ERIN – The Town of Erin has settled lawsuits with two former water department employees who filed wrongful dismissal cases against the town.
The town announced the settlement in an email statement on March 10. The combined amount of the payment to the two former employees is $173,000.
In 2018 the town decided to hire the Ontario Clean Water Agency (OCWA) to take over operations of the water department and, as a consequence, let its five employees and one summer student go.
Three of the employees found work at OCWA but two employees – superintendent Joe Babin and foreman Lou Lauryssen – filed civil suits, alleging inadequate notice or pay in lieu of notice.
Babin had sought $500,000 in damages and Lauryssen $175,000.
Council’s goal in making the controversial switch was to save money that could be used for water infrastructure improvements or offset the need for water rate increases.
The town signed a five-year deal with OCWA and expects to save about $250,000 annually.
“Both employees were afforded the opportunity to explore continued employment with the Ontario Clean Water Agency (OCWA) and both declined,” reads the town’s statement.
Officials say the municipality’s legal fees were “absorbed through the town’s insurance.”
The statement notes the town “is committed to providing residents with open and transparent information, while continuing to ensure the privacy of former and current employees remains protected.”
