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HomeMy WebLinkAbout1988-0971.Cotter.89-03-13. ONTARIO EMPLOY~S DE LA CO”RONNE CRCJWNEMPLOYEES DE L’CJNTARIO GRIEVANCE C$lMMISSION DE SE-ITLEMENT REGLEMENT BOARD DES GRIEFS Between: OLBEU (Casey Cotter) Before: OSi'l/88 IN THE MATTER OF AN ARBITRATION Under THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT Before THE GRIEVANCE SETTLEMENT BOARD - and - Grievor For the Grievor: The Crown in R;ght of Ontario (Liquor Control Board of Ontario) Employer For the EmDlover: ,D. Fraser I. Thomson E. Orsini Vice-Chairperson Member Member Craig Flood Cnunsel Roskie and Minsky Barristers and Solicitors Janice Baker Counsel Hicks Morley Kamilton Stewart Storie Barristers and Solicitors Hearinq: 2 i+ The kievor, Mr. Casey Cotter, was discharged on SeptembeK 3oLh, 1988 from his position as a permanent part-time employee on probation. He is grieving that discharge and requests to be reinstated and made whole in all respects. ~This decision deals with a preliminary matter respecting the appropriate standard of review for such a discharge. Counsel for the union-has submitted that the appropriate standard is that of just cause, or in the alternative, one of reasonableness and fairness. Counsel for the employer has proposed that the appropriate standard is whether the decision to discharge was arbitrary, discriminatory, or in bad faith. The choice of standard will have important procedural consequences, including the question of onus and which side proceeds first, and the question of the application of progressive discipline principles. during argument on this preliminary matter we were advised by counsel that Mr. Cotter has been employed with the Liquor Control Board since 1980. He became a permanent part-time employee on September 19th, 1988, with a probationary period due to endon August 19th, 1489, after eleven months. This evidence came in from counsel and was not disputed. We will accordingly accept it as background evidence at this time, but would note that it will be subject to proof in the normal way when the case proceeds on the merits. The issue involves the following situation. There is no standard of review in the collective agreement expressly relating to the discharge of probationary employees. Nor are there any express limitations on the right of such an employee to process a grievance in that respect through adjudication. Is the appropriate standard then one of just cause, which is admittedly the standard applying to an employee who has completed a probationary period, or is it some lesser standard such as the "arbitrary, discrimination, or bad faith" standard which has been applied elsewhere to probationary employees under certain circumstances? .The question of the appropriate standard of review under such circumstances has been a complex one, with differing results depending on the content of the applicable collective agreement, and the public or private nature of the sector in vhich the issue appeared. .We will first consider waueenht of New Brunswick v. Lee- cu.., a judgment of the.Supreme Court of Canada reported in 118 D.L.R. (MI 202. That case dealt with the discharge of a probationary employee under the provisions of the &&J& Servp, R.S.N.B. 1973, c. P-25, and a collective agreement under that Act. In that case, relevant provisions of the Act read as follows: 65. A collective agreement is, subject to and for the purposes of this Act, binding on the employer, on the bargaining agent that is a party thereto and its constituent,elements, and on the employees in the bargaining unit in respect of which the bargaining agent has been certified, effective on and from the day on and from which it has effect pursuant to subsection 64(l). . . . . . . 91(l) Where any employee feels himself to be aggrieved (a) by the interpretation OK application in respect of him of Ii) a provision of a statute, or a regulation, by-law, direction or other instrument made OK issued by the employer, dealing with terms and conditions of employment, or (ii) a provision of a collective agreement or an arbitral*avard; OK 4 (b) as a result of any occurrence or matter affecting his terms and conditions of employment, other than a provision described in subparagraph (a)(i) or (ii), in respect of which no administrative procedure for redress is provided in or under an Act of the Legislature, he is entitled, subject to subsection (2), to present, the grievance at each of the levels, up to and including the final level, in the grievance process provided for by this Act. 92(l) Where an emplOy-?ze has presented a grievance Up t0 and including the final level in the grievance process with respect to (a) the interpretation or application in : respect of him of a provision of a collective agreement or an arbitral award, OK (b) disciplinary action resulting in discharge, suspension or a financial penalty, and his grievance has not been dealt with to his satisfaction, he may, subject to subsection (21, refer the grievance to adjudication. . . . . . . 96(2) No adjudication shall, in respect of any grievance, render any decision thereon the effect of which vould be to require the amendment of a collective agreement OK an arbitral award. And relevant provisions of the collective agreement read: 1.04 Application of Agreement (a) This Agreement applies to and is binding on the Union, each employee, the Employer and its agents. . . . . . . 8.01 Application of Public Service Labour Relations Act The Parties agree that the adjudication provisions of the Public Service Labour Relations Act shall apply. * 5 8.02 Decision of Adjudicator or Board of Adjudication An adjudicator or a‘board of adjudication shall not have the power to alter OK change any of the provisions of this Agreement OK to substitute any new PKOViSiOn, for any existing provision nor to give any decision inconsistent vith the terms thereof. . . . . . . 10.01 Discharge Procedure No employee vho has COIIIpleted his probationary period shall be suspended or discharged except for just cause. Where an employee is suspended or discharged, the Fmployer wlthln flve working days of the suspension or dfscharge shall notify the employee in writing by registered mail or personal service stating the reason for the suspension OK discharge, and a copy of such notice of suspension OK discharge vi11 be fOKMKded to the Secretary of the Local Union. . . . . . . 22.01 (e) A "probationary" employee may be employed either fUll;tilEe OK pE4Kt-tiIEe. Newly hired elUplOyeeS shall be considered on a pKObatioMry basis fOK a period of one hundred (100) WOKking days. During the pKObatiOMKy PSKiCd, employees shall be entitled to all rights and privileges of the Agreement, except wlth respect to discharge. The employment of such employees may be terminated at any time during the probationary period without IecoUKse to the Grievance Procedure. The headnote of that case sums up the result as follows: Section 92(l)(b) of the WC Service v &&, R.S.N.B. 1973, c. P-25, which states that an employee may refer a grievance concerning discharge to adjudication, does not confer substantive rights upon an employee in addition to rights defined in the collective agreement. The grievance must be determined in accordance with the provisions of the collective agreement. Therefore, where a collective agreement recognizes the right of the employer to termlnate the employment of a probationary employee without shoving just cause, an adjudicator errs in finding that the employer failed to show just cause for dismissal. .6 In the body of the ~judgment Mr. Justice Martland said at p.206: In my opinion, ss. 91 and 92 of the Act do not purport to confer substantive rights upon employees in addition to their rights as defined in the collective agreement. They define the circumstances in which an employee who feels himself to be aggrieved may present his grievance at each level up to the final level in the grievance procedure (5. 91) and in which after having presented his grievance up to that level, he may refer it to adjudication (s. 92). Hovever, the grievance submitted must be determined in accordance with the provisions of the collective agreement. In my opinion, since the employer had the right, under the provisions of the collective agreement, to terminate the respondent's employment without showing just cause, there was an error of law on the face of the KecOKd vhen the adjudicator decided that the respondent's grievance was established because the employer failed to establish fault on her part as a prerequisite for her dismissal. Ry taking this course, the adjudicator put the respondent into the same position as that of an employee who has completed the probationary period and has become a permanent employee.. A permanent employee, if suspended OK discharged, is given by art. 10.02, the express right to invoke the grievance procedure. A permanent employee who has presented a grievance up to the final level could invoke the adjudication procedure provided in s. 92(l) of the Act, and the adjudicator could then review the matter and determine whether there was just cause for the suspension OK discharge. The application of s. 92(l) in such a situation was Considered by this Court in Huestis v. N Brunswick Electric PO e timIn (19791, 98 D.L.R. C3dle122 at DD. 630-l. [I9797 ; S.C.R. 768 at DD. 779-80. i5 N.B.R. (2;lj- 613. ‘in putting the respondent-into the . same position as that of a permanent employee, the adjudicator ignored the express provisions of arts. 10.01 and 2201.(e) of the collective agreement, since the provisions of art. 10 do not apply to probationary employees, and art. 22.01(e) enables the employer to terminate the employment of a probationary employee without recourse to the grievance procedure. I vould allow the appeal; dismiss the cross-appeal, set aside the judgment of the Court of Appeal and quash the decision of the adjudicator. There should be no order as to costs. Thus we are accordingly directed to the appropriate collective agreement to determine the substantive rights of the griqor in this public sector case, I and ve are cautioned that a provislon such as that found in s. 92(l) of the public Service Labour Relations Act of Nev Brunsvick does not confer substantive rights in addition to those found in the collective agreement. Furthermore, where the collective agreement m takes avay a right vith respect to discharge from a probationary employee, the “just cause” standard is inapplicable and an adjudication based on that standard will be quashed. Section 92(l) of the Nev Brunswick Act bears a number of similarities to Section 18(Z) of the g, nov before us. That latter section reads: M(2) In addition to any other rights of grievance under a collective agreement, an employee claiming, (a) that his position has been improperly classified; (b) that he has been appraised contrary to the governing principles and standards; or Cc) that he has been disciplined or dismissed or suspended from his employment without Wst cause, may process such matter in accordance with the grievance procedure provided in the collective agreement, and failing final.determination under such procedure, the matter may be processed in accordance with the procedure for final determination applicable under section 19. R.S.O. 1980, c. 108, s. 18. It may be, on comparing the two, that s. M(2) of the Ontario Act goes further and purports to confer a substantive right in that it refers to “just cause”, a phrase not found in s. 92(l) of the New Brunswick Act. However, s. D(2) largely defines the “circumstances”, as Mr. Justice Martland commented in respect of the New Brunswick section, under vhich a grievance may be processed. The notion of “just cause” in the legislation may become important if no :. substantive right to that effect is found in the relevant collective agreement, but that is not the~case here, as ve shall see later. We viev the emphasis in the Nev Brunsvick case on finding substantive rights in the collective agreement as an important one, which we shall refer to again. As WC have noted, there is no case law involving the employer herein and the language of the current collective agreement. Johnson 0372/87 involved the Liquor Control Board of Ontario, but it dealt with a prior agreement vith different language, and a temporary, rather than a probationary employee. The Johnson case referred to the standard espoused to by Professor McLaren in &&&&t’s v (19821, 5 L.A.C. (3d) 32 McLaren), * where he had commented as follows: Arbitrators have much debated the t;o extreme positions of cause involving probationary employees. Unions have argued that the standard for such employees vas to be identical with that of pernranent employees while companies have argued it was a matter entirely within their discretion. A middle ground appears to be emerging in,the arbitral jurisprudence in the case of probationary employees and has been articulated in & pacific Western Aj&U.nes Ltd. nd Canadian Air Line aht Attenda ts Assoc. (1981: 30 L A C (2d) 69 Fli (Sychuck) at p: 76, wherein it &s s&d’that: My reviev of the arbitral decisions leads me to the conclusion that the following principles and standards are applicable.vhen the parties have and expressly set out in the collective agreement the standard of arbitral review for the termination of a probationary employee namely: 1. Where a collective agreement expressly provides for a probationary period does not contain an express provision setting the standard of review for the termination of a probationary employee, the decision of the employer to terminate the probationary employee shall not be set aside unless the said depision is arbitrary, discriminatory or in bad faith. 9 However, the Board in the Johnson case did not come to any conclusion as to whether it should apply that private sector principle, applicable to probationary employees under certain circumstances, to temporary employees of the LCBO under the old collective agreement. We viev the J’ohnson case as inconclusive, except that it sets out the “arbitrary, discrimination, or bad faith” standard for probationers in the private sector vhere the collective agreement provides for probation, but provides no standard of review for termination of such an employee. Nor does it adopt that standard for the public sector, and the employer herein. Of more importance is the direction to reviev the collective agreement for substantive rights, and we consider that that must be done carefully. It is also quite clear that where a collective agreement refers to an m right to discharge probationary employees, the “just cause” standard is notapplicable, and the onus rest on the employee to prove the,discharge was arbitrary, discriminatory, or in bad faith (see, for example, s nf (1984), 18 L.A.C. (33) 52 (O’Shea)). We vould sum up the. above’ in the folloving way. In the public sector; one should look to the collective agreement for a substantive right of a probationer respecting discharge, and be careful about implying such rights from the enabling legislation, which may only contain procedural rights. Where there is a restriction on the rights of a probationer respecting discharge (such as management having the exclusive right), or where the collective agreement is clearly silent on such>ights, but otherwise determines 10 I ’ a probationer’s terms of employment, a standard less restrictive on management than just cause, may be appropriate in respect of probationer’s rights on grieving a discharge; in the private or quasi-public sector. This is not I necessarily true for the public sector. Thus there appears to be a consensus that, absent any express right to be discharged only for just cause, a probationer is in a period of employment vhere his or.her suitability for the greater security of tenure of a permanent employee is assessed. As has been seen above, that assessment, and the less-secure position of the probationer, is usually recognized by the provision of specific language in the collective agreement which normally restricts the probationer’s right to grieve, or gives the employer an exclusive right to discharge a probationer, or some combination of those two approaches. Such language is recognized as providing a standard which is something less than just cause, by which the propriety of a discharge will be measured. These principles direct us first to examine the collective agreement in this case (in the context-of the legislation) to see vhether it provides I standards or is silent, in respect of discharge of a probationary employee. The relevant section of the Crown Emolovees Collective Earaainina Act has been noted above. The applicable position of s. 18(2)(l) may be extracted to read-as follows: “18(2) In addition to any other rights of grievance under a collective agreement, an employee claiming, . . . . . . ;I. 11 (c) that he has been . . . dismissed . . . from his employment without just cause, may process such matter in accordance with the grievance procedure provided in the collective agreement, and failing final determination under such procedure, the matter may be processed in accordance with the procedure for final determination applicable under section 19." Section 19 describes the situation of disputes by the Grievance Settlement Board, but does not deal further with the standard of just cause referred to in section 18(2). .Articles 34 and 35 of the collective agreement provide for the application certain terms to permanent part-time~employees; Article 36 defines the positions, and Article 37 deals 'with seniority of such employees, including the probationary period. Those articles effectively set the stage, and read as follows: 11 Permanent Part-Time EInployees - Appllcatlon 34.1 The only terms of this Collective Agreement that apply to permanent part-time employees are those that are set out in Articles 34 to 49 and those listed in Article 35 - Other Applicable Articles - Permanent Part-Time Esaployees. No provision in this Mllective Agreement other than those included In these articles shall apply to permanent employees in permanent part- time positions. _ Other Applicable Articles - Permanent Part-Time Employees 35.1 The following articles of the Collective Aqeement shall also apply to permanent port- time employees: 2. Article 1 - Recognition Article 2 - Relationships 12 36.1 * * 36.2 36.3 36.4 Article 3 Article 4 Article 14 Article 15 Article 16 Article 21 Article 23 Article 25 Article 26 Article 27 Article 29 Article 30 Article 33 Article 50 Article 52 - ,Dues and Information - Seniority - Military Leave - Leave Without Pay - Court Witness - Assignments & Job Postings - Statutory Provisions - Salaries - Employee Files and Discipline - Grievance Procedure - Stock and Cash Shortages - Utillzation of Permanent Part-Time Employees & Casuals - Safety Committee - Technological Change - Term of Agreement Definltlons - Permanent Part-Time Positions The regularly scheduled hours of work for a permanent part-time position shall be as determined by the Boards, provided they are: (a) less than thirty six and one quarter (36 l/4), thirty seven and one half (37 l/2) or forty (40) hours per week, as applicable to the classification to which the permanent part-time position is assigned, but not less than 15 hours per week; or (b) less than twenty (20) full days over a period of four (41 consecutive weeks, but not less than nine (9) full days of seven and one quarter (7 l/4), seven and one half (7 l/2) or eight (8) hours, as applicable to the classification to which the permanent part-time position is assigned. The "basic hourly rate" of pay for permanent part-time employees is the basic hourly rate for the class. The "weekly salary" of a permanent part-time employee is the basic hourly rate times the applicable weekly hours of work. "Weekly hours of work" shall be the average of the regularly scheduled weekly hours of a position calculated over a period of four (41 consecutive weeks. :I -13 36.5 “Annual salary” shall be the weekly salary multiplied by 52.17857. Bmlozlty - Peraanant Part-Time Fm@oyeee 37.1 (a) The Seniority of a permanent part-time employee will accumulate upon completion of a probationary period or not less than one half (l/2) year and not more than one (1) year. The probationary period will be calculated to nearest whole month in accordance with the following formula: Full Time Hours of Work No. of months of probationary dQs the s x .5 x 12 = period to be served (rounded) Weekly Hours of Work as a to the nearest full month, Permanent Part-Time Fmployee not exceeding 12 months) (b) For the purpose of seniority based rights under the Collective Agreement, seniority for Permanent Part-Time employees will be calculated on hours worked which Includes weekly hours of work for a permanent part-time posltlon plus any additional hours worked, and where applicable the provisions of Article 37.11~). A seniority list (by total hours) will be posted for the employees at each work place two (2) tl,mes per year. (c) Notwithstanding Article 37.1(a), where a casual covered by Article 32, becomes a permanent part-time employee, his seniority as a casual from July 1, 1985 will form part of his unbroken service, and shall be transferred to the permanent part-time staff. Article 27 contains the grievance procedure, and It is a lengthy article. It does not expressly refer to Drobationarv employees at any point. Article 27.7 reads in full as follows: “27.7 An employee claiming he has &en dismissed without just cause shall be entitled to file a grievance commencing at STAGE 3 provided he does so within ten (10) days of the date of the dismissal.” We would note the following about the above. First, that Article applies specifically to permanent part-time employees by virtue of Article 35, and the Grievor Is a pernranent part-time employee. However, the phrase “permanent part-time employee V contains a semantic mine trap. The word “permanent” in that phrase does not exclude the notion of a probationary employee, as probationary permanent part-time employees are contemplated by Article 37 of the collective agreement. The Grievor is clearly probationary, but in a “permanent part-time” position, which position Is Included by Article 35 In the notion of “employee” found in Article 27.7. Thus the Grievor may claim a substantive right to grieve for dismissal without just cause as an “employee ” under Article 27.7, except that he is a special type of employee, on probation. - Do we then give effect to the principle alluded to by Professor McLaren in & Lab&t’s Ontario Rreweries, (supra), where he adopted the principle found in . . RePaclfrc .I stated by Arbitrator Sychuck to the effect that (1) where there is a probationary period, and (2) there is no provision setting $he standard of review for the termination of a probationary employee, then the “arbitrary, discriminatory, or bad faith” standard Is applied? . We have some reluctance to reach that result, for the following reasons. In The Queen in Riaht of Nev Brunswick v. Leemino et al., the Supreme Court of Canada rejected the just cause standard in what may be termed a public sector case, but in that case, Article 22.01(e) (cited ~1 exoressly withheld :. 15 probationary employees’ rights with respect to discharge, and said their employment “may be terminated at any time during the probationary period without recourse to the Grievance Procedure” (as noted at p. 203 of the case). . . Similarly, in the quasi-public sector case of Re Toranto (supra), Arbitrator O’Shea rejected the just cause standard, and with It, the requirement that the employer bore the onus to prove just cause, for a probationary employee. However, in that case also, there was w restrictions on the right of a probationary employee to grieve a discharge. As is noted at p.55, Qrtlcle 2.02(a) of the current collective Agreement Y provides that the Metropolitan corporation has the exclusive right to discharge employees during their probationary period. This matter is not arbitrable under the terms of the Collective Agreement.” Our case Is different, in the collective agreement language where the substantive rights must be found. Article 27.7 is the only source of any substantive right In the collective agreement to grieve a dismissal without just cause. That right is expressly given an employee (Including a permanent part-time employee), and that grant of a right is not restricted by any other express or direct language In the agreement. Do we then derogate from an express right in order to give effect to an implied provision? Because there is a probationary period, may we imply the intent In view of the purpose of such a period, that there Is a sub-class of probationary employees included in Article 27.7, with a lower standard of review than the express standard of just cause found there? In revieving this matter, we accept in principle that a probationary 2. period has a special purpose related to the assessment of an employees’ 16 sultabllity for a permnent position, and we also accept that, all other things being equal, it is appropriate that management be able to terminate such an employee by different standards than those applied to a permanent employee, when the probationary employee Is unsuitable for some reason. That has been accomplished by the cases we have cited above, by express language, and the resulting different standards have been sanctioned by the Supreme Court of Canada. In our case, however, there is no express language to such effect. The only express language, found in Article 27.7 refers to an employee, without restriction, and it refers to a standard of just cause. To Import a lesser standard for probationary employees, would require that we in effect alter, modify, or amend that part of the agreement. We are forbidden to do that, by the provisions of Article 27.10(a), which reads as follows: 27.10 (a) The Crown Employees Grievance Settlement Board shall not be authorized to alter, modify or amend any part of this Agreement nor shall the Crown I3nployees Grievance Settlement Board give any decision Inconsistent with the provisions of this Agreement. We would be amending a substantive right in a collective agreement by adding an express new standkwhich would derogate from that right. In view of the.fact that such lesser standards, or absence of any standard at all, have been provided for in many other collective agreements by clear language representing the intent of the parties (such as the removal of the right to grieve from probationary employees, or the addition of a management right to have the “exclusive right” to discuss such employees), and in view of the fact that that was not done here by the parties, we would exceed our jurisdiction in doing so. . ? 1.7 we conclude, for.these reasons, that the standard of review for a probationary part-time employee is that of just cause, found in Article 27.7, and vould note that if the parties wish a different result, they may achieve that in the future by adopting some of the restrictive language respecting probationary employees, found in the cases we have referred to. It follows that where a standard of just cause is appropriate, the employer then bears the onus of establishing just cause for discharge (see, for example, & . . Q (supra)), and we would note that counsel for the employer herein did not dispute such a result. We therefore declare that the standard of just cause found In Article 27.7 of the collective agreement Is the appropriate standard of review, and that the employer bears the onus for establishing such just cause. There is one further matter we would refer to. The standard of just cause we have found applicable, results from express language to that affect in the collective agreement, and the absence of any express’prohibitlon or restrictive language. Notwithstanding that result, we have also recognlzed that in principle, a probationary employee is a special case. These two matters may be reconciled in vlew of the broad scope of a just cause provision. Although the onus remains on the employer, a probationary status is clearly a relevant factor in assesslng in any case whether just cause existed. Arbitral awards are replete with the adoption of various forms of status as relevant factors in assessing just cause for discipline or discharge. 1.0 If, for example, one is a teller or cashier, the resulting fiduciary relationship has long been an important factor in assessing just cause in many past cases involving the current employer. If, for another example, a probationary employee is essentially off the street, and has never worked for the employer or otherwise before, then a review for just cause would take account of that probationary relationship, including the lack of any employment record of the employee,and the risk the employer has accepted in embarking on that relationship. For a further example, if the probationary employee has had some eight years service with the employer in another capacity, prior to entering a formal probationary period (as we understand the situation to be in the case before us), then the factor of probation may be given a different weight in reviewing for just cause, than in the first case. In sum, then, notwithstanding the adoption of the standard of just cause from the collective agreement, the recognition of the probationary relationship as a factor, will ,lead to the “middle ground” of review in such cases, referred to by Brown and Beatty at p. I-114 of Canadian Labour Arbitration 3rd ed.; (Canada Law Book, 1988). Under the general heading “7:5020 Standard of review of disciplinary action”, ,the authors reviewed the complex case law respecting standards of reviev for termination of probationary employees, and have noted that it ranged from no need to give any reason for the termination, to a standard essentially similar to that applied to a seniority rated employee. The authors then note at p. 7-174, that there is a middle ground, involving “the principle that although the employer is obliged to prove some cause for the‘discharqe of a probationary employee, it need not be of the same form or weight as that required to justify the discharge of a seniority rate employee.” We believe our reference to the probationary relationship as an important factor in assessing just cause for the discharge of a probationary employee, not only reflects that principle, but it also directs attention to the underlying factor or reason for giving a different form or weight, and that factor is the circumstances of the probationary relationship in any given case. It also gives some guidance respecting other matters arising out of the just cause standard. For example, in a brief probationary relationship of a matter of veeks, prcqressiw discipline may have little or no relevance, whereas it may have weight against the background of a probationary relationship following on some eight years of employment in another capacity, as is the case here. Finally, a proliferation of aribtral standards in this area is avoided. One either has to meet the arbitrary, discrimination or bad falth standard resulting from the language of some collective agreements, or a standard of just cause In which the probationary period may be an important factor. Thus, to conclude: the standard of review in this case is that of just cause, as found ‘in the collective agreement; the nature and circumstances of the probationary relationship form an important factor in assessing whether just cause existed; and the usual onus is on the employer to prove just cause. Dated at Ottawa, this-13th day of March , 1989 D. hama Vice-Chairperson / 11 Ttvhdn, Member E. Orsini, Member