LATEST NEWS
April 29, 2009
Temporary Foreign Workers
Lawsuit seeks to recover oilsands wages from China
The union representing a Chinese temporary foreign worker on a major oilsands construction project is suing the contractor to recover wages that were allegedly siphoned off without the worker’s knowledge or consent.
The Horizon oilsands project involves the construction and operation of a mine, a bitumen extraction complex, an upgrader and associated infrastructure.
Huang Yungang, a Chinese welder, worked on the project between December 2006 and May 2007.
He and the Christian Labour Association of Canada (CLAC) are suing Sinopec Shanghai Engineering Company Ltd (SSEC) and a number of its affiliates to recover wages which he said were fraudulently taken by Sinopec.
“It is reprehensible that these Chinese workers had wages siphoned off by Sinopec, which is controlled by the Chinese government,” said Wayne Prins, CLAC regional director for Fort McMurray.
“Sinopec’s behaviour in Canada to date has been unacceptable. If they want to do business in Canada, they must comply with all Canadian laws.”
According to the statement of claim filed on April 24 in the Court of Queen’s Bench in Calgary, Sinopec’s business manager Helen Wang assisted Huang in setting up a bank account in Fort McMurray.
Huang signed English documents relating to the account, but did not understand the contents of the documents or the purpose of the account.
All the money Huang earned was put into the account by Sinopec, but Huang did not know how to access and operate the account.
Huang’s total earnings from Sinopec for work on the Horizon project were about $47,700, which included $43,900 in wages and overtime pay, $3,800 for statutory holiday and vacation pay.
In addition, he also made $1,895 in RRSP contributions.
However, Sinopec only gave Huang $200 cash each month for personal spending money, which Huang thought was part of his wages and was paid from the account.
It is alleged that Sinopec and Wang fraudulently directed all or most of the money in Huang’s bank account, after his employment was terminated and he returned to China in May 2007.
A small payment of $4,800, less the $200 cash per month was paid to Huang.
For this reason, the worker filed a statement of claim seeking to recover about $42,900 he said is owed to him.
The defendants SSEC and The Tenth Construction Company are incorporated under the laws of the People’s Republic of China.
Sinopec, SSEC and Tenth Construction conduct business in Alberta’s construction industry as a joint venture.
It is alleged that the money was directed by Wang or one of the defendants to their agent in China.
“Our legal council has not received any statement of claim,” said Wang. “Until the lawyer has revealed and received any statement, I am not able to answer any questions.”
Prins is also named as a plaintiff in the lawsuit and has been appointed by Huang as his attorney in Canada to commence legal proceedings on his behalf.
Huang and the other Sinopec employees were employed under the terms of the Horizon Oil Sands Collective Agreement with Construction Workers Union, Local No. 63, which is associated with the CLAC.
SSEC was hired by Canadian Natural Resources Ltd, who owns and runs the construction site at the oilsands project. It is the Canadian arm of the Chinese state-owned oil company Sinopec.
The company hired more than 100 temporary foreign workers in China and began work on the construction of two oil storage tanks on the Horizon project in late 2006.
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