July 21, 2008

Federal government launches Wage Earner Protection Program

OTTAWA

The federal government announced that the Wage Earner Protection Program (WEPP) is now in force.

WEPP is designed to protect workers’ wages when their employer is declared bankrupt or is subject to receivership.

“Through the Wage Earner Protection Program, workers in Canada will have their salaries protected and their rights safeguarded,” said Jean-Pierre Blackburn, Minister of Labour and Minister of the Economic Development Agency of Canada for the Regions of Quebec.

The WEPP will ensure that workers receive compensation when it is needed most — between bankruptcy and finding a new job.

It will provide guaranteed and timely payment of unpaid wages and vacation pay to eligible workers whose employers go bankrupt.

“This is a real step forward for all workers,” said Ken Georgetti of the Canadian Labour Congress.

“Too often we saw employees suffer lost wages, benefits and even their pension savings because banks and other creditors were given priority,” he said.

“With a new law that puts government on their side and offers the security of a guaranteed last paycheque and pension contributions, working Canadians will be better off.”

Between 10,000 and 20,000 workers make claims for unpaid wages every year.

Under the previous system, only a quarter of workers received payment, and they often had to wait up to three years. Those who did receive compensation usually only got a portion of their claim.

JOC News Service

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