The Canadian Trucking Alliance (CTA) is looking to block fleets that use the Driver Inc. payment scheme from accessing new bridge loans for large companies that exhaust available credit during Covid-19.
The Large Employer Emergency Financing Facility (LEEFF) program, announced by the federal government, is designed to help avoid bankruptcies of otherwise viable firms. It is not meant to restructure firms, or finance companies that would be able to manage their way through the crisis.
Program details have yet to be released, but Prime Minister Justin Trudeau focused on tax compliance when establishing the conditions that participating companies would need to meet.
The Driver Inc. model involves misclassifying employed truck drivers as independent contractors. In the process, fleets avoid many traditional payroll deductions such as workers compensation premiums and vacation pay, and often leave drivers thinking they can deduct business expenses to which they are not actually entitled.
The CTA estimates that Driver Inc. costs Canadian taxpayers close to $1 billion a year.