PAGE 16, WHITBYFREE PRESS, WEDNESDAY, JUNE 14, 1 . WHITBY FREE PRESS A BUSINESS UPDATE INFORMATION FEATURE YOUR BUSINESS Keeping it al in the family IAI KENT, owner/operator of the T-shirts 'Toucfr the Past - Feel the Mercantile Dept. Store on Brock St. Future. S., holds up the store's new Whitby Vince Ohprecio-Free Press photo HEALTH & SAFETY BILL Bil 208 sparks debate By Debbie Luchuk to do government regulator3 Proposed amendments to the work, and gves spial powers Occupational Health and Safety one empioyee. Act through Bill 208 are raising "A worker becomes a (policinE a great deal of heated discussion influence) rather than impie and opposition among various menting a cooperative effort (foi labor and business groups. heaith and safety)," Botting said. The proposed bill, which recei- "For smaii business, this is not ved first reading in the Ontario credible. There is to be an agency legislature in January, will place composed of labor and manage responsibility and capacity for ment (te manage the act), but resolving health and safety this wili have toc narrow a view issues in the hands of a select point." few in labor and management. He said the regulating body ù The bill, says Minister of "narrow"because the group is to Labor Gregory Sorbara, "builds be composed of labor representa upon what is already establ- tives from larger unionîzed work ished" b placing the responsibi- places. lity and capacity for resolving "How can this body represeni health and safety issues more in smail business? Small business the hands of labor and manage- needs representation, and 90 per ment. For example, a worker cent of ail business in the pro who is a safety committee mem- vince has less than 20 ber may issue a stop work order employees." if he feels workplace conditions Botting believes the present are unsafe. system of regulations in the However the Canadian Fede- Ocupational Health and Safety ration of Independent Business and the Ontario Federation of Labour are among groups concer- ned about the implications of the 4 ,0 0 sq. Il bill. Dale Bottin&, executive direc- ter of provincial affairs for the opens i P l Canadian Federation of Indepen- dent Business, told The Free Press "there are a number of very, very serious concerns we have with the bill. The bill willme., the Canadian subsidiary of a move the cause of occupational world leader in the manufacture health and safety backwards. cf gears and mechanicai power "It has more te do with politi- transmission products, bas cal power grabs than health and opened a 46,000-square-foot safety." distribution and service center in Botting said the bill is preoccu- Pickering. pied. Witt deppeizing, icjv jiq , J.. 9 th pçyd gofcj ty eatures a wor,.ndgivs.peialpoer.. y t. e Act is working well. "This (the bill) is not necess- ary. Why fix something that's not broIçen? It's giving a small part of the market an inordinate amount of power, and some in- dividuals are given veto power. "The bottom line is, I don't think the bill is going to affect any redirection of the Act, or prevent injuries. There's no need (for the bill) because there's already lots of power in the law, for example, unsafe workplace laws. It's got all the right buzz words." What Botting dia recommend was improved safety training for small businesses in Ontario. The Oshawa Chamber of Com- merce was to hold a forum last night (Tuesday) about 208 with discussion by Botting, Sorbara and Gordon Wilson, president of the Ontario Federation of Labor. L. warehouse kering football-field-size warehouse and assembly plant with a computerized order and inventory system. The company states that the warehouse space accomodates the largest inventory of gear components and enclosed gear SEE PAGE 18 Family businesses are the life- blood of the Canadian economy. More than 50 per cent of all commercial enterprises are fam- ily-owned and they employ more than 60 per cent of the Canadian labor force. What's more, family companies tend to outperform non-family operations. Perhaps the main reason is their personal touch. Strong staff loyalty fostered in many family companies tends to translate Into greater productivity and faster growth. But family businesses, despite their prevalence, have glaring casualty rates. "Less than 30 per cent of family businesses make it through to the next generation, with less than 13 per cent sur- viving to the third generation," says Aron Pervin, a Toronto member of the Family Business Consulting Services for Laven- thol & Horwath, a management consulting firm. The biggest challenge in any family-run operation is to balance family harmony with business needs. But that, accord- ing to Pervin, is much easier said than done, considering the huge emotional and financial stakes at hand. Pervin has been privy to many family squabbles over fam- ily ownership, management and control. Certainly there are more fam- ily feuds over succession than anything else. "There's the well- publicized problem of the old man hanging on too long," says Gordon Sharwood, president of the Toronto-based investment firm Sharwood and Company, and founding chairman of the Canadian Association of Family Enterprise (CAFE). "Founders tend to be pretty authoritarian. They resist relinquishing con- trol." I-~I ( TU help faniily firnis snluutli over their differences, CAFE was formed about five years ago as a self-help group. It has grown to encompass 500 family businesses, 400 of which are based in Ontario. Annual dues are $500. "At CAFE we have personal advisory groupk with 110 to '12 people,',says Sparwoo«. "All the bosses - the founders - get tpgether, in oqe roorp. Megn- while, down the hall, the kids congregate in another room to discuss their problems." One of the most crucial chal- lenges to family businesses is attracting and promoting good managers to maintain a healthy climb. "Studies show that estabi- ished family businesses which have a buffer manager between father and son, for example, are twice as profitable as those that don't," says Sharwood. "Often you have to remunerate non- family executives more because they know the top rung is taken by family." There are, however, some exceptions to the familial tradi- tion of passing on the torch. Certain founders are institu- tionalizing themselves and mak- ing sure the best person - and that doesn't mean a relative - takes over. "Owners are saying their responsibility to employees and customers is larger than to the family," explains Sharwood. But despite the trend to grea- ter professionalism and outside advice, blood still flows thick in the family firm. Those that make it through the third generation are ususally good for at least another three cycles. For more information contact the Canadian Association of Family Enterprise, 10 Price St., 'Toronto, Ont. M4W 1Z4; tele- phone 961-1673. w "I know I'm 87 - but they'll have to carry me out before l'il let you take over!"