[Canada] Union claims company owes workers $10m termination and severance pay

In Canada, the trade union Unifor has claimed that Ontario employer Wescast Industries and its owner, China-based Bohong Industries Group, owe 200 workers about $10 million in termination and severance pay and opted not to pay them, HR Reporter reports.

The union says the situation arose after the workers lost their jobs at the Wingham, Ontario, facility in July 2023. The workers represented by Unifor 402 became eligible for termination and severance pay in April 2024.

“This is not just a violation of laws and collective agreement language, it’s a complete betrayal of Wescast workers and their families who built this company over many decades,” Lana Payne - Unifor national president - said. “Basic labour standards are being trampled on in small-town Ontario by a corporation who clearly believes it can walk away from its obligations to workers and their families with impunity.”

Now, the union has reportedly called on the Ontario government for help. 

“As Wescast continues to demonstrate a lack of integrity and a lack of respect for the arbitration process, we are requesting a meeting with you as soon as possible to discuss this situation,” Ms Payne wrote in a letter addressed to Ontario Premier Doug Ford and David Piccini, minister of labour, immigration, training and skills development.

An arbitrator previously ruled that an Ontario worker was entitled to statutory termination pay and severance pay after her employment contract was frustrated by a pattern of absenteeism caused by multiple illnesses and an injury.

Unifor contends that Wescast Industries has a clear obligation to pay its members, however, the employer “continues to evade its responsibilities”.

Unifor reportedly requested urgent support from the Ontario Director of Employment Standards, Melissa Faber and the Ontario Ministry of Labour on April 17, 2024. In addition, the union reportedly held a public rally the following week at the facility urging the company to follow Ontario labour law and pay workers what they are owed.

“This is not just about one community or one group of workers,” Samia Hashi - Unifor Ontario Regional Director - said. “It’s about holding corporations accountable, especially those who think they can exploit Canadian workers without consequence.”

Previously, the Ontario Superior Court of Justice found unenforceable contracts stating that employers have the right to dismiss the employee “at any time” or in your “sole discretion”, providing that the employers give notice or severance.

Source: HR Reporter

(Quotes via original reporting)

In Canada, the trade union Unifor has claimed that Ontario employer Wescast Industries and its owner, China-based Bohong Industries Group, owe 200 workers about $10 million in termination and severance pay and opted not to pay them, HR Reporter reports.

The union says the situation arose after the workers lost their jobs at the Wingham, Ontario, facility in July 2023. The workers represented by Unifor 402 became eligible for termination and severance pay in April 2024.

“This is not just a violation of laws and collective agreement language, it’s a complete betrayal of Wescast workers and their families who built this company over many decades,” Lana Payne - Unifor national president - said. “Basic labour standards are being trampled on in small-town Ontario by a corporation who clearly believes it can walk away from its obligations to workers and their families with impunity.”

Now, the union has reportedly called on the Ontario government for help. 

“As Wescast continues to demonstrate a lack of integrity and a lack of respect for the arbitration process, we are requesting a meeting with you as soon as possible to discuss this situation,” Ms Payne wrote in a letter addressed to Ontario Premier Doug Ford and David Piccini, minister of labour, immigration, training and skills development.

An arbitrator previously ruled that an Ontario worker was entitled to statutory termination pay and severance pay after her employment contract was frustrated by a pattern of absenteeism caused by multiple illnesses and an injury.

Unifor contends that Wescast Industries has a clear obligation to pay its members, however, the employer “continues to evade its responsibilities”.

Unifor reportedly requested urgent support from the Ontario Director of Employment Standards, Melissa Faber and the Ontario Ministry of Labour on April 17, 2024. In addition, the union reportedly held a public rally the following week at the facility urging the company to follow Ontario labour law and pay workers what they are owed.

“This is not just about one community or one group of workers,” Samia Hashi - Unifor Ontario Regional Director - said. “It’s about holding corporations accountable, especially those who think they can exploit Canadian workers without consequence.”

Previously, the Ontario Superior Court of Justice found unenforceable contracts stating that employers have the right to dismiss the employee “at any time” or in your “sole discretion”, providing that the employers give notice or severance.

Source: HR Reporter

(Quotes via original reporting)