American firm hired by Ford government to privatize welfare services was fined for stealing employee pay - 2020-02-26
The Ford government's plan to privatize welfare services in Ontario is receiving heightened backlash after it came to light that one of the firms involved has an alarming past. Fedcap, a Manhattan-based human resources firm is leading the consortium charged with administering welfare services in the Hamilton-Niagara region.
In 2018, Fedcap was investigated by the U.S. Department of Labor. The investigation found that Fedcap had been failing to pay and illegally deducting fees from 443 workers. Fedcap was forced to hand back nearly $3 million of withheld or deducted pay to its employees.
This same firm is now responsible for finding employment for welfare recipients in Ontario. Opposition MPP Lisa Gretzky slammed the choice as "another ill-conceived costly mistake" by the Ford government. "They swindled their own employees and this Conservative government has put them in charge of finding jobs for vulnerable people in our province."