Canada's Enerflex calls for international arbitration after Mexican court awards ex-employee over $120 mln (updated)

Enerflex

27/06/2023 24:46

(Updates with Enerflex comments, background on decision in
paragraphs 3-7)
       MEXICO CITY, June 26 (Reuters) - Canadian energy
infrastructure company Enerflex  EFX.TO  said on Monday it had
requested investment arbitration proceedings before the
International Centre for Settlement of Investment Disputes
(ICSID) after a Mexican court had awarded an ex-employee more
than $120 million in damages.
    Enerflex argued the ruling defied regional trade agreements
between Mexico, the United States and Canada, also calling the
court's decision "indirect expropriation" and denouncing
arbitrary treatment by the Mexican state.
    Enerflex said the labor litigation dates back to 2015, when
a former mid-level employee filed a suit against subsidiaries of
the company. In a 2017 decision, the company paid out 1.41
million pesos, or more than $80,000 to the employee.
        However, Enerflex said, a 2022 decision ruled the
plaintiff be paid more than 2 billion pesos, or some $120
million.
  
        "This is absurd," Enerflex said in a statement, arguing
the decision calculated a daily salary of 21,735 pesos, whereas
the former manager only earned 3,579 pesos a day.
  
        The court, which Enerflex said it had filed an appeal
with, did not immediately respond to a request for comment. 
  
        The energy company added it had met with Mexican economy
ministry officials to discuss the dispute. The ministry did not
immediately respond to a request for comment.
  
        
  

 (Reporting by Kylie Madry; Editing by Sarah Morland)
 ((Kylie.Madry@thomsonreuters.com;))