Is it over or can the Labour Board get it wrong again?
Enerflex Prevails in Appeal of Mexican Labor Board Decision and Announces Timing of First Quarter Results
GlobeNewswireApr 29, 2024 6:00 AM EDT
CALGARY, Alberta, April 29, 2024 (GLOBE NEWSWIRE) -- Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) (“Enerflex” or the “Company”) today provided an update with regard to an ongoing legal proceeding in Mexico.
The Tenth Circuit Collegiate Court on Labor Matters in Mexico (the “Court”) has published a decision setting aside a January 31, 2022 decision of a Labor Board in the State of Tabasco, Mexico (the “Labor Board”) that had ordered subsidiaries of Exterran Corporation (now subsidiaries of Enerflex) to pay a former employee MXN$2,152 million (approximately US$125 million) plus other benefits in connection with a dispute relating to the employee’s severance pay following termination of his employment in 2015.
In rendering its decision, the Court ruled in favor of Enerflex’s arguments that the Labor Board ruling was in error and had no credible basis in law or fact. The matter has now been returned to the Labor Board to issue a new judgement in accordance with the Court's ruling and directives, which support the Company's view that the Labor Board's ultimate resolution will be immaterial to its financial results.