Mullen Group acquiring logistics provider Cole Group: Employee rights

What’s going on at Mullen Group?

Mullen Group is looking to add the Cole Group to its portfolio.

The Okotoks-based company recently announced that it’s entered into a “definitive share purchase agreement” to acquire the shares of the full-service logistics provider.

“Not only is the Cole Group an industry leader in customs brokerage and trade consulting, which happens to be one of the most talked about issues of the day, they have a sizeable 3PL freight service offering, a service that aligns very closely with our U.S. & International Logistics segment. These will be great additions to the Mullen Group,” Murray Mullen, chair and senior executive officer of the Mullen Group, said in a news release.

“The Cole Group will continue to be overseen by the current senior leadership team, a very talented and seasoned group, who are supported by over 700 professional associates. Together we will build on the legacy of the founders. I am both delighted and honoured to welcome the Cole Group into our growing organization.”

The transaction, which is still subject to regulatory approval, is expected to close in the second quarter of 2025.

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Who pays severance if Cole Group staff aren’t kept after the acquisition?

In Canada, the “seller” of the business is responsible for providing proper compensation to employees who lose their job.

WATCH: Employment lawyer Lior Samfiru explains the rights workers have when their employer sells the business on an episode of the Employment Law Show.

If you receive a new employment contract, and you have a good reason for why you don’t want to accept it (i.e. different hours or pay), contact an experienced employment lawyer at Samfiru Tumarkin LLP.

We’ll help you secure the severance pay you’re entitled to.

Even without a good reason you can still get severance, but it’s very likely that you will only receive your minimum entitlements.

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

Can major changes be made to the jobs of Cole Group staff after the acquisition?

In Canada, non-unionized employees at Cole Group don’t have to accept substantial changes to their job after the company is acquired by Mullen Group.

Major modifications, such as a demotion, longer shifts, or reduced pay, are illegal.

When significant adjustments are made to the terms of your employment without your consent, 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.

If you believe you’ve been constructively dismissed, don’t resign before contacting our firm.

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

New employment contracts for Cole Group staff

If you work for Cole Group in Canada, and you receive a new employment contract, 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 new agreement might attempt to reduce or eliminate your years of service. 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: The new agreement might contain a termination clause — limiting your severance entitlements to the bare minimum. Instead of months of pay, you might only receive a few weeks’ pay if you’re fired without cause or let go.
• Ability to make changes: The new agreement might contain a clause that gives your employer 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
• Employment Law Show: Things to never do before seeking legal counsel

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 Alberta, B.C., or Ontario, 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.