07/19/2011 02:16 EDT | Updated 09/18/2011 05:12 EDT

Nashville Ends Deal With IQT Solutions After 1,200 Canadian Layoffs

Flickr/kyle simourd

THE CANADIAN PRESS — The City of Nashville says its deal with IQT Solutions to move its operations to that city is effectively dead.

City officials say in a statement it is no longer in discussions with IQT, a call centre company that laid off 1,200 Canadian employees without warning last Friday.

The laid-off workers are in Oshawa, Ont., and in Laval and Trois-Rivieres, Que.

They did not get their final paycheques or any other compensation and were told to gather their belongings and leave.

Nashville had earlier said it would provide the call centre company with $1.6 million in incentives to create 900 jobs in the U.S. city.

But a senior city official says it is no longer dealing with the New York-based company after reaching its ownership last night.

Nashville officials say they are dismayed with the way Canadian employees were treated.

The announcement comes just one day after Nashville's mayor demanded explanations for the abrupt sacking of the Canadian workers.