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
SOURCE: Koskie Minsky LLP
For further information:
For further information or a copy of the Statement of Claim, please contact Koskie Minsky LLP, counsel for the employees and retirees at 1.855.595.2624 or firstname.lastname@example.org.
For media inquiries, please contact Andrew J. Hatnay at email@example.com.