Uniform changes to commission structure in bad times not constructive dismissal

|Canadian Employment Law Today

Re. Scaffold Construction Corp. [2001] A.J. No. 1091

Meerman was a branch manager for Scaffold. In December 1999 Scaffold ran into financial trouble and applied for a restructuring of its credit arrangements. During the restructuring period, Scaffold was planning to change its commission structure. On August 11, 2000, Meerman and others had a heated discussion with management about the proposed commission changes. Scaffold said that during this meeting Meerman said, “don’t expect too much production out of us.”

Management acknowledged that he qualified his statement by saying he would not give more than 100 per cent to the company.