What happened
Trucking companies in New Brunswick and the Maritimes say they welcome Ottawa's recent move against the so-called Driver Inc. model, but want enforcement to go further, as reported by Talent Canada. Under the model, carriers treat drivers as contractors rather than employees. That lets them skip payroll costs and benefits, and quote lower freight rates than carriers that follow the rules.
Misclassification is illegal under Canadian labour law, but enforcement in the federally regulated sector has been weak. Last year Ottawa began audit blitzes aimed at misclassification, mostly in Ontario. Carriers say the problem is now reaching Atlantic Canada, where non-compliant operators from outside the region are undercutting local fleets.
One carrier president said the model can save a company as much as 30 per cent per driver by avoiding vacation, sick leave and statutory holiday pay. Operators also say it comes as freight volumes have declined, which has squeezed compliant carriers further. The Atlantic Provinces Trucking Association says trucking directly employs roughly 19,000 people in the region. Carriers want labour compliance tied to operating authority, because companies that are fined or fail often reopen under a new name. The report does not say whether Ottawa plans any such change.
Why it matters if you are hiring
If you run a compliant fleet, you are competing on two fronts: freight rates and drivers. Customers keep asking for lower rates while your costs rise. At the same time, some drivers are drawn to higher take-home pay offered under contractor arrangements. One HR director in the report said she has seen drivers leave for these arrangements and return after unexpected tax bills.
That gives you a recruiting message, but only if you can back it up. Drivers who come back have learned what employee status provides: access to the labour board, benefits, remitted deductions and paid training. Your offer should show total compensation, not only the hourly or per-mile rate.
If you hire from carriers that may be misclassifying, expect some candidates to carry tax exposure they do not understand. Expect others to hold licences but little training, as one safety officer described. Plan for structured onboarding and mentoring.
If you use contract drivers yourself, the audit risk is real. Classification turns on control, investment and direction of the work, and the carriers quoted say those tests point to employment.
One thing to do this week
Pull your driver agreements and list every driver who is not on payroll. For each one, ask whether they control their own work, carry their own investment and set their own schedule. If the answer is unclear, get a labour lawyer's view before an audit does it for you.
Traverse Staffing helps employers in transportation-adjacent operations and other sectors find dependable, properly classified workers, with contract and permanent placements built on clear employment terms.