The 80-year old organization, which collects and resells donated clothes and goods, abruptly shut down 16 stores, 10 donation centres and two offices in the GTA, Barrie, Orillia and Brockville on Sunday.
Nakamura, the top executive for Goodwill in Toronto and much of Ontario, said Monday that the charity generates 85 per cent of its revenue from retail operations — but poor market conditions mean the stores will remain closed until further notice.
“I recognize this has all happened very suddenly and for those involved unfortunately that is the situation we are facing,” she told a news conference.
Nakamura, who was fired as head of Toronto Community Housing in 2011 after a spending scandal, apologized to customers and employees affected by the shutdown.
“I am thinking about you, I am doing everything I can to help bring clarity to the situation as soon as possible,” she said.
The shut down has left the organization’s 430 retail workers, drivers, and cashiers “shocked and deeply concerned,” according to their union.
“Goodwill stores also help a lot of low-income people with community programming and affordable shopping. We need to get these stores open and our members back on the job,” said Artan Milaj, the Canadian Airport Workers Union (CAWU) vice-president, in an emailed statement on Monday.
The union is appealing to government and community groups to provide funding to reopen the stores. Nakamura did not confirm whether the employees affected by the closures were out of work, or whether they'll receive severance or termination pay.
“I am examining all possible solutions and trying to exhaust them … this is going to take some time,” she said.
Nakamura added that she would stay on as head of the organization under “clear instructions” from the board, who resigned Friday.
Goodwill Industries of Toronto, Eastern, Central and Northern Ontario reported total revenue in 2014 of just over $28 million and expenses of $29 million, according to the registered charity’s tax filing. It also reported more than $4 million in government funding.
Ontario budget documents show that the organization received $1.7 million in funding from the Ministry of Community and Social Services last year. The charity also delivers employment services on behalf of Employment Ontario.
Nakamura made $206,763.90 as CEO of Goodwill Toronto, Eastern, Central and Northern Ontario in 2014 according to Ontario's Sunshine List, which tracks all public sector workers who make more than $100,000 yearly.
Also listed is David Chu, vice president of business services. Chu made $129,252.47 in 2014. Both received roughly $8,800 in taxable benefits in addition to their salaries.
Gurdeep Chahal, who worked as the store manager at Goodwill’s Runnymede location from 2012 to 2014, said he felt he was treated well by the organization but that he noticed a series of management issues during his time there.
“There’s a reason why this happened and it’s very unfortunate for the people that worked there,” he said of the closures.
This is not the first time the organization has faced labour issues stemming from apparent revenue flow problems.
In 2014, CAWU successfully contested Goodwill’s so-called “Winter Strategy” at the Ontario Labour Relations Board. The strategy sought to reduce the hours of full-time employees during sluggish winter months to “contain costs and operational losses during periods of slow sales and/or donation.”
The union, which represents Toronto-area workers only, successfully argued that the company must temporarily lay off part-time workers before slashing full-time staff’s hours.
Despite the problems faced at the charity’s GTA locations, stores in other parts of the province appear to be thriving.
“We're very much financially strong, stable and prosperous,” Michelle Quintyn, the CEO of Goodwill Industries in the Great Lakes region, told the Guelph Mercury.
Laura Hills, the CEO of Goodwill Niagara region, told the Star her organization had not had to contend with rent increases like those in Toronto, and said the charity was currently in “expansion mode.”
Nakamura said Monday the Toronto closures would not impact the organization’s operations in other regions, including London, Sarnia, St. Catharines and Hamilton.
A spokesperson for Goodwill told the Star Monday evening that the Canadian Diabetes Association offered to collect items dropped off at the organization’s locations starting on Tuesday. However, the spokesperson wasn’t able to say which locations would be visited, since the logistics were still being worked out.
Trouble follows former head of Toronto Community Housing Corp.
June 2005: Keiko Nakamura joins Toronto Community Housing.
May 2009: Nakamura becomes acting head of the TCHC. Position becomes permanent the following February.
Dec. 7, 2010: The city's auditor general reveals inappropriate spending and purchasing practices at TCHC, including a 2008 staff party that cost $53,500. The lavish affair had 760 guests and featured an Italian spumante and strawberries station, a chocolate fountain, and a deluxe antipasto bar.
March 1, 2011: Then-Mayor Rob Ford calls on housing board members to quit and says more emphasis should be placed on repairing tenants' homes.
March 31, 2011: Nakamura is fired; her salary the year prior was recorded on the Sunshine list as being $210,077.
Source: thestar.com/
Author: Sara Mojtehedzadeh, Oliver Sachgau
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