TORONTO, Dec. 20, 2012 /CNW/ - On December 20, 2012, terminated Canadian employees and retirees of Shaw Canada L.P. filed a lawsuit against The Shaw Group Inc., an engineering multi-national based in Baton Rouge, Louisiana, and other related defendants, for wrongful dismissal and for payment of amounts owing to the Shaw Canada Pension Plan in the total amount of $39,249,810.
The lawsuit arises out of the mass termination of all employees of Shaw Canada in August 2012 and the abandonment by Shaw Group of the underfunded Shaw Canada Pension Plan.
The lawsuit alleges that Shaw Group is the common employer of the Canadian employees and is liable for severance pay owing to the employees. The lawsuit also alleges that Shaw Group is the administrator of the Shaw Canada Pension Plan and owes a fiduciary duty to the Shaw Plan members which it has breached. The Shaw Canada Pension Plan is underfunded by approximately $5.7 million.
The lawsuit also alleges that Shaw Group and the defendants acted in a manner that was oppressive to the Canadian employees and retirees, and that the defendants conspired to orchestrate the bankruptcy of Shaw Canada to evade paying severance pay and amounts owing to the Shaw Canada Pension Plan.
"Rather than winding down Shaw Canada in an orderly and responsible manner and providing prior notice to the employees that their employment would be terminated, the claim alleges that Shaw Group has not paid legal severance obligations owing to its Canadian employees and has not paid amounts owing to the Shaw Canada Pension Plan or its windup", said Andrew J. Hatnay, partner with Koskie Minsky LLP in Toronto who represents the Canadian employees and retirees.
A senior manager with Shaw Canada who is one of the terminated employees, says that "The employees have been attempting to resolve the payment of their severance pay with Shaw Group for months and have been stone-walled. We now have no choice but to seek a remedy in the courts".
SOURCE Koskie Minsky LLP