Released on July 26, 2011
As many as 16 former employees of a Saskatchewan company that went out of business will receive most of the wages owing to them thanks to the Labour Standards Division of the Ministry of Labour Relations and Workplace Safety.
The Collection Unit at Labour Standards was able to help the employees access the Wage Earner Protection Program (WEPP), a federal program that provides lost wages to employees of companies that have entered bankruptcy or receivership. To date, 13 of the employees have received payments. Labour Standards expects that approximately $40,000 of $62,000 in unpaid wages will be paid through WEPP.
"We are not aware of any other provincial Labour Standards office in Canada that has used bankruptcy processes to assist former employees in recovering lost wages," Minister responsible for Labour Relations and Workplace Safety Don Morgan said. "The team at Labour Standards in Saskatchewan went outside of their normal processes and found an innovative way to help their clients."
The 16 former employees of a Saskatoon company approached Labour Standards for assistance in recovering lost wages when their employer closed its doors in November, 2010. Labour Standards recognized that if the company was assigned into bankruptcy, the former employees would be covered by the federal program.
"Labour Standards assisted these employees through the entire process, even though WEPP is a not a program they administer," Morgan said.
The Collections Unit at Labour Standards will attempt to recover the remainder of the wages owed. In 2010-11, the Collection Unit collected nearly $95,000 on behalf of 569 employees with outstanding and unpaid wage certificates.
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For more information, contact:
Charlotte Morrissette
Labour Relations and Workplace Safety
Regina
Phone: 306-787-3716
