Annual Report on Forced Labour and Child Labour in Supply Chains

This report has been prepared in accordance with the Fighting Against Forced Labour and Child Labour in Supply Chains Act. It outlines the policies and procedures that the Koch Automotive Group has implemented and will continue to implement to ensure that neither forced labour nor child labour occurs within its business operations or supply chain. The Koch Automotive Group includes Koch Ford Lincoln Sales (2003) Ltd., D K Ford Sales Ltd., and Koch Ford Sales (Athabasca) Ltd.

Organizational structure, activities, and supply chains

Koch Automotive Group was founded with the establishment of DK Ford more than 30 years ago in Leduc, Alberta. Since then, we have expanded to include three automotive dealerships located in Edmonton, Leduc, and Athabasca.

Our services include the sales of new and used vehicles, financing options, as well as vehicle parts and services. We take pride in being a family-owned and operated business, with various members of the Koch family actively involved in ownership and operations across our dealerships. Additionally, we are privileged to have Greg Kociuba as an external partner and co-owner/operator of Koch Ford Athabasca.

Policies and due diligence processes in relation to forced labour and child labour

We are firmly committed to preventing underage employment at all our locations. To ensure compliance, we conduct thorough background checks for all prospective employees and require a copy of their photo ID. No underage individuals are hired at our company. Additionally, our management team is trained to recognize signs of forced labor and to report any suspicions immediately.

We prioritize supporting local businesses; we primarily source parts, supplies, and services from Canadian suppliers and companies. This practice helps prevent the involvement of overseas enterprises that might engage in forced or child labor from entering our supply chain.

We adhere to strict vetting procedures for new vendors, diligently researching their backgrounds to ensure they are not involved in any unethical practices, including the use of forced or child labor.

Parts of the business and supply chains that carry a risk of forced labour or child labour being used and the steps it has taken to assess and manage that risk

A significant risk area within our business regarding potential involvement in forced or child labor lies in our parts and vehicle supply chain. However, the likelihood that our company directly employs forced or child labor is extremely low.

To mitigate this risk in the supply chain, we have secured assurances from Ford of Canada, our principal supplier of vehicles and parts, that they do not engage in forced or child labor in their manufacturing processes.

Measures taken to remediate any forced labour or child labour

Should it come to our attention that our company has been inadvertently involved in forced or child labor, we will take immediate action by reporting the incident to the appropriate authorities and offering compensation to the affected individuals. We recognize that no amount of compensation can fully remedy these violations.

Additionally, we will collaborate with both the authorities and the affected individuals to ensure that appropriate measures are implemented to prevent the recurrence of similar incidents or violations.

As of the date of this report (April, 17th, 20024), we have not identified or been implicated in any instances of such labor, and consequently, have not had to take any remedial actions.

Measures taken to remediate the loss of income to the most vulnerable families that results from any measure taken to eliminate the use of forced labour or child labour in its activities and supply chains

Should we discover any forced or child labor in our supply chain that is directly linked to our business activities, and if the necessary elimination of this labor could potentially result in financial hardship for less privileged families, we are dedicated to taking responsible actions. We commit to collaborating with the affected individuals and authorities to determine compensation and provide a line of support for these families.

Training provided to employees on forced labour and child labour

We actively encourage staff and management to remain informed about the latest literature, guidelines, and recommendations related to forced and child labor. We emphasize management training as a key component, as our managers are in the best position to detect unethical practices within our operations.

Our team relies on and utilizes resources from Public Safety Canada, which are continuously updated with the latest guidelines and recommendations. These resources can be accessed through the following link: Resources (publicsafety.gc.ca) 

How we assess our effectiveness in ensuring that forced labour and child labour are not being used in our business and supply chains

Our management team regularly discusses potential risks of forced and child labor within our auto group. We proactively identify and evaluate areas where these unethical practices might potentially occur. If any such incident or risk is identified, we conduct thorough investigations to confirm whether forced or child labor has indeed occurred.

We are proud to report that, as of today (April 17, 2024), no instances of forced or child labor have been identified within our operations or supply chain. However, we acknowledge the potential vulnerabilities in our operations that could be exploited for such unethical practices. Through continuously monitoring our operations and supply chain, we can ensure that these unethical practices do not become part of our business.

Approval of report

This statement has been reviewed and formally approved by the directors of Koch Ford Lincoln Sales (2003) Ltd., D K Ford Sales Ltd., and Koch Ford Sales (Athabasca) Ltd.