:
I call this meeting to order.
Welcome to meeting number 18 of the House of Commons Standing Committee on Transport, Infrastructure and Communities.
Pursuant to Standing Order 108(2), and the motions adopted by the committee on Thursday, September 18, 2025, and on Thursday, December 11, 2025, the committee is resuming its study of the changing landscape of truck drivers in Canada.
[English]
Today's meeting is taking place in a hybrid format, pursuant to the Standing Orders.
I'd like to take a moment to make a few comments for the benefit of our witnesses and our members.
First, please wait until I recognize you by name before speaking. For those participating by video conference, please click on the microphone icon to activate your mic and please mute yourself when you are not speaking.
For those on Zoom, at the bottom of your screen you can select the appropriate channel for interpretation: floor, English or French. For those in the room, you can use the earpiece and select the desired channel.
I'll remind you that all comments should be addressed through the chair.
For members in the room, if you wish to speak, please raise your hand. For members on Zoom, please use the “raise hand” function. The clerk and I will manage the speaking order as best we can, and we appreciate your patience and understanding in this regard.
I would now like to welcome our witnesses.
Appearing before us today, from 6S Trinity Transport Ltd., we have Stacey Horlings, the owner, joining us by video conference. Welcome.
From J&R Hall Transport Inc., we have Mr. Jeff Hall, president. Welcome to you.
From Ludwig Transport Limited, we have Mr. Michael Ludwig, operations manager.
I want to thank all three of you for joining us today.
We're now going to proceed with opening remarks. For that, I will turn the floor over to Ms. Horlings.
The floor is yours for your opening remarks. You have five minutes, please.
:
Thank you, Chair and committee members, for the opportunity to speak today.
My name is Stacey Horlings, and I am a business owner in the transportation sector. I'm here today because Canada's trucking industry is facing a serious and growing problem. This issue is not theoretical. It's happening right now to real businesses in every province.
At its core, the problem is simple: Freight brokers and trucking companies that are brokering freight are not required to carry a surety bond when operating domestically. This gap has allowed anybody, regardless of experience and financial capacity or ethics, to open a freight broker business, hire a trucking company to do the work, then collect money from customers and disappear without paying the trucking companies that actually move the freight.
Trucking companies provide the service and pay for the fuel, insurance, registration and maintenance only to be left with an unpaid invoice and no recourse. While legal action is technically available, in practice, it is slow, costly and ineffective. In many cases, it requires interprovincial enforcement of judgments, forcing carriers to spend additional time and money transferring court orders from one province to another.
In numerous cases, by the time the judgment is secured, the broker has closed the business, dissolved the corporation and reappeared under a different company name, rendering the judgment effectively worthless. This creates a system in which bad actors face minimal consequences while legitimate trucking companies absorb the financial loss, the legal costs and the painful financial trickle-down effect these things have.
As an example, brokers in other industries are required to be licensed, regulated and financially accountable. Take insurance and real estate brokers as an example. They have strict licensing requirements, carry an errors and omissions insurance policy and, in many cases, maintain a bond or trust account to protect clients from financial loss due to fraud, misappropriation and misconduct. The same safeguards are desperately needed in the transportation industry.
In the United States, the FMCSA requires any company that brokers freight to carry a surety bond as a condition of operating. I might add that this has recently been updated to prevent unstable freight brokers from engaging in business that will financially harm the transportation companies.
A surety bond does three critical things. First, it establishes credibility. A broker must demonstrate financial responsibility before being allowed to operate. Second, it protects carriers and shippers. If a broker fails to pay, the bond ensures compensation. Third, it enforces accountability. Brokers who fail to comply lose their authority.
This is not excessive regulation, but basic financial responsibility. Canada currently lacks these protections, and bad actors know it. Requiring a surety bond would protect trucking companies and level the playing field for ethical brokers. More importantly, I believe this will help restore trust across our industry and prevent honest businesses from being unfairly punished.
I urge the committee to recommend a framework to be put into place that would require mandatory surety bonds for freight brokers. Trucking companies are not asking for special treatment. They're asking to be paid for the work already done. As a follow-up, if I'm allowed the time, I would like to share how I believe the safety on the road ties in with financial accountability.
Thank you for your time. I welcome questions.
Chair and members of the committee, thank you for the opportunity to appear today.
My name is Michael Ludwig. I operate a family-run trucking company based in Simcoe, Ontario, which has been in operation since 1961. We operate dry vans, refrigerated equipment and intermodal containers throughout North America. We have survived multiple industry cycles by focusing on compliance, safety and long-term sustainability.
I am here today not as a representative of any association or as a theorist, but as an operator living with the real-world consequences of what is commonly referred to as Driver Inc.
I have provided the committee with a written submission outlining evidence, impacts and recommendations. Today I want to focus on what this looks like from the operator's seat.
In plain language, Driver Inc. is not self-employment: It is the misclassification of employees as independent contractors in order to avoid payroll taxes and basic employment protections. Drivers labelled as independent do not control their rates, customers or working conditions, yet they are made responsible for compliance, risk and long-term financial security without real entrepreneurial risk or genuine independence.
What is occurring is payroll fraud that has become normalized across large portions of the trucking industry.
Driver Inc. did not emerge because carriers are inherently malicious; it emerged because trucking operates on extremely thin margins. Enforcement is fragmented, and price—not compliance—has become the dominant factor in shipper decision-making. When enforcement is inconsistent and the market rewards the lowest price, regardless of how it is achieved, non-compliance becomes a competitive advantage. This creates a system in which compliant carriers are punished while non-compliant ones are rewarded.
The damage from this model falls into four main areas.
The first is legitimate carriers. Over the last 42 months, in one of the worst and longest downturns this industry has experienced, either compliant carriers have exited the market or they are now seriously considering the adoption of Driver Inc. simply to survive. This pressure is structural, not moral.
The second is the drivers. Drivers operating under Driver Inc. are often led to believe they are earning more, but they are trading away CPP, EI, workers' compensation coverage and long-term financial security. They are one injury, one enforcement action or one economic downturn away from collapse.
Third is government. CPP and EI contributions are lost. Income tax revenue is deferred or never collected. When reassessments finally occur, the money is often gone, usually out of the country, and the companies no longer exist.
The fourth is safety. When responsibility is fragmented, accountability weakens. Hours-of-service violations become easier to hide, maintenance is deferred and equipment standards slip. When everyone is labelled as independent, it becomes unclear who is ultimately responsible for safety outcomes on Canadian roads.
Enforcement has not kept pace with the scale of the problem. CRA action is largely reactive and often occurs after the damage is done.
The most troubling part of this reality is that I am sitting here today before lawmakers describing a system that can push otherwise compliant carriers toward illegality simply to survive.
More guidance documents or voluntary compliance initiatives will not solve the issue. Drivers are not in a position to challenge the structure they are placed in, and carriers will not police themselves. Compliant operators cannot survive in a system in which enforcement is optional. What would make a difference is predictable, early and coordinated enforcement, meaning joint action from the CRA, labour authorities and transportation regulators, with real consequences for deliberate misclassification and with accountability that reaches those who knowingly benefit from non-compliant pricing.
This is not about eliminating legitimate owner-operators. Genuine independent contractors exist and should continue to exist. This is about ensuring that independence is real and not fictional.
Driver Inc. is no longer a loophole at the margins of the industry. It is rapidly becoming the dominant operating model. If nothing changes, Canada risks losing its compliant trucking industry entirely. Once that capacity is gone, it will not be easy to rebuild.
Thank you. I look forward to your questions.
:
Good afternoon, Mr. Chair and members of the committee.
Allow me to say thanks for your efforts to date on the topic of the changing landscape of truck drivers in Canada. It's my genuine hope that we can make a difference and change the direction of an industry that has supported my family for four generations, and I hope, a fifth. I have time; the fifth's top age is only 11.
Here is a quick history of J&R Hall. We have 270 staff members, from Ontario to British Columbia. We haul expedited high-value products for about 500 customers. We operate 110 trucks, and we have six terminals across Canada. We employ staff from each province in western Canada. My grandfather began in 1949. Throughout the years, there have been a few name changes, from John T. Hall & Son to Drumbo Transport, Ayrline Transport and lastly, since 1987, J&R Hall Transport, all owned by my family.
Our industry and my family appreciate the commitment of the federal government to involving the CRA and ESDC in controlling the lawlessness in trucking. However, we have a long way to go. Even today, six out of 10 drivers who apply at our place want to be illegitimate contractors, known as Driver Inc. Simply put, there is not enough being done, and the future of my family business is in jeopardy.
In recent years, our industry has unfortunately attracted some of the lowest-calibre participants. The lack of ethics and respect for law and order is jeopardizing my family business, which took decades of care, investment and credibility to build.
We are competing with individuals who stole five trucks out of my yard in 2025 alone. We operate in rural Ontario on my grandfather's farm, not in a major urban area. We have since recovered four; most had our decals and the VIN numbers removed and have gone to the downside.
I would like to stress that we worked to recover our vehicles with our own resources. Our police had no interest in investigating these crimes, nor were there consequences for the individuals who stole my trucks.
These trucks, which have my family name on them, were undoubtedly going to be used for illegal purposes. Carriers and nefarious fleets operate the trucks unsafely and illegally, and they put every one of us at risk every day. Check out the trucks on the road today with the green hoods, white cabs and yellow doors, and you'll see brand B carriers. As a child, I remember very well driving with my father in bad weather: “Pull in behind a truck. We'll be safe.” Today, nobody wants to be near a truck, and frankly, I don't blame them.
On that note, I'd also like to address safety. Less than half of 1% of fleets today have an “excellent” CVOR safety rating. I'm proud to say we do. Many of the brand B fleets we compete with do not share our vision for safety, yet all of us and our families share the road with them. Many are unaudited because they don’t have an office or don't have employees. They have Driver Inc. They have contractors, and there is no proof of a documented company. Imagine if they were constantly visited by ESDC and Transport Canada, as we have been, to the tune of five—yes, five—audits this year.
Likewise, inspection scales are not open 24-7 throughout our country and can be easily avoided by carriers that operate dangerously. Our trucks cross the scales. We have bypass systems in our trucks to go past the scales, especially in British Columbia, due to our consistent safety record and performance.
Unscrupulous fleets are also allowed to utilize facility insurance or government insurance as if it were no big deal. The reason they do this is that they are too great a risk for normal insurance. Well, if the shoe fits, put it on. Don't let them be in business. Why do our provincial governments invest in bad businesses with my tax dollars?
Please allow me to comment on how we can ensure and enhance truck safety by addressing the lack of places for drivers to stop and rest in Canada, specifically Ontario.
As you may know, hours of service regulations for drivers determine route planning and trip planning. In the U.S., we have rest stops with heated washrooms that are cleaned daily, at a minimum, and vending machines that provide drinks and snacks for drivers. In fact, the U.S. government is actively planning to expand and increase their investment in rest stops.
Today, in northern Ontario, our drivers have little to nothing compared with these amenities. We're constantly asked not to park in service centres, because they don't have room. At some scales, we are provided with portable washrooms that don't get cleaned. Our snowplow turnouts in northern Ontario are so disgustingly dirty that you don't even want to drive into them, and they're rarely cleaned or policed.
We desperately need rest stops with parking and at least some services in northern Ontario. We also need snow removal equipment in places like Batchawana Bay. Accidents are often caused by poorly trained drivers or untrained drivers, but often winter maintenance is virtually non-existent. The stretch of road from Sault Ste. Marie to White River along the east end of Lake Superior is the worst section of road in the province, due to weather and wildlife.
We have installed moose bumpers on our trucks to protect us; wouldn't it be a novel idea for the province to try to protect every traveller in that section, as well as the wildlife?
:
The short answer is no.
In our area, we don't see a lot of that problem, but we travel to areas in which we do see that as being an issue. Drivers who aren't trained properly or are skirting the law are simply not safe. They don't worry about what their equipment is like. They go around scales. They go to places where they can't get caught.
One of our big lanes is between the Fort Erie border and CP Rail in Vaughan. Lots of times my guys are running up and down the QEW, doing their thing and doing what they're supposed to do; we'll see guys travelling all the way out as far as Brantford to bypass scales, get around them, go up Highway 6 and cut back into Toronto the back way because the equipment is simply not safe.
I'm sorry; what was the rest of your question?
:
Thank you, Mr. Chair, and thank you to our witnesses for being here today.
I'd like to start with Mr. Hall.
Thank you for your testimony, sir. I have driven those highways in northern Ontario, although not in a big truck. I have some first-hand understanding of the challenges you described.
You mentioned that your business operates west from Ontario all the way to B.C., so your drivers will have experience with the different kinds of enforcement and inspections in the western provinces and in Ontario itself.
Could you speak to differences your business and your drivers have experienced in enforcement in the different provinces? Are there some that are clearly more efficient, more proactive, safer?
I thank the witnesses for being with us today.
I am happy…. In fact, it’s an odd way to say it. I should instead say that I’m unhappy to note that the situation reported to me by people in the industry in Quebec seems quite comparable to what you’re telling us today. Some witnesses who came to testify here before the committee told us that there was no problem, that everything was fine and that the Driver Inc. model was one of the seven wonders of the world. I’m glad to hear a different tune today.
Based on your experience, do you feel that the rise of the Driver Inc. phenomenon is related to the increase in accidents on the roads? If so, what connection can be made between the two?
Mr. Ludwig can start answering the question. Mr. Hall may then have some comments to add.
:
Does Driver Inc. lead to safety problems? That's what I understand you're asking.
Yes, there is no question that it leads to safety problems. A Driver Inc. driver could come and drive for me, and I would know that he has put in his 14-hour shift. Then he could drive over to Jeff's place and drive for him and put in another 14 hours, and nobody knows that this man has just worked for 28 hours straight with no sleep. Clearly, that's a problem out there on the streets.
Driver Inc. drivers are made responsible for equipment they don't own. If the driver is in an accident, where do the police, the MTO, SAAQ or whoever else go to find the maintenance records, the hours-of-service records, the qualification records—everything that we legitimate carriers, when you ask for them, can have for you in 10 minutes? They're all scanned—all the maintenance records, everything. You can't do that with a Driver Inc. fleet, because that information is simply not readily available.
These people know that, and they get away with driving junk and not caring about who they run into, who they run over.
:
Yes, absolutely, it is.
I don't get that too much with my drivers, because we drive in a different area, but I can imagine Jeff's drivers, who have to drive up Highway 11 and Highway 17 on the Trans-Canada, going that way.
It's like murderers' row. It's a terrible thing to say, but the chances of a driver getting in an accident up there are probably 10 times what they are here, maybe more. It's inevitable that you're going to get into one.
I would think that if you drove up there for five years, you would have at least one, and it wouldn't be your fault. Someone would run into you, and typically, it's another truck. When another truck, ranging anywhere from 80,000 to 140,000 pounds, runs into you at 100 or 105 kilometres an hour, you can imagine that there are not going to be too many survivors.
Do you want to be one of those statistics? I don't, and not a lot of drivers do. I understand why they want to get out.
One leads to the next. Driver Inc. is tax evasion. Driver Inc. then leads to equipment maintenance evasion. It leads to hauling illegal loads, employing—not employing, but hiring—illegal people. It's all blended in together.
Have we lost drivers who are afraid to go to northern Ontario? I'll use northern Ontario specifically, because it's near and dear to me. Absolutely, we have. The calibre of driver has decreased exponentially across the country. It's exaggerated in northern Ontario, specifically in the area along the east end of Lake Superior, which I mentioned to you. You have wildlife to contend with. You have weather, hills, inexperienced drivers and poorly maintained roads. One definitely blends into the other.
:
Thank you very much, Chair.
Thank you, witnesses.
Stacey, it's nice to see you. I'm going to keep you busy for the next five minutes. It's great to have you as a witness.
You bring an issue different from Driver Inc. to this whole trucking conversation. I was intrigued to hear about the idea behind the bonding and the failure to have security bonds. You touched on it before you relinquished your time.
In your view, what's the impact on road safety, on the manufacturers, on carriers and on market fairness of having carriers who aren't bonded or having bonding brokers, freight brokers, who aren't secured?
I'll share with you a simple scenario.
Bob was sitting in his basement one day and was talking to a friend, Scott. Scott works at a manufacturing plant and expressed his struggle with trying to find a truck for a shipment leaving his facility.
Wouldn't you know it? Bob is now selling loads that his buddy Scott gave him to trucking companies. Bob just opened up his computer and called himself a freight broker.
Bob puts the load on the load board. He's not trained. He's not experienced in finding qualified carriers. The only thing Bob really cares about is how much money he makes at the end of the day.
Bob places the load with ABC Trucking Company for $800. ABC Trucking needs this load to get the driver back home. Bob invoices his buddy for $2,500, and Bob just made $1,700 with no concern about who has been entrusted with that load or who's behind the wheel.
This tends to relate to Driver Inc. We need to know who's behind the wheel.
Bob's also irresponsible. He takes his friends out and spends all the money, even the $800 to pay ABC Trucking.
That's an exact scenario of what it looks like with a broker—some brokers, I should add.
There are three issues here.
The first is that ABC didn't get paid, and financial pressures force carriers to cut corners and hire underqualified drivers and delay critical repairs and maintenance.
Second, Bob can operate without any training or industry knowledge, and he has no financial risk of his own. He doesn't employ drivers, yet he controls the decisions that directly impact who's on the road.
The last thing is the broker boards. They're not required to have any oversight. The load boards collect $800 a month from ABC Trucking Company and they collect $800 from Bob. As long as both parties continue to pay, the system functions financially.
I'd like to thank the witnesses for being here today and sharing some perspectives that we certainly need in this conversation about making sure that our roads continue to be safe.
We know, obviously, that in the enforcement of safety, we set the standards federally, but the enforcement is on the provincial side.
Mr. Hall, you talked about your experience in the interprovincial context. Given that experience, can you talk about some of the best practices you are seeing in provinces that are doing this well so that we can think about how we recommend more of these best practices across the country? What jurisdictions are doing roadside enforcement with an approach that you think is really effective?
Hello to the witnesses. It's really important testimony today. That goes without saying.
Just over my right shoulder—I don't know if you can see—there's a miner's hat and a miner's lantern. My dad was in charge of mine rescue for the Cape Breton mines for years. I used to pal around with him quite a lot when I was a young man. The amount of effort that went into the training, the follow-up training and the auditing in terms of mine rescue.... For those who don't know, for the men who would go down for a crisis or recovery, or to assist someone in some way, there was rigorous training—it wasn't a one-off—and it was consistently followed up with auditing.
A couple of things come to mind, and MP Lawrence touched upon them. So far in the testimony, from a variety of sources, we've heard about a lack of training, follow-up training and enforcement, as well as a lack of accountability because of the lack of enforcement and training.
I want to start with Mr. Hall and then go to Mr. Ludwig and Ms. Horlings for a second. Looking at going forward on recommendations, I want to make sure that we get the right terminology from you in terms of the recommendations. I'm hearing that we need more investment in enforcement, training and accountability; more audits; and more inspections. They're not the sole cure, but they are part of the process in trying to make things better.
I'm also hearing—and not just in this testimony—about a national database. I want to ask you this question. I'm hearing about more federal involvement in the management of training and the follow-up of training, because it is a joint enterprise. The province does certain things and we do certain things. Maybe we could start there, Mr. Hall, because I want to see the next generation of Halls on the road. Mr. Ludwig, I don't want to see you go out of business. Ms. Horlings, I want to see you keep doing what you're doing.
Mr. Hall, going to you, we could start with training, enforcement and recommendations, and on the national database and more federal involvement in what is traditionally provincial territory.
:
Thank you, Ms. Horlings.
Thank you very much, Mr. Kelloway.
On behalf of the entire committee, I want to thank our three witnesses for being here today and sharing their experiences as owners and operators of trucking companies across the country. It's very helpful for our study and very helpful for our members.
We're going to suspend for a couple of minutes, colleagues, as we transition to the next round of witnesses.
I want to wish our witnesses for today who are leaving Ottawa a safe voyage home.
This meeting is suspended.
:
I call the meeting back to order.
[Translation]
Colleagues, I would now like to welcome the witnesses.
We welcome two representatives from the Association des professionnels du dépannage du Québec. We have Mr. Réjean Breton, president and CEO.
[English]
We also have Mr. Mike Burstall, vice-president.
From Carmen Transportation Solutions Ltd., we have Vince Tarantini, president.
Thanks to all of you for appearing before us today.
We begin with our opening remarks.
[Translation]
I now give the floor to Mr. Breton for five minutes.
:
Thank you very much, committee members, for having us today.
The Association des professionnels du dépannage du Québec represents 385 companies related to the roadside assistance industry throughout all of Quebec. These companies make emergency calls 24 hours a day, 7 days a week, among others for police forces, including the Sûreté du Québec under a service agreement, and for peace officers from Contrôle routier Québec.
We also participate in several round tables, including with the Ministère des Transports et de la Mobilité durable and the Société de l'assurance automobile du Québec.
We would like to raise your awareness today about the emergence of the Driver Inc. phenomenon and its repercussions.
We will not reiterate all the other elements that have already been submitted to this committee to date and carefully detailed by other associations related to the trucking industry in Quebec, including the Association du camionnage du Québec, represented here today, as well as other trucking associations in Canada.
The roadside assistance industry faces the following challenges.
There are many tractor‑trailers associated with the Driver Inc. model on public roads. When they’re in trouble after being in a collision, getting stuck or breaking down, the police, in accordance with a requirement of the agreement, require towing companies to intervene.
In addition, in the event of a mechanical problem—which we see on a daily basis—a peace officer from Contrôle routier Québec can seize a heavy vehicle and require that it be stored in an impound lot. However, when there’s a failure to pay or a vehicle is abandoned and not claimed by that type of driver, the tow yard attendants are faced with trucks that take up storage space, not to mention environmental management under the Environment Quality Act.
Aside from a few heavy vehicles related to the Driver Inc. model that may happen to be insured and for which we sometimes receive financial compensation, most stored heavy vehicles are not claimed. If we sometimes dare to accept payment of an invoice by credit card, it is cancelled a few hours later by the driver associated with the Driver Inc. model, who claims to have been a victim of fraud.
Some towing companies are now being forced to illegitimately assume non‑payment fees for services rendered at the request of peace officers. For information purposes, the amount is $3.8 million for the last two years.
Robust solutions must be sought through a collaborative and integrated approach, and it must be based on consultation among the various stakeholders.
Here is what we recommend.
Given our obligation to intervene at the request of the authorities to clear the road network, the Association des professionnels du dépannage du Québec and the entire road industry in Canada are seeking, among the various measures to be implemented, a payment guarantee mechanism for towing companies.
We also believe that shippers who financially benefit from the Driver Inc. phenomenon must be part of the administrative and operational responsibility chain because, by turning a blind eye, they’re complicit in this national scam.
The administrators of laws and regulations must obtain and perceive the leadership of all elected officials, regardless of their political allegiance. We must legislate not only with regard to the Quebec Highway Safety Code and that of each province, but also with regard to the Criminal Code and the penal system.
We would also like to see an insurance mechanism to check whether or not heavy vehicles are insured.
With all due respect, the towing industry trusts the House of Commons and this committee to acknowledge this national scourge, which will greatly harm the national economy if nothing is done.
I respectfully submit this to you.
Thank you.
:
Mr. Chair and members of the committee, thank you for the opportunity to appear.
I am an Ontario-based carrier, and my company has operated in this industry for over 40 years, with a strong focus on safety and compliance. I'm here because what is happening in the trucking industry is no longer just a business problem. It has become a public safety issue and a fair competition issue.
The crisis has outgrown provincial tools alone and now requires increased federal collaboration. I will highlight several key issues that I am concerned about.
The first is driver licensing and training. From an operational standpoint, we see this during driver evaluations. Drivers arrive with valid commercial licences and several years in the industry, yet their skill level is often far below what it should be. We are not talking about new drivers. We are talking about drivers with years of experience who still struggle with basic tasks. Whether this results from fraud, weak oversight or poor training quality, the outcome is the same: People are entering the industry with credentials that do not match their actual competency. In private discussions with drivers, it is common to hear that licences can be obtained through informal networks instead of through proper training and testing. This points to a broken system of training and licensing.
The second is driver misclassification. Misclassification has not disappeared. It has adapted. It is evolving. My recruiting department continues to report that many drivers are still actively seeking arrangements that avoid normal employment obligations. Some carriers continue to structure work in ways that disguise true employment relationships. Enforcement pressure has changed the form but not the behaviour. ESDC must adapt its enforcement.
The third is insurance loopholes. Facility insurance was created decades ago as a last-resort mechanism, not as a standing operating model for trucking fleets. Today, some carriers use it strategically to avoid normal underwriting standards. This allows unsafe or non-compliant carriers to remain in business at artificially low costs. While insurance regulation is primarily provincial, the abuse of facility insurance through misrepresentation and under-reporting should raise federal concerns related to fraud, labour compliance, highway safety and cross-border trade.
The fourth is weak business-level enforcement. Enforcement remains heavily focused on roadside checks while business-level non-compliance continues largely undetected. Federal systems dealing with taxation, employment and business registration are not well aligned with transportation oversight. This includes things ranging from illegal truck yards to abuse of DriveON safety certification processes, business models that appear compliant on paper but not in practice and frequent changes in corporate identity to avoid regulatory scrutiny. These are not separate problems. They are connected. They point to one conclusion: lack of agency coordination and oversight.
In closing, this committee has an opportunity to restore order to an industry that is essential to Canada's economy. We are not asking for protection from competition. We're asking for fair competition, for enforcement of existing laws and for collaboration in an area that has outgrown provincial tools alone.
Thank you.
:
In Quebec, all towing companies are required to have a memorandum of understanding, essentially a contract, with a police force, giving them exclusivity to operate on the road network. However, since about 78% of the heavy vehicles that are towed are vehicles from the Driver Inc. model, you can imagine the financial burden they have to bear to manage this issue.
Many companies in Quebec are considering the possibility of not renewing their memorandum with the Sûreté du Québec, so they are not obligated to intervene. In short, they’ll choose their clientele. If they have to tow a vehicle from a reliable company or carrier, of course, they will intervene. If this is not the case and it’s a Driver Inc. vehicle, there may be undue pressure to intervene to clear the road network, and this would be done voluntarily. However, the contract does not state that they must work voluntarily to clear the road network at the request of the government.
So, if towing companies in Quebec decide not to renew their agreement, there will definitely be a road safety issue.
:
Yes, of course, but it needs to have a mentoring process and it needs to have an escalation process, similar to what Jeff was talking about earlier as a pathway for success.
A lot of trades have journeymen. They have a journey to get to the end of the road. Truck driving somehow gets the short end of the stick, even though it's a missile driving down the road. It can be turned into a weapon at a moment's notice.
With a lot of the accidents the drivers I've spoken to have had, they have no clear explanation for how they got into them in the first place. They just don't recall. They don't understand how they ran off the road or how the accident happened. Today, we have the benefit of having a lot of video cameras in our fleets, in other fleets and on social media. Drivers are just not ready for the accident until it happens. They replay it, and somebody walks them through it and says, “This is the moment you went wrong”, circling back to the beginning of the incident.
It's a little late to be training the drivers, but it needs to be done, even at that point.
:
Better late than never. Thank you.
Do I have time for another question, Mr. Chair? I have 30 seconds. Wonderful.
I'll direct my question to Mr. Burstall. Thank you very much for being here, sir.
We've heard at this committee from many witnesses, including today, that labour law violations— specifically regarding overtime, rest periods and safety protocols—may be significantly under-reported by drivers in the trucking and towing sectors. In your experience, what do you think leads to this under-reporting, and what would be the most effective way to address it?
:
As I mentioned earlier, 78% of the heavy trucks we’re currently towing are driven by Driver Inc. drivers. That’s three out of four trucks. I can tell you that the fourth truck, which belongs to a carrier that doesn’t necessarily participate in the Driver Inc. model, is actually an accident. For the others, we know that the accident was caused by road negligence, due to the driver’s lack of skill.
As tow truck operators, we’re on the front lines, so we’re able to check that, just like peace officers, of course. We’re among the first four responders to arrive at the scene of a road incident, including a vehicle getting stuck or an accident.
I mentioned to you earlier that there were three incidents per day in 2024. In 2025, it was four a day. Imagine, last year in Quebec, there were almost 1,200 incidents involving Driver Inc. drivers. Of that number, as the media has mentioned, we know very well that there have unfortunately been accidents with injuries and fatalities. That’s very unfortunate.
I repeat: We can see that road incidents involving this type of clientele are due to negligence, compared to others.
:
As the saying goes, “A picture is worth a thousand words.”
First, we notice that the vehicle’s licence plate is not even secured with bolts. Very often, it’s secured with an elastic band, a rope, or plastic ties. It’s because these drivers change it randomly, probably depending on the province they’re going to or if they’ve had a road incident. That’s the first element we notice.
We also note, of course, the condition of the vehicle. We just need to check the tires first. We can also see if, within a few minutes of it being parked, there’s a significant oil leak under the truck’s engine because it’s not maintained.
In short, these are all technical elements that allow us to realize that it’s this type of clientele.
I’ll explain a situation that’s not uncommon to see in Quebec. Sometimes, while waiting for the police or tow truck to arrive, the driver of the heavy truck takes out a piece of cardboard about 30 inches by 30 inches, or even smaller than that, and places it with tape over the name that’s already on the door of the vehicle. Why? It may be because he called his boss, who told him that the company had reached the maximum number of points allowed by the COVR program, the commercial vehicle operator’s registration program, or by the HVOO rules, for heavy vehicle owners and operators, in Quebec. The boss may have told the driver to hurry up and change the name or the RIN, the registrant identification number, because when the authorities arrive at the scene, they need to see that it’s another company that’s supposedly identified.
:
Yes, it's a big question, because things have changed so much in my time.
I obtained my licence 35 years ago, and it's not remotely close: The drivers that come out today just simply don't know what they don't know. The trucks have been engineered to be much easier to drive than when I first started. Their automated transmissions make it very easy for drivers who would not have been licensed 10 years ago.
Automated transmissions came into play about 10 years ago and really took over the industry, even though they started earlier than that. Over the past decade, drivers who would not have been qualified to drive prior to that are now driving on the roads. Also, tying into that, the Driver Inc. wage meant that some skilled drivers left the industry because it simply wasn't enough to match what they're expected to do on the job, and we have harvested drivers who are simply not skilled.
They're not safe, and they're not aware of it. They're getting themselves into trouble with easy, minor situations that even a medium-trained driver—not an advanced driver—should know about. There are incidents that senior drivers—drivers who have been driving for 30 years—have never encountered, and they can still get into an accident. That's possible, yes, but statistically that's much higher now. We even see it with drivers who join our company and within a year or two have had an incident happen that shouldn't happen to somebody who's been driving for 10 or 15 years.
When you review the incident with them.... We did this just last week, and I overheard a safety meeting with this driver. I walked in just to hear what he was saying. I asked him how many hours he was trained and when he got his licence. He told me that he was trained for about three or four months over the course of weekends, because he was working Monday to Friday. I asked him, “When you got your licence, were you confident when you hit the road driving? What was your first job?” He said, “Well, my first job was driving from Toronto to Vancouver.” I thought, you know, that's not where you start your driving career.
At the beginning of October, the Bloc Québécois submitted 10 requests to the federal government that we believe should be implemented to bring about changes and put an end to the Driver Inc. phenomenon, among other things, and to make road transport in Canada safe. These are requests supported by the industry, including the Association du cammionnage du Québec, among others, and many other Quebec companies.
Among these 10 requests, we propose the creation of a national offence registry and a national insurance registry. I see that the creation of a national insurance registry is something you are also proposing. The reason we’re proposing this is that we’re often told that companies or people who hire these Driver Inc. drivers in Quebec have no way of knowing if any offences have been committed in Ontario. There’s no way to know whether or not the company is insured. Often, these companies are not insured or their paperwork is no longer valid. We should therefore have these types of records.
Obviously, traffic violations and enforcement on the road are the jurisdiction of Quebec or the provinces. It’s the same thing for insurance. However, Quebec cannot require that the other provinces have this data.
If there were federal leadership that allowed for the creation of a data exchange, would that be something desirable, in your opinion?
I think there is consent for this. I like the idea that Mr. Barsalou-Duval put forward, which is to say the CEO and accompanying team members, who may be more equipped to answer certain questions. Does that work for everyone?
Some hon. members: Agreed.
The Chair: Okay. Do we have unanimous consent for the motion?
(Motion agreed to)
The Chair: Thank you very much, colleagues.
If it's okay with everybody, we'll go back to our line of questioning.
Mr. Albas, I know that you are very keen on continuing, so I'll turn the floor over to you for five minutes, followed by Ms. O'Rourke, and then we'll conclude for the day. The floor is yours, sir.
We will speak in French for a moment.
The witnesses are asking us to intervene in an area of provincial jurisdiction: training, law enforcement, increasing the hours of operation for weigh stations, inspections, data collection and oversight of driving schools.
How do you envision an optimal system that will respect provincial jurisdictions and not be too burdensome in terms of regulation, which concerns some members of this committee?
How do you envision a system that will react quickly? We’ve heard witnesses say that they would cease their activities in 2027 if the situation did not improve.
What is urgent? What needs to be done in the medium term?
:
We believe that not only can people from the transport departments of Ontario, Quebec and across Canada come together, but so can those from all public safety ministries in the provinces and Canada, because public safety is the primary concern.
It is not only partners from the tax field who should be included in the national committee. Partners in public safety are also needed, as well as partners in the environmental sector. You can’t even imagine how many litres of diesel spilled along the roads in Canada have not been recovered following accidents involving a heavy vehicle driven by a Driver Inc. driver. This figure is exponential.
As mentioned earlier, when representatives from the Quebec or Canadian environment department intervene at a collision scene involving a heavy vehicle and find that the vehicle belongs to a company that subscribes to the Driver Inc. model, I believe they take the easier route. Yes, they warn the truck driver at the scene and read him his rights, for example, they tell him that he must recover the contaminants and call a decontamination company, but that’s it. A few days or a few weeks later, you can go to the scene and notice that there are small lakes of contaminants. It’s like this everywhere in Canada right now, and it’s very unfortunate.
:
Thank you, Ms. O'Rourke.
[Translation]
Thank you very much, Mr. Breton.
[English]
Thanks to you as well, Mr. Tarantini and Mr. Burstall. Thanks to all of you for your time here today and for sharing your expertise and your testimony with us in this important study.
Before we adjourn for the day, colleagues, there was some housekeeping that we had to take care of that we couldn't get to at the last meeting: setting a deadline for the submission of witnesses for the port study. I've just conferred with a couple of you, and it looks as though next Friday, February 6, is the date that works for everyone. Do I have consent for that?
Some hon. members: Agreed.
The Chair: Fantastic. Thank you, everyone.
Have a wonderful evening.
The meeting is adjourned.