Laid-off Liverpool call centre employees due $200,000 in back pay, Labour officials say

A company that operates a call centre in Liverpool has been ordered to pay almost $200,000 to 69 former employees it laid off last March.

In a May 1 order by Nova Scotia’s Labour Standards Division, Global Empire Corporation must pay the laid-off workers a total of $193,115.04.

That’s because the company failed to give proper notice, as outlined under Nova Scotia’s Labour Standards Code.

In a mass layoff of 10 to 99 employees, a company must give at least eight weeks’ notice, or pay instead of notice. 

The decision amounts to pay of five weeks and one day for most laid-off workers. Two are entitled to five weeks and two days’ pay.

• Read the Labour Standards decision here

According to the reasons accompanying the order, Global Empire terminated 74 people on March 15, 2024, three weeks after it issued layoff notices on Feb. 26, and before the original termination date of April 19.

Debra Lalonde-MacDonald, who moved to the area a few years ago from Ontario, was one of those people who lost her job. She filed a complaint with the Nova Scotia Labour Standards Division shortly after the layoff. She provided QCCR with a copy of the decision.

Lalonde-MacDonald told QCCR this week that management assured employees that their jobs were secure, despite the February layoff notice.

“There was just an abundance of reassurance from our management that it was precautionary and that our jobs were very secure,” she said.

“For many, it was tragic, especially (those) who had moved from out of province to come here and work. For my personal situation, after three years of a local job search with valid skills and exhausting so many employers in the community, it was challenging. … Very disappointing news at that point in my life thinking of re-entering the job market that had closed its door repeatedly for three years.”

According to the decision by Labour Standards officer Kyle Barrie, the Liverpool call centre lost a contract with Lifeline Systems Company on March 1, 2024, which led to the job cuts. 

Lifeline, which provides medical alert services, claimed that Global Empire wasn’t fulfilling its obligations under the contract it signed in November 2021. 

Lifeline said the call centre failed in “providing guaranteed minimum number of agents per month, the minimum number of service hours, and meeting average speed of answer obligations.”

But according to Global Empire’s February layoff notice that was quoted in the Labour Standards ruling, it needed 130 employees to cover the Lifeline work and that it was never able to hire that many people.

“Unfortunately after many promises and failed attempts to provide our client the needed 130 employees, they no longer have faith in our hiring abilities and as such will be terminating their contract with us. We are a service provider for them, and we have not been able to provide them with the service.”

It also blamed minimum wage increases, a lack of affordable housing in Liverpool, and the provincial government for not following through on promised payroll rebates.

In the ruling, Labour Standards said Global Empire didn’t do enough to avoid the layoff.

”While (Global Empire) did take some steps to meet its obligations, such as posting ads online, going door to door, and hiring foreign workers already situated in Canada, I find it has not demonstrated on a balance of probabilities that it exercised sufficient due diligence to foresee and avoid the cause of the layoff,” Barrie wrote in his decision.

“(Global Empire) could have done more due diligence prior to entering into the service agreement of November 2021, to confirm whether it would be able to meet its staffing obligations.

“There was nothing sudden about the problems the (company) says prevented it from reaching the required staffing levels from the beginning of the service agreement with Lifeline Systems in 2021.

“In reviewing the evidence, I find the reason for the layoff was within the (company’s) control. Simply put, the (company) entered into an agreement it could not fulfill. Its failure to fulfill its responsibilities under the service agreement in 2024 cannot excuse its inability to fulfil its responsibilities from the end of 2021, through the beginning of 2022, and forward. I find the employees’ terminations were within the (company’s) control.”

For her part, Lalonde-MacDonald says she’s not celebrating yet. The company has 10 days to appeal the order to the province’s labour board. If it does, that would further delay a payout to laid-off employees.

“I’m hesitant to be elated about it,” she said.

“With the appeal process pending, only time will tell. Should they be able to collect that, it would be fantastic. That would be a relief for us all. It was hard news for us to receive for so many reasons. … I’d be happy to see that we have policy makers’ support to make sure that that money’s collected.”

Lalonde-MacDonald said it’s difficult to find a well-paying job in the area. And being properly compensated for the layoff would be a help. 

“Fourteen months later, … it’s just good to know that there’s protection but questionable on whether or not they’re going to be able to collect it.

“All we can do is hope that that order to pay is strong enough, so that the 69 of us that have been deemed entitled to our five weeks of pay in lieu of notice that we actually receive it.”

She said she’s upset that municipal and provincial governments didn’t provide more support to the former employees of Global Empire in Liverpool.

The Region of Queens signed a long-term lease with the company in December 2021 to move into the municipally owned Business Development Centre building. At the time, it was the company’s only Canadian location.

Before the layoffs, about 120 people worked at the call centre.

In early February 2024, the company wanted to renegotiate its lease with the region, saying it was using half the space it originally needed.

The region signed a new lease with the company on Feb. 1. It was approved by council in a closed-door session on Feb. 13.

The lease has never been made public.

Mayor Scott Christian said he’s not familiar with the terms of the lease, since it was signed before he was elected.

He said it’s “problematic” when employers in the community are found to have violated labour rules, but he said it doesn’t mean the region should impose its own values on one of its tenants.

“I think it’s too bad that that operation hasn’t been successful and that there have been layoffs and that they never really were able to stand up the labour force to be able to make that a vibrant and successful operation. I think that that is regrettable.”

The Department of Labour, Skills and Immigration would not comment on the ruling or say whether the company has appealed or honoured the order to pay back wages.

Neither the company nor its lawyer responded to requests for comment.

Email: rickconradqccr@gmail.com

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