Federal Court Dismisses Discrimination Class Action Against Indian Oil and Gas Canada
A Federal Court judge has dismissed a proposed class action lawsuit launched against Indian Oil and Gas Canada (IOGC) by former Indigenous employees who alleged years of harassment and discrimination at the federal agency. The decision marks a significant legal setback for the plaintiffs who sought justice for what they described as a toxic workplace environment.
Plaintiffs' Allegations and Legal Background
The lawsuit was initiated in 2021 by lead plaintiffs Yvette Zentner and Letitia Wells, both former employees of IOGC, which oversees the regulation of oil and gas development on First Nations lands. Zentner, a member of the Siksika Nation in Alberta, alleged multiple incidents of harassment during her tenure. Wells claimed she experienced sexual harassment by a former executive director of the organization, as well as harassment and physical assault by a supervisor.
Other employees provided written testimony supporting these claims, describing IOGC as a hostile workplace. One particularly distressing account involved a woman who disclosed an addiction to her employer. After seeking treatment and returning to work, she alleged that her manager disclosed her addiction to other employees and external stakeholders without her consent, violating her privacy and dignity.
Judge's Ruling and Legal Reasoning
Federal Court Justice Glennys McVeigh ruled that the case did not meet the criteria for a class action. In her decision released on January 27, McVeigh acknowledged the emotional weight of the case, stating, "This is not a decision that I reach easily. I have carefully considered the circumstances, including the heartbreaking stories of the women involved in this action, the hardship that they describe, and the obstacles that they must overcome in their effort to seek justice."
Despite this sympathy, McVeigh emphasized that the Federal Court lacked jurisdiction over the dispute. She pointed to a section of the Federal Public Service Labour Relations Act, which requires public servants to use the grievance process to address workplace disputes. This legal provision effectively barred the class action lawsuit from proceeding in Federal Court.
Context and Broader Implications
The decision echoes a similar Federal Court ruling from March, which dismissed a proposed class action launched by Black public servants alleging systemic racism in the federal government and seeking $2.5 billion in damages. Both cases highlight the challenges employees face when attempting to pursue collective legal action against federal agencies.
In 2022, an independent review of working conditions at Indian Oil and Gas Canada identified serious issues, including employee perceptions that executives were not taking allegations of racism and discrimination seriously. However, Justice McVeigh noted that neither the report nor the implementation of its recommendations constituted an admission of systemic negligence by IOGC.
Recognition of Plaintiffs' Courage
In her ruling, McVeigh commended the plaintiffs for their bravery, writing, "At the same time, I applaud the strength of the women for choosing to come forward and not stay silent. In doing so, they have given voice to experiences that many in their position might have felt unable to articulate." This acknowledgment underscores the personal courage required to challenge workplace misconduct, even when legal avenues prove limited.
The dismissal leaves the former employees with the option to pursue individual grievances through the established public service mechanisms, though this path may not provide the collective redress they sought through the class action. The case continues to draw attention to issues of workplace culture and accountability within federal agencies responsible for Indigenous resources.
