In these uncertain and fluid times, GEM-CAR TEAM continues to take a proactive approach to support to our customers from making sure we support you during the crisis.

With regard to the impact of COVID-19 on the industry, and more directly member business operations, the Federal government in the USA  and individual states and localities, on a daily—even hourly— basis, continue to change the legal landscape for doing business in the foreseeable future. Recently the Federal government and some state governments have begun to issue “Shelter in Place” and “Safer at Home” ordinances to curtail a range of commercial activity. These directives have thus far exempted various commercial operations deemed “essential.”  The Canadian government will follow shortly in their ruling.

 

This document provides GEM-CAR customer with a review of the USA Federal directive and three State directives (California, New York, Pennsylvania) to help  our shop owner understand these types of directives and prepare for further directives that may be issued in other states and Canada.


Canada :

The provincial government in Quebec has deemed service and repairs on emergency vehicles to be essential services and the list of essential services includes the “mechanical repair of motor vehicles, trucks and specialized equipment for industries deemed essential and roadside assistance.” read more...

So far three other provinces – Ontario, Prince Edward Island, and New Brunswick – have designated the aftermarket as an essential part of the economy during province-wide emergencies.

Vehicle Repair listed as Essential Service in Ontario




Shelter in Place/Safer at Home Directives & Your Business USA

1.  On March 19th, The United States Department of Homeland Security (DHS) Released A Memorandum Entitled “MEMORANDUM ON IDENTIFICATION OF ESSENTIAL CRITICAL INFRASTRUCTURE WORKERS DURING COVID-19 RESPONSE”.

The DHS memo establishes the (current) most detailed explanation of those individuals who are deemed “Essential” “to help State and local officials as they work to protect their communities, while ensuring continuity of functions critical to public health and safety, as well as economic and national security.”

Of greatest interest to the aftermarket industry are the following 2 categories identified as Essential in the DHS memo:

TRANSPORTATION AND LOGISTICS

• Employees supporting or enabling transportation functions, including dispatchers, maintenance and repair technicians, warehouse workers, truck stop and rest area workers, and workers that maintain and inspect infrastructure (including those that require cross-border travel)
• Automotive repair and maintenance facilities

• Workers necessary for the manufacturing of materials and products needed for medical supply chains, transportation, energy, communications, food and agriculture, chemical manufacturing, nuclear facilities, the operation of dams, water and wastewater treatment, emergency services, and the defense industrial base.” (emphasis supplied)

The DHS memo provides guidance on who could be considered “Essential” but gives discretion to state and local officials to identify critical infrastructure sectors and issue their own directives and guidance. It also explicitly directs states to work with “industry partners” to ensure “continued operations of critical infrastructure.”

2.  Governor Of California Ordered All State Residents Stay At Home

Effective 11:59 pm on March 19, Governor Gavin Newsom issued a “Stay At Home Order,” which states:

• “…all individuals living in the State of California to stay home or at their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors…The federal government has identified 16 critical infrastructure sectors [the DHS memo]…. I order that Californians working in these 16 critical infrastructure sectors may continue their work because of the importance of these sectors to Californians' health and well-being.”

Coupling the California directive with the DHS memo, it is clear that aspects of the aftermarket industry may continue to operate in California. It is imperative that SEMA member companies conduct critical analysis to determine to what extent their operations fall within the foregoing “Essential” exceptions as well as consider their workforce and applicable HR/employment laws (there is no federal or California law granting employees the right to work remotely or to ask to work remotely). To determine if a company or manufacturer provides a service defined as “Essential”, a threshold question may be: whether a company’s product or service is necessary, or indispensable, for a vehicle to continue to lawfully operate?

3.  Today, March 20, the Governor of New York Issued a Directive That Does Not incorporate the DHS Memo and Its Definition of “Essential”.

According to the New York order, no later than March 22, 2020 at 8 p.m., all employers shall close all non-essential businesses. Businesses providing essential services, supplies or support are exempt from the restrictions. For the aftermarket industry, the relevant portions of the NY memo defining “essential” specifically includes auto repair as an essential service which is “necessary to maintain the safety, sanitation and essential operations of residences or other essential businesses. Businesses may also apply to be considered essential: https://esd.ny.gov/sites/default/files/Request%20for%20Designation%20Form_0.pdf.

4.  Today, March 20, the Governor Of Pennsylvania Issued An Order That Explicitly Includes Automotive Maintenance and Supplies but Excludes Motor Vehicle Manufacturing

Pennsylvania Governor Tom Wolf ordered all “non-life-sustaining” businesses in the state to close their physical location; with “enforcement” of the order to begin at 12:01 a.m. on Saturday, March 21. The order makes no reference to the DHS Memorandum.

Pennsylvania’s order is the broadest and clearest in its recognition of elements of the aftermarket industry as being “life sustaining”. The following are considered life-sustaining businesses that are permitted to continue physical operations under the governor’s order:

• “TRADE, TRANSPORTATION & UTILITIES
  Motor vehicle and motor vehicle parts and supplies merchant wholesalers
  Automotive parts, accessories and tire stores
  Support activities for road transportation
  
  OTHER SERVICES (EXCEPT PUBLIC ADMINISTRATION)
  Automotive repair and maintenance
  Electronic and precision equipment repair and maintenance”

Despite automotive parts businesses being recognized as “life sustaining”, the Governor’s matrix also provides the clearest statement negatively impacting the aftermarket industry, declining the ability to continue physical operations to the following manufacturers:

• Paint, coating and adhesive manufacturing
  Glass and glass product manufacturing
  Motor vehicle manufacturing
  Motor vehicle body and trailer manufacturing
  Motor vehicle parts manufacturing
  Other transportation equipment manufacturing

GEM-CAR member companies need to understand the applicable laws and restrictions imposed by various governmental agencies will continue to evolve.