Says tax scheme allows employers to avoid labour rights, worker entitlements
The Saskatchewan Trucking Association (STA) says a scheme that allows employers to avoid labour rights and worker entitlements could push compliant companies out of business.
The group is calling out companies that use a labour misclassification called Driver Inc., according to a Global News report.
This is a rampant practice among federally regulated transport companies, said the STA, citing a survey that found 60% of these companies are using the employee misclassification scheme, allowing them to avoid paying more than $1 billion in taxes.
“There’s employees, we also have independent contractors which we call owner operators, both have existed for many, many years, and are accepted in the industry,” said John Blackham, director of policy and public affairs with the Canadian Trucking Alliance, in the Global News report.
“What Driver Inc. really is is a break from both, where drivers are encouraged to incorporate themselves, and then, in turn, sell their driving services to the carrier.”
In this scheme, workers lose, Blackham said.
“From the workers’ end, we’re also talking about lost entitlements like overtime pay, vacation pay, paid medical leave which is the 10 paid sick days which is coming in, and countless other benefits afforded to employees under the labour code.”
In November, Ontario announced it is investing $26.3 million over five years to address Driver Inc.
Earlier this month, Carol Hughes (Algoma-Manitoulin-Kapuskasing, NDP) also spoke out against Driver Inc in Parliament and urged the federal government to take action.
“This illegal tax scheme leaves truck drivers unprotected in the event of a workplace accident and vulnerable to unjust termination. This illegal tax scheme leaves truck drivers unprotected in the event of a workplace accident and vulnerable to unjust termination,” she said.
“We must work together to clamp down on systemic labour abuses, close tax loopholes and support those who respect the rules, protect workers and keep our economy rolling.”
