Urgent Action Needed In Respect of Impact Cleaning Services Ltd.
SEIU Local 2 is currently in the midst of an organizing campaign in respect of certain of Impact’s employees, particularly in the City of Toronto. During the course of the Union’s organizing efforts, we have discovered that many employees are working for less than minimum wage, without the benefits and protections of the Employment Standards Act, 2000, Workplace Safety and Insurance Act, 1997 (“WSIA”), and other relevant legislation, and without any of the benefits flowing from the Employment Insurance program or the Canada Pension Plan, as contributions are not being made on behalf of affected employees.
In our view, the problems experienced by employees at Impact are the product of an elaborate scheme set up by Impact to subcontract work in an effort to avoid its obligations under the law. It is SEIU Local 2’s assertion that under these subcontracting arrangements, Impact is or ought to be aware that many of its employees do not receive the minimum wage or other statutorily mandated benefits and protections.
Needless to say, such circumstances have the potential to create serious consequences for employees, but also, it places those competitors of Impact that do not structure their employment relations in such a manner at a significant competitive disadvantage. Indeed, to the extent that Impact continues to be able to structure its affairs in such a fashion, it creates downward pressure on employment standards in the contract cleaning industry and provides a clear incentive for Impact’s competitors to engage in a similar structuring of their operations. To the extent that such employment practices are permitted, the various rights afforded to workers in the ESA are rendered impotent.
In addition, as a matter of public interest, SEIU Local 2 believes that in structuring a portion of its operations in the manner that it has, Impact has created a scheme that has resulted in a loss of government revenue and contributions to various important social programs, which is a concern not only of SEIU Local 2, but also, of all citizens in general.
Accordingly, SEIU Local 2 is requesting that the Ministry of Labour investigate the employment practices of Impact, its related entities, and those that contracts with in order to ensure compliance with the ESA and to provide the necessary redress to those persons whose rights have been affected as a result of Impact’s employment practices.