Ontario’s Labour Ministry is investigating a complaint against London-based Aboutown Transportation for not paying wages, as some of its taxi drivers flee to a cross-town rival.

The ministry received a complaint that Aboutown, owned by James T. Donnelly, violated the Employment Standards Act.

“The claim was received. It is in our system and we will investigate,” ministry spokesperson Matt Blajer said Wednesday.

“We are committed to protecting all workers, to ensuring they are protected under employment standards.”

The ministry can order wages be paid and, if not, a business can face legal action, Blajer said.

The Free Press reported Tuesday the Aboutown group of companies, Donnelly and several numbered Ontario companies are being sued for $1.6 million in outstanding loans by the Business Development Bank of Canada (BDC).

The newspaper also reported Aboutown Transportation owed the Canada Revenue Agency $627,531 as of January.

Donnelly didn’t return aFree Presscall Wednesday, his office instead directing the newspaper to a morning radio interview he gave CJBK’s Steve Garrison. In the interview, Donnelly said there was “a lag” in paying drivers “due to economic circumstances.”

Donnelly also said he has “shut down” his taxi brokerage business for his cab drivers, leaving them free to move to another company.

Aca Cekic, who drove a taxi for Aboutown for five years but moved last week to Yellow Taxi, said he’s still owed $4,500 from Aboutown and his son-in-law another $3,000.

“We have a lot of problems now. I have borrowed money from friends. It is not good,” said Cekic, who immigrated from Serbia about 11 years ago.

“I don’t know what I can do . . . I need this money. It is bad.”

Not being paid on time is one factor behind more than 60 drivers moving from Aboutown to Yellow Taxi, Hasan Savehilaghi, president of Yellow Taxi, said Wednesday.

“We are expecting 60 vehicles. We now have 110 vehicles, and most of them are from Aboutown,” he said.

The new cabs, which have to be painted and have new equipment installed, will be on the street within the next four to six weeks, he added.

“We were expecting this. It is something we celebrate, but we are not happy about the way it has happened.”

The BDC lawsuit is for outstanding loans, as of March 1, 2013, according to a statement of claim filed in court in London.

A statement of claim is a legal document containing allegations not yet proven in court.

No statement of defence had been filed.

Aboutown Transportation Inc. also owed the federal tax department $627,531 as of January, according to a document obtained by The Free Press.

Donnelly, in the CJBK interview, said Aboutown used properties valued at $3.3 million to secure the BDC loan.

“We have an arrangement with BDC . . . a good relationship with them,” he said.

RELATED DEVELOPMENTS

— In Chatham, where Aboutown operates the transit service, there have been complaints drivers haven’t been paid on time.

— Aboutown and Chatham-Kent officials met for nearly two hours Wednesday, with Thomas Kelly, civic general manager of infrastructure and engineering, saying, “We have some strong assurances that business will continue as normal.”

— Kelly said, “We certainly still have some concerns, but as of right now, it seems that they have things in order.”

— The Aboutown transit contract in Chatham ends Dec. 31. A tender will be issued this month for transit service.

— Aboutown has provided consistent service with no disruption, Kelly said.

- Chatham Daily News