Two men are dead and a third has been taken in handcuffs from the site of a construction business near Schomberg, north of Toronto.

York Regional Police responded to a call at about 10:25 a.m. Tuesday regarding "unknown trouble" at James Elliott Underground Construction Inc. on Lloydtown-Aurora Road, east of Highway 27.

A police spokesperson said Bill Jones, 74, and Jim Wilson, 78, were initially discovered on the ground without vital signs.

One of the victims was transported to hospital where he later succumbed to his injuries, police confirmed. The other victim was pronounced dead on scene.

Police said they are treating the incident as a double homicide but stressed that the investigation is still in its early stages.

A handcuffed 40-year-old company employee was taken into a police cruiser shortly after the incident occurred, but police wouldn't elaborate as to why. Co-workers said he had worked at the site for about a year after moving from Saskatchewan.

The owner of the underground construction company has confirmed that the two victims are his employees. One is a shop foreman while the other is a mechanic, Jim Elliot told CTV Toronto. It was not immediately clear which victim had which title.

Jones had worked at the site for more than 40 years.

"He's one of the most loveable (people) you'd ever want to meet," said one man. Co-workers said Wilson was a family man and grandfather from Orangeville.

"Two nice guys, they wouldn't hurt a fly. I can't understand how this happened." Clarence Boyd, a friend of both the victims.

Mark Cox, the husband of the company's office manager Judy Cox, said his wife had placed a "hysterical call" to him around the time police were dispatched, indicating that two of her colleagues had been injured.

"She was extremely upset. I couldn't even make out what she was saying," Cox said.

Police said there didn't seem to be any problems between staff, but Duty. Insp. Gary Miner said investigators are looking through the employee list to see if the murder may have been centered on a dispute.

"I guess people snap sometimes and maybe that's what happened," said the victims' co-worker Dorie Nightingale.

"It's not the norm around here," she said.

Charges are expected to be announced on Wednesday morning.

Anyone with more information is asked to call the Homicide Unit at 1-866-287-5025 or 905 773-1221, ext. 7865, or Crime Stoppers at 1-800-222-TIP.

With files from CTV Toronto's Tamara Cherry.