Trades council representing Muskrat Falls workers sues Nalcor, Astaldi for $7.8M

The trades council representing hundreds of workers at Muskrat Falls has sued the company running it and the main contractor there over a "flagrant violation of the compensation package established for the project."

The Resource Development Trades Council "states the defendants are liable to the RDTC for breach of contract and in unjust enrichment," according to a statement of claim filed last week.

Astaldi Canada, Nalcor Energy and Nalcor subsidiary Muskrat Falls Corporation are named as defendants in the court action.

The RDTC, the umbrella group for 16 local trades unions working on the hydro megaproject, is seeking more than $7.8 million, plus damages.

The legal action follows through on a mechanic's lien claim citing the same amount last month.

• Millions in lien claims target unpaid bills by Muskrat Falls contractor Astaldi

No statement of defence had been filed as of early Wednesday afternoon.

The trades council did not immediately respond to a CBCNewsmessage sent to its lawyer.

In a brief emailed statement, Nalcorreiterated that"any amounts owing by Astaldi to its subcontractors and suppliers are Astaldi's responsibility" and that "Nalcor continues to make payments to Astaldi in accordance with its contracts."

Astaldisaid it may respond on Thursday.

In court documents, the RDTC alleges that Astaldi has not remitted that cash to pension, health and other benefit plans for the months of July and August.

Those remittances "form an integral part of the compensation package for the project," the statement of claim notes.

Judge reserves ruling on separate dispute

Meanwhile, another legal tussle involving Nalcor and Astaldi continued at Newfoundland and Labrador Supreme Court in St. John's on Wednesday.

The Crown-owned project operator and its main contractor are at odds over whether a dispute should go to arbitration, in a tangly matter involving contracts signed by the two sides.

Astaldi wants arbitration. Nalcor does not.

The one thing they both agreed on is the fact that work is continuing at Muskrat Falls.

"The contract has not been terminated," Doug Skinner, a lawyer representing Nalcor, told the judge. "There are people still swinging hammers today."

Peter-Paul Du Vernet, a Toronto-based lawyer representing Astaldi, noted: "It is true hammers are being swung. They are not being swung under the contract."

Justice James Adams heard arguments, and reserved his decision.

Court documents outlined $240M in Astaldired ink

Court documents filed by Nalcor as part of that arbitration-related dispute last week shed some new light on red ink engulfing Astaldi related to Muskrat Falls.

According to court filings, those debts include $92.8 million owed to Nalcor, $78 million to its Italian parent company, and $51 million to Unicredit, an Italian banking and financial services firm.

Nalcor also said in court documents that Astaldi has accounts payable of more than $18 million based on invoices from subcontractors and suppliers and "has failed to pay its debts as they generally have become due."

Combined, those amounts total $240 million.

Astaldi has been under financial pressure both locally and internationally, with its Italian parent company filing for a type of creditor protection last month.

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