- NEWSDAY.CO.TT - A la Une - 03/Jul 15:40

CEPEP contractor threatens legal action over termination of contract

A Laventille contractor with the CEPEP Company Ltd has threatened to take the company to court after CEPEP suddenly ended its contract. Stephen Samuel’s Contractors Ltd, which has worked with Cepep for about seven years, says the termination breaks their legal agreement. The company claims a new contract signed in April extended their work until November 2029. But CEPEP sent a letter on June 27 saying the contract was “terminated effective immediately.” The letter was sent to Cepep CEO Keith Eddy by attorneys Larry Lalla, SC, St Clair O'Neil and Kareem Marcelle on July 3. Lawyers for Stephen Samuel’s Contractors Ltd say the ending of the contract is unfair and illegal. They argue CEPEP did not give the required 30 days’ notice or pay money in place of that notice, as the contract required. The company says it has followed all rules and never received complaints about its work. More than 300 contractors across Trinidad and Tobago have reportedly been fired the same way, affecting about 11,000 workers and their families. Many of these workers, including single parents, are now without jobs, income, or benefits like vacation and maternity leave. O’Neil said Cepep’s actions go against its mission to help small businesses and create jobs. He warned that unless CEPEP withdraws the termination letter by 3 pm on July 3, his client will take the matter to the High Court to sue for breach of contract and seek urgent relief to stop further harm. The contractor also requested information from CEPEP under the Freedom of Information Act about why the contract was ended. “Throughout the our client’s tenure as a contractor with your company, they have consistently provided satisfactory services and have not been the subject of any issues or complaints regarding the quality or delivery of said services.” O'Neil added, “As a direct result of the contract with your company, a significant number of persons are employed by the claimant’s company, providing livelihoods for numerous individuals and their families who are dependent on them. “The abrupt purported termination of the contract and the contracts of other contractors have severe and immediate impact on the lives of several thousand persons, including workers, their families, and by extension, the claimant and the claimant’s family. “Our client instructs that their representatives have personally witnessed CEPEP workers who work under the contract, struggle to make ends meet. “Many of them are single parents. They have young children, some of whom are ill, who they work hard for in order to provide for them. Some of them have insurance to pay, loans, rent and other bills even mortgages. “There are workers who are trying to rebuild their homes, their lives for themselves and their family. “Our client instructs that there are workers under the contracts who have accumulated vacation leave and maternity leave as a result of CEPEP policies over the years, who now, can potentially lose those accrued benefits without notice. They too have been severely affected.” He said the CEPEP company actions were “oppressive, unlawful, discriminatory, against natural justice, and against public policy.” He also accused the company of behaving in a “high-handed” manner, which he said “constitutes a wrongful termination, as it failed to comply with the minimum notice period clearly breaching the agreement by not conducting the minimum expected performance assessments.” O'Neil said the abrupt purported termination of the contract, along with others, will severely impact thousands of people, including vulnerable workers and their families, who have lost accrued benefits without notice. This breach directly contradicts your company’s stated goals of expanding employment and supporting small businesses, potentially undermining its mission to build communities.” The contractor's legal team has asked for details on loss of income and profits from the purported terminated contract and the costs associated with winding down operations and potential severance payments to employees. Public Utilities Minister Barry Padarath has defended the government’s decision, saying the move was necessary due to serious discrepancies and a lack of proper approvals. Padarath said the terminated contractors had collectively employed around 10,500 workers across the country. He explained that audits and reviews of several state companies, including CEPEP, were ongoing, and revealed that CEPEP had not produced audited financial statements for the past seven years. Padarath has also disclosed that the Finance Ministry’s Central Audit Committee had raised concerns about CEPEP's hiring and procurement practices. According to him, the government uncovered several irregularities in how the programme was spending money and carrying out operations. He said that CEPEP contracts were issued to companies, not individual workers, and that the termination was aimed at protecting the public’s interest. “When the Attorney General’s Office reviewed the contracts, it was found that contractors are entitled to one month’s payment in lieu of notice,” Padarath said. “We are urging contractors to use that money to treat their workers fairly. The government didn’t hire the Cepep workers—we hired the contractors.” Padarath also announced that a new CEPEP registration process would be advertised in newspapers and other media, and that a new CEPEP board was expected to be appointed soon. Meanwhile, Opposition Leader Pennelope Beckles has pledged free legal assistance to the dismissed contractors and workers, promising that a legal team will support them in challenging the terminations. Lalla, O’Neil and Marcelle are part of that team. The post CEPEP contractor threatens legal action over termination of contract appeared first on Trinidad and Tobago Newsday.