Trans-West, a well-respected name in the trucking industry known for its commitment to safety, customer service, and professionalism, has announced a series of painful measures—including layoffs and pay cuts—in response to a growing crisis that continues to destabilize the transportation sector.
In a memo sent to employees, company leadership explained that despite every effort to avoid such actions, the situation has become unsustainable.
Since the end of the pandemic, Trans-West—like many other carriers—has faced what it describes as unfair competition from incorporated drivers, commonly known as “Driver Inc.” Often operating out of Ontario, these drivers bypass standard payroll deductions and social charges, allowing them to offer services at significantly lower costs than compliant companies. The result: clients increasingly choose the lowest bidder, forcing Trans-West to reduce its rates just to retain U.S.-bound contracts.
“The market is flooded with Driver Inc. They pay their drivers 60 cents net per mile, while we have to cover taxes, CNESST, employment insurance… We just can’t compete,” said the founder Réal Gagnon in the statement.
The crisis is further compounded by external factors such as tariffs, a looming recession, and the boycotting of U.S. agricultural products—particularly fresh fruits and vegetables. Altogether, these pressures have made this one of the most challenging seasons in the company’s 45-year history.
In response, Trans-West has announced a reduction of 25 trucks in its fleet by September 1st, layoffs among recently hired drivers, a wage cut for team drivers, and the elimination of certain bonuses. The company is also lowering management salaries and plans to sell surplus equipment in an effort to preserve financial stability.
Despite repeated outreach from major industry associations, Trans-West denounces the federal government’s complete silence. “The government hasn’t acted and continues to ignore all our requests,” the company states.
As a final note, the company encourages concerned employees to contact their federal MP directly to voice their concerns.
When Excellence Isn’t Enough
Trans-West is not just another carrier. Recognized across North America for its unwavering commitment to safety, operational excellence, and the well-being of its drivers, it stands as one of the most respected and human-focused companies in the trucking industry.
Its multiple accolades from the Truckload Carriers Association’s Fleet Safety Awards speak volumes: even in the most turbulent times, Trans-West upholds some of the industry’s highest safety standards. It is this consistency, transparency, and deep respect for drivers that make Trans-West a benchmark in the field—and that render the inaction of policymakers all the more unacceptable in the face of a crisis threatening a vital sector of our economy.
If even a company as well-structured, reputable, and forward-thinking as Trans-West is forced to make cuts, what hope is left for the rest?
