A British Columbia labour union has been ordered to pay at least $400,000 in damages for defaming a company that provides housing for the oil and gas industry, after the union falsely claimed the company had not hired enough Indigenous workers at a facility in Kitimat.
Court Upholds Damages in Defamation Case
The B.C. Supreme Court upheld a $400,000 award against Unite Here, Local 40, but granted the union's appeal to reduce an additional $100,000 in punitive damages. The case stems from a 2021 grievance filed by Civeo Corp. after the union posted a statement on its website headlined “Civeo’s broken promises to First Nations people.”
Justice Marla Morellato ruled on the union’s appeal from an earlier arbitration finding. The arbitrator had concluded that the union published “completely false” statements about Civeo and that its conduct amounted to “extreme bad faith in the administration, application and performance of the collective agreement.”
Impact on Indigenous Employees
During the arbitration hearing, Civeo’s Indigenous employees testified that they were offended by the term “broken promises,” describing it as hurtful and offensive. Trevor Gladue, Civeo’s director of Indigenous strategic initiative, said the term has been rightfully used to describe past injustices, such as those stemming from residential schools.
“But using those words against me and our company — it’s hurtful,” Gladue told the arbitrator. “It’s calling me a sellout. I’m a token Indian. I’ve never had that said to me — ever. I am emotional. … Natives being used as a whipping tool again. So it’s hurtful. The statement is completely inaccurate.”
Gladue added that the impact on Civeo’s reputation and business was “deep and profound,” noting that news among First Nations spreads by the “moccasin telegraph” and that “we are now on defence, because of this. It has a reverberation which is hard to rebound from.”
Union’s Actions Called ‘Extreme Bad Faith’
Ashley Hinton, an Indigenous woman who works for Civeo, said the union’s statement made her “angry” because the union was using it as a “catchphrase.” She emphasized that it is not a phrase to be used lightly, especially at a time when the Truth and Reconciliation Commission report shone light on the missing women on the Highway of Tears in Northern B.C. and residential school issues.
Both sides agreed that the letter of understanding did not compel either party to renegotiate the settled terms. The arbitrator found that the union’s conduct constituted extreme bad faith in the administration of the collective agreement.
The case highlights the serious consequences of defamation in the workplace and the importance of accurate communication, particularly when dealing with sensitive issues related to Indigenous communities.
