The union representing employees of more than two dozen Greater Toronto Area Goodwill stores and donation centres that closed suddenly this weekend says it has been in “discussions with new investors who are interested in taking over operations.”
Over the weekend Goodwill Industries of Toronto sent out a statement announcing that it would close 16 stores, 10 donation centres and two offices in Toronto, Mississauga, Brampton, Newmarket, Barrie, Orillia and Brockville due to a “cash flow crisis.”
Though the CEO of the organization subsequently told reporters that she “is examining all possible solutions” with the goal of reopening the locations it remains unclear if or when that will happen.
In a statement issued Wednesday morning, the union representing the 450 Goodwill workers impacted by the closures said it has now spoken with investors who may be able to revive the charity’s GTA operations.
“We have been contacted by interested parties and have forward that info to the company but we are still waiting for confirmation on if anything will move forward,” Canadian Airport Workers Union representative Moe Rutherford told reporters gathered outside a Goodwill factory in Scarborough on Wednesday afternoon.
Workers call on CEO to resign
Earlier this week, Goodwill Industries of Toronto CEO Keiko Nakamura told reporters that 85 per cent of Goodwill’s revenues come from its retail operations, leaving it with “very low margins” that make it particularly vulnerable to increased competition in that sector.
That reasoning doesn’t sit well with all Goodwill employees, though.
“If you can’t explain to me how something gets donated for free and you can’t make money, I am sorry there is something wrong with your management skills” James Nickle, a truck driver for the charity and union steward, told reporters on Wednesday. “In my world if you give me something for free and I sell it, I am going to have something in my pocket. It is that simple.”
As Nickle spoke on Wednesday, dozens of employees flanking him began chanting “Keiko must go.”
Though the Goodwill CEO has categorized the suspension of the charity’s GTA operations as unavoidable, Nickle told reporters that he is not so sure.
“There is no need for this to happen. Goodwill makes money. I see it every day. I see the donations, from Orillia, Barrie and all over the Toronto area,” he said. “If she wants to help the communities, do the right thing and step down today."
In 2014, Goodwill Industries of Toronto had total revenues of $28 million, though retail sales were down more than $2 million from the year before.
According to the CAWU, most of the employees of Goodwill in Toronto are low-wage labourers.
“Look, some of these guys are not going to eat,” Nickle said. “I got a woman here today who is not going to be able to feed her family tonight. We are going to collect donations to help her, but how long is that going to last? A day? A week? What about rent?”
In a statement released late Wednesday afternoon, Nakamura confirmed that the impacted employees would not be paid Friday as "part of our regular pay cycle."
"Goodwill will be in a position to update all employees about the date of payroll deposits and the issuance of records of employment on Monday, Jan. 25, 2016," the statement said.
