New Brunswick lawyer speculates on former Charlottetown CAO Peter Kelly’s settlement package
CHARLOTTETOWN, P.E.I. — A New Brunswick labour lawyer says Charlottetown’s former chief administrative officer (CAO) could be entitled to a severance of a minimum of $75,000.
Nonetheless, Joel Michaud with Pink Larkin Legal professionals in Fredericton advised SaltWire Community on Could 18 that Peter Kelly may pocket rather more if it was referred to as for within the contract the previous CAO signed when he was employed in 2016.
“There may be frequent regulation entitlement,” Michaud mentioned in a phone interview. “As an worker, you’ve got a presumed contract and (based mostly on his annual wage) that will be $75,000. That’s the frequent regulation.”
Kelly was terminated by the Metropolis of Charlottetown on Could 9 with out trigger, that means he qualifies for no matter severance package deal the 2 events agreed to.
Sources advised SaltWire Community that talks on a settlement continued after his termination on Could 11 and that it was seemingly going to quantity to a six-figure deal, based mostly on a contract that referred to as for greater than a 12 months’s pay.
“He could have negotiated some form of golden parachute when he was first employed, offering for one thing extra beneficiant,” Michaud mentioned, noting that Kelly’s high-level place and variety of years within the job could be elements.
Following Kelly’s termination, town refused to say what Kelly’s annual wage was however did say that it ranged from $130,000 to $165,000.
The town refused to supply a duplicate of Kelly’s contract when requested by this newspaper, citing privateness guidelines underneath the Municipal Authorities Act (MGA). The town did present SaltWire Community with a duplicate of the privateness bylaw handed by council in February 2020, which it says prevents the data from going public, although any cash Kelly walks away with is taxpayers’ cash.
“He could have negotiated some form of golden parachute when he was first employed, offering for one thing extra beneficiant.” – Joel Michaud
In line with sources SaltWire Community has spoken with up to now, Kelly was on a contract that got here up for renewal each two years. He was additionally topic to a efficiency assessment each second 12 months. Nonetheless, that assessment was missed final 12 months.
Coun. Julie McCabe, former chair of the human assets committee, tried to get the assessment again on the rails in March, however it by no means acquired past that time.
Kelly, who was mayor of Halifax Regional Municipality from 2000 to 2012, grew to become the centre of controversy following his firing of deputy CAO Tina Lococo in April after she had been on the job about six months. Kelly fired his earlier deputy CAO, Scott Messervey, three years in the past after Messervey had been within the position one 12 months.
Earlier this month, Inexperienced Chief Peter Bevan-Baker tabled an nameless letter within the P.E.I. legislature from metropolis staffers who alleged Kelly created a office of concern, favouritism and lies and urged town to launch an investigation into his conduct.
SaltWire Community additionally spoke to different staff who mentioned it was the deputy CAOs that created a poisonous office.
On Could 9, Mayor Philip Brown advised the media that it was the need of each events to maneuver on. Two days later, council voted 8-3 in favour of terminating Kelly’s employment.
Michaud speculated that Kelly’s severance may have been beneficiant as a result of town wished to keep away from a authorized struggle or what would possibly come out of a assessment.
“It’s not unusual in conditions like this there might need been some considerations along with his efficiency at one level or one other … how that interprets into cash in a settlement settlement isn’t clear … however it may be a related issue,” Michaud mentioned.
Brown declined to touch upon Could 19, citing the MGA’s privateness bylaw.
Dave Stewart is a municipal reporter with the SaltWire Community in Charlottetown, P.E.I. @DveStewart
