Settlement distributed among 155 women, with individual compensation ranging from $10,000 to $285,000
The City of Leduc in Alberta has paid $9.5 million to settle a class-action lawsuit involving allegations of sexual misconduct by municipal employees, according to a report.
The settlement was distributed among 155 women, with individual compensation ranging from $10,000 to $285,000, depending on the severity of harm experienced, CBC News reported.
The lawsuit, originally filed in 2022 by former Leduc firefighters Christa Steele and Mindy Smith, accused Leduc Fire Services of systemic negligence and breaches of Charter rights. The claim was later amended to include other city employees.
In one previous case, a worker’s awkward conversations led to sexual harassment complaint from a coworker.
Steele says that she couldn't have predicted how many would come forward to join their class action lawsuit against the city of Leduc.
"It's heartbreaking, but it wasn't really a surprise. Knowing the city that I worked in for 20 years, I knew it wasn't just me," she says in the CBC report.
Steele had previously said that she view the city’s settlement as Leduc’s acknowledgement of “the harm that women suffered in a workplace where they were preyed upon and sexual assault was acceptable and without consequence.”
Terms of settlement
According to law firm Burnet, Duckworth, and Palmer (BDP)—which represents the plaintiffs—the terms of the Leduc settlement include:
- The highest per-person monetary compensation in a Canadian class-action settlement for workplace misconduct. Each member of the class is eligible for financial compensation between $10,000 and $285,000.
- A lengthy claimant eligibility time period: any woman who worked at the City of Leduc over the past 20 years is eligible to participate in the class action.
- A confidential, non-adversarial, and non-confrontational claims process meant to facilitate claimant participation and provide a safe way for women to come forward.
- Significant non-monetary remedies including a public apology from the Mayor of Leduc and a requirement that Leduc take whatever steps are necessary to ensure that no retaliation occurs against women who participate in the class action or who make a claim.
Despite the settlement, Leduc asked the court to disallow the release of the numbers in January. However, the court dismissed that request this week, Rob Martz, lead lawyer of BDP, says, according to the CBC report.
"Part of the point of class actions is to address the entirety of what has occurred. So I think it's important, in that context, for these numbers to be out there," Martz says.
In another case, court judged that the CEO of a small company is personally liable for more than $16,000 in damages for sexual harassment, discrimination, and a poisoned work environment to which he subjected a worker over a few days of employment.
Changes at City of Leduc
In a public statement, the City of Leduc acknowledges the impact of the case.
“We know this may be disconcerting. This settlement has provided the necessary means to move forward with critical change initiatives,” says the city government.
“We acknowledge the profound impact that this matter has had. We have learned from this experience and are continuing to move forward in a way that honours our commitment to a respectful and safe environment for all. This remains central to everything we do.”
The government also says it has implemented “significant changes” since becoming aware of the allegations outlined in the class action filings, including:
- staffing
- psychological health and safety initiatives
- mandatory training
- workplace investigation training
- revisions to the Respect in the Workplace Policy
- development of a comprehensive Code of Conduct
“These efforts will help to prevent this type of situation from happening again,” says the city government.
The case is the first settlement of a class-action lawsuit involving sexual misconduct and sexual assault at a municipality or fire department in Canada — and involves record-high compensation, according to BDP.
Sexual harassment a persistent liability problem for employers, according to a previous report.
