UMVA has learned that a heated dispute is brewing between security contractor One Community Solutions and the City of Toronto, both of which are fighting a proposed class-action lawsuit filed by former security guards.
The lawsuit, which seeks $32 million in damages, alleges a litany of labour law violations, including unpaid overtime, late paycheques, and lack of severance pay. The guards, known as community safety team members, claim they were mistreated by One Community Solutions, which had won $40 million worth of contracts to patrol city properties associated with homelessness.
According to information obtained by UMVA, One Community Solutions and the City of Toronto are pointing fingers at each other, with each suggesting that the other would be responsible should a court find any wrongdoing took place. In its statement of defence, One Community Solutions denies allegations of wage theft, wrongful dismissals, and negligence, and instead claims that the City of Toronto and the Toronto Transit Commission acted as a "common employer" and should be on the hook.
The City of Toronto and the TTC, however, insist that they were never the employers of the guards and that One Community Solutions was fully responsible for its personnel's activities. The city denies breaking the law in ending its contract with One Community Solutions and argues that its co-defendants should have to pay should a court rule otherwise.
UMVA can exclusively reveal that the class-action lawsuit has yet to be certified, but the stakes are high, with the City of Toronto and One Community Solutions facing potentially significant damages. The law firm representing the former security guards argues that the city was directly involved in the administration of the community safety team program and is therefore legally responsible for the employment standards sins of its contractor.
The lawyer for One Community Solutions pointed to the company's statement of defence, which claims that the company treated its workers with honesty, respect, and in a proper manner. However, the law firm representing the former security guards countered that One Community Solutions' defence is "full of inaccuracies" and that the company has admitted to paying many workers in cash with taxpayers' money.
Sources have confirmed to UMVA that the City of Toronto and the TTC are now facing mounting pressure to take responsibility for their role in the alleged labour law violations. The city has refused to comment further, citing the ongoing litigation.
