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Nearly 100 auto parts workers represented by Toronto employment lawyer Stephen Moreau are suing their former employer for improper notice, lost wages and other alleged breaches in the 2015 plant closure of CTS of Canada Co.
The manufacturing plant, previously located in Mississauga, Ontario’s Streetsville neighbourhood, shut down to move operations to Mexico and sell the land to residential developers, according to a statement of claim in the certified class-action lawsuit.
Moreau, partner with Cavalluzzo LLP, says the initial sale of the land fell through. The company has since found a new property buyer, he says.
“People lost their jobs more than a year earlier than what may have been necessary — all for a property deal that just fell through,” he says.
The plaintiffs have brought a motion for summary judgment, seeking a final decision and avoiding a trial, Moreau says.
Severance letters came at Easter
According to the statement of claim, the employees received severance letters before the 2014 Easter holiday.
Among the many allegations, the statement of claim states the letters fail to advise the recipients of their right to resign during their statutory notice period and still collect the severance pay.
The claim also alleges the letters “treat the severance payment as an incentive payment to secure the class members’ ongoing employment, a fact confirmed by the 2015 documents and letters extending employment and rewarding continued employment to the separation date with additional lump sum payments.”
As well, the claim alleges the letters “fail to identify which part of the working notice period, if any, and which part of the payment payable after the separation date, if any, constitutes pay in lieu of severance pay.”
Labour ministry not notified
Further, the statement of claim alleges the defendants failed to notify the Ontario Ministry of Labour of the terminations, preventing the plaintiffs from accessing valuable retraining and career counselling services.
The employees were required to work overtime hours to prepare operations to be moved to Mexico, the statement of claim alleges. The workers trained their Mexican counterparts who arrived in the plant prior to its closure.
None of the allegations has been proven in court.
Moreau says the story of another auto plant closure is familiar in southern Ontario. He says, at the very least, the plaintiffs are entitled to what is required by law.
“These are employees who, in some cases, have spent decades working for CTS of Canada,” he says. “Everyone in these situations deserves reasonable notice and severance for their loyal service.”
