Getting rid of Driver Inc. in theory will eliminate the carriers that run cheap as they will have to pay market rate to their drivers, along with payroll taxes, benefits, etc. They will not be able to run at half price like they have been and will either have to stop taking cheap freight, or go out of business. Most of the reason rates are so horrible right now is because the market is saturated with get rich quick covid era startup carriers that take advantage of cheap labor and loopholes. More trucks than freight=cheap rates. More freight than trucks? I remember what happened during the protests.. TQL offering me 5 grand from Detroit to Windsor.
I agree, the issue is not with the payment to
Driver Inc; if everyone is paid properly and CRA goes after each and every
Driver Inc for the income taxes and CPP it would level the field but that is not happening. Instead, we are seeing carriers not pay
Driver Inc by the 10's of thousands of dollars - leaving them on the lurch for months and telling them to get a lawyer to sue them. A carrier who doesn't pay one driver inc for a month can easily hold over $7500. I sure can last a long time if only one of my $7500 expenses disappeared. This just creates the ability to lower prices and do it again to another
Driver Inc.
One doesn't have to go far to see some of these driver protests outside of a carrier owner's house holding a sign of being owed 20k or even 40k. The carriers who utilize
Driver Inc know that
Driver Inc probably will not proceed to obtain a lawyer and if they do, they will negotiate some cents on the dollar which the
Driver Inc will gladly take because it's something. The problem will get fixed when
Driver Inc forces the carrier to pay by not taking the next load before payment or not delivering the next load before payment. But alas, that comes with its own consequences. My guess is that some of these carriers that are going bankrupt has just run out of
Driver Inc opportunities and need to bankrupt and start over with a different name.