Comments on: Are you working for a Driver Inc. carrier? If so, you’re being set up

By: Stephen Webster

Stephen Webster — Mon, 22 Apr 2024 17:27:56 +0000

Yes I know your company and you treat and pay your drivers very well
I know of a number of companies that operate on the same model that you use
I believe this should be the model of the whole trucking industry. I understand a limited amount of lease ops in agr or construction but only in return for a set min wage or freight rates
A number of players in the industry have told me and several of the volunteers we work with that your model will drive up the cost of everything too much. I have seen a study from the U K that if we change the numbers in Canada it would bring in almost 2 billion dollars a year for the gov but drive wages up by a similar amount. This will bring more people and reduce drivers leaving in my opinion.

By: Derm Holwell

Derm Holwell — Sun, 31 Mar 2024 20:45:07 +0000

Stephen
What a great article. We do not use the driver Inc. model if that’s the correct term. We are a mix of unionized and owner operators. We are required to keep a minimum number of union employees. Going back 15 years ago, we would use temp agencies and hired from that pool to fill union spots. We have had numerous situations over the past 5 years where we offer a union spot to the temp and they say I want to get paid as a Driver Inc. If we insist they have to they leave, they will. The agency will place them elsewhere. We know for certainty their hourly rate is less than the union rate we would pay them, they would not only get OT at 40 hours a week, they get OT after 8 hours a day. If they worked one day for 15 hours they would get 18.5 hours pay. There are health and dental benefits that cost the company over 400 per month for a family rate. There is graduated vacation up to 6 weeks among other benefits. And they say no.
I believe these people are brain washed into thinking the government is screwing them.

Keep up the great work on this.

By: Grant

Grant — Sun, 31 Mar 2024 16:28:44 +0000

The lease operator model is the same situation. It does not say in the CRA code if you own a truck you are good.
4 simple tests. You must comply with all 4 all the time no exceptions.
Risk of loss
Risk of profit
Ownership of tools
Control of work.

A lease operator that is licensed, insured and runs under the carriers safety program is not a contractor.

You don’t have control of work you have control of the work they decide to give you. They the carrier has the control no way out of that one.. Lease ops are just a great way to get trucks cheap with low risk and zero capex. Can’t go after driver inc without dealing with this as well.

Want to see slow steady, controlled growth in trucking? Force them all to own everything and pay their employees by the code. That will halt our problems in a hurry. It will create new ones but that can be dealt with then.

By: Bradley Graham

Bradley Graham — Sun, 31 Mar 2024 16:15:15 +0000

I agree Drivers Inc has to go. Companies offer ‘lease to own” deals. The company pays for all licenses, fuel, maintenance etc and deducts from the pay statement. How can these people be self employed truckers? This is going on everywhere. These drivers don’t find there own loads either but yet it’s allowed.

By: Stephen Webster

Stephen Webster — Tue, 26 Mar 2024 15:22:50 +0000

In reply to Bill Cameron. The first srep is ro do away when any driver services s to any company with 3 or more than 3 employees or a office This includes walmart and any member of a trucking association also require all labour's services to have proof o monthly payroll report and proof they are not on ont works or living in gov paid for hotels.

By: Bill Cameron

Bill Cameron — Sun, 24 Mar 2024 13:41:12 +0000

Stiil painting the issues with a single, wide brush, I see. The ‘undisputable fact that Driver Inc. is illegal under any standard’ is actually a very disputable fact. Myself, and many others in my position will periodically indulge in private contractor services, and none of us are, as you state, ‘skirting our legal obligations’, nor are we ‘being set up’. Those of us who work seasonally, with our own incorporated business, will on occasion work for someone else; a day here or there, nothing firmly scheduled, no commitment beyond a single day, sometimes only a couple days per year. In this case, as it’s invoiced through our company, taxes ARE paid, and all legal obligations met. What is saved is for the end user not to be required to file numerous reports to numerous agencies, for the sake of an extremely brief period of employment. We, as the service provider, do that ourselves. Your own members (‘those who should be celebrated….as legally responsible corporate citizens’)indulge in this practice regularly. Is there a carrier in existence that doesn’t utilize staff from a temp agency? Doubtful. Yet many temp agencies not only employ ‘Driver Inc.’ drivers (not paying appropriate taxes and deductions), they strongly encourage it. In essence, your members are fully supportive of a business model that they also loudly condemn. The hypocrisy is astounding.

By: Mike fontaine

Mike fontaine — Sat, 23 Mar 2024 01:34:02 +0000

Great article Stephen. If it’s not legal in Canada and they don’t pay taxes then the CRA shoukd charge them period. Everyone in Canada needs to play by the same rules period.

By: Stephen Webster

Stephen Webster — Thu, 21 Mar 2024 09:55:00 +0000

In reply to Cameron G. Lisk. Look at what happened in the U K when this law was enforced over 10% of the truck drivers quit the gov had to bring in the army to drive trucks. A excellent article but put some carrots by giving payroll truck drivers overtime and legal and medical help if things go wrong. Look at the A B5 law and bring some parts of it . Limit driver Inc to foreign drivers here on 8 month contract from April to Nov that do not vross the U S Canada borders. Form a group with a driver lease group and a payroll truck driver and Healthcare provider this problem could much reduced in 6 months in my opinion

By: Cameron G. Lisk

Cameron G. Lisk — Wed, 20 Mar 2024 17:38:27 +0000

This is an excellent article and tells it exactly as it is. Anyone considering the Driver Inc. Idea should be reading this. Thanks Stephen!!

By: Bob Steele

Bob Steele — Wed, 20 Mar 2024 16:08:55 +0000

Well written article but remember this is Canada lots of laws on Taxes and Labor but like everything else regarding trucking “ZERO” enforcement. There is a huge lobbing group in Brampton that controls what the government does. Seamus O’Regan the Minister of Labor is in their pocket many pictures of him with this group smiling very happy to be with them.

This group told Doug Ford they wanted MP from their riding of Brampton to become Minister of Transport. Done right away welcome Prabmeet Sarkaria. Truck crashes will increase what a joke.

By: Susan Moore

Susan Moore — Wed, 20 Mar 2024 15:38:32 +0000

Keep pushing everyone ! We need to take our legal companies to our next level ! Goodbye drivers inc !!

By: Ron Spring

Ron Spring — Wed, 20 Mar 2024 13:52:48 +0000

Interesting article on the understanding of the laws. Missing from all these descriptions is the criteria to qualify as a “contractor”.
I believe CRA still has seven factors to determine one to be a contractor. A list of these things would be extremely helpful for drivers who still think that they can operate as a contractor and not pay taxes and buy the new pick up with all the extra money or they’re working for little They can’t afford to pay taxes.
We have had a number of interviews with drivers from various countries that have immigrated to Canada and don’t fully understand and din’t want to understand what the cost is.
All they know is that they are “contractor “they don’t have to pay tax but they don’t see the end when CRA come knocking on their door