l ] l CT-2007-006 ] COMPETITION TRIBUNAL ] IN THE MATTER of the Competition Act, R.S.C. 1985, c. C-34, as amended; AND IN THE MATTER of an inquiry under subparagraph 10(1 )(b)(ii) of the ] Competition Act relating to certain marketing practices of Premier Career Management Group Corp. and Minto Roy; l AND IN THE MATTER of an application by the Commissioner of Competition for an order under section 74 .1 of the Competition Act; ] ( BETWEEN:
] THE COMMISSIONER OF COMPETITION COMPETmON TllBUNAL CONCUllENa " It Applicant. 0 l and 2007 D u I R - REGISTRAIRE J l PREMIER CAREER MANAGEMENT GROUP CO...._.-_-_~-~~-----)OJ_3_o... .. ] and MINTO ROY ] Respondents. l AFFIDAVIT OF JOHAN DE VAAL I I, JOHAN DE VAAL, 104 - 2880 Panorama Drive, Coquitlam, British Columbia, l SOLEMNLY AFFIRM AS FOLLOWS: 1) My date of birth is 14 October 1946. J 2) I hold a Masters engineering degree from the Cranfield Institute of Technology in the UK. I am also a designated Professional Engineer (P. Eng.) in British I Columbia. Over the years, I have held several engineering positions in the following companies: AMEC - a project management and services company; Thomson Technology - which specializes in the design and manufacture of I
2 power generation controls and switchgear; Simpson Power Products - which specialized in the design and manufacture of diesel powered generation equipment, etc. I have also provided consulting services to ZE Power Engineering and Seabreeze Corp.
3) I presently work as a Senior Project Manager, Energy and Infrastructure Division, for Sandwell Engineering Inc., which is an engineering, procurement and construction services company.
4) In April 2004, my employment was terminated since the company was restructuring. I was given a 6-month severance package and I decided to take some time off before looking for new employment. I really started exploring opportunities in September 2004.
5) I saw a print ad in the Vancouver Sun newspaper on December 4, 2004 stating as follows: "PCMG (Premier Career Management Group) is now accepting resumes from qualified candidates in a variety of areas including engineers, project managers, etc." (attached as Exhibit "A" of my affidavit).
6) I got the impression from PCMG's ad that the company was a head hunting company in the job recruitment industry. I assumed that, like those employment firms, PCMG already had a list of companies that were looking to have positions filled.
7) On December 7, 2004, I responded to PCMG's newsprint advertisement by forwarding my resume to the company.
8) Several days after forwarding my resume to PCMG, Leasa Walker contacted me to set up a meeting with Minto Roy to discuss my qualifications.
9) On or about December 15, 2004, I met with Minto Roy on my own. During this meeting:
a) Minto Roy made representations about PCMG's services; b) Minto Roy told me that PCMG had links to the business community and that PCM G's services would include providing me with contact to senior officials in companies looking for key people just like me;
c) Minto Roy told me that they were selective about who they took on as clients, but that I was eminently qualified for the types of positions they were looking to fill;
d) Minto Roy also told me that, through PCMG contacts, I could expect to find a senior position at a competitive salary within 90 days.
3 e) Minto Roy named at least a couple of very well known companies, like Terasen Gas and Finning, both of which were companies that I was interested in.
f) I advised him that I had previously earned $105,000 per year and Minto Roy indicated that it shouldn't be difficult to get employment at that salary level again.
g) At the end of the meeting, I indicated that I would like to reflect on PCMG's services. Minto Roy indicated that he would like to have a second meeting and suggested that my wife also attend. Based on my experience, this was not an uncommon practice since new employment in my industry and at my level is often a major family decision.
10) I understood PCMG's services to be akin to those of a head hunting or job placement agency. I was again left with the impression that PCMG already had a list of companies that were looking to have positions filled.
11) On December 20, 2004, my wife attended the second meeting with me, during which Minto Roy again repeated that same sales presentation and that the services would be provided through meetings with a career counselor. We advised that we would like to think about it over the Christmas break, but Minto Roy was insistent that time was of the essence since many companies were even interviewing over the holiday period.
12) Minto Roy then provided us with the draft contract and left us to review it. read the contract and didn't notice any items of concern. I also discussed with my wife whether she thought this was a good opportunity and whether it was worthwhile to pay this amount of money for these services.
13) I then entered into a contractual agreement with PCMG for their career management services. At that time, I paid a $500 deposit. I paid the balance before my first meeting with my career counselor. In total, I paid $6377.20 (i.e., $5960 plus GST). I attach a copy of this contract as Exhibit "B" of my affidavit. It is worth noting that, by paying this fee, I understood that Minto Roy was going to provide me with contacts. 14) I attended my first meeting with my career counselor, Alana Fero, on December 23, 2005. Following that, my meetings with her were held about once a week.
15) On January 14, 2005, myself and 7 other PCMG clients attended a "Marketing Campaign Seminar" offered as part of PCMG's services. During this seminar, the attendees were also encouraged to "network" amongst themselves.
16) Several weeks into the services of PCMG (near the end of January), I noticed that I was not being provided with the contacts I had been promised.
4 17) On March 28, 2005, along with a group of 6 dissatisfied PCMG clients, I sent a letter to Minto Roy requesting a meeting with him to register our complaints about the lack of delivery on promised services and also to obtain refunds of the PCMG service fees.
18) Minto Roy agreed to meet with me and the 6 other complainants on April 7, 2005, but then refused to negotiate with the complainants as a group, stating that he would respond to our letter individually.
19) I never received a reply from Minto Roy or PCMG. 20) On May 6, 2005, I filed a claim in BC Small Claims Court against PCMG, and in November (after obtaining some legal advice) I added Minto Roy as a co-defendant. Another complainant, Mr. Warren also filed a claim against PCMG and his case proceeded before mine.
21) In March 2007, after several days of testimony (including one in which I was called as a witness to provide "similar fact evidence"), Judge Pendleton found that Minto Roy's testimony was "not credible" and ruled that PCMG provide a full refund to Mr. Warren, less $1000 for limited services provided by PCMG.
22) Since then, I have reached an out-of-court settlement with PCMG based on Judge Pendleton's ruling in the Warren case. I received $5377.20 plus interest and legal fees for a total of $5900.
Jclilin de Vaal Solemnly affirmed before me in Vancouver, British Columbia on September 10, 2007.
i- < I g_)aJ;tzf Com~er of oaths
This is Exhibit "A" of the affidavit of Johan de Vaal solemnly affirmed before me in Vancouver, B.C. on September 10, 2007.
v'ifai vGJc:taA Lori Watts
___. .. _______"" "'".·7.\l'·-·.~··~ .';. ·.,;.:·.,· .. , Premier Career.~···'. . ·.· .. . . .. Gl!~g:p 1 • TD Tower~ Suite 29~o;c.:.7oo•W¥st Geetigia . : ........ ,, . PCM~.i~trto.· ··quality·· .· •. E~ecl!ttve~t·:.iVf~n~§ers,sares .& . Mark¢ting ·Protessi~tl~I~
·• . Englneers1 Prqject Manager~ & ~echnidans • education,. Q>mmunicati~riS·&· Social Seriiice PrOfessronals · 'k .· · .''".". , , ·'• ' · .,. · ' ·: .. . . ; > :'. · < ·. : > ·' ' . ., . . · . ·· . ; . : . . . . .. ·. · . -: < . .. " For immediatecol'lsid~~tiqn1 please forward your resume'fo; careers@12gn~nada:tom ... *Ask us about s~~iql ~cruitlng support for new universi · ·
This is Exhibit "B" of the affidavit of Johan de Vaal solemnly affirmed before me in Vancouver, B.C. on September 10, 2007.
! I PCMG II I PREMIER CAR.EER MAN.AGEMENT GRO'UI> 700 West Georgia St., Suite 2920, Vancouver, B.C. V7Y 1C6 Tel: 604-609-6661 Fax: 604w609·263S PROFESSIONAL CAREER DEVELOPMENT SERVICES Premier career Management Group (PCMG) agrees to provide the following se:vices:
1 Phase l - Preparation 1. Conduct Functional Self-Analysis and Objective Setting; 2. Establish realistic short·term 9oals and identify suitable posltions; 3. Explore career options and define target markets and Industries; 4. Develop resume and Proactive Profile; S. Instruct and activate cllet1t in utHiiing PCMG online services; 6. Distr,butc your confider1tiaJ profile in PCMG's Sourcebook to com;;anle5 <itid recn1iters in t"',e local ;~1br~.i::: area; 7. Develop a marketing plan between yoo and ttie advisor to generate :appropriate referral .:rd job intendews; 8. Conduct advance preparation to sharpen job interviewing and m:.>got!ating techr,!ques. Phase H - Managing the Market Campaign l. Provide on;-on·one consulta~\ons w\th your career advisor ~o evah..1ate and monitor your marketing pl;:in, strategy and progress; 2. Assist in reviev;;ing and as$eSs•ng job offers: J. Advise on dfectiveiy negotiating salary and benefits. ~hase IU ... Plan for the future l. Co.next follow-up re·1iew appm:ximatciy 90 d<3ys after starting new ;-:tcsttI::in to develop ~ ::irogn:im for intra-company advancement toward long·range goals; 2. Pr:-Jvide cor;su!tafion, as needed, concem\r\g organiiational, political and \r.tcnpersonal s!:rs tii!.lct';;d :o career advancement; · 3. Re-start the marketing campaign in the event of a job loss or need to change employers, earner f:e'ds c· industries. Client Satisfaction Guarantee \f>Je at Premier Cmeer Management Grol!p tire committed to providing quality ser.rices to our dien:s a•':: rner;tor'.ng tnem through a process reflecting the prlnclpl<:s of our founder that will help thes u0ce;stLir.:'. t",~ . pas~ and grow ir:to :he future. Accordingly, we have establlshed measures to ensure value ard sat!s~a:::tbi ~o ·
our clients.
Three·Y ear Commltm~nt. In order to achieve the maximum benefit from our servl<:e1 1,ve csk our d€'r.ts t:i report ali information with integrity, act en recommendations and requirements made by the ?CMG consuJtir.g staff, foHow the PCMG process, rmd initiate contact with their career advisor at least once '!very two »<:eeks until th~y have mede an acceptable career decision. Client understands thtit PCMG wrn mzike its se1Vic::s available, without restriction as to time, untii client has accepted a position. The dient may a:so cal! upcn PCMG for further assistance in the development of his/her career for a period of three {3) yfa~s from tt}e date of this agreement From time to time, you may be assigned to a new advisor. Reasons ma1· include: a mere improved cllent-advlsor match, advisor re!ocatlons, dient relocation or simply an advisor leaving the errq!oy of Premier Career Management Group. Havlng other advisors can be a benefit, offering you additional professional career courseling perspectives. In each instance, however, Premier Career Management Grcr.;!J will take every reasonable action to assure the wntlnuity of your search throughout this tran~itfon perfod ·----Client Initials
~lient Satisfaction Rt'rnQrts. ln Its commitment to provide a world-dass career managenent ser;ice and achieve the results dients expect, Premier Career Management Group needs your help. Per'odical!y; yow w:il
I O' ""'"""'''''""""'' -~ l be toked to complete Client Satisfaction Reports and provide important feedt!ad<. It is important that you o. candid with your comments. Your candor enables us to monitor your progress and ensure we are meeting or, I ' more preferably, exceeding your expectations. We further want you to feel comfortable to discuss any concerns directly with your advisor who is in the best position t<> immediately address a particular situation. ' Client Initial j Client Acknowledgment$. Client acknowledges and agrees that neither PCMG, nor any representative of 1. PCMG, has represented or implied to Client that PCMG ls an employment or placement agency. Client I I understands that PC:MG provides a full program of career consulting, career development1 and contact development, which the client implements. Further, Client acknowledges and agrees that PCMG has not, nor 1 h~s any representative of PCMG1 induced C!?ent to enter into this engagement by impllcaticmi representation j or guaranteeing to C\lent: (a) specific interviews with specific companies or individuals, salary, or time frame l to obtain a new position or promotion, (b) any verbal promises that are not part of the written agreement (c) ! salary or wages increase, bonus programs or other increased remunerationt {d) your employer or a future I employer wlll pay or reimburse you for the fees you have paid to PCMG. Client t-:as received a :'.Jpy of the t "Ust of Services" and PCMG oniine services and understands that all directions wiU be implemented in the
search. Client also understands that the major emphasis will be on developing his or her netwrirk s!r,ce the majority of positions are found through this method. lhe f~e for services Is broken down into three (3) parts as follows: 75°/o of fee attributed to Phase I, as outlined; 1sc10 of fee attributed to Phase II, as outlined; 10% of fee attributed to Phase rn, as outliried, f·ee is not subject to adjustment or proration based ·Ofi the number of meetings or hours spent wlth the client Client Initials This instn.rr1ent constitutes the sole and on!v Agreement of the parties hereto with respect to the mcr:::·r covered by this Agreement, and correctly set5 forth the rights, duties, and obligations of each to the other cs ' of this ctate. 1 hereby ackno·.vfedge that I have: read ar-0 received a copy of this Agreement
Total Fee: ~ Balance Oue: __.) ._¢V'_tl , _ ____P ayable as follows: Client Signature .... -"-'_ _. .... j_\~~-L._.~ --·_ Jl_ ______ - tit Print Full Name
l PCMG Revised 11/04
Premier Care. ement Grou JOHAN DE VAAL Three Year Career Advancement Program
$7,960.00* ,.,. . :::::·"---··~===--#""~~,,.,,,,,.,,,,,. . A, , ••• .,•••••• f ' \ A retainer of $5, . · e balance of$2tOOO.OO due and payable in 90 days "'aft:.~r acceptance of po.,si ~ , ·i ded that the new position has an annual base incomenrr-af.Ieasr$W,OOO.OO. If be annual base income is less than $90,000~00; 110 additionaf"·~e '\viU be 41 .. and the retainer of $5.960.00 wiU be considered ~v,,4,... m.,,.,a . .· .• payment in full for-ourservices. If the company agrees to pay the fee, the fee of '$7,960.00 will be charged regardless of the income package you have accepted. PCMG will refund your retainer after rec·eipt of $7,960.00 from,;. fcompa11y with which you have accepted your career position. · , I
PCl\fG Client · G Representative **Note: As a convenience to our clients, we offer the opportunity to make full payments, through MasterCard> Visa, American Express and Debit.
*Note: Price sul:>ject to 7% GST.