Shaw Canada L.P. employees and retirees file lawsuit against Shaw Group for wrongful dismissal and amounts owing to Shaw Canada

 Shaw Canada L.P. employees and retirees file lawsuit against Shaw Group for
       wrongful dismissal and amounts owing to Shaw Canada Pension Plan

PR Newswire

TORONTO, Dec. 20, 2012

TORONTO, Dec. 20, 2012 /PRNewswire/ - On December 20, 2012, terminated
Canadian employees and retirees of Shaw Canada L.P. filed a lawsuit against
The Shaw Group Inc., an engineering multi-national based in Baton Rouge,
Louisiana, and other related defendants, for wrongful dismissal and for
payment of amounts owing to the Shaw Canada Pension Plan in the total amount
of $39,249,810.

The lawsuit arises out of the mass termination of all employees of Shaw Canada
in August  2012 and  the abandonment  by Shaw  Group of  the underfunded  Shaw 
Canada Pension Plan.

The lawsuit alleges  that Shaw Group  is the common  employer of the  Canadian 
employees and is liable for severance pay owing to the employees. The lawsuit
also alleges that Shaw Group is  the administrator of the Shaw Canada  Pension 
Plan and owes a fiduciary duty to the Shaw Plan members which it has breached.
The Shaw Canada Pension Plan is underfunded by approximately $5.7 million.

The lawsuit also alleges that Shaw Group and the defendants acted in a  manner 
that was  oppressive to  the Canadian  employees and  retirees, and  that  the 
defendants conspired to  orchestrate the  bankruptcy of Shaw  Canada to  evade 
paying severance pay and amounts owing to the Shaw Canada Pension Plan.

"Rather than winding down Shaw Canada in an orderly and responsible manner and
providing prior  notice  to  the  employees that  their  employment  would  be 
terminated, the claim  alleges that Shaw  Group has not  paid legal  severance 
obligations owing to its Canadian employees and has not paid amounts owing  to 
the Shaw Canada Pension  Plan or its windup",  said Andrew J. Hatnay,  partner 
with Koskie Minsky LLP  in Toronto who represents  the Canadian employees  and 
retirees.

A senior manager with Shaw Canada who is one of the terminated employees, says
that "The  employees have  been attempting  to resolve  the payment  of  their 
severance pay with Shaw Group for  months and have been stone-walled. We  now 
have no choice but to seek a remedy in the courts".

SOURCE Koskie Minsky LLP

Contact:

For further information or a copy of the Statement of Claim, please contact
Koskie Minsky LLP, counsel for the employees and retirees at 1.855.595.2624
orshawbankruptcy@kmlaw.ca.

For media inquiries, please contact Andrew J. Hatnay atahatnay@kmlaw.ca.
 
Press spacebar to pause and continue. Press esc to stop.