An HSR manager fired in the midst of a hearing into sexual harassment allegations left with $200,000 in severance — and glowing references that helped him score a new job at Guelph Transit.

The city dismissed Bill Richardson in August 2012 after determining he lied about sending pornographic emails to the HSR's only female inspector. The move came as an arbitrator heard complaints against the former supervisor of unwanted touching, offensive emails and sexual comments.

The arbitrator's Sept. 18 decision found the woman was subject to harassment over several years and labelled the city's investigation into the complaints "seriously flawed," awarding her $25,000. The decision notes Richardson settled the human rights complaint against him outside of the hearing.

The arbitration award is cold comfort for the inspector, who still works for the HSR and fears additional harassment if she is identified by name.

"It doesn't do enough to hold any of them accountable for their actions," said the complainant, who added she can't disclose the details of the "small" financial settlement reached with Richardson.

"I only stuck this out to the end because I know other women will face the same situation … But basically I don't see a lot of significant consequences for what happened to me."

Richardson got a new job as supervisor of mobility services in September after receiving "very satisfactory references" from two senior HSR managers, said Mark Amorosi, head of human resources for the City of Guelph. "We had no information about the ongoing arbitration or any of the reasons he left Hamilton," Amorosi said Monday.

The arbitrator notes in the decision that Richardson admitted to a city human rights specialist that he called the woman an "Irish skank" and sent her profane emails.

But the decision also acknowledged he denied making sexual comments or gestures to the woman, touching her inappropriately or sending pornographic emails.

The arbitrator, Kelly Waddingham, found otherwise based on evidence presented at the hearing.

In an interview with the Guelph Mercury, Richardson said he didn't attend the arbitration hearings and only learned of the ruling Saturday via a Spectator story.

"I have no idea what was said," Richardson said, adding he had not yet seen Waddingham's ruling. "I was really not allowed to be part of that. I was never called as a witness or anything."

The hearing featured a bizarre battle of duelling forensic experts, with one hired by the transit union arguing Richardson sent pornographic emails and another hired by the city labelling them fakes. The city later accepted the opinion of the union's forensic expert and dismissed Richardson without cause, paying him 18 months' severance, according to the decision.

That payment, combined with the arbitration award and legal fees could cost taxpayers $300,000, said Eric Tuck, vice-president of Amalgamated Transit Union Local 107.

"Maybe in future, instead of giving out big severance packages to make problems go away, the city will take complaints seriously and address them as they arise," said Tuck, who added "cultural change" is needed in an HSR hierarchy still dominated by men.

The arbitrator also ordered the city to have a human rights expert evaluate its policies on discrimination and to provide and keep better records of training for employees.

HSR director Don Hull wasn't available for comment Monday.

City labour relations director Lora Fontana said she can't talk about the arbitration decision before reporting to council behind closed doors Wednesday.

But Fontana said the city has "comprehensive and solid" policies on discrimination and harassment and added HSR employees have had "very extensive" training.

"We have nothing to be ashamed at the city in terms the quality of our policies and procedures and our training programs," she said. "We're hitting a blip and we need to deal with it."

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Tuck said the union and city have reached mediated settlements on two similar workplace harassment complaints since 2007. In 2011, city human rights specialists participated in 299 "consultations" with employees, received 33 complaints and conducted two formal investigations.

Earlier this month, Councillor Brad Clark asked for a report on how the city deals with workplace complaints.

"I'm concerned about how, systemically, we're dealing with issues like workplace harassment, how we monitor complaints, who follows up," Clark said.