The Trillium Automobile Dealers Association (TADA) is urging the Province of Ontario’s Ministry of Labour to scrap its proposed “joint-employer” provision which could alter the franchiser/franchisee business model. If adopted, the provision would shift employment responsibilities onto OEMs and turn dealers into “co-managers,” said Frank Notte, Director of Government Relations for the TADA.
Ontario had initially appointed two special advisors to review the Employment Standards Act and the Ontario Labour Relations Act. In September, 2016 government officials met with labour group representatives. At that time the interim report, which was roughly 300 pages, went through dozens of changes, with the “joint-employer” provision for franchisees becoming a focal point, explained Notte.
Notte said a new report was issued by the ministry on May 23 and that more time was needed to review the highly detailed work before he would be able to comment definitively on its contents.
Implementation of the “joint-employer” provision has the potential to undermine the livelihoods of dealers and change a franchise model that has “served auto manufacturers, dealers and consumers well over the past 100 years,” wrote Notte in his letter to Hon. Kevin Flynn, Minister of Labour.
“Can you imagine some guy you have on staff who is underperforming or you have an issue with, and you can’t get rid of him, because someone at headquarters says you can’t, whatever the case may be,” he said. “That’s worrisome, because the business owners should be able to control their own destiny.”
See the June/July issue of Canadian auto dealer for follow-up to this story.
