Arla Foods merging with DMK Group: Rights for Canadian employees

What’s happening?

After successfully collaborating on several projects, Arla Foods and DMK Group are set to merge — creating a global dairy powerhouse.

“Our merger brings together more than 12,000 farmers and we aim to become one joint cooperative that will achieve a combined pro forma revenue of 19 billion euros [more than CAD$29 billion],” the companies said in a joint news release.

“With this move, we progress towards creating the future of dairy, enhancing nutritious, high-quality dairy production and innovation in Europe and globally, while securing a strong milk price for our owners.”

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If the merger secures the necessary regulatory approvals, the combined entity will carry the Arla name.

As the two companies prepare to join forces, here are a few things that non-unionized employees in Canada need to be aware of.

Who pays severance if the combined company doesn’t want to keep certain employees?

Canadian employees at Arla Foods and DMK Group will become workers of the combined company by operation of law — unless a specific agreement states otherwise.

If you lose your job before or after the merger, contact an experienced employment lawyer at Samfiru Tumarkin LLP. We can help you secure the severance pay you deserve.

LEARN MORE
• Sale of business in Ontario: Rights to severance
• Rights to severance in Alberta when your employer sells the business
• Employer sold the business in B.C.? Know your rights to severance

Can major changes be made to my job following the merger?

It’s possible for the combined company to make changes to the jobs of Canadian employees at Arla Foods and DMK Group — if done properly through a new employment contract.

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about changes to your job on an episode of the Employment Law Show.

However, if major modifications are made to the terms of your employment without your consent, don’t do anything drastic (i.e. quit your job) before contacting our firm. There’s a very good chance that you can treat it as a constructive dismissal.

In this situation, the law allows you to quit your job and pursue full severance pay.

ADDITIONAL RESOURCES
• Can my employer make changes to my job in Ontario?
• Job changes in Alberta: What employees need to know
• Changes to your employment in B.C.: Your rights

Received a new employment contract?

If you receive a new employment contract from the combined company after Arla Foods and DMK Group merge, take the time to carefully review it before signing it.

In many cases, these agreements take away key protections that would otherwise be available to non-unionized employees, including:

• Eliminating past service: The combined company might attempt to reduce or eliminate your years of service prior to the merger. Don’t sacrifice your seniority. Length of service is a key factor when determining how much severance pay you are entitled to.
• Reducing severance pay: Some employers try to use a termination clause to reduce your severance entitlements to the bare minimum. Instead of months of pay, you might only receive a few weeks’ pay if you are fired without cause or let go.
• Ability to make changes: The combined company might attempt to add a clause that gives them the right to change aspects of your job (i.e. hours or pay) without your permission or lay you off without penalty.

Employers in Canada can’t legally force non-unionized workers to sign a new employment contract immediately or a few days after receiving it.

SEE ALSO
• Starting a new job? Here’s how an employment contract could limit your rights
• Employment Law Show: 5 things to know about employment contracts
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Workplace issue? Talk to our team

Since 2007, the experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals resolve their workplace issues.

Whether you’re in Ontario, Alberta, or B.C., our lawyers can review your situation, enforce your rights, and ensure you receive the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.