Kia Canada staff decry decision to deliberately withhold vehicle deliveries

Employees at Kia Canada are denouncing the company’s plan to deliberately withhold vehicle deliveries from dealers and customers in an effort to avoid appearing too successful in 2023.

In a video obtained by Go Public, an investigative news segment of CBC News, management outlined the controversial move during a virtual conference call.

What’s happening at Kia Canada?

Vince Capicotto, Kia Canada’s central region manager, told staff during the call that the company has already hit its 84,000-vehicle sales target this year.

“With the global slow down, Kia Canada wants to control wholesale and retail performance in 2023 to not show high over-achievement,” Capicotto said.

“There’s a high risk with over performance that Kia headquarters will not provide Kia Canada resources necessary in our budget for 2024 to have a successful year if we over perform for the balance of 2023 at too high a rate.”

The bombshell announcement comes as Kia customers across Canada have been waiting months — some well over a year — to receive their vehicles.

Staff sound off in the chat

As Capicotto outlined the plan, Kia Canada employees on the virtual conference call shared their concerns in the chat.

One member of the team, who claimed that they had been with the brand since 2004, said it was the “first time I’ve seen the dealer body penalized for selling too many vehicles.”

Another worker wrote that the move showed a “complete lack of respect” for dealers and customers — adding no sold units “should ever be held, they should be expedited.”

While Capicotto addressed each comment, he stressed that the decision to deliberately withhold vehicle deliveries until 2024 is part of a longer term plan.

“This is about thinking not just about today and this month, but also about the next few months and the next quarter ahead.”

Kia Canada’s response

Susan Bernardo, Kia Canada’s national PR manager, told Go Public in a written statement that she can’t comment on “confidential internal business matters”, including whether the information in the video was accurate.

However, Bernardo said customer satisfaction remains the company’s “highest priority” and that it’s committed to the “timely delivery of their orders in 2023 and beyond.”

SEE ALSO
• Solera accused of conducting mass layoff via Microsoft Teams
• Spanish YouTuber suing Google, alleges wrongful dismissal
• X, formally Twitter, accused of age discrimination during November layoffs

Rights for Kia Canada employees

One Kia manager in Ontario told Go Public that the company’s alleged decision to withhold vehicle deliveries will affect a variety of employees financially, including:

• Franchise owners
• Sales staff who rely heavily on commissions
• Individuals working in the parts and service departments

He added that he has already had customers walk away, despite paying a deposit, when they learned of the additional delays.

In Canada, employers have an obligation to act in good faith and do everything that they can to allow non-unionized workers to earn money.

Since Kia Canada’s decision to deliberately withhold deliveries prevents staff from doing so, it’s a fundamental breach of the terms of employment.

As a result, sales representatives and service people at the company who depend on vehicles being sold to make money can consider themselves constructively dismissed.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

WATCH: Employment lawyer Lior Samfiru breaks down what you need to know about constructive dismissals on an episode of the Employment Law Show.

In this situation, the law allows non-unionized employees to resign and pursue full severance, which can be as much as 24 months’ pay.

However, you shouldn’t quit your job before an experienced employment lawyer at Samfiru Tumarkin LLP confirms that you have been constructively dismissed.

LEARN MORE
• How to calculate severance pay in Canada
• Rights to severance for provincially regulated workers
• Severance packages in a recession

Talk to an employment lawyer

The knowledgeable employment law team at Samfiru Tumarkin LLP has successfully represented tens of thousands of non-unionized individuals across Canada.

In addition to constructive dismissals, our lawyers in Ontario, Alberta, and B.C. can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.