CEO blames two workers for losses
Province investigating to see if former employees receiving what is required from company
Paul Schoolfield, CEO of Server Sitters, an online tech support company in Charlottetown that abruptly cut 50 employees, claims two former employees tried to sabotage the company.
The company filed a lawsuit in P.E.I. Supreme Court April 5 against the company’s former chief of business development, who was fired in late December, and the former chief revenue officer, who quit unannounced in late March.
The company is seeking “special damages for loss of business arising from the conduct of the defendants,’’ the suit states. A statement of defence had not been filed as of early Friday afternoon. Meanwhile, the province’s Employment Standards Branch is investigating complaints from six of the 50 terminated employees concerning lack of notice and severance.
Schoolfield hopes to pay the company’s former employees outstanding pay and vacation pay, but adds the company is not planning to pay severance because it unexpectedly lost a major contract.
The Guardian has learned the contract was with London Trust Media, which describes itself as the world’s first privacy and security focused accelerator and owners/operators of Private Internet Access.
The contract, which began in 2012 and was supposed to run until early 2018, was suddenly ended by London Trust Media on April 30.
Schoolfield says he is in negotiations with the company, which he would not confirm or deny is London Trust Media, over money owed.
He said he would abide by the findings of the Employment Standards Branch that is investigating if Server Sitters met the terms of exceptions provided for under the Employment Standards Act.
“I am a law abiding business man,’’ he says.
“I’m deeply saddened what has taken place,’’ said Schoolfield.
“I wish the best for our former and existing staff.’’
The department said it will also review notice of termination provisions under Section 29 of the Employment Standards Act to see if there needs to be any improvements to protect employees.
SkillsPEI has also reached out to the company and affected workers to offer transitional support services to help integrate workers back into the workforce as quickly as possible. There were information sessions for affected workers on Monday.