Blog - CTOA - Canada Truck Operators Association

CTOA Industry Insight / Topic: Insurance, Safety, Policy

The Canadian Truck Operators Association (CTOA) represents trucking operators, fleet owners, brokers, and industry stakeholders across Canada. As discussions continue around rising insurance premiums in the trucking sector, it is important to examine the broader factors influencing transportation risks and insurance costs.

Recent industry conversations have highlighted accident severity and claims costs as key contributors to rising premiums. While these factors certainly play a role, the issue is far more complex and reflects significant economic, infrastructure, and transportation changes that have taken place over the past decade.

A balanced and comprehensive understanding of these factors is essential to developing policies that support both road safety and a resilient national supply chain.

Growth in Traffic and Road Congestion

Canada has experienced significant population growth and economic expansion over the past decade. As cities expand and economic activity increases, the number of vehicles on the road has also grown considerably.

Passenger vehicles, delivery vans, ride‑share vehicles, and commercial trucks have all increased. However, in many regions, road infrastructure has not expanded at the same pace.

Major freight corridors such as the Greater Toronto Area, Montreal, Vancouver, and Calgary are experiencing increasing congestion. Higher traffic density naturally increases the likelihood of road incidents for all road users, not just commercial trucks.

Understanding these broader transportation trends is important when evaluating safety risks and insurance claims across the sector.

Expanding Freight Demand and Supply Chain Growth

Over the past decade, Canada’s supply chain has undergone significant transformation. The rapid growth of e‑commerce, national distribution networks, and just‑in‑time delivery systems has increased demand for freight transportation.

Retailers, manufacturers, and logistics companies rely heavily on trucking to move goods efficiently across the country. As freight demand increases, trucks spend more time on the road and operate across increasingly complex logistics networks.

Trucking remains the backbone of Canada’s supply chain, ensuring that businesses and consumers receive essential goods every day.

Rising Equipment and Repair Costs

Another major factor influencing insurance claims is the rising cost of modern trucking equipment and repairs.

Today’s commercial trucks are significantly more advanced than they were a decade ago. They include complex electronics, safety sensors, and advanced driver‑assistance technologies. While these innovations improve safety and operational efficiency, they also increase the cost of repairs.

In addition, higher labour costs for technicians, global supply chain disruptions, and more expensive replacement parts have contributed to rising repair expenses.

As a result, even relatively minor collisions can generate significantly higher claim values than in the past.

Economic Pressures Across the Transportation Sector

The trucking industry has also experienced broader economic pressures in recent years. Rising fuel prices, higher financing costs for vehicles, inflation in parts and maintenance, and increased labour costs have all affected operating expenses.

These broader economic conditions influence the cost of claims and the financial models used within the insurance sector.

Understanding these pressures helps provide a more complete picture of the challenges faced by both trucking operators and insurers.

Road Safety Is a Shared Responsibility

Road safety is influenced by many factors across the entire transportation ecosystem. Traffic congestion, infrastructure design, driver behaviour across all vehicle types, weather conditions, and road conditions can all contribute to collisions.

For this reason, improving road safety requires a system‑wide approach that involves government, transportation planners, insurers, and industry stakeholders.

Focusing on the broader transportation environment helps ensure that policies address the root causes of safety risks rather than attributing responsibility to a single segment of the industry.

Technology and Safety Improvements

The trucking industry has made significant investments in technology to improve safety and reduce operational risks.

Many fleets are adopting tools such as:

telematics systems
dash cameras
driver monitoring technologies
advanced safety management programs

These technologies help companies better understand driving behaviour, identify safety risks early, and strengthen training programs for drivers. Over time, these investments can contribute to safer operations and improved risk management across the industry.

The Importance of Collaboration

Rising insurance costs affect the entire supply chain, including trucking companies, insurers, retailers, manufacturers, and consumers.

The Canadian Truck Operators Association (CTOA) believes that addressing these challenges requires constructive collaboration between government, insurers, and industry stakeholders.

Policy discussions should focus on:

improving transportation infrastructure
strengthening safety programs and driver training
addressing insurance fraud and cargo theft
supporting the adoption of safety technologies
ensuring transparency and stability in insurance markets

A collaborative approach will help ensure that policies support both road safety and a stable, efficient supply chain.

Key Industry Trends Influencing Insurance Costs

Several long‑term transportation trends help explain the changing insurance environment:

Vehicle growth: Canada’s total registered vehicles increased from roughly 23 million in 2013 to over 26 million in 2022 (Statistics Canada).
Urban congestion: Drivers in major freight corridors such as the Greater Toronto Area lose over 100 hours annually due to traffic congestion.
Rising truck values: A modern heavy‑duty commercial truck can now cost $200,000–$250,000, significantly higher than a decade ago.

These broader transportation trends illustrate why insurance risk and claim costs must be viewed within the context of a growing and increasingly complex transportation network. (Sources: Statistics Canada, transportation studies, and industry market data.)

Supporting a Strong and Sustainable Trucking Industry

Trucking remains essential to Canada’s economy. From food and consumer goods to industrial materials and medical supplies, most products rely on trucking at some point in their journey.

Ensuring the long‑term sustainability of the trucking sector is therefore critical for the stability of Canada’s supply chain.

By examining the full range of factors influencing insurance costs and working together across sectors, policymakers and industry leaders can develop balanced solutions that support both economic growth and safer roads for all Canadians.

Canadian Truck Operators Association (CTOA)
Supporting trucking operators and strengthening Canada’s supply chain.

OTTAWA, ON, Feb. 23, 2026, The Canada Trucking Operators Association (CTOA) is raising awareness about mounting pressures in Canada’s long haul trucking sector, as member carriers report driver shortages that could affect supply chain reliability in the months ahead.

Member fleets, brokers report that some carriers are operating with up to a 15 percent shortfall in driver capacity. Few industry leaders say it is becoming harder to recruit and retain qualified long haul drivers, increasing the risk of service disruptions and higher logistics costs. In Q3 2025, Statistics Canada reported 11,600 vacant positions for transport truck drivers, underscoring the need for sustained workforce solutions.

Workforce Under Pressure: Racism, Discrimination, and Driver Retention

CTOA has received reports from racialized and newcomer drivers and fleet owners of increased racism, including discriminatory remarks, online hostility, and concerns that administrative enforcement and compliance activity may be applied unevenly or perceived as targeting individuals based on race or newcomer status.

New Canadian drivers make up a significant part of Canada’s trucking workforce and help maintain supply chain continuity. Reports of hate messages, targeted rhetoric on social media, unfair public scrutiny, and perceived unequal enforcement are creating concern within the industry. These pressures can discourage people from entering the sector and contribute to drivers leaving the industry, worsening workforce shortages.

CTOA affirms that no one keeping Canada’s supply chain moving should face racism or hostility for doing their job. The Association is calling for a national, solutions focused effort that promotes respect, professionalism, and dignity for transportation workers across Canada, including clear expectations for fair and consistent treatment in administrative and compliance processes.

Broader Supply Chain Impact

If current workforce pressures persist, driver shortages are likely to deepen. That will strain the movement of food and other essential goods, reduce reliability in long haul logistics, and increase delivery costs across the economy. Those costs ultimately show up in higher prices for Canadians and greater uncertainty for businesses that depend on timely freight.

“If we keep losing drivers, the impact will be felt everywhere,” said Tej Dulat, CTOA. “Food and essential goods do not move without a stable workforce. When capacity tightens, costs rise and Canadians pay the price. Protecting the supply chain means retaining experienced drivers, ensuring fair compensation, and fostering a professional environment where every driver is treated with respect, dignity, and free from racism or harassment.”

A Call for Collaboration

CTOA is calling on the federal government, working with provinces and industry, to:

Investigate systemic and targeted racism affecting racialized and newcomer drivers, including reported concerns about uneven or biased administrative and compliance treatment, and the impacts on retention
Promote respect for transportation professionals, with zero tolerance for racism and harassment
Ensure compliance and enforcement processes are clear, consistent, and fair, with practical requirements that do not create perceptions of uneven treatment
Provide clear, consistent guidance for incorporated drivers and owner operators so legitimate small operators can enter and remain in the sector without uncertainty

Canada’s trucking industry remains resilient, but resilience requires stable policy, professional respect, and coordinated action to keep goods moving and costs under control for Canadians.

About CTOA

The Canada Trucking Operators Association (CTOA) advocates for the safety, sustainability, and prosperity of Canada’s transportation professionals and the supply chain they support.

Source: Based on the Canada Revenue Agency (CRA) Webinar: “Reporting fees for service transactions in the trucking industry” (January 28, 2026)

This document summarizes the key information and official responses from the CRA regarding the reporting requirements for fees for service (RFS) in the trucking industry. It is designed to help CTOA members understand their obligations and avoid potential penalties.

Important Note: The CRA has lifted the moratorium on penalties for non-compliance. For the 2025 and later calendar years, penalties will be applied for failures to report fees for service correctly.

For the most authoritative and up-to-date information, always refer to: Canada.ca/trucking-taxes and Canada.ca/trucking-payments.

Do These Rules Apply to My Business? (Scope & Applicability)

Q: How do I know if my business is considered to be in the “trucking industry” for these rules?
A: Your business is considered to be operating in the trucking industry if your primary source of income comes from “trucking activities.”

“Primary source” means more than 50% of your gross business revenue (not net income) comes from these activities.
You must review all your business’ income-earning activities, not just those done by owner/operators.

Q: What counts as a “trucking activity”? What does not?
A: The distinction is critical.

Applicable Trucking Activities (Count toward the 50% threshold):
- For-hire trucking (e.g., long-haul, local delivery)
- Acting as a freight broker (intermediary between shippers and carriers)
- Providing trucking services through owner/operators
Non-Applicable Trucking Activities (Do NOT count toward the 50% threshold):
- Moving company services: Packing, unpacking, warehousing, handling, storage, and crating.
- Maintenance and repairs on trucks.
- Renting or leasing trucks or trailers to others.
- Courier and messenger services (except those integral to trucking).

Q: My company is a customs broker that also offers transportation brokerage. Transportation is about 40% of our revenue. Do we need to issue T4As to the trucking companies we hire?
A: Yes. If your primary source of income is not trucking, the general T4A reporting rule still applies (you must report payments over $500 for services). However, the specific lift of the moratorium on penalties only applies to businesses in the trucking industry. Since freight brokerage is an applicable trucking activity, if your transportation revenue is more than 50% of your gross revenue, you are in the trucking industry and will face penalties for non-compliance. If it is less than 50%, you are not considered in the industry but must still issue T4As (though the penalty moratorium technically doesn’t apply to you).

To Whom Must I Issue a T4A? (Recipients & Recipient Types)

Q: Do I only have to issue T4As to individual owner/operators?
A: No. The requirement applies to payments made to any type of business, including:

Sole proprietors (individuals)
Partnerships
Corporations (Limited or Incorporated)
Trusts

If you pay a corporation (CCPC) in the trucking industry over $500, you must report it in Box 048 of the T4A. This is the main change leading to the penalty lift.

Q: I broker loads to a factoring company. Who gets the T4A?
A: You issue the T4A to the trucking company/service provider that performed the work, not the factoring company. Your contract for the service is with the trucking company, and the factoring company is simply a third party that purchased their invoice.

Q: Do we need to issue T4As for small, occasional payments, like to someone who cleans the office?
A: Only if the total payments to that person or company for the calendar year exceed $500. If the total is under $500 and you did not withhold any tax, you do not need to issue a T4A.

Q: Do we need to issue T4As to interline carriers?
A: Yes. Interline arrangements are payments for services between carriers. If the interline carrier’s primary source of income is trucking, they are in the industry, and the payment must be reported.

Q: Do we need to issue a T4A to a non-resident trucking company?
A: Generally, no. Payments to non-residents for services provided in Canada are reported on a T4A-NR slip, not a standard T4A. Payments for passive income (like interest) to non-residents go on an NR4 slip. The tax residency of the corporation you contract with determines which form to use.

How to Fill Out the T4A Slip Correctly

Q: Do we report the gross amount or the net amount after deductions (like fuel, insurance, etc.)?
A: You must report the gross amount of fees for services paid in the year in Box 048. Do not deduct anything.

Q: Should the amount on the T4A include GST/HST?
A: No. Do not include GST/HST or PST in the amount reported in Box 048.

Q: How do we report payments made in US dollars?
A: You must convert the payment to Canadian dollars using the Bank of Canada exchange rate on the payment date. Other verifiable same-day rates may be accepted.

Q: Do we report amounts based on when the invoice was received or when it was paid?
A: You report based on when the amount was paid. If you receive an invoice in December 2025 but pay it in January 2026, that payment is reported on the 2026 T4A.

Q: What identifying information do we need from the recipient?
A:

For a business (sole proprietor, partnership, corporation), you must enter their Business Number (BN) in Box 013. (e.g., 123456789RT0001).
The GST/HST number is the “RT” program account extension of the nine-digit Business Number (e.g., 123456789RT0001).

Q: What if I ask a subcontractor for their Business Number but they don’t provide it?
A: You are still required to issue the T4A slip with the information you have. You must also document your reasonable efforts to obtain the number to avoid penalties. If filing electronically, the CRA allows you to use a placeholder BN (e.g., 000000000RC0000) when the recipient fails to provide one.

Filing, Deadlines, and Penalties

Q: Is e-filing required for the 2025 T4As?
A: Yes. If you are filing more than five (5) T4A slips (i.e., six or more), electronic filing is mandatory. You can file via CRA web forms or internet file transfer (XML) through My Business Account. Failure to e-file may result in a penalty.

Q: Will the CRA penalize me for timing differences between my T4A reporting (calendar year) and a corporation’s T2 tax return (fiscal year)?
A: No. The CRA understands that these are distinct reporting obligations with different rules. These differences alone will not trigger a compliance review. They will only look closer if there are other signs of non-compliance.

Q: Can you clarify the penalty? Will it only apply if both companies are in the trucking industry?
A: For the 2025 and later calendar years:

The penalty applies to a payer who is a business operating in the trucking industry.
The penalty is for failing to report payments of fees for services exceeding $500.
The payment must be made to a Canadian-Controlled Private Corporation (CCPC) that is also operating in the trucking industry.
The amount must be reported in Box 048 of the T4A.
Penalties are issued under subsection 162(7) of the Income Tax Act.

In short: If you are a trucking company paying a trucking corporation over $500, you must file the T4A or face a penalty.

Canada_Truck_Operators_Association_Nearly_2_000_Attend_CTOA_Holi-5-1280x855.jpg

BRAMPTON, ON, Dec. 16, 2025: The Canada Truck Operators Association (CTOA) today hosted one of the largest grassroots trucking industry gatherings in the country, bringing together more than 2,000 attendees for its Holiday & Industry Appreciation Event, underscoring the strength, resilience, and unity of Canada’s trucking sector.

The event welcomed truck drivers, owner-operators, small and large fleet operators, industry partners, and community leaders from across Ontario an

d beyond, celebrating the essential role trucking plays in Canada’s economy and national supply chain.

Senior leaders from across political parties and levels of government attended the event, including Ontario Premier Doug Ford, Ontario Minister of Transportation Prabmeet Sarkaria, Member of Parliament Iqwinder Gaheer, MPP Hardeep Grewal, Brampton Mayor Patrick Brown, members of Brampton City Council, Ontario Liberal MPP Adil Shamji, Ontario NDP Deputy Leader MPP Doly Begum, along with industry leaders from the logistics, banking, and financial sectors.

Trucking at the Core of Canada’s Supply Chain

CTOA highlighted that Canada’s supply chain depends on a strong trucking industry, and on the people behind the wheel, particularly long-haul drivers who spend extended periods away from their families and make significant personal sacrifices to keep goods moving.

National data underscore trucking’s central role in Canada’s economy. Trucking moves the majority of goods transported within Canada, hauling nearly 80 per cent of domestic freight by volume, and remains the primary mode for moving goods between manufacturers, retailers, ports, and communities. Road transportation also accounts for a substantial share of Canada’s international merchandise trade, which exceeds $1.5 trillion annually.

CTOA noted that its growing membership collectively represents thousands of trucks operating on Canadian roads every day, moving goods from coast to coast to coast, and supporting billions of dollars in economic activity each month. Behind every truck is a professional driver whose work is essential to the stability of Canada’s supply chains.

“Canada’s supply chain relies on real people, drivers who work long hours, often far from home, to ensure food, medicine, and essential goods reach communities across the country,” said Tejpreet Dulat, CTOA. “Their contribution deserves respect, dignity, and professional recognition.”

A Message of Unity and Collaboration

The CTOA Holiday & Industry Appreciation Event focused on unity, professionalism, and constructive engagement across the trucking industry. Speakers reflected on the industry’s role during the COVID-19 pandemic and beyond, when truck drivers continued delivering essential supplies during periods of national uncertainty.

CTOA also acknowledged the City of Brampton for approving a motion recognizing the importance of truck drivers, noting that community-level recognition plays an important role in strengthening respect for the profession.

The presence of elected officials from multiple political parties highlighted broad, non-partisan recognition of the trucking industry’s importance to Canada’s economy, employment, and community wellbeing.

Premier Doug Ford: “The Backbone of Our Economy”

Ontario Premier Doug Ford thanked the trucking community for its contribution to Ontario and Canada.

“I just want to say thank you, thank you for everything you do for Ontario,” said Ford. “Without the trucking sector, goods don’t move from Point A to Point B. You are the backbone of our economy, the backbone of our infrastructure, healthcare, everything. It’s the hardworking men and women in trucking who keep our economy going, and we are incredibly grateful.”

Mayor Patrick Brown: ‘Shoulder to Shoulder with Trucking’

Speaking at the event, Brampton Mayor Patrick Brown, alongside Deputy Mayor Harkirat Singh and Councillor Gurpartap Singh Toor, emphasized Brampton’s role as a national logistics hub and expressed continued support for the trucking community.

“The City of Brampton will continue to work together with CTOA and raise the voices of the trucking community with our provincial and federal counterparts,” said Mayor Brown. “Brampton operates one of the largest logistics hubs in the country, and by passing this motion we sent a clear message, that we stand shoulder to shoulder with our trucking community. You haven’t just built our city, you’ve helped build this entire country.”

Minister Prabmeet Sarkaria: Commitment to Safety and Support

Ontario Minister of Transport, Prabmeet Sarkaria with MPP Commitment to Safety and Support (CNW Group/Canada Truck Operators Association)

Ontario Minister of Transportation Prabmeet Sarkaria praised the scale of the event and reiterated the government’s commitment to working with the industry while maintaining a strong focus on safety.

“It’s incredible to see so many people from the trucking industry come together today for such a successful event,” said Sarkaria. “Trucking is the backbone of everything we rely on every single day. It is our responsibility as elected officials to support this industry, and I know everyone here agrees that safety must always come first.”

Referring to the industry’s role during the COVID-19 pandemic, Sarkaria added:

“Peel Region is one of the largest logistics hubs in North America. During the pandemic, when many people were unable or unwilling to work, truck drivers kept goods moving during incredibly dangerous and uncertain times. We will always be thankful for that. Our government, and Premier Ford, continue to stand with the trucking industry, and we will remain shoulder to shoulder with CTOA.”

Member of Parliament Iqwinder Gaheer

Member of Parliament Iqwinder Gaheer said it was a privilege to stand with the trucking community and recognize their contribution to Canada’s economy.

“It is truly a privilege to stand here today with drivers, workers, and leaders from the trucking industry across the GTA,” said Gaheer. “Tonight, we are not just gathering for the holiday season, we are here to recognize the men and women who keep this province and our nation moving forward every single day.

You are the unsung heroes who literally drive our economy, our communities, and our future. Your dedication is the engine that keeps our supply chains strong and resilient.”

Ontario NDP Deputy Leader MPP Doly Begum, (CNW Group/Canada Truck Operators Association)

Ontario Liberal MPP Adil Shamji

Ontario Liberal MPP Adil Shamji praised the industry’s hard work and emphasized cross-party support for truck drivers.

“It gives me great pleasure to be here today at this incredible event, celebrating the hard work of everyone in the trucking industry,” said Shamji. “Across party lines, we recognize how essential this sector is, because nothing in our economy works until truckers work.

You are not just part of the economy, you are the economy. When truckers succeed, Ontario succeeds.”

About the Canada Truck Operators Association (CTOA)

The Canada Truck Operators Association (CTOA) is a national industry organization representing truck drivers, owner-operators, and fleets of all sizes. CTOA works to elevate ground-level voices, promote professionalism and safety, and support a strong, resilient, and collaborative trucking industry across Canada.

MISSISSAUGA, ON, Dec. 10, 2025: The Canadian Truck Operators Association (CTOA) is expressing serious concern regarding two articles published by Le Journal de Montréal that misrepresented immigrant truck drivers, particularly Sikh drivers, and offered a distorted picture of Canada’s trucking industry. The articles singled out one private individual as the face of a national policy issue and relied almost exclusively on a single lobby group’s viewpoint, failing to reflect the diversity and complexity of Canada’s transportation sector.

Immigrant and Sikh truck drivers play a central role in Canada’s supply chain. They complete the same licensing, safety, and training requirements as all other commercial drivers and operate to high professional standards. These workers keep essential goods moving across the country every day. The articles failed to acknowledge this reality and instead used language that tied industry-wide safety issues to the cultural or newcomer background of drivers. This framing unfairly associated Sikhs and immigrant drivers with fraud, danger, or broader industry problems, and these claims were presented without evidence.

The coverage also ignored the perspectives of multiple trucking associations, safety experts, labour economists, and federal or provincial regulators. Canada’s trucking sector is complex and cannot be accurately understood through a single organization’s interpretation. Responsible journalism requires the inclusion of multiple viewpoints, especially when discussing safety, labour practices, and economic impacts.

Equally concerning is the lack of evidence-based analysis on road safety. The articles did not present verified data from enforcement agencies, did not explain inspection findings, and did not acknowledge the broader regulatory challenges facing the sector. Public conversations about safety must rely on facts, not generalized assumptions about newcomer communities.

Clarifying Misconceptions About Safety and Tax Issues

In recent discussions, there has been growing confusion between tax-compliance questions and road-safety concerns. A T4A or Driver Inc. classification does not cause accidents, failing to meet safety standards does. Mixing tax debates with safety issues misleads the public and distracts from the real work required to improve compliance and enforcement.

When political actors or media outlets blend these issues together, it creates unnecessary fear, stigmatizes communities, and undermines the morale of drivers who operate in some of the most remote and challenging parts of Canada. These narratives also risk weakening the supply chain by shifting attention away from practical, evidence-based safety improvements.

Call for Responsible Dialogue

The CTOA believes that both government and opposition parties have a responsibility to discourage divisive rhetoric and instead engage in constructive, fact-based dialogue with real stakeholders on the ground. Every province and territory faces unique industry conditions. A one-size-fits-all narrative driven by lobby groups does not reflect regional realities and contributes to the spread of misinformation.

Education, collaboration, and tailored provincial approaches are essential for achieving meaningful improvements in compliance and safety.

Closing Statement

“Fair and accurate reporting is a core responsibility of the media,” said the CTOA. “It is inappropriate to attribute industry-wide issues to cultural identity or newcomer status. Such portrayals mislead the public and have real consequences for workers and communities.”

The CTOA remains committed to working collaboratively with federal and provincial partners, trucking associations, and safety experts to improve working conditions, strengthen compliance, and advance road safety for all Canadians. We encourage media outlets to consult a full range of stakeholders and avoid narratives that stigmatize truckers and newcomer communities.

Media Relations: Canadian Truck Operators Association, info@canadatruckoperators.com

The Canada Truck Operators Association (CTOA) acknowledges the Canada Revenue Agency’s (CRA)

announcement lifting the moratorium on T4A penalties for the 2025 tax year and beyond.

Compliance and proper reporting are essential to maintaining a fair and competitive trucking industry.

We support transparency and the principle that all businesses should meet their tax obligations.

CTOA members are committed to meeting reporting requirements. However, many small carriers and

independent operators will require time, clarity, and structured guidance to integrate the new T4A

processes into their operations. To date, operators have received limited information about how drivers,

contractors, and businesses will be supported or educated prior to enforcement, creating uncertainty

during an already challenging economic period.

This announcement highlights the need for clear guidance, education, and a realistic transition approach

for the thousands of small and mid-sized carriers across Canada. For years, these businesses have

operated under inconsistent interpretations from both CRA and ESDC, often relying on accountants,

advisors, and previous CRA guidance when making classification decisions.

CTOA urges CRA to ensure:

A reasonable transition period so carriers can adjust systems and reporting obligations
Clear, accessible, and timely guidance, especially for small and newcomer-owned businesses
Avoidance of regional stereotypes, which unfairly stigmatize the Greater Toronto Area. one of Canada’s largest freight hubs and a critical engine of the national supply chain
Consistency between CRA and ESDC, to prevent conflicting interpretations and unintended penalties.
Direct outreach and communication to incorporated drivers, ensuring they understand their rights, obligations, and available supports.
Regular engagement with industry stakeholders throughout the rollout and implementation period

The trucking industry moves the Canadian economy. Compliance measures must be implemented in a

manner that strengthens, not destabilizes, the supply chain, particularly during a period of economic

pressure and U.S.-driven trade disruptions.

CTOA looks forward to working with government, industry partners, and the broader supply chain to

ensure fair, balanced, and practical implementation of these new requirements.

Canada Truck Operators Association (CTOA)

About CTOA

CTOA represents the full spectrum of Canada’s trucking workforce, independent drivers, owner-operators, and small,

medium, and large fleets across multiple provinces. Our membership reflects the modern Canadian trucking industry:

diverse, inclusive, and built on professionals from every corner of the sector.

Brampton, ON – The City of Brampton Council has officially passed a motion recognizing the critical importance of the trucking and logistics industry to Brampton, the Greater Toronto Area, and Canada’s national supply chain. The motion follows a delegation by the Canada Truck Operators Association (CTOA), which highlighted growing concerns among drivers, owner-operators, and local trucking companies.

Brampton is not just a city, it is the engine of Canada’s supply chain. Every day, trucks leaving Brampton and the Greater Toronto Area move millions of dollars in goods across Ontario, to every province, and into the United States. From groceries and medical supplies to building materials and electronics, much of it starts here.

Because of this, what is happening in the trucking industry today affects not only Brampton but the entire country.

CTOA spokesperson Tej Dulat thanked Mayor Patrick Brown and Brampton City Council for their leadership.

“Truck drivers, owner-operators, and small businesses are the backbone of our economy. We are grateful that Brampton City Council has acknowledged their contribution and the challenges they are facing. Our message is simple, we need fair treatment, clear communication, and respect for the people who keep Canada moving,” Dulat said.

Key Issues Raised in the Presentation

Economic Importance: Every household in Brampton and the Greater Toronto Area is directly or indirectly connected to trucking, whether through a family member, a neighbour, or a small business that relies on steady supply lines.

We cannot afford policies that ignore this reality. Millions of dollars in goods move through the region every day. Confusion, misleading campaigns, and misinformation around trucking regulations impact drivers, small businesses, and thousands of Brampton-area families.

Mixing Separate Issues: CTOA highlighted that national conversations have improperly mixed three very different policy areas, creating unnecessary confusion and fear:

Safety, which is a provincial responsibility.
Immigration and work permit, which fall under IRCC
Tax compliance for incorporated drivers, which is handled by the CRA

The CRA recently clarified that incorporation is legal, and not an offence. The issue is compliance, education, not criminality. During the Transport Committee meeting in Ottawa, the Deputy Commissioner of the Canada Revenue Agency stated:

“If you are a trucker incorporated, it is not an illegal model. You just need to pay your taxes, and you cannot make some of the deductions.”

Harmful Language: CTOA raised concerns about terms such as “illegal drivers” and “cheaters” being used in discussions. These terms have been widely amplified on social media and have caused stress, division, and declining morale among drivers. Many long-haul drivers and newcomers, who already work in difficult conditions, now feel unfairly targeted and afraid to speak publicly.

Impact on Brampton Families: With economic uncertainty, rising expenses, and new pressures caused by U.S. tariffs, the trucking industry is already strained. Negative narratives and unclear policies risk weakening the supply chain and pushing more drivers out of the profession. This directly affects affordability, jobs, and household stability across Brampton and the GTA.

Next Steps:

The CTOA is calling on Ontario’s Ministry of Transportation and federal counterparts to:

Treat safety, immigration, and tax compliance as distinct policy areas.
Condemn and avoid harmful terminology used by a few during committee meetings and on social media, such as “illegal drivers” or “cheaters,” and focus instead on fair and proper enforcement.
Engage directly with Ontario-based industry organizations, including those representing diverse communities and front-line drivers, before introducing future legislative or regulatory changes.

“Long haul drivers work long hours, spend weeks away from family, and face every kind of weather and challenge to keep shelves full and our economy strong. They deserve fairness and dignity, not stigma,” Dulat added.

About the Canada Truck Operators Association (CTOA)

The CTOA’s mission is to ensure all voices in the trucking industry are heard, including drivers, owner-operators, and small to large carriers. We believe in inclusive decisionmaking on policy, regulatory, and legislative issues, and in ensuring that those speaking for the industry reflect its diverse and rapidly growing workforce.

WHAT: Press conference highlighting the ongoing encampment protest of international student graduates fighting deportation and calling for immigration policy reform. Labour leaders and community organizations will stand in solidarity with these individuals, who are critical contributors to Canada’s economy, including the trucking industry.

WHEN: Wednesday, November 27, 2024 at 11:00 a.m.

WHERE: 295 Queen St. E, Brampton (off the 410, next to Zimidar Bar & Grill)

WHO:

Bob Punia, Executive Director, Ontario Dump Truck Association
Sarbjit Kaur, Canada Truck Operators Association
Laura Walton, President, Ontario Federation of Labour
Carolyn Egan, President, United Steelworkers Toronto Area Council
Jessica Cooper, President, Peel local of Elementary Teachers Federation of Ontario
Simrat Kaur, International student graduate, PGWP Committee member
Mehakdeep Singh, International student graduate, PGWP Committee & Naujawan Support Network member

WHY: Over 200,000 international student graduates across Canada are at risk of deportation as their Post-Graduate Work Permits (PGWPs) expire in 2024 and 2025. These individuals worked essential jobs during the COVID-19 pandemic, including within the trucking sector, which is already facing critical labour shortages.

The Canada Truck Operators Association (CTOA), and Ontario Dump Truck Association (ODTA) alongside nearly 50 labour unions, stands with international student graduates, are deeply concerned about the impact of recent immigration policy changes on Canada’s trucking industry and the national economy. The trucking industry relies heavily on a skilled, diverse workforce—a need that immigration has consistently addressed. Without immediate action, these changes could worsen labour shortages and disrupt supply chains.

For More Information:

Contact: Sarbjit Kaur, KAPOW Communications

Sarbjit@kapowcomms.com

The Canada Truck Operators Association (CTOA) joins other leading members in the goods movement industry on the Peel Goods Movement Task Force.

“We look forward to working with the region, as well as Caledon, Brampton, and Mississauga. It is an honour to have CTOA appointed to the Task Force,” CTOA Executive Director Jaskaran Sandhu shared.

According to the Region of Peel, four out of ever nine jobs depend upon the movements of goods in Peel Region, and approximately 68,000 vehicles transport goods along Peel Region roads.

Home to the Pearson International Airport, major manufacturing and warehousing, and some of the largest goods movement hubs in Canada, the decisions made in Peel impact the goods movement industry far beyond the region.

“We are proud to bring our unique trucking perspective to the table, and ensuring decision makers at the Region have all the information they need to continue making decisions that uplift the entire industry,” Sandhu said.

The CTOA is also a stakeholder with the MTO and Federal

Federal Labour Minister Seamus O’Regan and several MPs met with members of the Canada Truck Operators Association (CTOA) this week, discussing the roles of incorporated truck drivers and vowing to end references to “Driver Inc.” when referencing how drivers are classified.

The meeting, held May 23 at MP Iqwinder Gaheer’s (Mississauga-Malton) office, included representatives from more than 20 CTOA member carriers, the labour minister, and MPs Charles Sousa, Sonia Sidhu, and Ruby Sahota, in addition to the host.

It came just one week after the Canadian Trucking Alliance (CTA) and Teamsters held a strongly worded press conference at Parliament Hill, condemning the misclassification of truck drivers under the scheme that CTA has labeled Driver Inc. But that’s not language you’ll hear from the federal government, according to CTOA leader Jaskaran Sandhu, who shared details of the meeting with TruckNews.com.

“There were a few things [O’Regan] made very, very clear in that meeting,” Sandhu said. “First and foremost, he assured and promised the industry and our association that from here on in, the term Driver Inc. will never be used by the government. It is a deeply problematic term that unfairly maligns incorporated drivers. In fact, they stated you may have already noticed they don’t use that term anymore after learning how it was weaponized within some circles of our industry.”

Incorporated drivers ‘not going anywhere’

Furthermore, Sandhu said carriers received assurances that “incorporated drivers as a model within the industry is not going anywhere. It will continue to be an important part of how the government sees the labor shortage being tackled in the industry.”

Government officials also indicated incorporated drivers will have to meet criteria that establishes them as independent operators – not employee drivers. Enforcement, however, will be educational in nature and, according to Sandhu, will not be “targeted” against any segment of the industry. Any enforcement action from the Ministry of Labour’s Employment and Social Development Canada (ESDC) will only be prompted from complaints originating from within a trucking company.

“The government was clear, and our association agrees, that where there is misclassification as per the existing rules, the government will work with carriers to solve those problems,” Sandhu said.

“Drivers who knowingly and freely choose to work as independent contractors are legitimate and recognized. Tackling worker misclassification means cracking down on the bad actors who deny labor rights to their employees by designating them as independent contractors. We’re taking an education-first approach to enforcement, so we can support drivers and root out those giving independent contractors a bad name,” the labor minister’s office said in a statement to TruckNews.com.

Education-driven responses

Educational initiatives were discussed, such as a seminar the CTOA will host alongside the government to raise awareness about the issue of driver misclassification.

“Enforcement is going to be education-driven, not the kind of clampdown I think some people thought government was going to do. Much more education-driven,” Sandhu said. “The government knows and understands this issue is much more complex than is being presented by legacy organizations.”

The association was assured that enforcement initiatives will originate from employee complaints.

“There is no targeted campaign coming,” Sandhu said. “We are happy to work with [government] to make sure when people are choosing to be an incorporated driver it is something done out of choice.”

He added, “the government recognized the manner in which the incorporated driver model has been labeled as something that is exploitive is patently false, that in most cases drivers are choosing to be incorporated and they enjoy a lot of the freedoms that amount to an independent relationship.”

A spokesman from O’Regan’s office confirmed to TruckNews.com, speaking on background, that the meeting took place, and that the term Driver Inc. won’t be used by government as the term has been deemed “toxic” and doesn’t reflect the gig economy beyond the driving profession.

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