Canadian Lawyer InHouse

4 www.canadianlawyermag.com/inhouse NEWS ROUNDUP SPOTLIGHT NEWS BRIEFS Supply chain challenges cripple auto industry A global shortage of semiconductor chips is creating legal problems for automotive manufacturers Like many industries, the global automotive industry has suffered considerable losses due to the COVID-19 pandemic. Border closures and factory lock-downs caused significant volatility in the early stages of the pandemic as manufacturers lacked essential parts. Many auto manufacturers had to close plants in Canada due to tightened health and safety protocols and an ongoing shortage of semiconductor chips needed to power various vehicle features such as power steering, reversing cameras and emergency braking systems. Some manufacturers announced reduced production targets in the fall as a lack of semiconductor chips limits production. General Motors Co. closed its plant in Ingersoll, Ont. early in 2021, and the manufac- turer went on to curb production at most North American assembly plants due to the chip shortage. "COVID created a real people shortage and a supply-chain bottleneck," says Gian Paolo Vescio, general counsel at the Automotive Parts Manufacturers' Association, repre- senting all auto part makers and suppliers throughout Canada. "A lot of cars are practically built, but they are still waiting for chips, so it's causing a huge backlog in production." The decline in production has created many legal problems, particularly concerning unfulfilled contracts indicating the timing of vehicle delivery. Dealing with different laws and legislations in various jurisdictions has also created a plethora of legal issues, Vescio says. In Vescio's opinion, manufacturers need to react quickly to the changing environment by investing in a more skilled workforce, better facilities with advanced IT and lean manufac- turing processes. "I think all manufacturers have realized that it pays to be able to react quickly when it comes to the production process," he says. The APMA — whose members account for 90 per cent of independent parts production in Canada — is running a program in conjunction with the Ontario government to create a digital school that will allow auto workers currently working in a facility to upgrade their skills on the job. "It will be a real asset for small and medium enterprises to upgrade their facility efficiency by investing in lean manufacturing and data retention within their organizations to allow for quick reactiveness in this crazy environment we're living in," says Vescio. Vescio believes that supply chain issues impacting the industry will ease in early to mid-2022 as travel restrictions are relaxed. "COVID created a real people shortage and a supply-chain bottleneck." Gian Paolo Vescio, APMA Male CLOs out-earn female peers Male chief legal officers earn US$19,857 more, on average, than their female counterparts, according to a survey by the Association of Corporate Counsel and Empsight. Interestingly, women deputy general counsel receive US$4,457 more, on average, than their counterparts among men. Self- identified non-minority chief legal officers make US$42,135 more, on average, than their minority counterparts. The 2021 Law Department Compensation Survey seeks to offer the most comprehensive law department compensation data set, with over 18,000 entries, so that leaders can accurately benchmark their practices against their peers. WGCC program empowers female GCs Women General Counsel Canada has launched a new accredited program to make participants more skilled and desirable as leaders and general counsel. Dubbed "General Counsel University," the intensive program allows participants to learn a wide variety of leadership skills in 40 hours of training held over two semesters. It offers training for participants to enhance their contribution to the c-suite and advance the business. The first session ran from October to December 2021, and WGCC has scheduled the second session for January 2022. TD and CABL launch initiative to support Black lawyers TD and the Canadian Association of Black Lawyers have announced the launch of new programs

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