers as incorporated drivers (they must be employees).
  3. Automatic joint audits (ESDC + CRA) to target shell companies.
  4. Holding contractors accountable for unpaid taxes and contributions.
  5. A shared national database including infractions, safety ratings, and unpaid fines.
  6. A Canada-wide insurance registry accessible to inspectors and police.
  7. A public registry of non-compliant companies, with penalties such as loss of certifications and ineligibility for government contracts or TFW hiring.
  8. A certification program for employers authorized to hire temporary foreign workers.
  9. Amendments to the Hours of Service regulation giving inspectors the power to place vehicles out of service if the driver’s license does not match the ELD.
  10. Mandatory T4A forms for companies operating without employees.

Mounting pressure on Ottawa

According to the Bloc, the rapid rise of employee-free trucking companies, tax evasion, and the exploitation of foreign drivers are undermining road safety and hurting compliant carriers. The party is urging the federal government to act swiftly and tighten enforcement.

Eric Gignac, at Ottawa trucking press conference
Éric Gignac, Guilbault Group.

“This is the first major crisis where we’re losing clients every month or being forced to lower our rates. Truck driving used to be an honorable profession — back in my grandfather’s time, in 1929, it was respected. But today, many drivers feel ashamed. Now, my drivers are afraid to even hit the road because safety no longer exists. We need to take back control,” said Éric Gignac, President of Groupe Guilbault, which has operated for 90 years and covers over 40 million kilometers annually.

“We’re probably the only industry in Canada where wages are going down because of unfair competition and the Driver Inc. scheme. Our truck drivers are people who pay their taxes and work endless hours every week. Mr. Carney, do something!” exclaimed Yvan Domingue of Transport Grayson, based in Danville, Québec.

Behind the numbers and regulatory gaps are real truckers facing unstable working conditions. For the Bloc Québécois, these reforms are not merely technical — they are meant to restore dignity to the profession and ensure a level playing field in a sector vital to the Canadian economy.

Are you a transportation company executive who wants to show your support for the Bloc Québécois initiative? Make your voice heard. This is no longer about politics or choosing a party — it’s about denouncing serious practices and supporting anyone or any group willing to make a real difference in our industry and on our roads.

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Graphic with red background showing the headline “Barsalou-Duval Pushes Ottawa to Act on Exploitation of Truck Drivers.” The image includes two semi-trucks driving on a divided highway in winter conditions, with a portrait of Xavier Barsalou-Duval from the Bloc Québécois, smiling in a beige jacket on the right side. The Truck Stop Canada logo appears at the bottom left.

Rising Insurance Premiums: Can Telematics Rebuild Trust in Trucking?

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In Alberta and across Canada, small trucking companies are sounding the alarm over rising insurance premiums that threaten their survival.

According to Mohit Halkare, head of Mango Insurance, fuel costs and freight volumes are not the main issue—insurance is. While large fleets still benefit from competitive rates, companies operating between one and 50 trucks are often forced into the Facility Association, a pool of last-resort insurers where premiums are significantly higher and transparency is lacking.

As a result, some carriers are already relocating operations to provinces with more flexible frameworks.

One major point of contention is Alberta’s Direct Compensation for Property Damage (DCPD) program. Designed to cover material losses after an accident, it does not apply to crashes in the United States—an everyday reality for many Alberta truckers. Unlike Ontario, where fleets can opt out through the SEF 49 endorsement, Alberta leaves no room for maneuver.

Even in Ontario, however, small fleets frequently end up in the Facility Association, not because they are unsafe, but because insurers see them as higher risks. In a small fleet, a single accident weighs much more heavily than it would in a company with hundreds of trucks.

Adding to the frustration is the paradox between safety data and insurance costs. Transport Canada reports a 20 percent drop in collisions involving trucks from 2012 to 2021, even as the heavy-duty fleet grew by 24 percent. This suggests accident rates per vehicle are declining. Yet premiums continue to rise. The explanation lies in the soaring costs of accidents: repairing modern trucks, replacing expensive cargo, and covering liability claims tied to serious injuries or fatalities. The influence of record-breaking settlements in the U.S. also extends into the Canadian market, tightening conditions further for small fleets.

Faced with these pressures, insurers are looking for new ways to evaluate risk, and telematics is emerging as a potential solution. By tracking factors such as speed, braking, and defensive driving, telematics allows insurers to assess risk based on real performance rather than generic fleet size or cargo type. For small operators, this could mean a fairer playing field, where good driving habits translate into lower premiums and more stability. The same technology could also enhance roadside enforcement by giving authorities a clearer, real-time picture of fleet compliance and safety records.

Still, the road to implementation is far from simple. Privacy concerns, data-sharing rules, system compatibility, and industry trust are all major hurdles. Without clear safeguards, many fear telematics could become more punitive than supportive. A pilot project with strict regulations, transparency, and consent would likely be necessary before broad adoption. For now, small fleets continue to face disproportionate challenges, but telematics represents a possible path toward restoring balance in a market that desperately needs reform.

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Portrait of Alexandra Poulin in front of the wreckage of a severe crash scene, with firefighters and emergency vehicles in the background, and the headline "Technology Exists to Prevent Another Tragedy Like Alexandra’s" from Truck Stop Canada.

FAIR Trucking Act Targets “Nuclear Verdicts” in U.S. Trucking Litigation

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Graphic with a red background and bold white headline that reads: “FAIR Trucking Act Targets ‘Nuclear Verdicts’ in U.S. Trucking Litigation.” Below, a black semi-truck is shown driving in snowy conditions with another blurred truck in the background. The Truck Stop Canada logo appears in the bottom right corner.

A new bill before the U.S. Congress, the FAIR Trucking Act (H.R. 5268), seeks to rein in runaway jury awards in the trucking industry.

Introduced by Representative Ashley Hinson of Iowa, the legislation would require that lawsuits involving more than $5 million in damages and parties from different states be heard in federal courts.

The goal is to curb “venue shopping,” where plaintiffs select jurisdictions known for favoring large settlements. While the measure aims to restore balance, critics argue it does not go far enough to address the deeper structural flaws of a legal system increasingly criticized for encouraging excessive judgments.

At the heart of the issue are so-called “nuclear verdicts,” court awards exceeding $10 million that have multiplied in recent years against trucking companies. These verdicts, industry observers note, often hinge on appeals to jurors’ emotions rather than a balanced review of evidence. Attorneys in such cases frequently amplify the human toll of accidents to maximize damages, regardless of the actual level of fault. For trucking operators, the financial consequences can be devastating, forcing many to close or consolidate while driving up insurance costs across the sector.

Fueling this trend is the rise of litigation financing. Private investment firms fund lawsuits in exchange for a percentage of potential awards, creating a financial incentive for plaintiffs to reject reasonable settlements and pursue outsized judgments. The use of expert witnesses citing federal regulations—sometimes in contexts where they may not apply—adds further pressure on juries to assign blame.

Trucking companies have responded by adopting “compliance-plus” strategies, exceeding regulatory requirements to demonstrate exemplary safety practices. Yet even these efforts have not shielded them entirely from a system vulnerable to emotional and financial manipulation. Fraudulent cases, such as the Louisiana scheme involving staged accidents, lawyers, and medical professionals, highlight the extent of the problem and underscore the importance of tools like dashcams to protect carriers in court.

The impact on the trucking industry is profound. Nuclear verdicts have driven insurance premiums sharply upward, in some cases doubling or tripling for small carriers. This has fueled market consolidation and discouraged competition. In 2023 alone, 27 jury awards in the U.S. exceeded $100 million, a figure insurers link to “social inflation” that inflates claims costs by roughly 7% annually. Canadian carriers operating across the border have also been hit by massive judgments, leading insurers to raise premiums domestically and demand higher coverage limits. The ripple effect extends beyond financial strain, damaging public perceptions of trucking companies and complicating relationships with shippers and insurers.

While the FAIR Trucking Act could curtail venue shopping, industry stakeholders caution that it falls short of addressing the root causes behind nuclear verdicts. They argue that genuine reform requires transparency around litigation funding, stricter limits on punitive damages, and clearer standards for expert testimony. Without these safeguards, the trucking sector is likely to remain exposed to disproportionate legal risks that undermine both its stability and its role in sustaining North America’s supply chain.

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Trucking : Image showing former President Donald Trump, U.S. Transportation Secretary Sean P. Duffy, and a truck driver on a highway backdrop, with bold headline text reading “States Face Funding Cuts Over English Rule Violations.”

Bloc Québécois Pushes Ottawa to Act on Exploitation of Truck Drivers

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Graphic with red background showing the headline “Barsalou-Duval Pushes Ottawa to Act on Exploitation of Truck Drivers.” The image includes two semi-trucks driving on a divided highway in winter conditions, with a portrait of Xavier Barsalou-Duval from the Bloc Québécois, smiling in a beige jacket on the right side. The Truck Stop Canada logo appears at the bottom left.

In a significant development for the Canadian trucking industry, the Bloc Québécois has succeeded in forcing the federal government to take a closer look at the controversial practice known as “cheap labor trucking.”

Xavier Barsalou-Duval, Bloc MP for Pierre-Boucher—Les Patriotes—Verchères and vice-chair of the House of Commons Standing Committee on Transport, Infrastructure and Communities (TRAN), secured unanimous support for a motion that will launch a parliamentary study this fall. The inquiry will include at least six sessions where federal ministers, industry stakeholders, unions, and truck drivers themselves will testify.

At the center of the debate is the widespread phenomenon known as “Driver Inc.” or so-called “ghost drivers.” Under this model, truck drivers are encouraged—or pressured—to incorporate as independent contractors, even though they work as employees.

By doing so, companies avoid payroll taxes, social contributions, and certain safety responsibilities, while drivers lose access to basic labor protections. For years, unions, associations, and industry observers have denounced the system as a form of exploitation that undermines both worker rights and road safety.
Xavier Barsalou-Duval, Bloc Québécois MP, calls on Ottawa to launch a federal investigation into the Driver Inc. scheme affecting the trucking industry in Québec and Ontario.
Xavier Barsalou-Duval, Bloc Québécois

Barsalou-Duval argues that the issue is a ticking time bomb. In a letter to Transport Minister Steven MacKinnon, he described “Driver Inc.” as a nationwide scourge particularly prevalent in Ontario and Quebec. According to him, the practice not only threatens fair competition and economic integrity but also contributes directly to road fatalities.

Recent figures from Quebec’s automobile insurance board (SAAQ) show a 35% spike in heavy truck-related deaths between 2023 and 2024. Several fatal accidents in late August underscored the human cost of regulatory loopholes.

The trucking sector has already mobilized against this practice. Earlier this year, the Quebec Trucking Association (ACQ), the Quebec Association of Towing Professionals (APDQ), and the Teamsters union issued a joint call for urgent government action. They warned that law-abiding drivers are being pushed out of the industry by unfair subcontracting arrangements that put downward pressure on wages and erode safety standards. According to industry advocates, the issue goes far beyond lost tax revenue: it threatens the stability of Canada’s entire supply chain.

As part of his proposals, Barsalou-Duval has urged Ottawa to tighten rules for temporary foreign workers. He is calling for restrictions that would prevent foreign drivers from registering as incorporated contractors, insisting they remain salaried employees instead.

He draws comparisons to other strategic sectors, such as civil aviation and maritime piloting, where citizenship or strict employment rules are enforced to ensure public safety. This approach, he argues, would protect vulnerable workers from exploitation while reinforcing oversight of the trucking industry.

As Barsalou-Duval stated, political courage is urgently needed—not only to protect truck drivers but also to restore fairness, safety, and credibility in Canada’s trucking industry.

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Two semi-trucks driving side by side on an open highway, with the headline "Foreign Workers in Trucking: Are the Problems with Immigration, Regulation, or Integration?"

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Donald Trump pointing toward the camera, standing in front of a semi-truck. The TruckStopCanada.com logo appears at the top left. Large text on the image reads: “Driver Inc., Road Safety and Trucking: Ottawa under pressure,” illustrating political pressure and road safety concerns linked to the Driver Inc scheme in the trucking industry.

Driver Inc., Road Safety and Trucking: Ottawa Under Pressure

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U.S. authorities are sending a clear message to the Canadian government and the trucking industry: the regulatory laxity surrounding certain practices in Canada, including...