Four years after KPMG was appointed monitor over Walter Energy Canada Holdings, and three years after the court found in favour of the union, most employees are still waiting for their settlement. Four years after KPMG was appointed monitor over Walter Energy Canada Holdings, and three years after the court found in favour of the union, most employees are still waiting for their settlement.
But according to a letter from Local United Steelworker (USW) President Brian O’Rourke dated December 4, the cheques are finally starting to be processed to pay the termination and settlement claims.
The seemingly never-ending process was delayed again because, according to O’Rourke, “Service Canada had to review each file to see if workers received Employment Insurance payments. In many cases, the monitor must clawback some EI payments and pay it to the government.” According to O’Rourke, the monitor will provide a letter to each former employee explaining the details of the calculations.
Service Canada has been reviewing EI over payments since late April. According to KPMG’s latest monitor report, “This review is required to be completed prior to the Monitor being able to make distributions to former employees of New Wolverine pursuant to the Plan.”
At the end of September, KPMG was informed by Service Canada that they had reached a decision on the issue of overpayment, which were calculated based on figures from 2014 (when the layoffs happened), rather than 2016, which was the year the employees were actually terminated. “As a result of this decision,” says KPMG, “the El over payments had to be recalculated by Service Canada.”
The review was completed earlier this month. The courts have extended the stay period to February 28, and KPMG is hoping to have the money paid out before then. The USW is even more optimistic.
“It looks like this all may be wrapped up for the holidays,” says O’Rourke.
This will nearly bring about the end of the distribution of funds from the former Walter Energy. The only remaining creditor still needing to be paid is Warrior, the company that took over the assets of the former Walter Energy (US operations) when it crashed and burned in 2015.
“Subject to the timing of the Employee Distribution,” says KPMG, “it is expected that Walter Canada will bring a motion to terminate the proceedings before the expiry of the Extended Stay Period.”
But, they warn, if the distribution stretches into 2020, “it is likely that a recalculation of the employee remittances made by the Monitor in April 2019 in order to implement the Plan will be required.”
