Full Breakdown
Ottawa Announces New Measures to Tackle Labour Violations in Canada’s Trucking Industry
By Drooid · · How we work
Federal Crackdown on Trucking Labour Violations
The federal government said it will strengthen enforcement against wage theft and employee misclassification in the trucking sector through Bill C-39. The plan adds resources for labour inspections and introduces a digital worker-complaint portal, according to a statement by Pamela Wotherspoon, spokesperson for Employment and Social Development Canada (ESDC). The legislation also gives ESDC stronger powers to enforce settlement agreements and to secure unpaid wages when an employer may move or dispose of assets.
Background & Scope of the Problem
A Globe and Mail investigation found that long-haul trucking generates the most workplace complaints of any federally regulated industry in Canada. The same reporting showed that Ottawa has recovered less than 20 % of the $6 million in unpaid wages ordered from trucking firms since 2022, and that the share of workers classified as self-employed in census data rose sharply between 2011 and 2021. A February survey of 400 truck drivers conducted by Parkdale Community Legal Services and Labour Community Services of Peel reported that 70 % have experienced wage theft and more than 65 % have been misclassified as independent contractors.
Official Government Measures
Wotherspoon said ESDC will target misclassification and other violations through “targeted inspections, outreach and education” in partnership with provincial and territorial authorities. The government has already allocated $77 million to the Canada Revenue Agency to increase scrutiny of payments to contractors, lifting a previous moratorium on penalising non-reporting. No specific funding amount for the new enforcement tools was disclosed.
Industry and Advocacy Reactions
Navi Aujla, service director of Labour Community Services of Peel, warned that fines are “seldom issued” and “inconsequential” for employers, noting that eight trucking firms were fined this year—ranging from $1,500 to $24,000—and none have paid. The Ontario Trucking Association, while supporting renewed enforcement, cautioned that the earlier CRA moratorium had weakened oversight and accelerated “predatory use” of the misclassification model.
Data & Statistics
- $6 million in unpaid wages ordered since 2022; less than 20 % collected.
- 70 % of surveyed long-haul drivers report wage theft; >65 % report misclassification.
- Eight trucking employers fined in the current year; penalties between $1,500 and $24,000, with no payments recorded.
- $77 million earmarked for CRA to scrutinise contractor payments.
Verbatim Quotes
- “Worker misclassification is an issue that affects both workers and the trucking companies that play by the rules,” — Mr. Blackham — Jonathan Blackham, director of policy and public affairs, Canadian Trucking Alliance.
