The Canadian Automobile Dealers Association (CADA) is waiving two months of premiums for dealers and employees enrolled in the association’s employee benefits plan, as members prepare for reduced revenue during the novel coronavirus pandemic.
In a note to members, CADA said premiums for dealerships participating in its CADA 360 Employee Benefits program would be waived for April and May and that annual renewal rates would be frozen until at least July 1, 2021.
“We understand that the state of operations at dealerships is in flux – we’ve heard that dealers are doing what they can to avoid layoffs, but it seems they may be inevitable,” the CADA note said.
“CADA 360 wants to ensure that employee benefits coverage is maintained during these difficult times and has come up with a solution that will allow you to keep your employees protected without any cash outlay from dealers in the plan for April and May.”
According to CADA, about 64 per cent of Canadian dealerships are enrolled in CADA 360, which provides employee benefits, retirement savings, garage insurance and other offerings for dealerships. The changes come as the auto industry scrambles to adjust to collapsing demand in the wake of the COVID-19 outbreak and consumers delaying vehicle purchases.
FUNDS IN RESERVE
CADA said it would also expand “standard provisions for extending benefits during a layoff throughout the crisis,” and that it has “sufficient funds to provide assistance to dealers and employees” covered by the plan.
“Dealers will be able to extend coverage to temporary layoffs, leaves of absence or work share arrangements for 60 days beyond the end of the premium relief period, and will revert to standard CADA 360 handling thereafter,” the note reads.
“If industry or government consultations affect our position, we will re-evaluate as the situation evolves.”