WSIB denies outsourcing to U.S. firm amid intensifying labour dispute

Union prepares for job action as it says 'even Elon Musk' criticized American company

WSIB denies outsourcing to U.S. firm amid intensifying labour dispute

As contract talks between the Workplace Safety and Insurance Board (WSIB) and the union representing over 3,600 of its employees stall, the Ontario Compensation Employees Union (OCEU/CUPE 1750) accuses the WSIB of preparing to lay off 26 unionized workers and outsource their jobs to Iron Mountain, a U.S.-based data management firm.

The WSIB calls it “a desperate smokescreen” that comes as the union prepares to announce potential job action Thursday afternoon.

Union raises outsourcing alarm

The union alleges the WSIB plans to contract out work currently done by unionized staff to Iron Mountain, which it claims has a “troubled track record.”

“Even billionaire Elon Musk has publicly questioned Iron Mountain’s practices, tweeting that the company ‘raided Tesla’s servers without permission,’” the union states.

CUPE Ontario President Fred Hahn describes the outsourcing move as “irresponsible,” and characterizes the broader context as an employer attempting to undermine its workforce during a critical phase of bargaining.

“Laying off dedicated WSIB staff and sending public service jobs to a U.S. company is simply wrong,” Hahn says in the release. “This is about protecting services and good jobs here in Ontario.”

The union links the outsourcing to the WSIB’s decision to issue $4 billion in rebates to Ontario employers, arguing that money could have been better spent addressing service pressures and working conditions.

WSIB pushes back

In a statement sent to Canadian Occupational Safety, WSIB spokesperson Christine Arnott says nobody has lost their jobs.

“There have been no layoff notices issued,” Arnott writes. “Iron Mountain has a longstanding presence in Toronto and across Canada. They are the vendor of record for the Government of Ontario and have been providing various services to the WSIB for more than 25 years.”

Arnott points out that Iron Mountain also serves the province of British Columbia and the federal government.

Talks break down

The contract negotiations have reached a critical impasse. The WSIB says the union has not responded to the latest offer, which includes a wage increase above inflation in 2025 and enhanced benefits.

“We’re proud that WSIB employees are well compensated in both benefits and wages,” says Jeffery Lang, President and CEO of the WSIB. “We want them to continue to be paid well for the work that they do. We are ready to reach an agreement that is fair for our employees and focused on delivering better, easier, and faster service to the people who need us.”

The WSIB says it remains committed to minimizing service disruptions during any strike action. It confirms that claims processing, income support, and health coverage will continue, supported by automated systems and non-union staff.

Union plans public response

As tensions escalate, the union is turning to public pressure. OCEU/CUPE 1750 President Harry Goslin and CUPE Ontario’s Fred Hahn are scheduled to speak at a media availability on May 22 at 12:00 p.m. outside the WSIB’s Toronto headquarters at 200 Front Street West.

“We are fighting for better mental health supports, fair workloads, and respect for the work we do,” says Goslin. “Our members help people on the worst days of their lives — they deserve stability and fairness.”

The union received a strike mandate from workers back on May 1 with 96% support.

With more than 5.3 million Ontarians covered by WSIB services, and over 300,000 businesses enrolled, the outcome of this labour dispute carries serious implications for workers, employers, and the public.

“People who suffer workplace injuries or illness depend on us for help,” says Lang. “I encourage our OCEU partners to return to the bargaining table to end this disruption and get back to serving the people we are all here to help.”

Canadian Occupational Safety will continue to monitor this story and bring you developments as they become available.