(TORONTO, Oct. 30, 2025) — The Canadian Trucking Alliance (CTA) is welcoming new measures announced today by the Government of Canada to strengthen enforcement against noncompliance in the trucking industry, including steps to address worker misclassification and related labour violations.

In addition to lifting the T4A moratorium on penalties for failure to report fees-for-service transactions in the trucking industry and implementing a targeted program to address noncompliance involving personal services businesses and reporting fees-for-service on the tax side, Jobs Minister Patty Hajdu also outlined several new actions the government is taking to combat illegal practices in the sector.

As Minister Hajdu stated during her remarks to the House of Commons Standing Committee on Transport, Infrastructure and Communities (TRAN):

“There is a misclassification issue that has been a growing problem in the trucking industry. I want to be clear; misclassification is exploitation – it strips workers of their rights and creates an uneven playing field for the many honest companies that follow the rules.”

“The industry welcomes the minister’s comments that ESDC is taking a much-needed firmer stance on Labour Code enforcement,” said Jonathan Blackham, CTA Director of Policy and Public Affairs. “The Minister’s message was clear: violations will be met with strict and swift enforcement, ensuring that those who deprive workers of their entitlements or violate the Labour Code face real consequences.”

Among the steps announced, Minister Hajdu confirmed an upcoming enforcement blitz in the Greater Toronto and Hamilton Area (GTHA) focused on Driver Inc. and related noncompliance. Enforcement officials have been directed to fast-track investigations and issue penalties more quickly when violations are found.

To reinforce these efforts, ESDC will be sending a strong message throughout the industry by also reviewing its Administrative Monetary Policies (AMPs), with intent to increase penalties for noncompliance and placing greater emphasis on publicly naming employers found in violation. Since April 2024, ESDC has issued over 700 payment orders totalling more than $4.1 million related to wage theft and other labour infractions.

The minister also confirmed the federal budget will propose amendments to the Income Tax Act and the Excise Tax Act to allow the Canada Revenue Agency (CRA) to share taxpayer and confidential information related to worker classification with ESDC. This enhanced information sharing will help ESDC more effectively identify and address driver misclassification within the trucking industry.

This initiative builds on earlier efforts, including the information-sharing agreement established earlier this year which allows ESDC to send audit information and intelligence to the CRA. The proposed legislative changes would now in effect make this a two-way exchange of information, strengthening coordination and improving enforcement outcomes.

Furthermore, a new information-sharing agreement between the Temporary Foreign Worker Program (TFWP) and the Labour Program at ESDC has also been finalized. It will enhance coordinated enforcement when noncompliance is identified in companies employing temporary foreign workers – whether violations involve broader labour issues within the company or specifically relate to the treatment of foreign workers themselves.

“Driver Inc. has been the most persistent and damaging challenges facing our industry,” said Stephen Laskowski, CTA’s President and CEO. “It undermines fair competition, deprives workers of basic protections, and hurts compliant carriers. It’s encouraging to finally see meaningful government action to tackle this problem head-on.”

To see details related to the Government’s announcement on T4As, see CTA’s press release here.