Layoff notices given as document management work shifts to Iron Mountain
The Workplace Safety and Insurance Board (WSIB) is eliminating 26 unionized positions as it outsources its document management work to Iron Mountain, a U.S.-based multinational with a longstanding Canadian presence. The move, which WSIB calls a modernization and streamlining effort, has drawn strong criticism from the Ontario Compensation Employees Union (OCEU/CUPE 1750) and raised concerns about the future of public sector jobs in Ontario.
Layoffs hit lowest-paid workers
Harry Goslin, president of OCEU/CUPE 1750, says the layoffs target employees at the lowest end of the WSIB pay scale, with few options for redeployment. “It’s shocking news for them that their work is gone,” Goslin says, describing a scene where “some people were very angry, some people were crying.”
He notes that these workers, who handle document scanning and file retrieval for claims, max out at about $62,000 and have little chance to move into other roles due to a lack of vacancies at their salary grade. Goslin says, “There’s really nowhere for them to bump into or be placed into.”
The union president argues the outsourcing contradicts the Ontario government’s stated commitment to protecting local jobs and keeping public funds in the province. “Why wouldn’t the money stay in Ontario, not go off to an American company during a trade war?” he asks.
Goslin also raises concerns about service quality, suggesting Iron Mountain has a reputation for lost files and delays. “If we lose those files or have significant delays in retrieving them, that’s a problem. That is the trademark of Iron Mountain,” he says, warning of potential impacts on injured workers who rely on timely access to their claim documents.
Recent strike highlights deepening tensions
The outsourcing decision comes on the heels of a historic six-week strike at the WSIB. The strike, which ended earlier this month with a tentative agreement, was driven by union concerns over workload, job security, and outsourcing—issues that remain at the forefront with the latest job cuts. The dispute underscored the ongoing tension between the union and employer, with both sides accusing each other of failing to negotiate in good faith.
WSIB: Modernization driven by technology, not cost-cutting
The WSIB says the decision is driven by a dramatic drop in paper mail volume as more claims and documents are filed online. “We simply don’t have the volume of incoming mail to justify a stand-alone document management department,” says Christine Arnott, public affairs manager for WSIB. “That work will still be done in Canada, by Canadians, through a longstanding Canadian company that we’ve worked with for 25 years.”
Arnott stresses the affected employees are being offered support, including six months’ notice, upskilling opportunities, and career coaching. “They are receiving our full support to help transition to a new role,” she says. WSIB is also recruiting 24 new case managers, which it says will help reduce front-line workload and improve service for injured workers. “Our number one concern is helping the people who depend on us for support,” Arnott adds.
The agency notes that Iron Mountain Canada is the vendor of record for the Government of Ontario and works with the governments of British Columbia and Canada.
Union pushes for mitigation, questions alternatives
Goslin says the union is pushing for measures to help affected workers transition, but so far, no agreement has been reached. He also questions why WSIB did not explore Ontario-based alternatives or allow the laid-off employees to follow the work to Iron Mountain. “If it really does need to be outsourced, there would have to have been some Ontario employers who could do this work,” he says.
He adds that Iron Mountain does not offer the same benefits, pension, or union protection as WSIB. “They left these 26 people out in the cold,” Goslin says.
As the WSIB moves forward with its outsourcing plan, the dispute highlights the tension between modernization and job security in Ontario’s public sector. The union continues to seek mitigation for affected workers, while the WSIB insists its focus remains on supporting Ontarians who depend on its services.
