A Saskatoon based arbitrator has ruled that the Saskatchewan Transportation Company (STC), and by extension, the government of Saskatchewan, violated the Canadian Labour Code (CLC).
William Hood served as the arbitrator between STC and the Amalgamated Transit Union (ATU) Local 1374, and had passed down his ruling on April 27.
Hood said that STC should pay 95 former STC employees eight weeks and four days wages in rule for violating section 212 of the CLC. In short, that section dictates that an employer must give at least 16 weeks’ notice from the termination date if they intend on ending the employment of a group of 50 or more employees.
This eight week, four day period is to make up for lost wages and benefits that employees would have received if given the full 16 weeks.
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In addition to this, the ATU sought $500,000 in punitive damages for allegations that STC did not provide required notice, nor establish a joint planning committee to address the group termination of employees.
“While I question why the Employer would show up at the April 18, 2017 meeting to negotiate a new CBA when all the employees were in the process of being terminated, and refuse to talk about the closure, I am not convinced there is sufficient evidence of conduct warranting a punitive damages award against the Employer. I decline to award punitive damages,” Hood said in his ruling.
Despite finding not enough evidence to warrant half-a-million in damages, Hood still determined that STC violated section 214 of the CLC.
For this, Hood awarded the ATU $9,500 in damages, $100 for each affected employee.
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From a strictly operational perspective, STC no longer exists, but the company still exists on paper for the purposes of completing the wind down.
Crown Investments Corporation Minister Joe Hargrave said the province did get a legal opinion prior to ending STC operations and was advised they were not violating the labour code.
“We’re happy to finalize that and get that payment out to those people as soon as possible.”
The end of STC was announced in the province`s 2017-18 budget. The province said continuing to run the bus service would cost $85 million over the next five years.
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