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Recently, a group of 42 truck drivers, predominantly from Punjab, held a rally in Toronto to demand payment for unpaid wages from truck carriers
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These carriers are said to be using a scheme known as Driver Inc, leading to misclassification of drivers as independent contractors
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Under this model, drivers without truck ownership register as corporations and provide services to companies, enabling carriers to avoid taxes and benefits and evade labor laws that protect workers’ rights
Indian truckers in Canada are facing significant challenges in obtaining unpaid wages, amounting to a staggering $9 million, according to reports from 2021-2022. Many immigrants from Punjab are drawn to truck driving as it offers a pathway to becoming permanent residents through the Labour Market Impact Assessment. However, this dependence on employers for permanent residency also makes them more susceptible to wage theft, reported indianexpress.com.
Recently, a group of 42 truck drivers, predominantly from Punjab, held a rally in Toronto to demand payment for unpaid wages from truck carriers. These carriers are said to be using a scheme known as Driver Inc, leading to misclassification of drivers as independent contractors. Under this model, drivers without truck ownership register as corporations and provide services to companies, enabling carriers to avoid taxes and benefits and evade labor laws that protect workers’ rights.
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In response to the growing concerns, major trucking industry groups, including the Canadian Trucking Alliance, Teamsters Canada, and Quebec Trucking Association, jointly called for government action against the Driver Inc. model in May of the current year
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The hope is that such action will address the issue of wage theft and protect the rights of truck drivers, especially those from vulnerable immigrant communities
One of the drivers, Manjinder Singh, spoke at the rally, revealing that his first paycheck arrived three months late, and he is still owed $10,000 in wages by his former employer. Navi Aujla from Labour Community Services of Peel has been assisting numerous immigrant drivers in recovering unpaid earnings and highlighted that the misclassification of truckers as independent contractors is a common issue leading to wage theft.
Aujla pointed out that despite comprising only 17% of federally regulated workers, truck drivers account for a staggering 85% of claims for unpaid wages lodged with the Ministry of Labour, underscoring the severity of the problem.
Canada’s immigration policy system plays a role in exacerbating the prevalence of wage theft in the trucking industry. The Labour Market Impact Assessment process offers a pathway to permanent residency, but loopholes and employer exploitation within this system increase the risk of wage theft, particularly for employees who rely on their employers to access permanent resident status.
In response to the growing concerns, major trucking industry groups, including the Canadian Trucking Alliance, Teamsters Canada, and Quebec Trucking Association, jointly called for government action against the Driver Inc. model in May of the current year. The hope is that such action will address the issue of wage theft and protect the rights of truck drivers, especially those from vulnerable immigrant communities.
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