CAW let down
Ontario court rules against severance package

Dane Gibson
Northern News Services

Yellowknife (Nov 19/99) - An appeal may be in the cards for CAW Local 2304.

After waiting three months for Ontario Supreme Court Judge Farley to rule on a severance package, termination pay, and pension issues for former Giant mine workers, the union heard last Monday that they were getting nothing.

"If we got everything we feel we're entitled to, an employee who's been at Giant eight years or longer would be entitled to $100,000 or more," said CAW Local 2304 President Marc Danis.

"That said, over half of our members have worked at the mine more than eight years."

One of the main concerns to long-time employees was the pension issue. Danis said for members who were close to retiring, the ruling is especially difficult.

"We have a 30-year employee who was one-month away from retiring. If he got his pension, he would be entitled to between $1,800 and $2,000 a month," said Danis.

"From what I understand is happening, the pension is in the hands of the Department of Pensions. I suspect they'll collapse the fund, look at what each member is owed, and pay them 80 per cent of that."

Danis said when it's all said and done, he figures the 30-year employee will receive a cash payment somewhere in the neighbourhood of $30,000.

It's time now, he said, for Department of Indian Affairs and Northern Development (DIAND) Minister Bob Nault to get more involved.

"This ruling is a slap in the face," said Danis.

"I think DIAND and Minister Nault have to take a look at this and ask themselves what went wrong because the system failed the people it's supposed to protect."

In the meantime, CAW has been given 15 days to mount an appeal.

"Our lawyer at the CAW national office is looking into it and he'll make the final decision whether to appeal or not," said Danis.

In the court ruling that was handed down, Judge Farley agreed that former Giant owner Royal Oak Mines Inc. should be responsible to pay the employees, but because Royal Oak is bankrupt, that's not going to happen.

The receiver PricewaterhouseCoopers (PWC) "does not have any funding to make the requested payments," the ruling stated.

The ruling went on to say it was unfortunate "that the employees and many other creditors will likely not receive anything."

Judge Farley also ruled against the territorial government's claim that in a massive layoff situation, they are entitled to 12-weeks notice under the Labour Standards Act.

After hearing the news about the ruling, 19-year Giant employee Greg Bernard wants to know how something like this could happen.

"The receivers say it's not their problem, it's Royal Oak's problem," said Bernard.

"We know we're not getting anything from Royal Oak but somebody has to be responsible to get a severance package to us. If there's a territorial law that says we are entitled to 12-weeks, then that law should apply. As a government, it's up to them to represent us."

GNWT Finance Minister Charles Dent said the issue now resides in the hands of Minister of Justice Stephen Kakfwi. Kakfwi was travelling and unavailable for comment.