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A recent investigation into the Canadian trucking sector has unveiled a troubling reality: approximately 70 per cent of long-haul truck drivers have reported experiencing wage theft during their employment. The findings, drawn from a survey of over 400 truckers nationwide, highlight critical issues regarding diminishing wages and unsafe working conditions, including illegal deductions and misclassification of employment status. This comprehensive report, produced by Parkdale Community Legal Services in Toronto, Labour Community Services of Peel in Brampton, and two driver advocacy organisations, has sparked renewed calls for regulatory reform.
Significant Findings on Wage Theft
The survey revealed that a staggering number of truck drivers face challenges that extend beyond just low pay. Among the reported grievances were illegal deductions from pay, unpaid hours, and misclassification as independent contractors. Notably, long-haul truckers, who operate across Canada and North America and are subject to federal regulations, reported wage theft at a rate of 70 per cent, while those regulated provincially experienced it at a slightly lower rate of 62 per cent.
The issue has garnered attention in federal transport committee hearings convened in October, aimed at addressing employment standards, safety concerns, and labour shortages within the trucking industry. Alarmingly, long-haul trucking accounts for only 17 per cent of federally regulated jobs, yet it constitutes a shocking 85 per cent of violations of the federal labour code from 2017 to 2022, according to data obtained through a freedom-of-information request.
The Cost of Wage Theft
The report, set to be released on Monday, highlights that the average amount lost to wage theft among surveyed drivers is approximately £10,000. Wage theft, which includes the failure to pay minimum wage, vacation pay, and other entitlements, represents a significant financial burden for many workers. Navi Aujla from Labour Community Services of Peel noted that when drivers file complaints regarding wage theft, the process can be painfully slow, with some waiting over a year for a labour officer to be assigned to their case. By that time, many employers have ceased operations, leaving drivers unable to reclaim their owed wages.
Additionally, over 65 per cent of drivers indicated that they have been misclassified as independent contractors. This practice allows companies to reduce their tax liabilities by avoiding the responsibilities associated with employee status, stripping drivers of essential benefits such as vacation pay and severance. Despite the 2021 amendments to labour laws aimed at prohibiting such misclassification, Aujla expressed concern that these issues have become commonplace due to the lack of penalties for offending employers.
The Broader Implications for Road Safety
The ramifications of wage theft and misclassification extend beyond financial loss; they also pose serious safety concerns. The Canadian Trucking Alliance testified before the federal transport committee that misclassifying drivers can save employers up to £30,000 per driver on payroll costs. This financial incentive leads to a culture where safety may be compromised, as drivers feel pressured to maximise driving time rather than prioritising maintenance and safety checks.
The survey also uncovered that nearly 29 per cent of truckers reported pressure from their employers to take risks on the road, while 60 per cent admitted to driving vehicles that were not properly maintained. This alarming situation raises questions about road safety and the overall well-being of drivers, who are often pushed into precarious circumstances for the sake of profit.
Government Response and Future Steps
In light of these troubling findings, the Government of Canada has begun to take action. Employment and Social Development Canada (ESDC) has established a dedicated national team to address worker misclassification, conducting over 890 proactive workplace inspections. Additionally, Ottawa has allocated £77 million over four years to enhance enforcement against companies that misclassify their drivers as self-employed.
However, the new report underscores the need for more decisive action, advocating for federally regulated pay rates and stronger enforcement mechanisms to combat wage theft and improve working conditions in the trucking sector. The ongoing deterioration of wages and conditions is partly attributed to employers’ confidence that they can engage in wage theft without facing consequences.
Why it Matters
The findings of this report shine a light on a critical issue within the Canadian trucking industry that affects not only the livelihoods of drivers but also the safety of our roads. As the backbone of goods transportation across the country, addressing wage theft and ensuring fair treatment for drivers is essential for the industry’s sustainability and the safety of all Canadians. Without immediate action to rectify these injustices, the crisis in the trucking sector could continue to escalate, with far-reaching consequences for both workers and the broader economy.
