Ontario gov't paid millions to law-breaking temp agencies

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Public Accounts records show that Ontario’s ministries collectively spent more than $18 million on temp agency services last year.


They’ve flouted workers’ right to public holidays, rest periods and permanent employment. But they’re still doing business on the taxpayers’ dime.


The Ontario government is paying millions of dollars to temporary employment agencies that its own inspections found to have broken the law, the Star has learned.



A detailed breakdown of the Ministry of Labour’s 2012 inspection blitz, requested by the Star, shows that more than one-third of the temp agencies used by the government were found to have violated the Employment Standards Act.



But that didn’t stop six government ministries, including the Ministry of Labour itself, from last year paying offenders more than $775,000 for temporary help services.



A further $2.2 million in unspecified payments was paid to law-breaking agencies, which according to their websites provide a range of additional services including human resource audits and permanent job placements.


“If it’s truly a goal of theirs to make work in Ontario fairer, then the government needs to lead by example with its own employees.”


Drake International, one of the 12 temporary agencies in Ontario considered a “vendor of record” for the public service, received more than $620,000 in government payments. That’s despite being penalized by the Ministry of Labour for shoddy record-keeping, restricting temps from being hired directly by the government, and not ensuring they received proper eating periods, public holidays or limits on their hours of work.


According to the province’s Public Accounts records for 2013-2014, the Ministry of Labour itself paid almost $71,000 in temp wages to Drake International — even after its own inspection exposed them as law-breakers. The agency also had contracts with several other ministries, including health and education.


The Star has previously reported on the lack of protections afforded temp agency workers as a result of the province’s outdated Employment Standards Act.




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Ontario government spent millions on contracts with law-breaking temp agencies | Toronto Star