Canada\u2019s Transport and Labour Ministers recently confirmed to CTA that both departments are busy sharpening their tools aimed at increasing enforcement of Driver Inc. companies.<\/p>\n
In a letter to CTA, Labour Minister Filomena Tassi issued perhaps the Labour Ministry\u2019s most forceful outline to cracking down on Driver Inc. and confirmed it will soon begin targeted enforcement, roll out penalties and even name-and-shame certain non-compliant companies.<\/p>\n
Minister Tassi said ESDC continues to work with CTA, Transport Canada, Revenue Canada to protect the integrity of tax, safety and labour laws and is taking\u00a0measures legislatively and operationally to ensure Driver Inc \u2013 specifically the scheme to misclassify employees and independent contractors \u2013 does not undermine the law as well as the comprehensive modernization of the Labour Code.<\/p>\n
\u201cNew compliance and enforcement tools will enable the Labour Program to impose penalties and publicly name violators who do not comply with the regulations Under the Code. Furthermore, new legislation will prohibit employers form treating individuals as if they were not employees, especially those who do so in order to avoid obligations or deny employee rights,\u201d the letter stated.<\/p>\n
Minister Tassi cited targeted inspections of suspected Driver Inc. companies as one instrument in Labour\u2019s toolkit. In the meantime, Labour has ramped up communication to inform employers and employees of their roles and responsibilities regarding labour standards and occupational health and safety.<\/p>\n
Similarly, Transport Minister Marc Garneau also wrote CTA and acknowledged data from industry and government which shows a clear connection between Driver Inc. companies and their poor on-road safety performance.\u00a0In the correspondence, Minister Garneau expressed his commitment to continue to work with CTA to improve truck safety on a number of fronts. CTA had recently sounded the safety alarm for Driver Inc. companies based on an analysis of the numerous fleets assessed by\u00a0Ontario\u2019s WSIB for Driver Inc. violations<\/a>.<\/p>\n \u201cAs we all know, a culture of non-compliance is seldom isolated to just one set of rules,\u201d said CTA Chair Jean-Claude Fortin. \u201cIt\u2019s much deeper than that. These unscrupulous practices are often ingrained in the business models of these companies, pushing them to cut corners wherever and whenever they can.<\/p>\n \u201cCTA is pleased to see both ministers acknowledge that Driver inc. is a problem and that they are working with their counterparts in other departments to take a comprehensive and proactive approach to enforcement.\u201d<\/p>\n Meanwhile, the Minister of National Revenue also confirmed to CTA that CRA has initiated actions related to Personal Services Businesses (PSBs) and Driver Inc. noncompliance. CRA confirmed its commitment to protecting the integrity of the tax system, including launching several onsite visits to certain trucking companies.<\/p>\n