Demotion not fundamental breach of contract

|Canadian Employment Law Today

In March 1994 Roch Shannon Fraser was hired as the program director for CKRW’s radio station in Whitehorse. His job included overseeing the news department and he reported to the assistant station manager. His compensation for this management position was an annual salary of $50,000 plus a six-passenger vehicle, a fully paid dental plan and six weeks of annual vacation. In accepting the job, Mr. Fraser moved his family from Abbotsford, B.C., to Whitehorse.

Within three weeks of commencing his employment, Mr. Fraser assigned himself to the morning-show host position. To do so he reassigned the then current morning host to the weekend morning-show host position. The transferred employee was unhappy with this move and left his employment at CKRW shortly thereafter.

In May 1995 a decision was made to eliminate the program director position. In the letter notifying him of this decision, he was offered a DJ position at a salary of $40,000 per annum plus two weeks of annual vacation. The general manager, Satman Rai, would assign his work. Mr. Fraser accepted this new position. He negotiated that the loss of his vehicle privilege would be delayed until the end of July and he would retain his dental insurance by paying half of the premium.