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The
Interim Report is a summary of feedback received by the Special Advisors from a variety of interested parties. Of greatest concern to CFA are options that would classify franchisors as joint or common employers of their franchisees' employees, based on the close relationship between franchisors and franchisees.
If adopted, franchisors might be forced to reduce the training and support provided to franchisees in order to avoid being designated a joint or common employer. As well, franchisees would no longer be able to operate their businesses independently. Ultimately, franchisors might stop franchising altogether due to the increased responsibility for franchisees' employees and associated costs that would follow.
CFA's submission addresses four key points arising from the Interim Report:
- The diversity of industries using the franchise business model;
- The harmful effect on the franchising industry that would be caused by a common or joint employer declaration;
- Questioning the appropriateness of adopting U.S. employment policies; and
- Providing alternative recommendations to the potential legislation amendments proposed.
Specifically, CFA believes education, raising awareness, accreditation, enforcement and inserting protective language into labour laws are better paths to ensuring fairness for workers while at the same time maintaining the franchise business model.
NEXT STEPS:
CFA looks forward to meeting and working with the government to determine mutually beneficial changes to Ontario's labour laws. Moving forward, CFA will be coordinating various lobbying activities, including a grassroots advocacy campaign, and will contact you shortly with information on how to participate.
For more information about CFA's advocacy work on the Ontario Changing Workplaces Review, please contact Samantha Sheppard, Government Relations Specialist, at
ssheppard@cfa.ca or call 1-800-665-4232 ext. 230.
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