A member of Manitoba’s trucking industry is calling out the alleged “human trafficking” of foreign truckers, some of whom are earning few, if any, wages in the province.
In several cases, trucking companies set up corporations, bought houses, then moved in foreign workers, many from South Asia, an anonymous industry executive told the Winnipeg Sun, noting the problem is Canada-wide and years old.
Trucking companies then deduct employee expenses like food, transportation and rent, then pay minimum wage or less – giving the trucking company a cost advantage over law-abiding competitors, said the executive.
“Upset and quite frankly disgusted,” said Aaron Dolyniuk, executive director of the Manitoba Trucking Association. “People are just trying to make a better life for themselves in Canada.”
The situation has evolved over the years to where some foreign truck drivers set up numbered corporations, then work for reputable trucking companies that in turn pay the numbered corporations, said the industry executive.
“Then what (some) South Asian owned companies turned to was setting up immigration permits that allow workers to come in. Then what they did was take anywhere from $35,000 to $50,000 per person and then have that driver work for basically next to nothing.”
Canada’s trucking industry needs at least 20,000 drivers, and could require tens of thousands more in the coming years, says Immigration.ca. A third of current drivers are near retirement – the shortage is an economic risk.
The Government of Canada makes it possible for foreign truckers to get work permits or permanent residence through the Federal Skilled Worker Program, the Temporary Foreign Worker Program and the Provincial Nominee Program, says Immigration.ca.
According to federal data, approvals for temporary foreign workers in Manitoba’s trades and transportation sectors have increased 1,283% in five years.
“Measures to ensure long-term worker success need to also be emplaced,” said Marco Beghetto, vice president of communications for the Canadian Trucking Alliance. “This would include screening both potential drivers and trucking carriers to ensure that employers are compliant, will pay fair wages, comply with labor laws, and properly train drivers.”
Foreign labour schemes are now big business for some trucking companies, said the anonymous industry executive, adding the Canada Revenue Agency may not be able to properly collect taxes on law-flouting companies or exploited foreign workers.
“The trucking industry, generally, is highly competitive,” said Dolyniuk. “Margins are razor thin. So what some individuals are doing is maybe not making money off trucking itself, but making money on activities that support a trucking company, like illegally charging people to come and work for you – people being charged $50,000 each to come and work for a company here in Manitoba.”
The provincial government has created a working group to manage the problem of exploited truckers. The group is working with Ottawa and police to try and resolve the issue.
“We are deeply concerned about exploitation in the trucking industry,” said Lisa Naylor, Manitoba’s Minister of Transportation and Infrastructure. “We know this is not just a Manitoba problem.”
Some exploited drivers have contacted the Manitoba Trucking Association. Others have reached out to the Manitoba Labour Board.
“The federal government doesn’t want to touch it,” said the industry executive, who described the problem as human trafficking.
Companies that participate in immigration programs must be properly vetted, said Dolyniuk, noting there are ethical employers in the trucking industry that support foreign workers.
Safety is “absolutely” (another) concern as well, he said, noting it’s difficult to quantify the exploitation problem.
“We hear more and more about it from drivers who complain about previous employers,” said Dolyniuk.
Around 350,000 people work in Canada’s trucking and logistics sector, says Transport Canada.
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