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Truckers in Canada Demand Action Against Wage Theft: Over $1 Million in Unpaid Wages Owed

23 September, 2024 - 8:02AM
Truckers in Canada Demand Action Against Wage Theft: Over $1 Million in Unpaid Wages Owed
Credit: bbci.co.uk

Bhubander Singh says he got into trucking after a friend told him it was a good way to make money. A year and a half into his new career, now working for his third company, he says he regrets his decision. The 26-year-old immigrant says his employers have constantly withheld pay, claiming he hasn't completed trips, and he's now owed over $9,000 in wages.

"I did hard work. I was driving like 70 hours a week," he said. "I'm under so much pressure with the rent and with my bills and the car payments, and the company's not paying."

Singh isn't alone. He's one of dozens of truck drivers who showed up at a rally in Brampton, Ont., on Saturday, calling on the federal government to look into violations to the Canada Labour Code and enforce penalties against trucking companies.

They say some companies in their industry are illegally deducting wages, failing to pay overtime and misclassifying employees as independent contractors so they don't have to pay benefits.

The rally was part of a national movement on Saturday, organized by advocacy group Justice for Workers, where truck drivers across Canada sent letters to over 30 members of Parliament, asking for stronger enforcement of the Canada Labour Code.

Navi Aujla, president of the Labour Community Services of Peel, a non-profit that has taken up the cases of more than 250 truckers over the last two years, told the crowd at Saturday's rally that the organization is currently working with 130 truckers who are collectively owed over $1 million by their employers.

"Employers are getting away with ignoring government orders to pay wages all of the time," she said.

Truckers Face Hurdles In Reclaiming Wages

Kevin Kordahi, a paralegal with the non-profit, says truckers in this position have to fight long and hard to get those wages.

Long-haul truck drivers are federally regulated employees, Kordahi says, which means they have six months to file complaints about Canada Labour Code violations.

"What often happens is a lot of these truck-driving companies, they keep delaying payment of the wages," he said. "When the truck drivers finally have enough and want to file a complaint, oftentimes the deadline has already passed." 

Truckers account for less than 20 per cent of federally regulated workers, but government figures show the industry was responsible for 85 per cent of all wage-related Canada Labour Code violations between 2017-18 and 2021-22.

Kordahi says even when complaints are filed successfully and federal officers order companies to pay wages, a lack of enforcement makes recovering that money a challenge for employees.

Government's Efforts and Concerns

The federal government needs to do a better job protecting truckers, he says.

In 2023, the federal government issued 542 wage payment orders against trucking companies, according to data obtained by CBC News. By July of this year, there were already 491 orders.

Marco Beghetto, a spokesperson for the Ontario Trucking Association, points to one simple reason for the growing trend.

"Frankly, non-compliance pays," he said. He says many trucking companies aren't afraid of the consequences.

The government made changes to the Canada Labour Code this year, allowing the Canada Revenue Agency and Employment and Social Development Canada to work closely together to audit companies for violations.

But Beghetto says Ottawa needs the political will to keep companies in line, and a lack of enforcement remains a key issue.

"We're not talking about new laws and new regulations," he said. "All we want is the enforcement of the laws that are already on the books of the standards under the Canada Labour Code."

In an email, Labour Minister Steven MacKinnon said the federal government is working to prevent wage theft and stop employers from misclassifying employees as independent contractors.

"We have worked closely with both workers and businesses to find an effective and fair solution to this problem," he said. "Any employer who knowingly misclassifies an employee to avoid their obligations is breaking the Canada Labour Code and will face consequences."

A Cry for Justice

The rally in Brampton highlights a growing issue in the Canadian trucking industry. With widespread reports of wage theft and labor violations, drivers are demanding action from the government. They are calling for stricter enforcement of existing laws and regulations to ensure fair treatment and protect their livelihoods. The situation emphasizes the need for effective mechanisms to combat wage theft and ensure that workers are paid fairly for their labor.

The fight for fair wages and labor rights is not limited to Canada. Across the globe, workers in various sectors are facing similar challenges. As the global economy evolves, it's crucial for governments and employers to prioritize ethical and sustainable labor practices, guaranteeing fair compensation and working conditions for all. This issue is not just about ensuring financial stability but also about safeguarding the dignity and well-being of those who contribute to our collective prosperity.

Truckers in Canada Demand Action Against Wage Theft: Over $1 Million in Unpaid Wages Owed
Credit: zerohedge.com
Tags:
Ottawa Truck driver Wage Ontario Abuse wage theft trucking industry labor rights Canada Labour Code truck driver
Elena Kowalski
Elena Kowalski

Political Analyst

Analyzing political developments and policies worldwide.