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September 27, 2021 12:00 AM

Auto industry moves carefully on imposing vaccine mandates for staff

Dealers face an extra vaccination wrinkle: Customers

David Kennedy
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    THE CANADIAN PRESS

    In August, big-name private employers such as Royal Bank of Canada, Rogers Communications Inc. and financial services company Sun Life said staff returning to offices must be fully vaccinated.

    The growing wave of Canadian employers enacting mandatory-vaccine policies has automakers, parts suppliers and dealers walking a fine line between protecting their staff and infringing on their rights.

    “From social settings in New York to corporate settings in Toronto, we’re seeing mandatory vaccination regimes becoming more commonplace,” said Flavio Volpe, president of the Automotive Parts Manufacturers’ Association (APMA).

    In August, big-name private employers such as Royal Bank of Canada, Rogers Communications Inc. and financial services company Sun Life said staff returning to offices must be fully vaccinated. The federal government and a series of provinces and municipalities set similar rules, with several jurisdictions taking the added step of establishing a vaccine passport for social activities such as eating at restaurants or attending concerts.

    For automakers, the legal obstacles to putting mandatory-vaccine policies in place are essentially the same as for other employers, Volpe said, but the requirements for staff to be on-site are often greater.

    “There are duties within the industry, disciplines within the industry, that can be done remotely, the pandemic has shown that,” Volpe said. “But making things cannot be done through Zoom.”

    NO MANDATES YET

    Automakers such as General Motors, Honda and Stellantis are watching the evolving policy situation closely. None are currently mandating Canadian staff be vaccinated, however. In statements, the three companies said they are encouraging employees to do so as soon as possible.

    Jerry Dias, national president of Unifor, said the union is not asking for anything specific on vaccine policy from the Detroit Three automakers, which employ thousands of his members. But the companies are beginning to determine how they are going to proceed, Dias said.

    The union would not object if those plans include requiring vaccination.

    “We are fine with companies coming forward with mandatory-vaccination policies,” Dias said, adding that they would need to make the proper accommodations on human-rights grounds and for immunocompromised individuals.

    Michael Sherrard, a founding partner at the Toronto-based labour law firm Sherrard Kuzz, also stressed the importance of employers building accommodations into their policies and providing adequate notice before the rules are enacted. If an employee is ultimately fired because of the policy and challenges the decision in court, employers would need to show that the mandatory approach is reasonable, Sherrard said.

    “Can I also demonstrate to them that I gave everybody lots of assistance and advocacy around how to go and get [vaccinated]?” he said.

    Employers should also ensure their policies include alternatives to getting vaccinated as well as exceptions for “somebody who had a human rights-based reason for not getting the mandatory vaccination,” Sherrard said.

    Employers will be able to justify termination only if they lay the groundwork with an ironclad policy. With no such cases to weigh, however, “the jury is still out,” Sherrard said.

    Allegations of wrongful dismissal or alleged violations of the human rights code are also slow to work their way through the court system. Sherrard does not expect a precedent to be set until next year. That means the auto industry will likely be wading through uncertainty on how the legal system will treat mandatory policies through the fall.

    For its part, the APMA does not provide legal advice to members. Volpe said he is telling parts suppliers to consult internal and external counsel while encouraging them to stay up to date on the latest health and safety protocols.

    ‘PATHWAY TO NORMAL’

    Dealers face another layer of complexity. Along with safeguarding staff, they must watch out for customer safety.

    As vaccines and rapid-test kits have rolled out, the Canadian Automobile Dealers Association (CADA) has focused on helping dealers acquire rapid tests while also advocating for vaccination.

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    “We’re encouraging vaccination as our pathway to normal across the board,” said Huw Williams, CADA’s public affairs lead. “But of course, every business is going to have to make a decision on that based on their local circumstances, based on a whole variety of factors.”

    Up against different COVID-19 realities in different parts of the country, dealers have been left to navigate on their own.

    For instance, Steve Chipman, CEO of Birchwood Automotive Group, has gone to considerable lengths to encourage staff to get vaccinated. He said the Manitoba network of dealerships ran a contest this summer for vaccinated staff, with a $10,000 prize, and has set time aside to talk through issues with workers hesitant to get the vaccine.

    Birchwood Automotive has not put a mandatory-vaccination policy in place yet. However, it will require unvaccinated staff at its urban locations to submit to regular COVID-19 testing starting Oct. 31.

    The dealership group has not asked customers to be vaccinated, either, but Chipman said unvaccinated clientele present a challenge of their own.

    “You don’t want to turn away customers,” he said. “But frankly, what’s more important, selling the car or keeping your staff and their families healthy?” Chipman said. “My premiere responsibility as an employer is to make sure I have a safe and healthy workplace.”

    ‘NOT BIG BROTHER’

    The Wyant Group has faced similar challenges at its dealerships in western Canada, said COO Michael Wyant. The company has not mandated vaccines for staff and will not be refusing service to unvaccinated customers, but it has stuck with heightened COVID-19 protocols even as restrictions were lifted in Saskatchewan, its main base of operations.

    The company is encouraging staff to get vaccinated by providing paid time off and bringing mobile clinics to dealerships. Still, it does not think it should be dictating vaccines for staff or customers.

    “We’re not Big Brother here,” Wyant said. “We’re trying to run a successful retail operation, and that means respecting our customers and staff with their ability to make that choice.”

    He said turning away unvaccinated customers could cost business, with some clients going to competitors to buy their vehicles.

    On the legal end, Sherrard said any dealership looking at refusing service to the unvaccinated would need to ensure it could offer buyers an alternative option to a showroom purchase, such as an online portal.

    With the rate across Canada plateauing at just over 80 per cent of eligible people having received at least one dose of the vaccine, governments and employers are trying to persuade as many of those hesitant to get the jab to do so as soon as possible.

    Within Unifor, about 10 per cent of the members are “completely” against getting the vaccine, Dias said. Others, he thinks, can still be persuaded. The union is working with employers on presenting a clear narrative to members on the fence. It is the only effective way forward, Dias said.

    “You’ve got to deal with it head-on,” he said, “because the only way we’re going to get through this, frankly, is if people are vaccinated.”

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