TFI International (TSX:TFI) CEO Alain Bedard called on Canadian authorities to “wake up and smell the coffee” about Driver Inc carriers who have become a “cancer” in the freight market by undercutting rates through intentionally misclassifying employee drivers as contractors.
“This is majorly unfair competition for us,” Bedard said on October 25 while discussing TFI’s third-quarter results.
The practice allows carriers to avoid tax deductions and other withholdings. Calls have intensified in recent months with pressure from the Canadian Trucking Alliance and major carriers. The comments from Bedard are significant as the CEO of Canada’s largest transportation and logistics firm – and one of the few that are publicly traded.
Bedard singled out Driver Inc multiple times during the call, also attempted to quantify how Driver Inc could hurt the performance of TFI’s Canadian truckload business in the coming quarters.
TFI’s Canadian truckload units produced a stunning operating ratio of 83% during the third quarter. Absent a solution from authorities, Bedard said the operating ratio could climb as high as 88 percent.
“We have pressure now as we’ve never seen before from these Driver Inc guys,” Bedard said.
He said shippers were using Driver Inc carriers because of artificially low rates. “Our answer is, this is completely unfair competition. But if you want to use these guys go for it, but maybe it won’t last” Bedard said.
The Driver Inc carriers are adding excess capacity to a soft freight market. Bedard blamed the state of the market on businesses staying on the sidelines as they wait for clarity on trade, including the U.S.-China trade war and NAFTA’s successor, the United States-Mexico-Canada Agreement.
He noted that the market appears to be improving in the U.S. and Canada. But he warned that the excess capacity from Driver Inc would likely slow down the Canadian recovery.
Noble1
In response to Mr.Bedard’s statement quote below :
“It’s the stupidity of our market,” he said. Cracking down on Driver Inc. in Canada will also tighten capacity, Bedard added.
“The problem in Canada is, we are adding capacity with those Driver Inc. guys…We have pressure like we’ve never seen before with Driver Inc.,” he said, noting those companies save 15-20% on labor through the scheme.”
Highlighted:
“We have pressure like we’ve never seen before with Driver Inc.,” he said, noting those companies save 15-20% on labor through the scheme.”
This is my response :
It would be my genuine pleasure to share a few legitimate ideas(not on the web) with any broker(truck owner that hire drivers inc) in regards to how they can legitimately earn much more than the measly 15%-20%(according to Mr.Bedard) that it would cost them to abide by regulations concerning driver inc. , through legitimate extremely clever “financial engineering”(the action of working “artfully” to bring something about) without the need to take advantage of anyone . This would provide you with an “edge” to compete ruthlessly at a great advantage against major carriers from which you can remove market share , LOL ! (wink) .
The only catch is that you must keep your word, treat your drivers with dignity ,pay them according to labour codes ,and pay above major carrier average wages . Not only would you be positioned to take market share from major carriers , but also attract their drivers to come drive for you , LOL !
All you would need to do is consult a financial advisor of your choice and Voila .
In my humble opinion ………..
Noble1
THIS ONE IS MY FAVOURITE !
Quote:
” Skip The Dishes Courier Takes Company to Court over Employee Misclassification”
You can google it . But here is a small part :
“Skip The Dishes, a delivery service that brings food from restaurants to customers’ doors, has been served a class-action lawsuit in Manitoba.
Charleen Pokornik, who has been driving for the company since November 2016, filed a lawsuit on July 25 on behalf of drivers, arguing that the couriers should be classified as employees, and receive benefits like vacation, overtime and minimum wage.
Skip The Dishes refers to its drivers as independent contractors.”
But wait ,LOL !
Here is a TFI International ad looking for an “owner operator COURRIER ” asking if the applicant has experience with skip the dishes !
Quote:
” Owner Operartor – Courier Driver
TFORCE FINAL MILE
Montreal, Quebec
Owner Operator – Courier Driver Must be willing and available to work weekends!
Do you have previous experience working as a Courier Driver?
Do you have experience with Skip the Dishes or Uber?
Consider working as a courier driver for TForce Final Mile, North America’s largest same-day transportation company. We’re expanding our fleet of owner-operators to provide delivery service for national retail brands.
Keep the tax benefits of an owner-operator with the stability of regular, full-time, dedicated routes. Excellent rates and route density. Routes available.If you have a vehicle and experience driving in Montreal, we’d like to meet you.
Responsibilities: Local delivery Sort and scan freight Maintain organized and safe work environment Provide timely and accurate service Communicate issues to account coordinator
Requirements: One year experience as a Courier Driver preferred Clean driving record High school diploma (or equivalent)Heavy lifting Follow verbal and written instructions Knowledge of Montreal Must supply vehicle (mini-van, cargo-van or Large SUV)Screening: Driver’s Abstract Criminal Record Check Valid Driver’s Licence TForce Final Mile is a fully owned subsidiary of TFI International Inc.TFI International is a North American leader in the transportation and logistics industry, operating across Canada, the United States and Mexico through its subsidiaries.
For further information on TFI International visit: TFI International website for more information on our company please visit: TForce Final Mile Canada is an equal opportunity employer and believes we will gain through the recruitment and development of staff that represent the broad diversity of the Canadian workforce. Job Type: Full-time”
Draw your own conclusion !
In my humble opinion …………..
And regarding Uber :
Quote :Going Dutch No Longer: The Court of Appeal Weighs in on Uber’s Arbitration Clause
You can google that too .
And google this one as well :
Quote:
“Uber hit with new lawsuit on whether its drivers are employees”
In conclusion , Concerning the fact that TFI International states : “Keep the tax benefits of an owner-operator ” in an ad of theirs searching for “couriers” , raises suspicion as to whether the advertised position is a legitimate “owner-operator” definition concerning the employer/employee relationship , or is actually an employee misclassification under the guise of an “owner operator” advertised position .
In my humble opinion ………..
Noble1
Here is a couple of their ads . ENJOY !
Part Time Driver – STUDENTS WELCOME
TForce Final Mile
Part Time Drivers – $500.00 Sign on BONUS*
Great opportunity for student – afternoons and weekend work available!
Full training provided – NO EXPERIENCE NECESSARY
Consider working as a courier driver for TForce Final Mile, North America’s largest same-day transportation company. We’re expanding our fleet of owner-operators to provide delivery service for national retail brands.
Keep the tax benefits of an owner-operator with the stability of regular, full-time, dedicated routes. Excellent rates and route density. Routes available.
If you have a vehicle and experience driving in the Sudbury, we’d like to meet you.
Responsibilities:
Local delivery
Sort and scan freight
Maintain organized and safe work environment
Provide timely and accurate service
Communicate issues to account coordinator
Requirements:
Clean driving record
Follow verbal and written instructions
Knowledge Sudbury
Commercial liability in addition to regular insurance
Must supply vehicle
Screening:
Driver’s Abstract
Criminal Record Check
Valid Full G Driver’s Licence
TForce Final Mile is a fully owned subsidiary of TFI International Inc.
TFI International is a North American leader in the transportation and logistics industry, operating across Canada, the United States and Mexico through its subsidiaries.
For further information on TFI International visit: TFI International website
For more information on our company please visit: TFI International website
TForce Final Mile Canada is an equal opportunity employer and believes we will gain through the recruitment and development of staff that represent the broad diversity of the Canadian workforce.
*certain terms and conditions apply
Job Type: Full-time
Licence:
Driver’s License G (Required)
Here is another :
Courier Delivery Driver – NO EXP. NEEDED
TForce Final Mile
Greater Sudbury, ON
Courier Delivery Driver
Full training provided – NO EXPERIENCE NECESSARY
Consider working as a courier driver for TForce Final Mile, North America’s largest same-day transportation company. We’re expanding our fleet of owner-operators to provide delivery service for national retail brands.
Keep the tax benefits of an owner-operator with the stability of regular, full-time, dedicated routes. Excellent rates and route density. Routes available.
If you have a vehicle and experience driving in the Sudbury, we’d like to meet you.
Responsibilities:
• Local delivery
• Sort and scan freight
• Maintain organized and safe work environment
• Provide timely and accurate service
• Communicate issues to account coordinator
Requirements:
• Clean driving record
• Follow verbal and written instructions
• Knowledge Sudbury
• Commercial liability in addition to regular insurance
• Must supply vehicle
Screening:
• Driver’s Abstract
• Criminal Record Check
• Valid Full G Driver’s Licence
TForce Final Mile is a fully owned subsidiary of TFI International Inc.
TFI International is a North American leader in the transportation and logistics industry, operating across Canada, the United States and Mexico through its subsidiaries.
For further information on TFI International visit: TFI International website
For more information on our company please visit: TFI International website
TForce Final Mile Canada is an equal opportunity employer and believes we will gain through the recruitment and development of staff that represent the broad diversity of the Canadian workforce.
Job Type: Full-time
I’ll highlight a key statement in their ad that bring a few questions to mind :
Quote:
“Keep the tax benefits of an owner-operator ” ???
Now isn’t that interesting ? I would be very curious to see how much control they actually exercise over the supposed “owner operator” which they suggest can keep the tax benefits of an owner operator .
It appears to me a lot more like a “employer/employee” relationship more than anything else .
In my humble opinion ……………
Noble1
…
Here is a couple of their ads . ENJOY !
Part Time Driver – STUDENTS WELCOME
TForce Final Mile
Part Time Drivers – $500.00 Sign on BONUS*
Great opportunity for student – afternoons and weekend work available!
Full training provided – NO EXPERIENCE NECESSARY
Consider working as a courier driver for TForce Final Mile, North America’s largest same-day transportation company. We’re expanding our fleet of owner-operators to provide delivery service for national retail brands.
Keep the tax benefits of an owner-operator with the stability of regular, full-time, dedicated routes. Excellent rates and route density. Routes available.
If you have a vehicle and experience driving in the Sudbury, we’d like to meet you.
Responsibilities:
Local delivery
Sort and scan freight
Maintain organized and safe work environment
Provide timely and accurate service
Communicate issues to account coordinator
Requirements:
Clean driving record
Follow verbal and written instructions
Knowledge Sudbury
Commercial liability in addition to regular insurance
Must supply vehicle
Screening:
Driver’s Abstract
Criminal Record Check
Valid Full G Driver’s Licence
TForce Final Mile is a fully owned subsidiary of TFI International Inc.
TFI International is a North American leader in the transportation and logistics industry, operating across Canada, the United States and Mexico through its subsidiaries.
For further information on TFI International visit: TFI International website
For more information on our company please visit: TFI International website
TForce Final Mile Canada is an equal opportunity employer and believes we will gain through the recruitment and development of staff that represent the broad diversity of the Canadian workforce.
*certain terms and conditions apply
Job Type: Full-time
Licence:
Driver’s License G (Required)
Here is another :
Courier Delivery Driver – NO EXP. NEEDED
TForce Final Mile
Greater Sudbury, ON
Courier Delivery Driver
Full training provided – NO EXPERIENCE NECESSARY
Consider working as a courier driver for TForce Final Mile, North America’s largest same-day transportation company. We’re expanding our fleet of owner-operators to provide delivery service for national retail brands.
Keep the tax benefits of an owner-operator with the stability of regular, full-time, dedicated routes. Excellent rates and route density. Routes available.
If you have a vehicle and experience driving in the Sudbury, we’d like to meet you.
Responsibilities:
• Local delivery
• Sort and scan freight
• Maintain organized and safe work environment
• Provide timely and accurate service
• Communicate issues to account coordinator
Requirements:
• Clean driving record
• Follow verbal and written instructions
• Knowledge Sudbury
• Commercial liability in addition to regular insurance
• Must supply vehicle
Screening:
• Driver’s Abstract
• Criminal Record Check
• Valid Full G Driver’s Licence
TForce Final Mile is a fully owned subsidiary of TFI International Inc.
TFI International is a North American leader in the transportation and logistics industry, operating across Canada, the United States and Mexico through its subsidiaries.
For further information on TFI International visit: http://www.tfiintl.com
For more information on our company please visit: http://www.tforcefinalmile.com
TForce Final Mile Canada is an equal opportunity employer and believes we will gain through the recruitment and development of staff that represent the broad diversity of the Canadian workforce.
Job Type: Full-time
I’ll highlight a key statement in their ad that bring a few questions to mind :
Quote:
“Keep the tax benefits of an owner-operator ” ???
Now isn’t that interesting ? I would be very curious to see how much control they actually exercise over the supposed “owner operator” which they suggest can keep the tax benefits of an owner operator .
In my humble opinion ……………
Shawn
I think the Alain was talking about “Delivery Ink”
Noble1
I took the liberty of copying and pasting another article on the subject from Truck News which I believe is a little more detailed .
Driver Inc., trade wars weighing on growth: TFI
Quote:
“MONTREAL, Que. – TFI International posted a strong third quarter, but Driver Inc., and trade wars have weighed on its growth.
In a conference call with analysts, chairman, president and CEO Alain Bedard railed against Driver Inc., an illegal pay structure in which company drivers are misclassified as owner-operators in order to skirt payroll deductions.
“This is really unfair competition to us and other companies that operate legally in Canada,” Bedard said. “It’s a big problem that’s been there for a long time, but it’s been growing like weeds.”
He called on the provincial and federal governments to crack down on these carriers. The prevalence of Driver Inc. is pushing down rates, Bedard said.
“Shippers like to use those guys because it’s cheaper for them. Our answer is, ‘This is completely unfair competition, Mr. Shipper. If you want to use these guys, go for it, but it’s maybe not going to last’,” he said.
While there has been pressure on rates in 2019, Bedard said there’s been more pressure on freight volumes. This is largely attributable to the trade war between the U.S. and China, and tariffs that were slapped against Canadian steel. Those had a negative impact on TFI International’s specialty truckload division.
“They disappeared a few months ago, but it takes a long time for the steel industry to get back on track,” Bedard said of the tariffs.
Volumes were also negatively affected by strikes at GM and Mack Trucks, where TFI ships steel and aluminum. But the biggest drag, said Bedard, is that corporate spending is on hold while businesses wait to see how the U.S./China trade war will play out.
High inventories through 2019 to date also weighed on van volumes, but those are being drawn down, pointing to a stronger 2020. However, Bedard said October has been slower than usual so far. He was hesitant to give any projections for 2020, noting the picture will become clearer in the next couple of months.
Asked if CN’s move further into the trucking segment poses a threat, Bedard welcomed the competition.
“When I see a company that grows and their focus is about making money, I like that,” he said. “What I don’t like is when I see all those guys who don’t like to make money and they think 1-2% is great. I don’t like to compete against those guys.”
In fact, in the U.S. TFI has made acquisitions in the last mile space to eliminate some such competitors.
“The problem we have with last mile in the U.S., is we’re competing with a lot of guys who don’t like to make money, so we bought a few of them this year,” Bedard said.
With EBITDA dropping for many carriers, valuations are becoming more attractive for acquisitions. Bedard said the company continues to look for opportunities that are a good fit, in both the U.S. and Canada. But he emphasized the company will be selective when making deals.
“It’s easy to buy a company. But then you have to integrate it, manage it, improve it, and generate free cash flow. It takes time,” he said.
Bedard anticipates capacity will tighten, thanks to drastically reduced equipment orders and carrier bankruptcies. He said the industry added too much capacity during a strong 2018.
“It’s the stupidity of our market,” he said. Cracking down on Driver Inc. in Canada will also tighten capacity, Bedard added.
“The problem in Canada is, we are adding capacity with those Driver Inc. guys…We have pressure like we’ve never seen before with Driver Inc.,” he said, noting those companies save 15-20% on labor through the scheme.”
End ……….
Noble1
Quote:
“It’s easy to buy a company. But then you have to integrate it, manage it, improve it, and generate free cash flow. It takes time,” he said.
Bedard anticipates capacity will tighten, thanks to drastically reduced equipment orders and carrier bankruptcies. He said the industry added too much capacity during a strong 2018.”
” capacity will tighten, thanks to carrier bankruptcies” …. Thanks to carrier bankruptcies ??? Wow now ain’t that rich , LOL !
Let’s reminisce a little :
June 4 2019
TFI Closes Highland Transport Subsidiary
LOL !
Was that TFI subsidiary closed down due to driver inc . taking market share away from TFI ? ROTFLMAO !
Let’s go back a bit and bare with me a little .
Quote:
” Owner-Operators (O/Os) are a significant component of Canada’s truck driving workforce, particularly in the long distance sector. These self-employed persons are not covered under Part III of the Canada Labour Code (CLC) and the economic viability of the owneroperator in Canada has been a concern for many years. The 1987 Owner-Operator Task Force Report (Labour Canada, 1987) recommended that “the notion of dependent contractor be incorporated in the Code itself and that regulations be adopted to specify the methods of calculation applicable to Part III benefits.” These recommendations were not adopted but owner-operators are recognized as “dependent” employees under Part I of the CLC, allowing them to organize collectively and be represented by a union. Whether O/Os should be considered employees continues to be an issue amid demands by unions and individuals supporting that position and trucking employers who are against such change. ”
Ok so according to Part 1 in the Canadian Labour Code(CLC) “dependant” OO’s are allowed to organize and be represented by a labour Union . This was important to mention so that the story below would be easier to follow and understand .
In the case of “dependant” OO’s that worked for Highland(A TFI subsidiary) , they were represented by the Steelworkers local 1976 . In a dispute between the OO’s and Highland management in 2008 , Highland threatened the “dependant” OO’s that they would be fired if they didn’t accept proposed wage/rate cuts .
You can google : Highland postpones firing O-Os after last-ditch offer
And ,
Cloud hanging over Highland Transport’s future
Quote:
” Highland‘s parent company has threatened to shut down the truckload and intermodal carrier if its owner-operators voted to reject immediate changes to their current collective contract, which runs until December 2008.”
Therefore , TFI threatened OO’s to accept changes to their current collective contract ! WOW !
Quote:
“The drivers complained that the company was illegally changing the current contract in mid-stream. Those terms don’t expire until December 2008.”
That reminds me about the quote that states : “When you don’t keep your word , you lose credibility “-Robin Sharma
Anyways , 11 years later TFI shuts down Highland . However, I tend to find it quite comical when the CEO stated : “capacity would tighten ‘thanks to’ carrier bankruptcies ” when they themselves decided to shut down a 150 truck transportation subsidiary of theirs recently due to POOR performance .
And this goes to show you how major motor carriers can play hard ball with their “dependant” OO’s and squeeze them unethically . Therefore a Labour Union won’t always have the upper hand in their “negotiations” .
Quote:
“The union stresses that it believes the company‘s threats to close the division are real if the drivers reject the new proposal, which is to be voted on Aug. 27(2008) in Hamilton.”
“A former Highland owner-operator told us anecdotally that a number of other TransForce carriers are currently operating under similar terms of the new contract. “We’ve heard that some owner-operators under the TransForce umbrella are losing their trucks under the new pay schedule. We are glad we jumped ship when we did,” he said. ”
And now they complain due to their “supposed” difficulty in finding drivers because of driver inc ??? ROTFLMAO !
In my humble opinion ………..
Noble1
Furthermore , in regards to Driver inc there’s an unfortunate abundance of ignorance concerning the subject . The ignorance appears to be shared by drivers , brokers, carriers and accountants .
Most that I have spoken to concerning Driver inc are completely oblivious to what it implies . The Brokers that hire drivers generally all repeat the same thing : They rely on their accountants . If their accountant states handling Driver inc is done a certain way then it’s handled in the way specified by the accountant , not the “employer” .
Therefore perhaps accountants should be educated/reminded and instructed to act according to the regulations which concern Driver inc since accountant actions are held by a standard of care(duty of care) . If the accountant’s actions don’t meet the “standard of care” , then those actions are considered negligent and they are liable for damages caused by their negligence .
On another note , I would like to thank Mr.Bedard for indirectly stating that there is a driver glut which is quite the contrary in regards to what the CTA is reporting through their truck driver shortage hocus pocus rant .
Quote:
“The Driver Inc carriers are adding excess capacity to a soft freight market.” , LOL ! I laugh because it’s not driver inc that is the “cause” of the truck driver glut . The cause of the truck driver glut is due to the hocus pocus truck driver shortage rant created by major carrier trucking associations . LOL !
In my humble opinion ………….
Noble1
Quote:
“Bedard singled out Driver Inc multiple times during the call, also attempted to quantify how Driver Inc could hurt the performance of TFI’s Canadian truckload business in the coming quarters.”
That’s absurd !
First of all major carriers hire independent brokers . Then those Brokers(truck owners) hire drivers . Some shippers do the same . They hire Major Carriers & Brokers(truck owners) who then hire truck drivers . I recently wrote about one of those “shippers” being a CROWN CORPORATION ! The CROWN CORPORATION hires “Brokers” to bypass the labour union . Then the “Broker” hires driver inc ! Everyone in the trucking industry is competing with everyone in the trucking industry .
THE GOVERNMENT is a hypocrite , just as exchange listed CORPORATIONS are ! CORPORATIONS & “regulations” allow directors to issue themselves stock options which gives them a huge advantage over mom & pop shareholders to withdraw MILLIONS within the wink of an eye , at little cost to directors ,at the expense of mom & pop shareholders through self issued low priced options compared to market share price value ! This sort of practice also adds shares to the market by increasing the float and dilutes share value . BUT they have an interesting way to deal with such dilution through share buybacks with shareholder corporate funds.
That’s like owning your own money printing press ! Then these so called CORPORATIONS turn around and buyback some of their listed shares on the exchange using shareholder capital from the CORPORATION to pump up the share price value by decreasing the amount of shares on the market and then AGAIN repeat issuing themselves stock options at a low price and then exercise those options at a pumped up high market share price caused by their hocus pocus financial engineering and pocket millions in the process !
Then those same directors in the TRUCKING TRANSPORTATION EXCHANGE LISTED CORPORATION pay their truck drivers PEANUTS and have the audacity to complain about driver inc due to some supposed “unfair competition” theory !
WTF ? Quote:
“He said shippers were using Driver Inc carriers because of artificially low rates. “Our answer is, this is completely unfair competition. But if you want to use these guys go for it, but maybe it won’t last” Bedard said.”
WRONG !
He’s blaming shippers for using Driver inc based on and due to “artificially” low rates ??? LOL ! While HE IS unfairly competing with shareholders to extract funds from the market at their expense for his personal gain through hocus pocus financial engineering !
Oh the irony !!!
Quote :
“The Driver Inc carriers are adding excess capacity to a soft freight market.”
??? LOL ! That’s incredibly absurd !
Furthermore , the ESDC has been VERY CLEAR about Driver inc not being an illegal practice . It simply needs to be better understood . It’s a PSB(Personal Services Business) which implicates different tax treatments compared to a typical “corporation” !
That being said , I don’t condone Driver inc .
In my humble opinion ……………