ICBC paying severance to staff fired in chop-shop scandal
Last Updated: Thursday, December 4, 2008 | 9:23 PM PT
CBC News
The ICBC closed this Burnaby facility in February when it was revealed that 98 repaired vehicles were being sold without full disclosure of their accident history. (CBC) The Insurance Corporation of B.C. plans to dole out $825,000 in severance to employees who were dismissed "without cause" after a car-sales scandal earlier this year.
The scheme involved eight staff members at a Burnaby, B.C., research facility, where formerly written-off cars were being resold after their repair histories were altered.
The Crown corporation said Thursday it dismissed one employee after an internal investigation showed "it was in the company's interests to terminate employment."
Information on two employees who were no longer with the company is being withheld because they have asked the B.C. privacy commissioner to decide on what information will be released.
'Were they just given the money to go away quietly so as not to further embarrass the corporation and the government?'— Mike Farnworth, Opposition critic for ICBC
For the rest of the group, two left voluntarily and three were reprimanded but remain with the company.
Three top-level executives of the company have left since the scandal broke and the RCMP are investigating the car-sales scheme.
In February, the ICBC closed the Burnaby facility when it was learned that 98 repaired vehicles were being sold without full disclosure of their accident history.
At least 22 of the 98 wrecked vehicles repaired at the facility were bought by ICBC managers at rigged auctions, an internal ICBC investigation found. The facility has since reopened to provide training only.
Opposition calls severance outrageous
ICBC spokesman Mark Jan Vrem said the corporation sought legal advice before deciding on the amount of the package, which involves 18 months' salary, benefits and services to help the workers find new jobs.
"The policies at the time were kind of fuzzy and that's one of the problems because there were inconsistent and conflicting policies in place," Jan Vrem told CBC News on Thursday.
He said the $825,000 severance would be reduced if the fired employees "find new employment during the 18-month notice period."
Opposition NDP critic for ICBC Mike Farnworth said the amount of the severance package is "outrageous."
"I don't know why the government didn't just admit this upfront.… I think it's indicative of this government that has lost touch, is secretive and doesn't like scrutiny," Farnworth told CBC News.
Farnworth said too many questions remain unanswered.
"Were they just given the money to go away quietly so as not to further embarrass the corporation and the government?"
