Donnelly counters RMWB lawsuit with $2.1 million claim

Article content

A former human resources director accused of secretly approving more than $1 million in “illegitimate” bonuses to senior staff at the Regional Municipality of Wood Buffalo (RMWB) argues her actions followed existing procedures and were known to the Chief Administrative Officer (CAO).

Article content

Kari Donnelly, who was the RMWB’s HR director between 2018 and 2023, is suing the RMWB, Councillor Keith McGrath and CUPE Local 1505 president Craig Milley for a total of $2.1 million.

She is also suing her former employer, TFI International, for $100,000. The company fired Donnelly after it became public the RMWB is suing Donnelly for nearly $202,000.

The allegations made by Donnelly and the RMWB have not been proven in court.

“The RMWB communicated allegations that have not yet been defended or proven to the media as if they were fact,” said Donnelly’s statement of defence, which was filed July 30 in the Court of King’s Bench.

“The manner of post-dismissal behaviour was unduly insensitive, oppressive, reprehensible and a marked departure from ordinary standards of decent behaviour.”

Article content

Payment plan known to CAO and council, alleges Donnelly

Donnelly’s counterclaim alleges the payments were approved under an RMWB program called the Exempt Compensation Plan. This plan is known to administration and council.

It is designed to keep non-union management staff by offering competitive salaries against the private sector. The plan allows lump sum payments.

When the COVID-19 pandemic hit Fort McMurray Wood Buffalo in March 2020, there were no staff pay increases. Donnelly’s counterclaim argues this caused “disproportionately higher amounts of lump sum payments” in 2021 and 2022. All recipients were senior RMWB directors, including herself.

“Ms. Donnelly could not have, and did not, cause any lump sum payments to be authorized on her own accord. The CAO had to, and in fact did, approve them,” states her counterclaim.

Article content

“Ms. Donnelly was instructed by the CAO to have recognition letters prepared for senior leadership which included non-disclosure agreements.”

Donnelly alleges “appalling behaviour” from McGrath

McGrath and Milley are being sued for comments they made to Fort McMurray Today once the municipality’s lawsuit became public, as well as to council.

McGrath claimed in a June 14 article his concerns about these payments caused Donnelly and senior staff to retaliate with a complaint to the RMWB’s integrity commissioner.

Donnelly says her complaint was made in August 2023 because of McGrath’s “appalling behaviour” she allegedly witnessed on different occasions.

She alleges during a June 20 in-camera meeting, council discussed recognizing Sept. 30 as a statutory holiday to honour the National Day for Truth and Reconciliation. She appeared with Dennis Fraser, the RMWB’s Indigenous and rural relations director.

Article content

Donnelly says McGrath made comments that were “belligerent, rude and/or racist” at this meeting. The complaint also said McGrath sometimes appears to be drunk or high at meetings, and that McGrath has threatened staff and councillors.

Her claim argues his comments to Fort McMurray Today were “made maliciously and in revenge for McGrath’s hurt feelings.”

The integrity commissioner’s report has not been made public, although McGrath was absolved of any wrongdoing. The June 20 meeting was not open to the public, so Fort McMurray Today cannot verify what was said.

CUPE is accusing the RMWB of breaking Alberta’s labour code during recent bargaining talks. Milley says CUPE was not aware of the payments, and those talks would have gone differently if they were shared with the union.

Article content

Donnelly accuses Milley of blaming her for the payments the RMWB now calls “illegitimate.” She cites comments Milley gave Fort McMurray Today in articles published on June 14 and July 18.

McGrath, Milley stand by comments

When reached Thursday, McGrath said he was unaware that he was being sued and had only briefly read Donnelly’s counterclaim.

McGrath said “they’re true, they’re true” when told he was being sued for comments made to Fort McMurray Today. He denied he was ever belligerent or intoxicated during the in-camera meeting and said the integrity commissioner cleared him.

“I wouldn’t expect anything different than her suing the city, but sue me? What for? I never made no bogus claims. I never talked about her,” he said.

“I’m not surprised Ms. Donnelly denies and tries to point the finger at myself because it’s tough to be a one-man show trying to keep an institution, that’s more like an asylum, in place.”

A statement shared by CUPE 1505 argued Milley has acted “appropriately and objectively and is not guilty of misconduct or wrongdoing.”

A statement from the RMWB said administration would not be commenting publicly on a legal matter.

Get the news and events of Fort McMurray Wood Buffalo in your inbox every Friday morning by signing up for our newsletter.

vmcdermott@postmedia.com

Article content