Outsourcing company embroiled in RBC controversy defends business practices

The Canadian Press
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TORONTO — The multinational company at the centre of the Royal Bank of Canada’s controversial decision to outsource dozens of Toronto jobs is defending its business practices.

iGate says it will “fully co-operate” with a government investigation into its efforts to bring workers into Canada under the temporary foreign worker program so those employees could train at RBC for services they will be providing to the bank.

To obtain permits for temporary foreign workers, companies need to show a Canadian cannot be found to do the work.

Human Resources Minister Diane Finley has asked officials to review documents submitted by iGate after apparent discrepancies appeared between public statements made by RBC and information that had previously been provided to the government by iGate.

Jason Trussell, senior vice president and regional head of iGate Canada, says iGate’s hiring practices are in “full compliance with all Canadian laws.”

RBC (TSX:RY) has maintained it has not hired temporary foreign workers to take over the duties of current employees. But Canada’s largest bank said it had contracted certain technology services to an external company — a decision which affected 45 current RBC workers in Toronto.

iGate (NASDAQ: iGATE) is headquartered in the U.S. and employs more than 28,000 people around the world.

Organizations: Royal Bank of Canada, TSX

Geographic location: Canada, TORONTO, U.S.

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Recent comments

  • Robert
    April 10, 2013 - 08:24

    The message I read here and relating stories is that RBC (and all the other banks) do not need Canadian employees. Good for them.....I guess that means they don't need our money either so we should all find a local credit union to facilitate our banking needs.

  • Jack
    April 10, 2013 - 06:37

    Obviously, it clear to me that every single Canadian base company should do their research on "Agency Law" as well as the "Agency Triangle" (Principal, Agent, and Third Party). Since the Royal Bank of Canada (RBC) contracted out iGATE to perform their Information Technology services, RBC is technically responsible for iGATE's business practices including hiring foreign workers. That's due to a fact that under Canadian law, the "Principal", which is RBC, are responsible for the actions of the "Agent", which is iGATE. In other words, RBC are just as guilty of using temporary foreign workers as iGATE.

  • Honest Answer
    April 09, 2013 - 21:29

    Isn't outsourcing contracting to an INDEPENDENT company to provide services? And you have to train their employees to do the job!!!!!!

  • enough yet?
    April 09, 2013 - 15:13

    they can defend and deny all they want. i have received phone calls from people representing RBC and their english is so bad that i could not understand them. i have brought this to the attention of RBC on a number of occassions over the years. we are being sold to the lowest bidder. if thats what we want and we're ok with it then our children will have to deal with the consequences.