BlackBerry CEO had ‘mixed emotions’ about Ford transfers
BlackBerry CEO John Chen had “mixed emotions” over the deal to transfer employees to Ford Motor Co. of Canada, according to documents filed in a $20-million class-action lawsuit on behalf of 300 employees of the smartphone-turned-software company.
Employees allege that BlackBerry Ltd. wrongfully terminated them without proper compensation when it arranged for them to be hired by Ford after the companies partnered to develop car software last fall, according to legal proceedings launched in February. BlackBerry denies any wrongdoing, but employees claim they were intentionally misled and are fighting for punitive damages.
The statement of claim filed late last week by law firm Nelligan O’Brien Payne reveals the affected employees were those who developed smartphone hardware and software, a unit that was discontinued in September 2016 after Chen failed to return it to profitability by a self-imposed deadline.
It also indicates Chen encouraged employees to take jobs at Ford because the new strategy “requires a reduced headcount in the mobility solutions (business unit),” according to a Jan. 6 email allegedly sent by Chen.
Chen allegedly told the employees he had “mixed emotions” about the deal and was sorry “to have to lose great talent and loyal colleagues from BlackBerry,” though he was happy he negotiated alternative employment, the lawsuit claims, citing the email. He acknowledged that some employees asked to move to another group such as the new autonomous vehicle centre, but said the project was “still developing and its timeline is undetermined.”
“The Ford and TCL deals are in-hand and my priority has been to ensure that as many impacted employees as possible have a good home at a company that will make the best use of your talents,” the email said, according to the lawsuit. If an employee declined Ford’s offer, Chen allegedly stated BlackBerry would seek internal opportunities “as much as possible.”
The employees believed they’d be out of work if they didn’t accept the Ford jobs, the lawsuit claims based on representative plaintiff David Parker of Ottawa, who started working at BlackBerry in 2004 and accepted the offer to move to Ford in January.
“He believed he had no other practical choice; his decision was not voluntary,” the lawsuit claims, citing BlackBerry’s long history of layoffs. (It cut 11,500 jobs from 2011 to 2013, and announced further plans to cut costs last year.)
After Parker accepted the offer, BlackBerry told him he needed to submit a formal notice of resignation. This was the first time employees were told their departure was considered a resignation, meaning their years of service wouldn’t transfer and they wouldn’t get termination entitlements such as severance or vacation pay.
After Parker commenced legal action, BlackBerry sent employees an email stating they didn’t need to submit a resignation letter, though it reiterated accepting Ford’s offer amounted to a resignation. It reached out to Parker to discuss potential opportunities within BlackBerry, but the lawsuit dismisses this as “self-serving statements made in the face of litigation.”
None of the allegations have been proven in court. BlackBerry maintains it complied with its obligations to its employees. When asked for comment on the allegations in the statement of claim, spokeswoman Sarah McKinney repeated BlackBerry’s previous statement on the matter. “We believe the case lacks merit and will defend against it vigorously,” she wrote.
BlackBerry reports its year-end results next week.
The Ford and TCL deals are in-hand and my priority has been to ensure that as many impacted employees as possible have a good home at a company that will make the best use of your talents. BLACKBERRY CEO JOHN CHEN