Enforcement Blitzes Unveil Non-Compliance ‘Insanity’ Facing Trucking Industry

(TORONTO, June 4, 2025) – Recent ESDC blitzes continue to expose the harsh reality that many segments of the trucking industry are out-of-control when it comes to labour and tax compliance and obeying other rules. 

“This comes as no surprise to those of us who have fought tooth and nail to run compliant operations and survive for the past decade; nor to the many political officials in all levels of government throughout the country who are very aware of the rampant abuse and manipulation of the labour system in our industry,” said CTA president and CEO Stephen Laskowski. “Now, the government’s own enforcement data confirms it even further.” 

“The number one job now facing Minister Hajdu in her role as Minister at ESDC is to bring law and order back to the trucking industry. This cannot be ignored any longer.”

Details of the recent federal and provincial enforcement initiatives held across Canada are beginning to come in and the numbers are grim. The compliance data stem from joint provincial and federal initiatives at roadside in Nova Scotia, Quebec, Ontario and British Columbia, as well as on-site facility inspections.

“ESDC’s focused and proactive approach with these blitzes on labour misclassification is appreciated and long overdue,” says Laskowski. “ESDC is now able to confirm first-hand what CTA has been telling governments for a decade – that our house is on fire and a massive effort is necessary to put it out.

“Worse, these roadside and on-site initiatives are confirming that non-compliant operators continue to show no will or desire to address and correct their illegal behaviours, but would rather flagrantly thumb their nose up to the law. We are encouraged this ‘catch-me-if-you-can’ businesses model in the underground economy has been exposed. They are getting caught and are hopefully no longer untouchable.”    

Laskowski said Minister Hajdu’s number one priority should be to increase oversight in Canada’s largest federally regulated private sector and provide her policy and misclassification enforcement teams with the added resources and political support they need to do their jobs.

Highlights from focused enforcement efforts include: 

• ESDC Southern Ontario Enforcement Pilot Numbers: ESDC found over 60% of employers engaged to be in contravention of labour laws.
• ESDC Follow up Operations in Ontario: Showed a 65% non-compliance rate, with 25% of cases declared non-viable as the employer ‘disappeared’. In other words, when caught breaking the law, one on four companies simply disappear from records in one jurisdiction and very likely move to another, CTA explains. 
• ESDC Blitz and inspections in Quebec: 40% of employers visited were found in non-compliance with misclassification provisions.  
• ESDC and WSIB Ontario Roadside Blitz Numbers: Over 50 companies identified for potential audit related to labour law violations. Over 30 companies identified for potential violation of provincial workers compensation laws. 
• ESDC Winnipeg Blitz: 64% of active employers visited that week were found in non-compliance with misclassification provisions (some were no longer in business). Compliance efforts remain underway. 
• ESDC Edmonton Blitz: 50% of employers visited that week were found in non-compliance with misclassification provisions. Compliance efforts remain underway;
• CRA PSB Pilot: In just a small sample, millions of dollars in tax evasion were identified and trucking found to be the number one abuser of the PSB model in the entire economy. 
• WSIB Ontario: Ontario WSIB has been conducting targeted audits for several years. Hundreds of trucking companies have already received corrective adjustments from the WSIB, totalling over $10 million dollars, with some individual companies receiving levies of upwards of $800,000.
• ESDC roadside enforcement blitzes were also held in Nova Scotia May 13-15, but results are still being compiled.

“When is enough, going to be enough? When is government going to admit we have a major problem and dedicate the resources we need to bring things under control?” said Laskowski. “It’s obvious the status quo is broken.”  

 Laskowski said it’s not enough for non-compliant fleets to pay fines, but their privilege of operating a trucking company in Canada should be revoked permanently if they can’t follow the basic federal and provincial laws.   

“Rather than face real consequences, companies are pocketing millions of dollars by not complying; are gaining market share, and putting everyone on the roads at risk, including their own drivers,” said Laskowski. “And if they are caught, they just disappear and reincarnate themselves geographically and do it all over again. This is insane and must end immediately.”