N.S. government calls for inquiry into another Cape Breton workers' agency

The Nova Scotia government has called for an investigation into financial concerns at another Cape Breton workers' agency.

Last month, Nova Scotia's auditor general reported on mismanagement at the former Island Employment Association, which helped people find jobs.

Now, the Department of Labour says it has ordered a third-party review of the Cape Breton Injured Workers' Association, which helps people with workers compensation claims.

Eileen MacNeil, a former employee with the association, quit last fall, saying she couldn't get along with the president and the board was not holding regular meetings or an annual general meeting.

The association also failed to file financial reports with the province, MacNeil said.

"To me, there was no organization in the organization."

No comment from association's president

MacNeil said she tried to raise the alarm internally, but nothing was done.

"I had on many occasions approached the president and said, 'You know, if this is not done, it's going to come back on you because as president, it's your responsibility to make sure that things are done properly.' And he just blamed everything on the accountant."

George Abraham, president of the Cape Breton Injured Workers' Association, declined to comment.

On the Registry of Joint Stocks, Merrill Carmichael is listed as treasurer. 

But Carmichael says he resigned as the group's volunteer treasurer almost a year ago.

According to the Chartered Professional Accountants of Nova Scotia, his practice was being monitored from 2019 to 2021 due to customer complaints and he was stripped of his credentials in 2021 and forced to deregister his accounting firm over continuing allegations of professional misconduct. 

'Protecting the interests of injured workers'

MacNeil, who was a client advocate and did some administrative work in the office, said the association was forced last year to hold an election for new board members and she didn't support Abraham for president.

After that, Abraham became difficult to work with, she said.

"At one point he said to me, 'You're just an advocate here. I will go to all the meetings. You will just be an advocate and nothing else and don't even arrange anything in the office without asking me first,'" MacNeil said. "So it was a very stressful situation."

In an email, the Department of Labour said the association's funding ended in April 2022 and a third-party review of its compliance with the funding agreement, finances, governance and mandate is underway.

"Our primary interest in the CBIWA review is protecting the interests of injured workers," the department said.

Meanwhile, it said injured workers can access the provincial Workers' Advisers Program, which covers all of the province. There is also another separate injured workers' association in Pictou County. 

'This service is so desperately needed'

The Pictou and Cape Breton associations received $108,000 a year for their services.

In 2017, the Pictou County association called on the government to improve the workers compensation system, partly because of its case load. 

MacNeil said she dealt with more than 600 cases for the Cape Breton association last year, although not all were active files.

"This service is so desperately needed," she said.

The department said over the last year, since the Cape Breton association was defunded, the provincial program recorded 206 active files in the four counties on Cape Breton Island.

According to the latest annual report for 2021-22, the Workers' Advisers Program recorded 1,058 active files across the province on March 31, 2022, which was a three per cent decrease from the previous year.