Calgary drilling company, Cathedral Energy Services Ltd., settles US $3.4M lawsuit over its American subsidiary not paying workers overtime

Calgary drilling company settles multimillion-dollar lawsuit over unpaid overtime for workers by Reid Southwick, August 9, 2016, Calgary Herald

A Calgary drilling company said it will spend up to US3.4 million settling lawsuits filed against its American subsidiary by drillers who alleged they weren’t paid overtime.

Cathedral Energy Services Ltd. said Tuesday it has denied the allegations but has reached a settlement agreement with the workers.

The company said its United States subsidiary, Cathedral Energy Services Inc., was sued in a Texas court late 2014 for allegedly failing to pay certain drillers overtime.

A separate legal action launched in April 2015 accused the subsidiary of incorrectly calculating overtime pay for a number of operators.

The parent company noted lawsuits involving similar labour standards violations have been filed agains other oilfield service companies in the United States. [What’s that supposed to mean? OK to rip off people working insane overtime, often violating safety requirements, to more quickly bring in more massive profits for the rich?]

Cathedral said it will establish a settlement fund worth up to US$3.4 million, though the value will depend on the number of claimants who seek payment. The company estimates the final settlement will cost roughly US$2.9 million. [Emphasis added]

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