Trucking Industry Faces Wage Theft and Misclassification Issues

Advocates within the trucking sector and Ontario legal aid organizations express little surprise over a recent survey revealing persistent issues such as wage theft, unpaid overtime, and the misclassification of employees as independent contractors affecting truck drivers.

The survey findings are part of a report produced by Labour Community Services of Peel and the Parkdale Legal Clinic, in collaboration with the West Coast Trucking Association and Justice for Truck Drivers.

Navi Aujla, service director for Labour Community Services of Peel, noted that while they had anticipated these issues from numerous calls received, the survey results are alarming, showing how widespread wage theft is among drivers. “The impact on their lives is devastating,” she remarked, highlighting the urgency of the matter.

The survey indicates that about 74% of the 400 drivers surveyed experienced wage theft, particularly for waiting times at border crossings and during freight loading and unloading. Furthermore, many drivers report facing illegal deductions and insufficient pay for overtime and holiday work, with 70% feeling undercompensated overall.

Regulatory Lapse: A Key Issue

Both Aujla and the report attribute much of the prevailing problems to deregulation that has progressed since the 1980s and 90s. Advocates recommend stricter regulations concerning minimum equipment standards and mandated rates for truckers, emphasizing that drivers should be compensated for all working hours, including necessary non-driving tasks.

Enforcement Over Regulation?

Marco Beghetto, vice president of communications for the Ontario Trucking Association, suggests that the issue stems more from a lack of enforcement rather than the need for new regulations. He pointed out a prevalent scam termed “Driver Inc.,” where companies misclassify drivers as independent contractors, thereby dodging payroll tax obligations.

Beghetto stated, “These drivers deserve access to labor standards such as paid vacation and benefits, but many companies exploit misclassification to evade responsibilities.” He noted that this unethical practice also undermines law-abiding companies that cannot compete with those violating regulations.

Push for Greater Enforcement

Both Aujla and Beghetto agree on the necessity for enhanced enforcement and stricter penalties for non-compliant companies. The recent federal budget that allocates millions to address non-compliance is a step in the right direction, but more provincial action is required, as acknowledged by Beghetto.