A recycling plant in North York has been employing temp-workers for years at a low-wage and has been ordered to pay $1.33M in fines and back pay to workers.

Canada Fibers Ltd. has violated the City of Toronto’s fair wage policy after a two year investigation revealed they were paying workers below the agreed upon rates.

Canada Fibers has two, seven-year contract with the city to process blue bin recyclables, and within those contracts included that all employees, including temp workers, will be paid $12.34 an hour with pay increases tied to inflation. The contracts with the city are worth more than $264 million.

After a series of reports by The Star on a worker who had been working for years at minimum wage with the company, $11 an hour at the time, an investigation was launched in 2015 into the company which found that 1,600 workers were owed money due to low wages. The investigation was conducted over two years by the city’s Fair Wage Office. It also found that Canada Fibers uses 5 different temp agencies to staff their facilities. Now, Canada Fibers has agreed to pay approximately $1.2M in good faith payments to employees and a $135,000 administration fee to the City of Toronto.

Such an investigation highlights how important Bill 148 is to provide equal work for equal pay to temp agency workers and part time workers, as improvements are needed in the enforcement of this. Part time and temp workers who do the same work as their full time counterparts deserve the same treatment and pay.

Devry Smith Frank LLP is a full service law firm that has a very experienced group of lawyers within our employee and labour law groups. If you are in need of representation, please contact one of our lawyers today or call us directly at 416-449-1400.

By: Nicolas Di Nardo

“This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.”