Canadian federal authorities are investigating the dismissal of Celadon’s Hyndman Transport workers, who could be entitled to a large payout depending on the outcome.
Employment and Social Development Canada is conducting a group termination investigation in connection with the Dec. 9 shutdown and dismissal of an estimated 400 workers at Hyndman Transport.
“It is unfortunate when Canadian workers and their families are affected by job losses,” ministry spokesperson Isabelle Maheu wrote in an email to FreightWaves on Dec. 24.
Ontario-based Hyndman shut down after Celadon filed for Chapter 11 bankruptcy in the United States. While drivers and other staff received their final paychecks, they have yet to receive severance and vacation pay owed under federal law.
Maheu declined to comment further on the probe. But the fact that the ministry is investigating it as a group dismissal could be significant for former Hyndman workers and costly for Celadon.
“This is an important first step,” said Sara Slinn, a professor at Osgoode Hall Law School at York University and Canadian labor law expert.
Under federal law, collective dismissals of 50 or more people require 16 weeks’ notice. An employer found to violate that could have to pay for 16 weeks of employment.
“That’s potentially a significant amount of money,” Slinn said.
How much ultimately can be collected is another question and may depend on the outcome of any bankruptcy proceedings. To date, Hyndman is only part of Chapter 11 proceedings in the United States along with Celadon and most of its subsidiaries.
A Canadian bankruptcy filing could make it easier for former Hyndman workers to collect any compensation they could be entitled to as a result of the investigation into their dismissal.
Meanwhile, the Ministry of Employment and Social Development also confirmed that former Hyndman personnel will remain ineligible for a federal program that compensates former workers who are still owed money from bankrupt firms.
Hyndman will need to file for bankruptcy in Canada or enter receivership in order for its former workers to be eligible for the Wage Earner Protection Program, Maheu said.
Rick Chesley, an attorney representing Celadon in the U.S. Chapter 11 proceedings, declined to comment on the investigation.
Lynne Frank
Please remember, the closing of Hyndman Transport in Canada affects Dozens of other employees, not just drivers,… mechanics, techs, yard help and office staff. The whole NAFTA and who’s to blame, which boarder,… goes out the window when a US company was allowed to buy up a mitt full of Canadian trucking companies in one shot,… only Hyndman’s made money. The way the whole thing went down, the way Celedon did their papers, Hyndman could not have been sold/rescued from their mismanagement, though there were one or two Canadian companies sniffing around to purchase.
Peter Turner
To all owner operators , lease operators and contract drivers.
This law applies to you.
If these companies do not have a trust account then they operating illegally in Ontario.
Since the government had refused to enforce it ,they now become liable for the money owe.
As states in the in act. All must be in compliant all rules and regulations.
Now I know that Ontario trucking association fought hard to have this removed,but I guess my research and actual facts back up what was the truth.
I fought a very dirty fight with powers to be to get this pass into law
Below is actual law.
Section Amendments with date in force (d/m/y)
2016, c. 5, Sched. 12, s. 8 – 01/07/2017
Contracts of carriage
191.0.1 (1) Every contract of carriage for a person to carry the goods of another person by commercial motor vehicle for compensation shall contain the information required by the regulations and shall be deemed to include the terms and conditions set out in the regulations. 2002, c. 18, Sched. P, s. 34.
Deemed terms where no contract of carriage
(2) Where a person is hired for compensation to carry the goods of another person by commercial motor vehicle in circumstances where no contract of carriage has been entered into, then a contract of carriage shall be deemed to have been entered into, and the terms and conditions of the deemed contract of carriage shall be as set out in, and shall apply to such persons as are set out in, the regulations. 2002, c. 18, Sched. P, s. 34.
Money for contract of carriage held in trust
(3) A person who arranges with an operator to carry the goods of another person, for compensation and by commercial motor vehicle, shall hold any money received from the consignor or consignee of the goods in respect of the compensation owed to the operator in a trust account in trust for the operator until the money is paid to the operator. 2002, c. 18, Sched. P, s. 34; 2015, c. 27, Sched. 7, s. 24 (1).
Other rights unaffected
(4) Nothing in subsection (3) derogates from the contractual or other legal rights of the consignor, the consignee, the operator or the person who arranged for the carriage of the goods with respect to the money that is held in trust under that subsection. 2002, c. 18, Sched. P, s. 34; 2015, c. 27, Sched. 7, s. 24
Lloyd Smith
Personally I’m not worried about Canada or Mexico trucking companies. All they have done is take jobs from Americans and lowered the frieght rates. Fuel was 79 cents gallon before NAFTA. Now you are seeing Mexican trucking companies on our interstate hiways. Hell even celedon had Mexican base plates on many of their trucks. Celedon earned it.
Arnulfo
You’re absolutely correct. The American companies can’t compete with those truck companies that employ B1 drivers. They pay them way cheaper rates per mile and are able to under bid the American companies, not only that they’re using loopholes to not running how they were originally suppose to run. The bad part of it all is not only are they taking the jobs , the money they’re are making doesn’t stay here to help our economy. That money goes into Mexico and it needs to be stopped
Stephen Webster
You are right we need to set a minimum wage while I n U S soil and under the new free trade agreement. In 2005 the federal government in Canada tried to set minimum wage rates while on Canadian soil three u s trucking companies including Celadon and a large car manufacturing company said they would sue our government under NA F T A . O T R truck drivers should make 1.9 times the minimum wage plus overtime after 10 hours per day and double time after 14 hours per day. Three Canadian trucking companies were told if they all set the same detention rates that they could be fined.
Stephen Webster
It is very hard to get money owed I’m Canada unless you have a good lawyer. I worked for R S B put of Saskatoon and took them to Court on the second court date my lawyer did not show up. My truck was damage in a accident that was not my fault. I was hit from behind both their adjuster and the company ripped me off almost 5 years ago. You drivers to get good legal help NOW . The trucking companies are better off than the truck drivers. In some cases the government has issued fines and ordered payments mainly in Quebec from what I understand
Peter Turner
You need to contact me 613 831 1332
[email protected]