Astaldi workers will get paid, premier says, after company fails to meet payroll at Muskrat Falls megaproject

Newfoundland and Labrador Premier Dwight Ball says he guarantees Astaldi workers at the Muskrat Falls construction site who have not been paid will get their wages.

These wages will be paid.- Dwight Ball

Payroll wasn't deposited into workers' accounts Thursday morning, meaning they haven't been compensated for work completed since Oct. 14, according to a news release from Trades NL, which represents 16 building and construction unions in the province.

During Thursday's question period in the House of Assembly, Ball said he's working with Marshall to ensure the hundreds of workers get their earnings.

"These wages will be paid. It's important that workers in Newfoundland and Labrador, when they go to work, they will get the paycheque that they so rightfully deserve," said Ball.

"Right now, Nalcor is working at the ways of logistically [how] this could happen, but those workers will get paid."

Ball's comments in the House of Assembly came after Darin King, executive director of Trades NL, requested and had a meeting with Ball, to express his concerns about workers getting paid.

PC Leader Ches Crosbie asked Ball what would happen to contributions made by workers to their health, pension and other benefit plans.

Ball responded that there are ongoing problems and work to be done, but there is nearly $400 million in bonds and sureties to meet the demands left by the financially struggling Astaldi.

In a statement issued Thursday morning, Nalcor CEO Stan Marshall said he is aware that Astaldi has not met payroll, and that it's "a very challenging situation for workers." 

"We are currently working on a solution to ensure that workers are paid within the coming days for their work completed since last pay period. We will continue to work with the Resource Development Trades Council and provide updates as the situation progresses."

Nalcor ordered the financially troubled Italian company off the job site Oct. 18.

"In addition to Astaldi not paying the salaries of its workers, there are numerous liens filed against the Muskrat Falls Project by Astaldi's sub-contractors, suppliers and the RDTC because Astaldi is not paying its bills," Marshall added.

"This has impacted Astaldi's ability to carry on its work."

Supreme Court victory

The development comes after a Newfoundland and Labrador Supreme Court judge handed Astaldi a procedural legal victory in a complex dispute with Nalcor over the contract for work at Muskrat Falls, the hydroelectric megaproject nearing completion in central Labrador. 

Astaldi filed for arbitration last month.

Nalcor issued Astaldi with a notice of default, and argued against arbitration.

Both sides have been in court in recent weeks, making submissions over what should happen next.

"The relationship between (Nalcor subsidiary Muskrat Falls Corporation) and Astaldi has been fraught from the beginning, and the factual matrix involving their contractual relationship is complex," Justice James Adams wrote in his decision.

Adams ruled that Nalcor must appoint someone to an arbitration board in the next two weeks.

That board can then at least begin to consider the tangly issues involved, before deciding whether it has jurisdiction to proceed.

Astaldi encouraged by ruling

Astaldi said in an emailed statement on Wednesday that the company is encouraged by the judge's ruling.

"Astaldi remains fully committed to its part in the project's completion, and we enthusiastically welcome a process that will finally bring Nalcor to the table," the company noted.

"We look forward to a chance to demonstrate our claim that Nalcor owes Astaldi and its workers for work completed, and we are eager to share the facts to support this."

Nalcor told CBC News it is reviewing the decision and has not yet made a determination on next steps. 

The Crown corporation stressed that the judge's decision "does not mean that the claims put forward will go to arbitration but rather that the arbitration board will determine if they have jurisdiction to hear the claims."

Astaldi says layoffs will begin on Friday

In an email to CBC News, Astaldi said its workers remain in "limbo" because of Nalcor's "unfair eviction" of the company from the site.

Astaldi said it's legally required to begin layoffs Friday.

Of the 500 workers who were ordered to stop work at the site last week, 50 are Innu. Herman Montague is one of them.

"In my opinion, I look at it like I'm unemployed," Montague said during an interview with CBC News in Sheshatshiu.

"Nobody's talking to us. All we're getting is, 'Pack up and go home.'"

Montague was at the beginning of his 14-day rotation when the news came down.

For now, Montague is still an Astaldi employee. That leaves him to wonder how he'll provide for his family.

"It's stressful I've got mouths to feed, bills to pay, it's really tough not knowing what's going to happen right now."

The Innu Nation says it has assurances its agreement with Nalcor is protected and will be upheld no matter who completes Astaldi's work.

With files from Rob Antle and Jacob Barker

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