The Ontario Trucking Association (OTA) has come out in support of recent Ontario legislation concerning temporary staffing agencies. Ontario’s Doug Ford Government has drafted legislation that will mandate licenses for temporary staffing and help agencies. The legislated move is designed to combat employment situations where workers are paid illegally and denied employment benefits.
The trucking industry in Canada as represented by associations like the OTA have been combating an illegal form of employment that is all-too-common in the trucking industry: Driver Inc. A Driver Inc. situation exists when a driver is being paid as a contractor when, in reality, they fit the description of an employee. The scam is a cost-savings measure for below-standard companies with the cost savings coming directly from benefits owed to the worker and taxes owed to the federal and provincial governments.
The OTA believes that the new Ontario legislation will assist in the fight against Driver Inc. scams. Temporary staffing agencies that promote the Driver Inc. method of driver employment will be under greater scrutiny during the licensing process, and those that go unlicensed will be unable to operate in the Province.
Trucking companies have complained that carriers using a Driver Inc. model have unfair competitive advantage over carriers that follow the rules. It is also claimed that carriers cutting corners with their employment standards are also not operating in compliance with safety regulations. Moves by governments to increase pressure on illegally-operating and below-standard companies are often welcomed by those companies that make the choice to operate ethically.
