Ontario truckers say wage theft plaguing industry - Action News
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Ontario truckers say wage theft plaguing industry

Drivers rallied in Brampton, Ont., this weekend, saying many trucking companies are withholding payments and misclassifying employees as independent contractors, with few repercussions from the federal government. They're calling on Ottawa to step up.

At a rally Saturday, drivers said employers are withholding pay with impunity

A long line of semi-trucks sit on the side of a highway as cars drive past them in another lane.
Tractor-trailers wait to cross the Canada-U.S. border in Surrey, B.C., in December 2021. Driver advocates say the trucking industry is plagued by firms that refuse to pay long haulers what they're owed. (Ben Nelms/CBC)

Bhubander Singh says he got into trucking after a friend told him it was a good way to make money.

A year and a half into his new career, now working for his third company, he says he regrets his decision. The 26-year-old immigrant says his employers have constantly withheld pay, claiming he hasn't completed trips, and he's now owed over $9,000 in wages.

"I did hard work. I was driving like 70 hours a week," he said. "I'm under so much pressurewith the rent and with my bills and the car payments, and the company's not paying."

A young bearded man is visible in flannel from the chest up. He is outside a building in day time. A crowd stands around him holding signs.
Bhubander Singh says since he entered the trucking industry a year and a half ago, he's had to put up with regular delays in getting paid from different companies. He says he's owed over $9,000 for hours worked. (Radio-Canada)

Singh isn't alone.

He's one of dozens of truck drivers who showed up at a rally in Brampton, Ont., on Saturday, calling on the federal government to look into violations to the Canada Labour Code and enforce penalties against trucking companies.

They say some companies in their industry are illegally deducting wages, failing to pay overtime and misclassifying employees as independent contractors so they don't have to pay benefits.

The rally was part of a national movement on Saturday, organized by advocacy group Justice for Workers, wheretruck drivers across Canada sent letters to over 30 members of Parliament, asking for stronger enforcement of the CanadaLabour Code.

Wage theft a national issue, say truckers

Navi Aujla, president of the Labour Community Services of Peel, a non-profit that has taken up the cases of more than 250 truckers over the last two years, told the crowd at Saturday's rally that the organizationis currently working with 130 truckers who are collectively owed over $1 million by their employers.

"Employers are getting away with ignoring government orders to pay wages all of the time," she said.

Kevin Kordahi, a paralegal with the non-profit, says truckers in this position have to fight long and hard to get those wages.

Long-haul truck drivers are federally regulated employees, Kordahi says, which means they have six months to file complaints about Canada Labour Code violations.

"What often happens is a lot of these truck-driving companies, they keep delaying payment of the wages," he said. "Whenthe truck drivers finally have enough and want to file a complaint, oftentimes the deadline has already passed."

WATCH| Wage theft affecting more and more long-haul truckers:

Angry long-haul truckers blow the horn over unpaid wages

2 months ago
Duration 2:08
Long-haul truckers in Canada are pushing back after being stiffed for millions of dollars in unpaid wages as a CBC News investigation reveals a growing number of trucking companies are hiring drivers and then not paying them.

Truckers account for less than 20 per cent of federally regulated workers, but government figures show the industry was responsible for 85 per cent of all wage-related Canada Labour Code violations between 2017-18 and 2021-22.

Kordahi says even when complaints are filed successfully and federal officers order companies to pay wages, a lack of enforcement makes recovering that money a challenge for employees.

The federal government needs to do a better job protecting truckers, he says.

'Non-compliance pays'

In 2023, the federal government issued 542 wage payment orders against trucking companies, according to data obtained by CBC News. By July of this year, there were already 491 orders.

Marco Beghetto, a spokesperson for the Ontario Trucking Association, points to one simple reason for the growing trend.

"Frankly, non-compliance pays," he said. He says many trucking companies aren't afraid of the consequences.

The government made changes to the Canada Labour Code this year, a spokesperson for the Ministry of Labour said, "to stop employers misclassifying employees as independent contractors."

But Beghetto says Ottawaneeds the political will to keep companies in line, anda lack of enforcement remains a key issue.

"We're not talking about new laws and new regulations," he said. "All we want is the enforcement of the laws that are already on the books of the standards under the Canada Labour Code."

In an email, Labour Minister Steven MacKinnon said the federal government is working to prevent wage theft and stop employers from misclassifying employees as independent contractors.

"We have worked closely with both workers and businesses to find an effective and fair solution to this problem," he said. "Any employer who knowingly misclassifies an employee to avoid their obligations is breaking the Canada Labour Code and will face consequences."

Corrections

  • An earlier version of this article incorrectly stated: "The government made changes to the Canada Labour Code this year, allowing the Canada Revenue Agency and Employment and Social Development Canada to work closely together to audit companies for violations." In fact, a spokesperson says, the changes to the Canada Labour Code this year were "to stop employers misclassifying employees as independent contractors."
    Sep 23, 2024 2:41 PM ET

With files from Andrane Williams