Manitoba Hotel Ordered to Pay $100K+ to Exploited Workers

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A hotel chain in Manitoba has been ordered to compensate three foreign workers with over $100,000 following the dismissal of the company’s appeal by the provincial labor board. The Western Star Inn & Suites failed to provide supporting documents for its claims against the employees at its Melita location, and the labor board highlighted concerns about the treatment of workers, including long hours, stressful conditions, and inadequate training.

Testimonies during the hearings revealed issues such as employees working seven days a week for up to 12 hours a day. One of the workers, Victor Padilla Ruiz from Mexico, alleged that the hotel exploited him by not fulfilling promises of legal status assistance in Canada. The labor board could only address violations of the Manitoba labor code and unpaid wages, despite testimonies about unmet promises and safety worries.

The board criticized the hotel chain for presenting unreliable witnesses and making contradictory statements. Payroll manager Amrinder Singh Gill’s testimony was deemed “illogical and inconsistent.” The board also noted the absence of key witnesses in the case.

The compensation amount for the workers was based on calculations by an employment standards officer, with Victor Padilla Ruiz set to receive over $86,500, Montserrat Del Toro around $23,100, and Rajbinder Gill Mathias approximately $28,300. Gill Mathias, who came from India in 2022, worked at multiple locations, including the Melita hotel, and raised concerns about the treatment she faced, including being forced to withdraw money from her bank account.

Del Toro, a Mexican national, was paid irregularly and below the minimum wage, performing various duties at the hotel. A portion of the wages claimed by Del Toro for work in Saskatchewan fell outside the board’s jurisdiction, with a separate proceeding pending in that province. Western Star was declared ineligible to hire temporary foreign workers due to unpaid penalties.

The company’s non-compliance with employment regulations led to a fine of $3,250, according to Immigration and Citizenship Canada. The government agency’s list of non-compliant employers cited the company for failing to meet conditions for hiring foreign workers and violating laws related to hiring and recruitment practices.

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