Wednesday, August 17, 2011

Laid off workers file $30 million class action

Following approximately 600 layoffs from an Oshawa plant (and 450 in Laval, and another 140 in Trois-Rivieres, though this story regards only the Ontario layoffs) without notice or pay in lieu thereof, a class action has been initiated against IQT Solutions seeking approximately thirty million dollars.

Class counsel suggests that the most difficult part will be collecting, as it does not appear that IQT has significant assets. This may be the case, but when the news story says that "the company had allegedly gone bankrupt", and I doubt the accuracy and bona fides of that: After the layoffs, IQT hit the news when the City of Nashville caught wind of the layoffs and cut off discussions for a $1.6 million incentive deal for the creation of 900 jobs in Nashville. Seems that the company wasn't planning to completely shut down operations at the time.

The case is interesting, though, because I'm not aware of any wrongful dismissal class actions having been certified to date. There was recently a failed attempt to certify a constructive dismissal class action in Kafka v. Allstate Insurance Company of Canada, though this case may be more easily compared to last year's Fulawka v. Bank of Nova Scotia, in which the Court certified a class action claim for overtime wages alleged to be owing.


This blog is not intended to, and does not, provide legal advice to any person in respect of any particular legal issue, and does not create a solicitor-client relationship with any readers, but rather provides general legal information. If you have a legal issue or possible legal issue, contact a lawyer.

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