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Deal that would have settled fraud scheme at TTC could keep it tied in legal issues for years

Last Updated Oct 27, 2020 at 10:29 am EST

It’s being described as a massive blunder that could keep the TTC tied up in legal issues for years.

A deal that would have settled a fraud investigation at the transit system remains tied up in litigation with no end in sight.

A fraud scheme and subsequent legal issues discovered by the transit commission more than five years ago could have been settled had the union agreed to a deal that would have saved hundreds of jobs.

RELATED: Mayor calls for investigation into seven hour TTC service disruption

Instead, the Toronto Star reports 200 employees were fired after the discovery of a $7-million bilking of benefits through a North York orthotics clinic.

The Toronto Star reports the case is still tied up in labour grievances and no end to costly litigation following a pair of arbitration decisions, which upheld the TTC’s dismissal of just two employees who took part in the illegal activities.

The Toronto Star reports in 2015, the TTC was willing to keep the 200 employees on the job if they would pay back the money taken.

Instead the offer was rejected by then union boss, Bob Kinnear.

Kinnear disputes the idea that an offer was made, telling the Toronto Star nothing specific was mentioned.

Lawyers for Local 113 didn’t dispute that either employee had filed false claims, and didn’t deny the union had rejected the offer of a settlement.

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