Employee accepted demotion

|Canadian Employment Law Today

Benz Sewing Machines Ltd., a family owned business, operates as B&W Sewing Machine Co., selling and servicing industrial sewing machines in Ontario and Western Canada. In Quebec and the Maritimes it operated the same business through its subsidiary CRV.

When the company began to grow in the late 1980s, Lawrence Whittlen, the president and controlling shareholder, needed someone to take care of the administrative side of the business so that he could continue to concentrate on sales and customer relations.

To take care of the increasingly sophisticated financial side of the business, Eugene Kolaczynski was hired as the company’s controller. Toward the end of 1990, at Mr. Kolaczynski’s request, he was made vice-president and general manager of B&W. With this new position came an increase in salary from $40,000 to $100,000 as well as commission on the company’s sales.