Two 'linked' companies, including one launched in Burnaby during the COVID pandemic to produce N95 medical masks, have been ordered to pay a $2,000 employment standards fine and $51,941.82 in unpaid wages and vacation pay to a former employee.
From Sept. 13, 2021 to June 26, 2022, Christine Kanno worked in human resources at Vitacore Industries Inc., a medical mask company incorporated two months after the COVID-19 pandemic was declared, according to a ruling by the Employment Standards Tribunal Tuesday.
She worked at Absolute Building Science Strata Engineering Inc. from June 27, 2022 to August 10, 2022, at which time she was terminated "for reasons related to the economic circumstances of the business," the ruling said.
Kanno complained to the tribunal about the two companies, saying they had violated the Employment Standards Act by not paying her overtime.
The director of employment standards found in her favour, ruling the companies were "associated employers" and were "jointly and severally liable" to pay Kanno $51,941.82 in unpaid overtime and vacation pay.
The director also ordered the companies to pay a $2,000 fine for violating four provisions of the Employment Standards Act, according to the ruling.
'Symbiotic relationship'
The companies appealed the decision to the tribunal, arguing the director had erred in law by treating them as "associated employers."
They said they were "engaged in very different businesses."
Vitacore, which originally had two plants in the South Slope area but has since moved operations to Port Coquitlam, makes medical masks, while Strata Engineering is a consulting engineering firm specializing in building science, building envelope, structural, mechanical and geotechnical engineering.
But tribunal member David Stevenson concluded the evidence clearly showed the companies – although incorporated at different times – were closely linked in a joint initiative to make medical masks while Kanno worked there.
"The two entities shared staff and resources and regularly 'charged back' wages; expenses were shared between the two entities," Stevenson said in his ruling. "The two entities were in a symbiotic relationship."
Stevenson noted Vitacore and Strata Engineering also shared two directors, Yang Fei and Mikhail Moore, who made "key decisions" relating to the control and direction of the two companies, including creating Vitacore, and sharing resources, facilities, and employees, including Kanno.
Moore, who has given numerous media interviews as Vitacore's president, told employment standards that Strata Engineering was the lead in creating Vitacore in conjunction with Health Canada and others to produce N95 respirators.
"He says Vitacore was sort of like Strata Engineering’s 'child,'" stated the ruling.
WorkSafeBC fine
At its height, Vitacore had 100 workers, 90 per cent of whom worked on the floor of the manufacturing plants, according to the ruling.
Worker safety was an issue at the factories early on, according to WorkSafeBC documents obtained by the NOW last year.
Vitacore was fined more than $13,000 in September 2022, after one worker was caught between rollers at the company's plant at 5085 North Fraser Way and sustained "serious injury."
WorkSafe documents indicate the company had been warned before about inadequate safeguarding and lockout procedures for the mask-making machinery.
Within one six-month period in 2021, at least six workers had been caught in machinery and injured at the company’s factory at 8518 Glenlyon Parkway, according to WorkSafe reports.
By January 2023, when the NOW requested an update on the situation, WorkSafe said Vitacore had complied with all the orders it had made to address the safety problems.
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