The impact of Canada’s supply chain bottlenecks can be seen on empty store shelves, vacant dealership car lots and wait times for online purchases that run into months.
It’s part of a long-term shift that began before the pandemic and threatens to be here long after the pandemic is over. Shipping delays, worker absences, and a trucker shortage are causing supply chain disruptions like we’ve never seen before.
Peter McSherry, an employment lawyer in Guelph expects that goods shortages will eventually evolve into work shortages. McSherry said, “With companies losing business, and not receiving the materials and components they need to manufacture their products, layoffs could be looming.”
The COVID-19 pandemic has exposed faults in an interconnected system that have left shelves bare and companies short on supplies. These supply chain disruptions have dire consequences for companies such as auto manufacturers which operate on just-in-time delivery schedules for parts.
Implications For Employees
Employees who work in businesses that export are vulnerable to layoffs because they depend on reliable and uninterrupted delivery schedules. McSherry warned that layoffs that are exacerbated by pandemic restrictions shouldn’t be taken lightly. “If companies can’t get materials to manufacture their products, they could simply decide to consolidate their operations elsewhere.”
While the courts would not view a layoff under these circumstances as a constructive dismissal, it does have important implications for your employment contract. McSherry said, “If an employee accepts this layoff at face value, they may inadvertently be opening the door to future layoffs. It’s crucial that an employee speaks to a lawyer to get advice on how to respond. You don’t want to give the employer the right to lay you off at any point in the future.”
A short-term layoff due to the employer’s inability to access the market or obtain critical parts is not likely to be a constructive dismissal. However, the risk to an employee is that in the future an unscrupulous employer may rely upon the past practice as giving them the right to lay people off, forcing them to find other work. Once the employer finds out that the employee is working, they’ll recall the employee, and if the employee doesn’t come back, they are deemed to have quit, and therefore they are not entitled to any termination pay.
McSherry said, “It’s important that you get advice from an employment lawyer as to how to respond to this situation, even if you have to accept a layoff this time. You don’t want to give the employer the right to lay you off each time there is a downturn in business.”
Contact Peter McSherry at (519) 821-5465 or visit: www.petermcsherry.ca