Samfiru Tumarkin LLP Discusses Employee Rights Amidst CDK Cyberattack Impacting Canadian Car Dealerships

Current Events

Last Wednesday, CDK Global based in Chicago, which supplies software services to numerous auto dealers in both Canada and the U.S., faced multiple cyberattacks. The company has taken precautionary measures by shutting down systems, which caused an ongoing outage affecting its operations.

Event Details and Responses

CDK Global has identified the incident impacting its auto dealership software platform as a ransomware attack.

• On Saturday, CDK issued a communication to its clients expressing gratitude for their patience during the recovery phase following the attack on June 19th.
• Company representatives have stated recovery efforts are underway but could take several days to finalize.
• Additionally, CDK Global has issued a warning to its customers about the potential threat of impersonators or ‘bad actors’ attempting to exploit the situation.
• The attackers have been linked to a hacker collective named BlackSuit as reported by Bloomberg.

Effects on Canadian Auto Dealerships

Several reports indicate that the cyberattack has disrupted operations across various dealerships in Canada:

• BMW Group Canada: Confirmed some of their retail locations were affected yet they continue operations.
• Nissan Group: Is assessing the ongoing impact on their operations.
• Honda Canada: Is investigating the extent of the impact.

No comments have been made by representatives of Ford Motors, General Motors, or Toyota as of now.

Delays have been experienced by car buyers in dealership services or vehicle deliveries, yet dealers assure that safeguarding customer information remains a top priority.

Workforce Implications

Due to the disruptions caused by the cyberattack, some dealerships might consider adjustments to employee work hours or wages as they are unable to operate normally.

In Canada, substantial alterations to employment terms without employee consent can be deemed as termination. This could entitle affected employees to a complete severance package under the principle of constructive dismissal.

LEARN MORE
• Job changes in Ontario
• Rights for Alberta employees during job changes
• Work modifications in British Columbia

Employees affected by changes in their work condition, such as reduced hours or wages, may be able to treat these changes as constructive dismissal. It is advised to seek legal counsel, for instance from employment law specialists at Samfiru Tumarkin LLP, before taking any actions.