The Workplace Safety and Insurance Board has intensified audits, looking more closely at carriers using the Driver Inc. model to avoid paying premiums, the Ontario Trucking Association said in a news release.
“The WSIB has already conducted audits of two trucking companies, each of which has had corrective debit adjustments of over $200,000,” the association said.
It said it expects more corrective measures as the targeted enforcement continues.
OTA chair David Carruth said it is important that drivers and shippers understand what is at stake.
“Both OTA and the WSIB know that through the prevalence of Driver Inc., not everyone is playing by the rules and paying their fair share, leaving some drivers vulnerable,” he said.
“We are encouraged WSIB has recognized this is a major problem, and is focusing on making sure that businesses are paying what they should be for covering their drivers.”
Driver Inc. is a controversial business model that classifies fleet employees as independent contractors. The drivers are incorporated and receive their pay without any source deductions.
That helps them offer rates no carriers can afford. Industry lobbying groups and major fleets have been fighting the model for years.