Fixing the Auto Structure: An Investigation into the Flawed Structure of Fix Auto

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Written by Timothy J. Tetreault on December 1, 2016 – Mount Royal University

Introduction and Overview

Fix Auto is an auto body repair company based in Montreal, Quebec that is looking for rapid worldwide expansion. Fix Auto operates within an external task environment which has many opportunities but also many threats.

Politically, governments are changing how infrastructure spending is allocated. More taxpayer dollars are being spent on mass transit initiatives such as the City of Calgary’s green line project, which aims to create a new train corridor with the municipal and federal governments guaranteeing a cumulative $3.08 Billion towards the project (“Green Line”, 2016). The implication for the auto industry (including Fix Auto) is that the transit projects aim to reduce emissions by having fewer cars on the road. With fewer cars on the road, the likelihood of collisions and the customer base are reduced

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The socio-cultural tendencies of society increasingly are leaning toward an ecological outlook. People work to reduce their adverse environmental impact and many opt out of driving entirely. Environmental awareness has people taking mass transit and walking (or biking) to their destinations, which means less cars are on the road. Society is moving toward more fuel efficient cars that retain value for longer amounts of time. Modern cars are built to last longer and wear out less quickly. Computer technology is now able to optimize everything from gear shifting to lane positioning, and even taking complete control of a vehicle. As a result, parts wear out more slowly and collisions are less frequent. Parallel to the environmental awareness movement, car manufacturers have been working to make the cars themselves lighter in an effort to conserve fuel. The traditional steel and aluminium bodies are being replaced by lighter, plastic, fibreglass, and carbon fiber builds which are not easily as repaired.

Provisions in the law also create issues for Fix Auto. Provincial and federal governments are moving towards carbon taxes, which will hit drivers with higher fuelling prices with the goal of reducing vehicle mileage. In fact, “A $50 carbon tax would drive up pump prices by 11 cents a litre” (Mccarthy & Leblanc, 2016, para. 11). 

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Strengths in the Fix Auto organization include their branding and rapid ability to expand operations with limited operating costs. Fix Auto is working to create a trusted Auto Service brand in an industry that historically is not credible (CB Staff, 2016, Para. 4). Fix Auto gains a competitive advantages through their provocative campaigns. Rapid worldwide expansion is facilitated through their operation of 229 Canadian locations as well as those in other countries (CB Staff, 2016, Para. 3). The franchise structure enables them to quickly open new shops based on a ‘cookie cutter’ set of procedures. It also places the risks onto the franchisee owners as opposed to the Fix Auto brand themselves. Profit margins are maximized as a result.

Major weaknesses to international expansion are the organizational structure and the command hierarchy. The current organizational structure does not allow for different socio-cultural standards and adaptations for the different regions.

According to the Canadian Business (2016) article, the “Canadian market is actually pretty much rolled up… The U.S., however, still represents a huge opportunity” (CB Staff, Para. 10). This is because unlike the Canadian Auto repair industry, the United States consists primarily of privately owned shops. Many of the shop owners are straining in the attempt to retain profit margins in the current economic environment, creating an opportunity for companies such as Fix Auto.

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Through buying out these individual shops, Fix Auto can continue to build its brand and its bargaining power with suppliers. This enables them to pass lower prices on to the customers, building a competitive advantage in the industry and increasing supply chain efficiency. Another opportunity that Fix Auto faces is the advancement of technology. Modern materials make the repair process more complex and expensive, creating an opportunity for established brands such as Fix Auto. The individual repair shops are increasingly unable to compete with established brands such as Fix Auto, and this contributes to the competitive advantage that Fix Auto could potentially establish.

Threats to the Auto Repair industry include government policy, technological advancements and economic struggles. Carbon taxes and public transit spending encourage people to switch to alternate methods of transportation. Fewer drivers means less collisions to repair. Driver error is reduced through new computerization and detection systems. If auto repair companies do not adapt, they lose competitive advantage over companies that do. Finally, fewer people can afford to operate a vehicle in the current economic climate.

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Focal Issue

The organizational structure of Fix Auto is the primary issue in that it does not accommodate the varying regions of the world. They have one division and a ‘cookie cutter’ approach that works in Canada, but may not be as effective in other countries such as the United States and many parts of Europe. The current organizational structure of Fix Auto is functional with divisions based on the acquisition of Prime CarCare Group, a parent company to 142 franchise locations under a variety of different brands (“Fix Auto to Acquire”, 2016, Para. 1,4; “Fix Auto Canada”, 2016, Para. 1, 3).

Regional Implications

Fix Auto’s current organizational structure is inefficient through their bureaucratic controls and the standardization of rules and operating procedures. A set of guidelines that works in Canada will not work elsewhere. European cities for example, are historically different than North American cities. The rich aristocratic citizens who can afford vehicles, live in different areas of the city. In the United States, the prestigious communities tend to be found in the suburbs, whereas in Europe, the city centers are where you find the wealthy. On top of that, in the United States, the automobile has encouraged people to spread into the outskirts through the diminishing attractiveness of the center for communal activities (Melosi, n.d. Para. 5). Rather than having the North American driving culture, more densely populated regions of the globe rely heavily on public transport, cycling, and walking. This means that the same organizational structure cannot be used effectively worldwide to maximize the global market.

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Legal / Trade Implications

Fix Auto operates in a manner that follows Canadian legislative guidelines which varies by national region. The global presence of Fix Auto creates an inefficiency through the requirement to comply to the laws of several differing countries. Each country has its own unique labour standards, competition regulation, licensing processes and tax codes. 

In addition to internal legislation, each country has foreign policy regarding the importation of auto parts. The North American Free Trade Agreement (NAFTA) and the European Union (EU) reduce trade restrictions and tariffs within their respective regions; however, trade between EU and NAFTA countries still have tariffs and taxes. Fix Auto operates in both regions, creating an inefficiency in regards to importing parts for foreign cars. In Europe, taxes are placed on North American car parts and vice versa. The current organizational structure does not effectively take advantage of the trade agreements because Fix Auto is expanding worldwide instead of improving domestic operations in each region.

The national boundaries of Canada are not a confinement for competition guidelines (“Competition Law”, 2013, Role of International Cooperation. Para. 1). Many countries worldwide have slightly different legislation regarding the prevention of monopolies. Due to the rapid expansion of the Fix Auto franchise, they are subject to regulations found in the Canadian Competition Act such as: “the Tribunal shall not find that a merger or proposed merger prevents or lessens, or is likely to prevent or lessen, competition substantially solely on the basis of evidence of concentration or market share” (Canadian Competition, Sec. 92(2)). The Competition Act ensures that monopolies do not occur through expansion, merger or sale of a company. An example of the Competition Bureau becoming involved with the enforcement of competition regulation occurred in 2013, when Sobeys acquired Safeway and was forced to sell 23 of their locations to meet competition requirements (“Competition Bureau Statement”, 2013, Para. 2). Fix Auto needs to meet similar obligations in regards to their expansion.

Wrong Expansion Objectives

While Fix Auto now has expanded operations into Australia and South Africa, (“Fix Auto Launching”, 2016, Para. 1; “Fix Auto South”, 2016, Para. 2) they are far from completely developing the North American market. Even in Canada, Fix Auto operates no locations in many provinces and territories such as Manitoba and Saskatchewan. On top of this, they are failing to test markets before entering. Fix Auto risks following in the failed footsteps of Target, in that they are moving into new markets with more investment than would be advisable (Dahlhoff, 2015, Para. 5)

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Solutions

There are two feasible solutions to the inefficiencies that Fix Auto is experiencing as a result of their uncontrolled global expansion. 

The first solution for Fix Auto should be to divide its organizational structure into regions. Independent management for different regions rather than worldwide control in Montreal. Organizations with strategy based on region tend to perform more efficiently and effectively than global orientated strategies (Ghemawat, 2005, Para. 2). Fix Auto should adopt a hub strategy, where they open regional offices and operate the regions like individual companies (Ghemawat, 2005, the Hub Strategy.). Locations in European should report to a separate European administration instead of the one based in Montreal. This allows the European operations of the company to operate more efficiently because Fix Auto would be able to employ regional presidents who know the local legislation of the country or region. Larger countries such as Canada and the United States should also be divided into regions. The United States could be divided into three regions (Pacific, Midwest, and Atlantic) with potential hubs in San Diego, Omaha and Atlanta. Similarly, they should divide Canada into regions (East and West) with potential hubs in Calgary and the existing one in Montreal. 

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Fix Auto should slow expansion into new countries and paying unnecessary premiums when there is still room to expand in existing markets. It is mentioned earlier that there are no locations in Saskatchewan, Manitoba and much of their target market in the United States. Fix Auto needs to focus on their primary objective of becoming the North American auto body repair chain. Fix Auto is experiencing overexpansion. “Overexpansion often occurs when business owners confuse success with how fast they can expand their business” (Schaefer, 2006, Overexpansion. Para. 1). In a 2005 study done by the Law School at the University of Chicago, it was found that of the Chapter 11 Small Business Bankruptcies issued in the United States, overexpansion contributed to a “non-trivial” (Baird & Morrison, 2005, Pg. 7, Para. 1) number of cases. The best method for expansion is steadily and to move to new countries one at a time. (Schaefer, 2006, Overexpansion. Para. 1). Fix Auto should capitalize on their existing regions such as the United States, Canada, and the United Kingdom before moving into new markets such as Australia, South Africa and Turkey. 

If Fix Auto desires to maximize corporate efficiency, they need to begin operating the differing regions as separate divisions with unique management and hubs. This way, each region is able to have expertise in local legislation and cultural standards. They need to implement regional strategies, offices, and management before opening branches in new countries and global regions.

In conclusion, while Fix Auto is rapidly expanding into new regions, their organizational structure fails to accommodate for regional differences and as a result, there are inefficiencies in the company. 

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Bibliography

Baird, D. G., & Morrison, E. R. (2005, January 4). Serial Entrepreneurs and Small Business Bankruptcies. Retrieved November 30, 2016, from http://www.law.uchicago.edu/files/files/236.dgb-em.serial-bankruptcies.pdf?

Canadian Competition Act, R.S., 1985, c. 19 (2nd Supp.), s. 45; 1999, c. 2, s. 37. Retrieved from http://laws-lois.justice.gc.ca/eng/acts/c-34/page-25.html#h-40

CB Staff, (2016, May 24). Inside the race to consolidate the auto-collision repair business. Retrieved November 23, 2016, from http://www.canadianbusiness.com/innovation/inside-the-race-to-consolidate-the-auto-collision-repair-business/ 

Competition Bureau Statement regarding the Proposed Acquisition by Sobeys of Substantially all of the Assets of Canada Safeway. (2013, October 22). Retrieved November 30, 2016, from http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03619.html

Competition Law in a Global and Innovative Economy — A Canadian Perspective. (2013, November 21). Retrieved November 30, 2016, from http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03631.html

Dahlhoff, D. (2015, January 20). Why Target’s Canadian Expansion Failed. Retrieved November 30, 2016, from https://hbr.org/2015/01/why-targets-canadian-expansion-failed

FIX AUTO CANADA ACQUIRES PRIME CARCARE GROUP. (2016, May 6). Retrieved November 25, 2016, from https://fixauto.com/ca-bc/en/news/FIX_AUTO_CANADA_ACQUIRES_PRIME_CARCARE_GROUP

Fix Auto Launching Collision Repair Network in Australia – CollisionWeek. (2016, August 03). Retrieved November 30, 2016, from https://www.collisionweek.com/2016/08/03/fix-auto-launching-collision-repair-network-australia/

Fix Auto South Africa Appointment Announcement. (2016, August 3). Retrieved November 30, 2016, from https://fixauto.com/za/en/news/FIX_AUTO_SOUTH_AFRICA_APPOINTMENT_ANNOUNCEMENT

Fix Auto to acquire Prime CarCare Group. (2016, May 6). Retrieved November 25, 2016, from http://www.collisionrepairmag.com/news/18247-fix-auto-to-acquire-prime-carcare-group

Ghemawat, P. (2005). Regional Strategies for Global Leadership. Retrieved November 30, 2016, from https://hbr.org/2005/12/regional-strategies-for-global-leadership

Green Line – Vision. (n.d.). Retrieved November 24, 2016, from http://www.calgary.ca/Transportation/TI/Pages/Transit-projects/Green-line/vision.aspx

Mccarthy, S., & Leblanc, D. (2016, October 03). Liberal government’s carbon tax plan provokes anger from provinces. Retrieved November 24, 2016, from http://www.theglobeandmail.com/news/politics/liberals-to-set-carbon-price-at-10-a-tonne-in-2018-rising-to-50-by-2022/article32206937/

Melosi, M. V. (n.d.). The Automobile Shapes The City: From“Walking Cities”to“Automobile Cities”. Retrieved November 25, 2016, from http://www.autolife.umd.umich.edu/Environment/E_Casestudy/E_casestudy3.htm

Schaefer, P. (2006). The Seven Pitfalls of Business Failure and how to Avoid Them. Retrieved November 30, 2016, from http://indy-biz.com/danpdf/dlArt89.pdf

Alternative Politics: The Polarization Effect

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Written by Timothy J. Tetreault on April 7, 2017 – Mount Royal University

Introduction

Cable television and broadcast radio have long been powerful outlets for communicating political ideas. But in the Facebook era, has it gone too far? Media has been used by leaders in the past to promote communist ideologies, fascist ones and everything in between. Media has a way of controlling and convincing people. News outlets are able to alter and manipulate facts in order to better fit their agenda. It is as simple as taking speeches out of context and placing pieces together in order to convince audiences of an untruthful coverage of events. (Reese, 1996)

One way of accomplishing this is by editing a speech and subjecting the audience to what the media wants them to hear. You can have the exact same speech covered by two different outlets and one will make the politician out to be a saviour while the other will make him out to be satan himself. The recent United States election brought these issues to the forefront and highlighted the worst in both Democrats and Republicans. President Donald Trump reiterated, time and time again that the divisions in society were caused in large part by the ‘fake news’ outlets that inaccurately covered his campaign. (Carson, 2017).

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Conflict’s Impact on Media

Perhaps the very reason that Donald Trump’s victory was a surprise for so many people was largely in part that his campaign was inaccurately covered by outlets such as CNN, MSNBC and even at times, Fox News. 

Trump was able to collect just under $5 Billion in free campaign coverage (Miere, 2016) because the news stations care less about the political situation and more about their bottom lines. When conflict occurs, revenues and viewership soares. The 2016 Election campaign – to the media – was a blessing. And Donald Trump rode their coverage to the White House. 

The media is able to encourage polarization through those already further from the political center (Levendusky, n.d.). These people become passionate in their views and hatred toward opposing ideas is fostered and conflicts occur.

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The fact is that the mainstream media, right and left, could not get enough of the Republican nominee. Every controversial thing he said, regardless of how ridiculous it was got covered by the media. Primetime viewership for many of the major cable news networks was increased by up to 50% compared with previous years. In addition to this, the middle age demographic has increased 55% during the election campaign. (Berg, 2016, para. 4) The 2016 revenues for the mainstream outlets has increased an average of 15% when compared to the year before. (Berg, 2016, para. 5). The inadequacies of the candidates were played up by the mainstream media in order to create drama and ensure that there was always a story to cover. The tech generation cared more about the personal details of the candidates than about the actual policy proposed. Trending stories were often lacking in rational substance, and shared for emotional reasons. (Carr, 2015)

When Trump attacks the media, they still have no choice but to cover him. Otherwise the media would lose their ratings, viewership, and ultimately profit margins. A BBC interview with Allen Montgomery – administrator of the National Report – stated that they “have made $10,000” on certain stories. He admitted to altering content when “thousands of dollars are made per story.” (Trending, 2016)

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Social Media’s Impact

In addition to the mainstream media’s untruthful and often incomplete coverage of important events, social media has had a significant impact in the roles of politicians. There is no doubt that social media has the capability for candidates to reach their target demographics cheaply and effectively. President Obama was the first American president to use social media to help his campaign, and his “Ask me Anything” thread quickly became the most popular thread on Reddit (Green, 2015). This is largely because Obama was able to engage his primary target demographic: millennials. Millennials account for a sizable portion of the total voter base, and therefore are important targets. Social media is the easiest way to engage them. In a 2012 study completed by the Harvard Kennedy School’s Shorenstein Center on Media and Public Policy, they found that Facebook has a significant impact on the voting patterns of millennials. To be precise, Facebook had an impact of 340,000 votes among undecided millennial voters. (Wihbey, 2016) Of the millennial vote, over one third reported reading an article on social media that would influence their vote according to Ipsos Mori, a European market research firm (A third, 2017).

Social media has its detriments, though, as it allows anybody to like, share and engage users in content development which can lead to fringe news sources such as Breitbart, Infowars and Occupy Democrats that are able to easily share biased, untruthful content to any specific demographic of users (Tan, 2017). The issue is that among the younger generations: Millennials, Generation Z and to an extent, Generation X, the most common source of news is Facebook, Twitter or Google. These generations rely less on traditional sources, and more on digital ones. This allows untruthful news easily to be spread and shared to a large number of people (Marchi, 2012).

Human beings are instinctively vulnerable to routine. There is a comfort in knowing that nothing can contest or contradict an ideology. There is a complex set of socio-cultural,  intellectual and economic biases that can interfere with the ability to accept opposing ideas. People instinctively trust friends and are more likely to follow links shared online by their circles (Menczer, 2016). This quality about humans means that echo chambers are able to form and polarization occurs between right and left sides of the spectrum. Views become black and white as opposed to shades of grey. (Overly, 2016)

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In 1969, Paul Baran – an awarded internet pioneer – predicted in his paper On the Impact of New Communications Media Upon Social Values that as more specialized channels exist in a medium, the more users are able to isolate themselves and believe their own truths. He predicted that the truth is skewed into different groups, each with a differing idea of the truth. Baran writes that acceptance of differing opinions is fundamentally what democracy is built upon, and there is a serious threat presented in these alternate truths (Novak, 2013).

Conclusion

The media is powerful tool, that if utilized effectively by politicans, strong and rallying messages can be communicated easily. It is essential to the election campaigns of leaders, but without moderation can overstep boundaries. The digital mainstream media has done just this and profits often trump truthfulness. The media is a modern neccessity, but in the post-truth era, it is often the number of likes or shares that can re-enforce validity. Stories are shared based on emotional connections as opposed to rationality and this opens the door for fringe sites and echochambers to rise up where views are not challenged. Isn’t failure to challenge ideas the fundamental principle of dictatorships?

Isn’t failure to challenge ideas the fundamental principle of dictatorships?

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Bibliography

A third of young people think social media will influence their vote. (2017, April 04). Retrieved April 04, 2017, from https://www.ipsos-mori.com/researchpublications/researcharchive/3539/A-third-of-young-people-think-social-media-will-influence-their-vote.aspx#gallery[m]/1/

Berg, M. (2016, November 11). Donald Trump May Hate The Media, But They Are Both Winners This Election. Retrieved April 03, 2017, from https://www.forbes.com/sites/maddieberg/2016/11/10/donald-trump-may-hate-the-media-but-they-won-with-him/#4a70c94845c7

Carr, N., Rondón, A. M., Lund, A., & Heffernan, V. (2015). How Social Media Is Ruining Politics. Retrieved April 05, 2017, from http://www.politico.com/magazine/story/2015/09/2016-election-social-media-ruining-politics-213104


Carson, J. (2017, February 08). What is fake news? Its origins and how it grew in 2016. Retrieved April 06, 2017, from http://www.telegraph.co.uk/technology/0/fake-news-origins-grew-2016/

Green, R. K. (2015, November 16). The Game Changer: Social Media and the 2016 Presidential Election. Retrieved April 04, 2017, from http://www.huffingtonpost.com/r-kay-green/the-game-changer-social-m_b_8568432.htm

Levendusky, M. S. (n.d.). Why Do Partisan Media Polarize Viewers? Retrieved April 4, 2017, from http://sites.sas.upenn.edu/mleven/files/polarization_ajps.pdf

Marchi, R., PhD. (2012). With Facebook, Blogs, and Fake News, Teens Reject Journalistic “Objectivity”. Retrieved April 5, 2017, from https://eclass.uoa.gr/modules/document/file.php/MEDIA279/Social%20Media/With%20Facebook,%20Blogs,%20and%20Fake%20News,%20Teens%20Reject%20Journalistic%20%E2%80%9CObjectivity%E2%80%9D.pdf

Menczer, F. (2016, November 28). Fake Online News Spreads Through Social Echo Chambers. Retrieved April 04, 2017, from https://www.scientificamerican.com/article/fake-online-news-spreads-through-social-echo-chambers/

Miere, J. L. (2016, November 09). Did The Media Help Donald Trump Win? $5 Billion In Free Advertising Given To President-Elect. Retrieved April 05, 2017, from http://www.ibtimes.com/did-media-help-donald-trump-win-5-billion-free-advertising-given-president-elect-2444115

Novak, M. (2013, April 05). TV Will Tear Us Apart: The Future of Political Polarization in American Media. Retrieved April 04, 2017, from http://www.smithsonianmag.com/history/tv-will-tear-us-apart-the-future-of-political-polarization-in-american-media-16010171/

Overly, S. (2016, November 07). Your political posts on social media are actually changing minds – sometimes. Retrieved April 05, 2017, from https://www.washingtonpost.com/news/innovations/wp/2016/11/07/your-political-posts-on-social-media-are-actually-changing-minds-sometimes-2/

Reese, S. D., & Shoemaker, P. J. (1996). Mediating the Message. Retrieved April 5, 2017, from https://journalism.utexas.edu/sites/default/files/sites/journalism.utexas.edu/files/attachments/reese/mediating-the-message.pdf

Tan, E. E., & Ang, B. (2017, February 9). Clickbait: Fake News and the Role of the State. Retrieved April 5, 2017, from https://www.rsis.edu.sg/wp-content/uploads/2017/02/CO17026.pdf

Trending, B. (2016, November 06). The rise and rise of fake news. Retrieved April 05, 2017, from http://www.bbc.com/news/blogs-trending-37846860

Wihbey, J. (2016, October 27). Facebook experiment in social influence and political mobilization. Retrieved April 04, 2017, from https://journalistsresource.org/studies/politics/digital-democracy/facebook-61-million-person-experiment-social-influence-political-mobilization

Canada: First Past the Post – A Case for Status Quo

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Written by Timothy J. Tetreault on September 15, 2019 (Mount Royal University)


Introduction

Is Canada’s political system in need of change? Every election cycle, the losing party complains about the current ‘first past the post’ system. They complain that the election was lost because of election bias, where the winning party is over-represented in the House of Commons, and the losing party is often under-represented. The current system allows for majority governments to be formed, even with a lower than opposition popular vote count. Supporters of this electoral system would argue that it gives power to people whose vote would otherwise not count. (Brodie, 2017)

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The current Canadian system is a single member plurality (SMP), one which is designed to manufacture majority governments. Majority governments are more effective at passing legislation because the focus is primarily on majority groups, and legislation is able to quickly and efficiently be passed. The system is designed to be a winner-take-all approach to the individual constituencies across the country. (Norris, 1997, pp. 3 para. 1)

The seats in the House of Commons are awarded to the winner of each of the 338 constituencies. This assures that each region of Canada has input into the decisions made in Ottawa. For example, a riding in Nunavut will have as much influence in the House of Commons as one from Vancouver. 

Proportional Representation Advocates

Opponents to the current SMP system argue that manufactured majority governments are undemocratic and the elected representatives may not properly reflect the values held by the majority. Their theory is that proportional representation (PR) is a more democratic option. Proportional representation is a system in which seats are divided according to the percentage of overall party votes. This would mean that majority governments would be extremely unlikely, if not impossible in Canada because a 50% vote is required for a majority under this system. Supporters of PR would argue that manufactured majority governments prevent democracy because they overcompensate the winner and undercompensate the losing parties. For example, in the 2015 Canadian federal election the Liberals won a majority (54%) with only 39.5% of the vote. The Green Party received 3.5% of the vote, but only received 0.3% of the seats. (CBC, 2015; Nicula, 2014)

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Improved Representation From SMP

Canada does not need to change electoral systems and doing so will result in alienation of minority groups and provinces with lower populations. The current system allows the rural, isolated people of Canada to have more of an impact on the political decisions of the country. A revised system based on population or majority will hand the power entirely to those who live in the cities. This is due simply to the population of the cities compared to the rural areas. If the pluralist electoral system is abandoned, then the northern territories as well as possibly PEI could lost political power and influence in Ottawa (Monroe, 2002).

Benefits of Majority Governments

In addition, the election bias could be a positive thing for the political process in that it makes relatively frequent majority parties. Majority parties are more easily able to pass legislation and bills do get passed more quickly. Simply put, majority governments tend to be efficient since legislation proposed is nearly always passed regardless of opposition from other parties. Party discipline ensures that elected representatives remain loyal to their caucus leader and the their voters. As a result — unlike the US — elected representatives remain loyal to their leader and vote in favour of legislation proposed by their party (Chodos, 2006).

Minority government parties are constantly under threat from opposition. The leading party is often cautious in proposing legislation because the opposition parties can strike down a bill if they collaborate. Under the constant threat of a non-confidence vote, the leading party may have difficulty providing good leadership since their concern includes their public image. Policy is often abandoned in favour of ensuring the party survives its term in office.

“Policy is often abandoned in favour of ensuring the party survives its term in office.”

Accountability of the leading minority party is lost due to the unstable foundation upon which they are built. Minority parties are cautious introducing revolutionary or controversial bills independently. Omnibus bills are commonly used instead. These bundle policies together and include the desired bill along with other clauses that opposition parties support. Since it is an all-or-nothing vote, the leading party is able to still pass their legislation (Massicotte, 2017). Majority governments would not need to ‘hide’ legislation in an omnibus bill in order to get it passed and as a result, government transparency and accountability can be better achieved. 

Governance Through Coalitions

Majority governments also prevent coalitions from forming. Coalitions tend to reduce transparency in government in addition to the potential dangers of alliances and factions. The coalitions can lead to lies, deceit, mistrust and a general shadiness of the political parties. Leaders of these parties align themselves to the ideas of the other parties and occasionally go against their own policies. Coalitions will support a bill one time, and oppose a similar one the next. When parties work together in government, often it is for political interests, as opposed to public interests. In minority governments, parties need to win support of another party to pass any bill. This often means compromising and negotiating which could change the bill to not align to the party’s platform. 

“Coalitions can lead to lies, deceit, mistrust, and a general shadiness of the political parties”

For this reason, minority governments could also be less democratic than majority governments. With majority governments, bills can be more freely passed and backstabbing of other parties is less frequent. Minority governments are also commonly much more unstable than majority ones because in order to be successful, they depend on support of other parties.

An example of how coalition governments could be unstable and potentially dangerous is the 2016 Israeli government coalition which saw the parties: Likud, United Torah Judaism, Shas, Kulanu and the Jewish Home unite to obtain 61 of the 120 seats in Knesset (Assembly). This coalition deal was secured by the Israeli Prime Minister, Binyamin Netanyahu, and is described by the Guardian as the “most rightwing nationalist government in the country’s history” (Beaumont, 2016).

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The coalition saw five of the largest conservative parties come together and dominate the government. Many of the ministers in the new government have been replaced by ultra-nationalist and controversial leaders such as Avigdor Lieberman (Chief of Staff under Coalition)(Beaumont, 2016) This lays the foundation for the most recent coalition crisis in which the prime minister declared the Israel Broadcasting Authority be shut down. Moshe Kahlon, the finance minister and leader of one of the other major coalition parties believed that the authority be allowed to operate as planned. This disagreement led to speculation that the coalition could fall apart (Hoffman, 2017; Jazeera, 2017). These coalitions can grind the government to a halt and lack the foundation found in majority governments.

Conclusion

Manufactured majority governments are a positive thing because they ensure efficiency, transparency and strength in government.

The SMP system serves Canada well, despite the controversy that surrounds the overcompensation of the winner and penalization of the losing party. Rural areas and those of lower populations have more influence in Ottawa under the current system, and a proportional representation system will hand political influence to cities and urban centers.

Canada simply does not need to change its electoral system.

Bibliography

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