MLA goes to bat for unpaid workers
Interim Liberal Leader Sandy Silver raised concerns Wednesday in the legislature that some Yukon businesses won't get paid for outstanding debts owed by Dowland Contracting Ltd.
Interim Liberal Leader Sandy Silver raised concerns Wednesday in the legislature that some Yukon businesses won't get paid for outstanding debts owed by Dowland Contracting Ltd.
During question period, Silver noted that May 2013 court documents show Yukon businesses were owed more than $3.3 million by Dowland.
The company was hired to build the new hospitals in Dawson City and Watson Lake.
Months later, some contractors he's spoken with have been told they won't get paid at all because they aren't covered under the bonding process, the Klondike MLA told the legislature.
A letter tabled by Silver in the house explains that the labour and material bond does not cover accommodation.
The letter is from Crawford Global Technical Services, an adjuster working for Dowland's bonding company, Intact Insurance.
Several Yukon hotels are listed as creditors in Dowland receivership documents from last May.
They include the Yukon Inn, owed $1,124.55 as of May, and the Midnight Sun Hotel in Dawson City, which was owed $8,290.80 as of May.
But Jason Bilsky, the CEO of the Yukon Hospital Corp., says there's nothing the corporation can do.
"We don't have a contractual obligation or relationship with the claimants,” Bilsky explained in an interview this morning.
"We had and have a contract with Dowland Contracting Ltd., who is the company that went into default on our contract and subsequently went into receivership.
"And we have a contract with the bonding company, who basically steps into the shoes of Dowland to complete the building.
"The relationship of all the subcontractors and the contract is with either Dowland or with Intact (the bonding company),” he continued.
"We're not a party to any of these contracts, so I can't even say what's happening with them.”
The hospital corporation required a labour and material bond as part of its contract with Dowland, Bilsky noted.
But under the contract with Dowland, the corporation wasn't a party to contracts between the general contractor and the subtrades.
"Unpaid creditors of Dowland's may wish to pursue recourse under ... the receivership process,” Bilsky suggested.
Or, if there's a dispute over the legitimacy of a claim with the bonding agency they could take legal action against Intact from that perspective, he added.
In his response to Silver's question in the legislature Wednesday, Health and Social Services Minister Doug Graham noted he hadn't heard of any issues from the hospital corporation.
"I will correspond with them in the very near future to request information with respect to any claims that are being refused by the insurance agent and discover what their next steps are,” he said.
"In the spring, questions were raised about whether companies affected by Dowland's bankruptcy would receive payment for the work on the project,” Silver noted.
"The chair of the hospital corporation board said the following in the legislature on May 13, and I quote, ‘We're not aware of any outstanding fees or invoices that will not be paid.'
"It has come to my attention that some companies that did work for Dowland have not in fact been paid out. Some have even been told that they are not covered by the bonding process and will not be receiving any money at all,” Silver said.
Graham noted in response that he's sure the chair, Craig Tuton, made his comments with "some assurance that he would be able to fall back on the hospital corporation's resources in the event that a legitimate claim for payment came forward that was not to be paid by the insurance company.
"I trust the hospital corporation and the board to follow up with any legitimate claims for reimbursement and I look forward to hearing from him if there is a problem,” he said.
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