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Canada’ s“ Driver Inc.” issues, including classification, training and immigration, echo similar debates in the US. shaunl / Getty Images

Canada’ s‘ Driver Inc.’ crackdown could push trucking rates higher

By Ari Ashe

The Canadian government is cracking down on controversial labor practices in the country’ s trucking industry, a move that could reshape the sector, increase fleet costs and ultimately result in tighter capacity and higher rates for shippers. The issues— including driver classification, tax policy, safety and training standards, and immigration— have collectively received the controversial label“ Driver Inc.” and echo similar debates in the US since 2019.

The dispute has simmered for more than a decade, but received renewed attention after Mark Carney became Canada’ s prime minister last year. Stricter enforcement of the“ Driver Inc.” issues could limit access to the lowest-cost trucking capacity that has been available in recent years in Canada, potentially pushing transportation rates higher for shippers; but whether the capacity needle really moves largely depends on how vigorously and thoroughly the Canadian government cracks down on“ Driver Inc.”

One issue is the classification of drivers as employees versus independent contractors, a question that has been fiercely debated in California, Illinois and New Jersey. Another issue centers on how immigrant drivers are integrated into Canada’ s trucking industry, particularly regarding training standards and highway safety. In the US, a similar concern has been raised over“ CDL mills,” where fraudulent or low-quality trucking schools provide

www. joc. com minimal instruction before putting drivers on highways. A third issue involves tax policy and the treatment of drivers operating as independent contractors.

For shippers, the“ Driver Inc.” debate ultimately comes down to the cost structure of trucking companies. Fleets that classify drivers as independent contractors operate with lower costs because they avoid payroll taxes, overtime requirements and benefit obligations. Those lower costs translate into lower truckload rates for Canadian shippers.

A‘ new generation’

The Canadian Trucking Alliance( CTA) argues that some carriers misclassify drivers as independent contractors and provide inadequate safety training, which compounds with a longstanding tax policy loophole from which part of the controversy stems. The Canada Revenue Agency( CRA), Canada’ s equivalent of the US Internal Revenue Service, imposed a moratorium in 2011 on enforcement actions related to T4A tax filings, a form similar to the US 1099 used for independent contractors. The moratorium was lifted earlier this month.

“ All we’ re looking for is fair competition, where carriers compete on service, price and other matters.”

“ The carrier benefited from not having to pay overtime and all the other responsibilities, which gave them about a 30 % pricing advantage in the marketplace,” said Stephen Laskowski, CTA’ s president.“ All we’ re looking for is fair competition, where carriers compete on service, price and other matters all while complying with regulatory and tax requirements.”

April 6, 2026 | Journal of Commerce 29