Wave of corporate layoffs by Bell, Air Canada puts spotlight on risks, nuances in terminating corporate leaders
Managers are on the chopping block. At least, that’s what it seems, based on recent restructuring moves by several large organizations in Canada and elsewhere.
Just in the past few weeks, Air Canada has cut 400 management positions — about one per cent of its total workforce — Canada Post announced that it’s eliminating management roles as part of restructuring to transform its business model, and Bell Canada removed approximately 700 employees, mostly managers. In the U.S., Target is cutting 1,800 corporate positions including management, accounting for eight per cent of its global headquarters team.
Is targeting management rather than frontline workers an effective strategy for organizations wanting to trim costs, or does it heighten legal risk?
Terminating the employment of management-level employees does carry certain increased risks — the nature of management positions, increased contractual complexity, and a greater involvement of managers with internal processes and company information could all lead to complications and greater liability, according to one expert.
When it comes to terminating managers rather than frontline employees, the statutory protections are similar, according to Chris Pelkey, an employment lawyer at McInnes Cooper in Fredericton, NB.
“Under employment standards legislation, there are some...
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