The Canadian Trucking Alliance (CTA) used its pre-budget submission opportunity to demand the feds crack down on labor abuse and tax evasion in the trucking industry.
The alliance pointed to data showing 65% of companies in certain segments are breaking federal labor laws, with:
- widespread wage theft and labor abuse
- denial of safe working conditions
- instances of forced labor
“This is not just regulatory slippage – it’s the breakdown of the rule of law in parts of our industry,” said CTA president Stephen Laskowski. “When companies can openly steal wages, deny paid sick leave, ignore safety laws, and easily rebrand to dodge penalties with no consequences, the message being sent is clear – that crime pays.”
Specifically, the CTA is calling for:
- A major expansion of ESDC’s enforcement team, with increased funding and national coverage
- Faster resolution of wage theft claims and better collection of unpaid penalties
- Aggressive pursuit of companies that dissolve or rebrand to avoid enforcement
- CRA-led investigations into employers flagged through the ESDC partnership
- And a coordinated, sector-wide crackdown on the abuse of Personal Services Business (PSB) designations, which are being misused to avoid taxes and labour obligations.
Why does it matter?
“There’s growing concern in the industry that enforcement will never reach the required level because of political roadblocks within all three parties,” Laskowski added. “That cannot stand. What’s happening is the hollowing out of the legitimate economy and threatening the livelihoods of hard-working Canadians, who are already under significant pressure from tense trade relations with our biggest trading partner.”
Who will support supply chain?
The CTA reminded the feds that the trucking industry is a vital part of the supply chain and will be essential in supporting internal and international trade at a time of economic uncertainty and a trade war with the U.S.
“With trade talks front and center throughout political circles, I wonder who decision makers think will carry all of our internal and international trade?” asked Laskowski. “If the federal government is serious about supporting the supply chain, protecting workers, protecting businesses and ensuring fair competition, it’s hard to believe Ottawa doesn’t agree that now is the time to act on these important measures.”
