On September 17th, Réal Gagnon, President and Founder of Trans-West, publicly condemned the practice of using the “Driver Inc” model, a scheme that, according to him, threatens to destroy the trucking industry in Canada.
As the head of one of Quebec’s leading transport companies, he sharply criticized the federal government’s inaction, accusing it of failing to “take responsibility” in regulating this practice fairly for all carriers.
Réal Gagnon emphasized the importance of establishing uniform regulations to prevent penalizing companies that follow the law and fairly compensate their employees. According to him, this situation severely harms the competitiveness of responsible companies and jeopardizes the entire industry.
Following his appearance on Truck Stop Québec, we reached out to several ministers and also contacted opposition parties, aiming to demand concrete action to protect the industry, improve working conditions for truck drivers, ensure road safety, and safeguard companies that comply with standards. It is a matter of ensuring the safety of our workers on the roads.
Despite these efforts, this major crisis in the trucking industry seems to have little resonance with government bodies. To date, only a response from Minister Steven MacKinnon, Canada’s Minister of Labour, has been received, with all others refusing to comment:
“Our government takes this issue very seriously. We have worked in the past, and continue to work closely with truckers and businesses to find an effective and fair solution to this problem so that these discriminatory practices come to an end.”
“Earlier this year, we amended the Canada Labour Code to prevent employers from wrongly classifying employees as independent contractors, and the trucking industry is no exception. Furthermore, our department, Employment and Social Development Canada, is currently working on agreements with the Canada Revenue Agency to share data, which will facilitate inspections and law enforcement to prevent the misclassification of workers.”
“Any employer who wrongly categorizes an employee to evade their obligations is violating the Canada Labour Code. Rest assured, they will face the consequences.”
However, are these measures enough? Will there be sufficient inspections and penalties for offending companies? Putting an end to the practice of incorporated drivers would not only improve working conditions for thousands of truck drivers, but also target dishonest companies that exploit foreign workers, provide no proper training, and allow poorly maintained equipment on our roads.
Robert Vachon, President of R Vachon Transport brokerage firm, also voiced his frustration over the inability to compete with incorporated drivers. According to him, companies hiring these drivers to exploit the situation are engaging in a modern form of slavery.
These unscrupulous employers often abandon their drivers without resources, forcing them to bear the costs of repairs and fuel—expenses they never recover—not to mention the lives they put at risk.
“The industry needs fair and equitable tax rules for all. Trucking companies that follow the rules are no longer competitive because they’re up against a system accepted by our political leaders who, clearly, are doing nothing,” says Benoit Therrien, owner and founder of Truck Stop Québec and Truck Stop Canada. “Companies, the Quebec Trucking Association, and Canadian transport associations are calling for tax fairness. Will it take an election to resolve this situation?”
Since Réal Gagnon’s public stance, several businesses and groups in Quebec’s trucking sector are seeking to unite in order to increase pressure on the government, which seems disconnected from the reality of the transport industry and the dangers it faces. A sector vital to the Canadian economy is at a critical juncture, and if no action is taken, the consequences could be disastrous for the entire country. Benoit Therrien adds:
“Another question: how is it possible that a company like Pride with a debt of $1.6 billion can repurchase the business for around $60 million by a judge’s decision, with a business model based on an incorporated driver scheme? Not to mention the many tax inconsistencies?”
Claude Gizelo, owner of Prince Logistics Services, reacted strongly on air last week regarding the scheme of incorporated drivers and the Pride acquisition:
“I have more employees on payroll than Pride. So, they can’t tell me they wanted to save jobs… What employees? The incorporated ones, is that what you wanted to save? It makes no sense,” added the Prince Logistics owner.
It is clear that current decisions from governing bodies leave much to be desired. Minister MacKinnon’s response is far from sufficient. We will continue to highlight these issues, which risk plunging the industry into a deep financial crisis, with severe repercussions for law-abiding companies and their employees, including truck drivers.
