Drivers Inc.

tasuinam

Active Member
15
There has been a lot of debate about this issue - and I do agree that it is not a good model. Just got offered a load but had to sign a document that said we are opposed to the practice and do not take part in it. Anyone else experience this from a broker / customer?
Do any of you have that stipulation?

What do you do if the driver that comes to be hired wants to be paid under the Drivers Inc. model and not be an employee? Do you pass up a good driver?
 

Shakey

Site Supporter
30
Yes I have seen corporations protecting themselves with clauses that forbid "driver Inc", smart business.

2nd questions is easy, I like to sleep well at night and playing that game just wouldn't fly with me, I tend to like the high road. Covid-19 will not be here forever even if it feels like it, huge deficit will have government looking for lowest hanging fruit to claw it back.
 

loaders

Site Supporter
30
If a carrier wants to accept the drivers Inc model....fine, just don't complain about other people who accept that model hauling freight for dirt cheap rates. Carriers large and small are put at a serious disadvantage when they have to compete against other firms who have adopted this model. No WSIB, no source deductions, etc, etc.. Hard to compete when the competition has a much lower overhead. I would guess we might start to see more of those clauses in contracts and load confirmations in the future.
 

thebluffs1

Site Supporter
20
There has been a lot of debate about this issue - and I do agree that it is not a good model. Just got offered a load but had to sign a document that said we are opposed to the practice and do not take part in it. Anyone else experience this from a broker / customer?
Do any of you have that stipulation?

What do you do if the driver that comes to be hired wants to be paid under the Drivers Inc. model and not be an employee? Do you pass up a good driver?

Absolutely you pass up the "good driver" - if you put profit before compliance in that segment of your business, you'll take short cuts in the rest of your business as well using the same rationale.
Carrier's who continue to take shortcuts in compliance like this get penalized at insurance renewal time as they are known to be deliberate law breakers (smart insurance companies know better than to assume that risk), and smart carriers know to educate shippers about the real cost of doing business with carriers that value profit above due diligence.
 

CDNFLATBED

Member
5
Government needs to come up with a clearance certificate for Drivers INC. like the WSIB certificate,
Carriers should have to provide that with their package when onboarding.
feds can stop this in a day if they really want to.............
sorry if this is going to offend some people here but if you don't want to deal with the carriers using Drivers INC? stop doing business with 98% of Brampton companies and 100% of trucking companies that being run from a house or a basement.
Happy Friday!!!!!!!!
 

BPOVFB

Active Member
15
@CDNFLATBED

Not sure who that is going to offend! (but in fairness, we all have to start somewhere, but by your use of "brampton", I think we're picking up what you're putting down).
 

tasuinam

Active Member
15
We always provide WCB proof (MB version of Worker's Comp) when onboarding so this shows that we have employees and not the Driver Inc. model.... if everyone agreed to ask for this it would make it so much easier to compete with lower overhead -
 

loaders

Site Supporter
30
Until the Feds decide to make this model completely and unequivocally illegal, there will be some shippers who will turn a blind eye and eagerly accept the lower rates. As freight brokers , we can deal exclusively with fully registered, insured and above board carriers. Until action is taken on a government level, all we can do as members of this industry, is try and starve them out of business.
 

CDNFLATBED

Member
5
@CDNFLATBED

Not sure who that is going to offend! (but in fairness, we all have to start somewhere, but by your use of "brampton", I think we're picking up what you're putting down).
if you are a carrier with 5+ trucks and your office is listed as a house or an apartment, unless you are doing your Truck and trailer maintenance in your pantry or kids room, I would stay away!!!!
loaders- I hope you are not holding your breath waiting for the feds to tackle this issue.
 

loaders

Site Supporter
30
No certainly not, which is why we as an industry should try and self police ourselves. Whenever possible, refuse to conduct business with companies employing this model. As brokers, be diligent and religious about asking for ALL documents from prospective suppliers, regardless if they are offering an unbelievable low rate (especially then) or are the only available truck for miles. Do this not just as a way to level the playing field in our industry, but also as responsible citizens, as these firms are playing fast and loose with the tax system that we all have to adhere and contribute to.
 

tasuinam

Active Member
15
if you are a carrier with 5+ trucks and your office is listed as a house or an apartment, unless you are doing your Truck and trailer maintenance in your pantry or kids room, I would stay away!!!!
loaders- I hope you are not holding your breath waiting for the feds to tackle this issue.
Currently with Covid pretty much everyone is working from home....the trucks and trailers are in a yard and for maintenance go to the dealer / or mechanic in the yard if they have one .... This is not an issue any longer.
 

JN1981

Active Member
10
What do you do if the driver that comes to be hired wants to be paid under the Drivers Inc. model and not be an employee? Do you pass up a good driver?

If that "good" driver is willingly wanting to cheat on their taxes by pretending to be an independent contractor when they obviously are not, how good of a driver are they really? What else are they willing to cheat on? Any prospective driver that calls and asks to be paid to a corporation gets an earful and a loud click.
 

tasuinam

Active Member
15
If that "good" driver is willingly wanting to cheat on their taxes by pretending to be an independent contractor when they obviously are not, how good of a driver are they really? What else are they willing to cheat on? Any prospective driver that calls and asks to be paid to a corporation gets an earful and a loud click.
Currently we have only employees and O/O.... so not an issue yet... but I'm sure it will become one very soon... I really wish there was some legislation we could use
 

loaders

Site Supporter
30
The problem lies not so much with the employee wanting this set up, it is with the employer wishing to skirt the rules and reduce his overhead. Image what your operating expenses would be without source deductions, WSIB contributions or any type of benefits package, even the most spartan. Competing with carriers who operate this way is like competing with someone who pays 1/2 of what you do for fuel, or buys their equipment for 30% less than you, or purchases tires for a fraction of your cost. Hardly a level playing field, yet without action on either the part of industry or government, this situation will continue and may even expand as more carriers try to adopt it. Ideally, Revenue Canada should initiate a special task force to investigate this activity and prosecute fully any party found to be in violation. It is cheating and should no be tolerated.
 

tasuinam

Active Member
15
The problem lies not so much with the employee wanting this set up, it is with the employer wishing to skirt the rules and reduce his overhead. Image what your operating expenses would be without source deductions, WSIB contributions or any type of benefits package, even the most spartan. Competing with carriers who operate this way is like competing with someone who pays 1/2 of what you do for fuel, or buys their equipment for 30% less than you, or purchases tires for a fraction of your cost. Hardly a level playing field, yet without action on either the part of industry or government, this situation will continue and may even expand as more carriers try to adopt it. Ideally, Revenue Canada should initiate a special task force to investigate this activity and prosecute fully any party found to be in violation. It is cheating and should no be tolerated.
It also lies with the employee not wanting to pay taxes -
 

Michael Ludwig

Well-Known Member
20
There wouldn't be any legislation that says that because it is a recognised business model.
The problem with it is that there is no mechanism to ensure that people operating under that model actually do pay their taxes and such.
 

Unbeliveable

Member
10
There working on getting Driver Inc shutdown, and now there pretending there in Alberta or Nova Scotia setting up a dummy address and running it out of Ontario so there skirting the system another way now.
 
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