This is the second article in our three-part series on Fruit and Vegetable Dispute Resolution Corporation (DRC) membership. Part one explored the benefits of joining the DRC, and in the upcoming part three, we’ll explain the option of maintaining an active membership when facing disciplinary membership actions, termination or expulsion.
The DRC empowers the fresh produce industry with tools for success, but maintaining membership requires following its standards and guidelines. Membership termination or expulsion helps provide fairness and reliability amongst trade partners. If members have concerns about what is required to maintain membership, they are encouraged to contact the DRC for guidance and support.
The following scenarios explain reasons for membership termination or expulsion. These measures protect the community’s integrity and support the long-term success of the produce industry.
6 Key Reasons for Termination
1. Non-Compliance with DRC By-Laws and Operating Rules
Members of the DRC are required to adhere to its By-Laws and Operating Rules, which establish clear standards for membership. These requirements serve to promote fair trade practices, minimize commercial disputes, and ensure swift resolution of conflicts that may arise. By fostering trust and consistency across the fresh produce industry, the DRC strengthens relationships and supports a thriving, equitable marketplace.
2. Failure to Meet Financial Obligations
Timely payment of membership fees and arbitration awards ensures access to the DRC’s trusted dispute resolution services and bolsters industry credibility. Non-payment risks sanctions, including membership termination, which may restrict Canadian members from trade across provinces or internationally, potentially violating the Safe Food for Canadians Regulations (SFCR). Such lapses can jeopardize trading privileges, credit, and exports, damaging a business’s reputation and opportunities in the fresh produce industry.
3. Hiring Sanctioned Individuals
Hiring individuals with recent insolvency, court-ordered restrictions, or DRC expulsion within the past five years may require the posting of financial security under the DRC’s Bonding Policy. This financial security serves as a safety measure, ensuring that members demonstrate financial responsibility and protecting trading partners from potential risks. Compliance strengthens industry trust and credibility, supporting reliable trade relationships. Failure to provide the bond will risk termination of membership, limit market access and undermine a business’s reputation in the fresh produce industry.
4. Voluntary Resignation
Members may voluntarily resign from the DRC, provided they settle any outstanding obligations. Proper resignation preserves credibility and supports ongoing trade relationships in the fresh produce industry. Post-resignation, members remain liable for claims if a Notice of Dispute is filed within nine months of the claim’s occurrence or within nine months from when the claimant ought reasonably to have known of its existence, ensuring accountability.
5. Violation of Rules
Violations, such as submitting false information or failing to honour an arbitration award, may lead to DRC expulsion. Adhering to rules fosters trust and strengthens trade networks. Expelled members remain liable for claims if a Notice of Dispute is filed within nine months of the claim’s occurrence, upholding accountability and protecting the fresh produce industry’s integrity.
6. Bankruptcy, Insolvency, or Suspension of Operations
Bankruptcy, insolvency, or suspension of operations without settling obligations may result in termination of DRC membership. This protects the fresh produce industry from financial disruptions and upholds accountability. By maintaining financial stability, members build trust, connect with reliable partners, and drive growth, fostering confidence in a stable trading environment.
Conclusion
Keeping an active DRC membership brings significant benefits. By staying informed and addressing risks promptly, members can protect their business and reputation, ultimately leading to long-term success. Reviewing practices and using the DRC Helpdesk strengthens compliance and provides tailored support, ensuring a fair trading environment for all.
Stay connected with the DRC by following us on LinkedIn, Facebook, and X, subscribing to the Solutions Newsletter, or visiting www.fvdrc.com to stay updated and learn how DRC can support your business!
Resources
DRC By-Laws and Operating Rules
DRC Solution Articles:
- Part 1 of 3 Membership Benefits: Maximizing Your Potential with a DRC Membership
- What Triggers the DRC’s Bonding Policy?
