HomeMy WebLinkAbout1996-2779.Union.97-06-02GRIEVANCE
DE
EMPLOYEES DE
COMMISSION DE
SETTLEMENT REGLEMENT
BOARD DES GRIEFS
180 DUNDAS STREET WEST, SUITE 2100, TORONTO ON M5G 1ZB
180. RUE DUNDAS OUEST, 2100, TORONTO (ON) MSG fZB
2779/96, 141/97
OPSEU # 97U008, 97U056
Under
COLLECTIVB
Before
OPSEU (Union Grievance)
Grievor
-and
the Crown in Right of ontario
(Ministry of Community & Social Services)
Employer
BBPORB w. Kaplan Vice-Chair
G. Leeb
Grievance Officer
ontario Public Service Employees Union
S. Patterson
Counsel
Legal Services Branch
Management Board Secretariat
May 26, 1997
2
Introduction
On April 16, 1997, a union grievance was filed alleging that:
...the Ministry has failed to comply with the Collective Agreement
including but not limited to Appendix 9, in respect to the transfer of
bargaining unit functions from Rideau Regional Centre, Huronia Regional
Centre, Adult Occupational Centre, Southwestern Regional Centre and
Midwestern Regional Centre.
As it happens, when this grievance was filed another and related grievance
was already proceeding before the Board with respect to the closure of a
facility called Prince Edward Heights (hereafter "PEH"). Considerable
evidence had been led in that case outlining the efforts made by the
Ministry to comply with its reasonable efforts obligations in Appendix 9 of
the collective agreement. That provision is as follows:
The Employer will make reasonable efforts to ensure that, where there is
a disposition or other transfer of bargaining unit functions or jobs to the
private or broader public sectors, employees in the bargaining unit are
offered positions with the new employer on terms and conditions that are
as close as possible to the then existing terms and conditions of
employment of the employees in the bargaining unit, and, where less than
the full complement of employees is offered positions, to ensure that
offers are made on the basis of seniority. When an employee has been
transferred to a new employer he or she will be deemed to have resigned
and no other provisions of the Collective Agreement will apply except for
Article 53 or 78 (Termination Pay).
(b) Where the salary of the job offered by the new employer is less than
eighty-five percent (85%) of the employee's current salary, or if the
employee's service or seniority are not carried over to the new employer,
the employee may decline the offer. In such a case, the employee may
exercise the rights prescribed by Article 20 (Employment Stability)
and/or paragraphs 2 to 5 of this Appendix. The employee must elect
whether or not to accept employment with the new employer within three
(3) days of receiving an offer. In default of an election, the employee
shall be deemed to have accepted the offer.
3
Like PEH, the facilities named in the grievance set out above provide
residential and other services to adults with developmental handicaps. And
like PEH, the government has announced that these facilities will be closed
with the clients transferred to broader public service agencies in local
communities.
It was agreed by the parties that the evidence about reasonable efforts
already led in the PEH grievance would be the same in this case and, insofar
as that evidence was concerned, on this issue, it could be considered
representative. Accordingly, it was decided, using this evidentiary
foundation, to directly proceed, in this case,
to argument. Before setting
out the positions of the parties, however, it is appropriate to brie'fly
summarize that evidence.
The Evidence of Reasonable Efforts
The evidence with respect to reasonable efforts given in the PEH case is as
follows:
Heather Wayte, a long-service employee with the
Ministry of Community and Social Services working out
of the Kingston Area Office, testified on behalf of the
employer. As Administrative Manager, Ms. Wayte
contracts with various transfer payment agencies who
support developmentally disabled adults and children.
From time to time, it is necessary to close a facility,
transfer payment or otherwise, and the Ministry has
developed a protocol to assist it in doing so. To make a
somewhat long story short, a general service plan is
developed for each affected individual under the general
direction of a disinterested third party engaged under
contract. The client, his or her parents, interested
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others, and employees responsible for the individual's
care, are all consulted in an effort to determine the best
possible placement. An appropriate agency or, in some
cases, agencies, are then contacted and invited to submit
I process, generally speaKing, nas III
the closure of various facilities, and it was also the
process which was followed for the closure of PEH.
With respect to the closure of PEH and, in particular, to
Phase I of that closure, work began on the development
of the general service plans in January 1997. (Steps had
begun much earlier with respect to the closure of Hillier
Home and Fish Lake Farm; closures which were scheduled
long before the complete closure of PEH was announced.)
The transfer payment agencies working in the Kingston
area meet monthly at "focus group meetings," and in the
fall of 1996, Ms. Wayte testified, a number of
discussions were held with these organizations with
respect to them assuming responsibility for the care not
only of residents in Hillier Home and Fish Lake Farm, but
also PEH (in particular, residents of Wellington Home and
Area D). In addition to discussing the transfer of clients,
also raised for consideration was the hiring of PEH
employees. Ms. Wayte was aware of management's
obligations under Appendix 9, and she outlined the steps
she took to ensure compliance. It did not occur to Ms.
Wayte to involve the local union in any of these
discussions.
Ms. Wayte testi'fied that she advised the various transfer
payment agencies, at these focus group meetings and at
other times, that they should consider hiring PEH
employees. Not only were PEH employees experienced, in
many cases they had developed productive working
relationships with individuals in their care;
relationships that should, for the benefit of the client,
be fostered. Moreover, the decision was made to hold
information day at PEH, and this took place on January 9
5
& 10,1997. The purpose of this event was to provide an
opportunity for the transfer payment agencies to get to
know PEH employees, and for PEH employees to become
familiar with the transfer payment agencies. The event
was not a job fair for, Ms. Wayte explained, the various
transfer payment agencies, which she identified, had
collective agreements specifying recruitment and job
posting procedures. Those agencies made it clear to her
that any hiring of PEH employees would have to be in
conformity with existing collective agreements.
In addition to management sponsoring this information
day, Ms. Wayte, on behalf of the employer, wrote the key
transfer payment agencies in the area who would be
receiving PEH clients. A representative example of one
of her letters is as follows:
December 20, 1996
Ms. Marilyn Lamb
Executive Director
Pathways. to Independence
5-25 Dundas Street West
Belleville, Ontario
K8M3M7
Re: Prince Edward Heights Staff
Dear Marilyn:
The Kingston Area Office of MCSS will be contracting with your
organization effective January 1, 1997 to provide support to four former
clients of Prince Edward Heights who have been living at Fish Lake Farm.
Through the closure of the Fish Lake residence, some Prince Edward
Heights staff will no longer have employment with the Ministry. At the
same time, your organization may have need of additional staff in order to
support the expansion in your services.
As you know, the Ministry is interested in pursuing employment
opportunities for our staff. In addition, the Ministry has an obligation
through our Collective Agreements with bargaining agents, where there is
a disposition or any other transfer of functions or jobs to the private or
broader public sector, to make reasonable efforts to have the selected
service provider:
• offer employment to affected MCSS employees at terms and conditions
6
as close as possible to their current terms and conditions of employment,
and
• make job offers to affected MeSS staff in order of their seniority if the
full complement of employees will not be offered employment.
I would like to meet with a representative of the Board and you as soon as
possible to explore these opportunities.
Thank you for your consideration of the employees from Prince Edward
Heights.
Yours truly
Heather Wayte
Program Supervisor
Ms. Wayte followed up after sending this and other
similar letters by arranging meetings with various
executive directors and boards of directors at the
relevant transfer payment agencies. At these meetings,
and on other occasions as final arrangements for the
transfer of PEH clients in Phase I were being made, Ms.
Wayte informed the receiving transfer payment agencies
of the obligations PEH had on behalf of its staff and
inquired whether PEH employees were being interviewed
for vacant positions, and, if so, whether they were being
hired. In addition, a document was developed setting out
various speaking points or questions to be raised in
discussions with receiving agencies. The purpose of this
document is to ensure that the receiving agencies are
informed of the employer's desire that they hire
displaced employees. Sample statements to that effect
are as follows:
We would like you to hire the bargaining unit employees whose
employment is being affected by the transfer of this/these client(s)
We would like you to offer them terms and conditions that are as close as
possible to existing terms and conditions of employment.
If you do not make offers to all of the affected employees, we would like
you to make offers based on their seniority (highest seniority first) ..
7
Ministry staff were advised, if the answers to these
questions was no, that they should inquire whether the
receiving agency would be willing to hire Ministry
employees on any other basis and, if so, to provide
information about that to the Human Resource Manager of
the facility concerned. Ms. Wayte testified that she has
used this document as she has gone about making
reasonable efforts to secure employment for PEH staff.
In fact, Ms. Wayte is of the view that her reasonable
efforts obligations extend only to asking these questions
and making the other inquiries described above. In her
view, the transfer payment agencies are not required to
answer her questions; nor are they required to hire any
PEH staff.
On February 4, 1997, a meeting was held with with the
local union. Ms. Wayte described the various reasonable
efforts that she had made and, in response to a question
from the local union president, Carl Yates (who had
requested the meeting), advised him that the Ministry
was not interested in increasing the number of transfer
payment agencies as the area was already sufficiently
served. Establishing new agencies would be problematic
for a variety of reasons which Ms. Wayte explained. With
respect to facilitating the hiring process at Kingston
area agencies, Ms. Wayte suggested that the local union
contact its counterparts and suggest the opening up of
collective agreements so as to facilitate the employment
of PEH employees. It was quite clear by this point, that
the three transfer payment agencies who were to receive
most of the PEH residents were not, to say the least,
giving any preference in hiring to PEH employees. It
never occurred to Ms. Wayte to call a meeting with the
transfer payment agencies and their bargaining units in
order to discuss the placement of PEH employees. The
relationship, she testified, was between the Ministry and
the transfer payment agencies, not the Ministry and
those bargaining units. Besides, the Ministry had never
previously initiated discussions of this kind.
..
8
By and large, the transfer payment agencies recruited for
full-time positions 'from lists of on-call part-time
employees. It was, accordingly, necessary to acquire this
status with one of the transfer payment agencies in
order to be eligible for a full-time position. A number of
transfer payment agencies also informed Ms. Wayte that
they did not offer salary and benefit packages equivalent
to those enjoyed by PEH employees. The point was made
that to do so, they would require additional funding from
the Ministry. Ms. Wayte passed this observation on to her
supervisor. Furthermore, the transfer payment agencies
were not generally interested in hiring by seniority; they
wanted to hire the "best" people.
According to Ms. Wayte, her reasonable efforts on behalf
of PEH employees began to have some unwanted effects.
She reported in February 1997 that her efforts were
having a negative impact on the Ministry's positive
relationship with the transfer payment agencies. Indeed,
the agencies, Ms. Wayte wrote in a memorandum to her
supervisor, were beginning to feel that if they did not
"hire PEH staff, there will be future repercussions from
the Ministry in this regard." David Morrow, Ms. Wayte's
supervisor responded as follows:
There is no sanction if the agencies don't go along with our formal request
per our obligation to ask for certain consideration for our MeSS staff as
per Article 9.
The agencies need to understand that we have an obligation to ask -they
are free to respond anyway they see fit.
Ms. Wayte candidly acknowledged that no incentives were
ever offered to the transfer payment agencies to hire
PEH staff other than the "positive feedback" she was
continually giving the transfer payment agencies about
all of the PEH staff. Moreover, Ms. Wayte was of the
view that the transfer payment agencies were interested
in maintaining positive relations with the Ministry.
However, that obviously did not extend to giving
preference to PEH employees as was made clear by the
9
recruitment policies which those transfer payment
agencies followed mandated, they advised her, by their
collective agreement obligations. In one instance, it was
made clear that a particular client benefited from a
relationship with a PEH employee and the transfer
payment agency hired that individual in order to ensure
continuity of care. The Ministry, however, did nothing to
assist in that process. Nor did it do anything with
respect to finding jobs for PEH employees with transfer
payment agencies outside of the Kingston Area even
though a significant number of PEH clients were
transferred out of that area.
The Ministry's reasonable efforts were, as it turns out,
conducted in something of a vacuum as Ms. Wayte and the
senior administration at PEH did not learn which specific
employees were to be surplused until shortly before the
surplusing in Phase I was to take effect in April 1997. In
fact, individual PEH employees had no idea whether they
were going to lose their jobs and whether they should be
applying for the various part-time on-call and other
positions which were being advertised. Ms. Wayte
believed that her efforts should be most particularly
directed to surplus employees, but as she did not know
who the affected employees would be she could make no
specific efforts to assist them. Ms. Wayte was also
aware that senior employees might face disproportionate
difficulties in obtaining employment once surplused from
PEH. However, no specific strategies were developed to
deal with this. Certainly, the senior employees were not
urged to apply for jobs as they arose; nor was this
likelihood of diminishing employment opportunities
brought to their attention in any formal way.
The Ministry has a reasonable efforts policy which
states, in part:
The actual receipt of a surplus notice is not the sole indicator that an
employee is affected by a transfer or bargaining unit functions or jobs. In
many cases of planned transfers, "reasonable efforts" discussions
begin before surplus notices are issued. However, in those cases, the
10
Ministry should be able to identify which employees would receive any
surplus notices that result from the transfer of the bargaining functions
or jobs involved.
Moreover, the MBS Guidelines on the Transfer of
Employees with Their Jobs or Function & Employee
Bidding states, in part:
Negotiated Transfers to Established Broader Public Sector
Organizations and Existing Agencies
In transferring programs to the Broader Public Sector or other existing
public or not-for-profit organizations, the employer usually uses a
process of negotiation rather than tendering. These principles would
apply equally to any negotiated transfers to the private sector.
b) Transfer to established BPS Organizations, Schedule 2 or
3 agencies, or other Organizations
• Where the receiving organization needs additional staff, the use of the
pool of affected OPS employees for recruitment purposes will be
negotiated. The government's obligation is to make "reasonable efforts" in
negotiating employment of affected staff with the new host organization.
Ms. Wayte was aware of these policies and she described
her discussions with the transfer payment agencies as a
negotiation involving give and take. It was far from clear
from her evidence, however, exactly what the Ministry
was getting in return. While there were no sanctions for
not hiring PEH employees, the relationship between the
Ministry and the transfer payment agencies might, she
suggested, have been damaged had no PEH employees been
hired. Sanctions are only applied when the agencies fail
to meet established standards of care or fail to fulfil
their financial obligations. They are not imposed for
failing to hire Ministry staff. Ms. Wayte described the
relationship with the transfer payment agencies as a
partnership and while the Ministry's "partners" were
aware of the Ministry's desire that they hire PEH
11
employees, they wished to maintain their autonomy. A
memorandum from Ms. Annette Chan, a Ministry
employee, to Ms. Wayte's supervisor states, in part:
"From the outset a decision was made that the Facility
staff would be positively supported in the
closure/downsizing initiative out of the Kingston Area
Office. We understand clearly this is just a good will
gesture, we know we cannot require the T. P agencies to
hire staff...."
As it turns out, two of the three main transfer payment
agencies receiving PEH clients in Phase I hired no PEH
employees for full-time positions. With respect to
Phase II, Ms. Wayte stated, as the recruitment by the
transfer payment agencies is about to begin, that she
will "hopefullyll have the names of employees scheduled
for surplus so that she can make direct efforts on their
behalf.
Finally, it is interesting to note that Ms. Wayte's
evidence establishes that she made virtually all of the
same efforts, described above, on behalf of the
employees of a transfer payment agency that had been
shut down by the Ministry where the Ministry had no
reasonable efforts obligations. Indeed, there is evidence
indicating that the Ministry went further with respect to
this particular group of employees and obtained what
was, in effect, a guarantee that the receiving transfer
payment agencies would interview the affected
employees. Ms. Wayte did not seek a similar guarantee
for PEH employees as she assumed that they would be
interviewed, although she also stated that given the
large numbers involved that it would not be practical for
everyone to be interviewed. Ultimately, the focus of the
Ministry's efforts was on the placement of PEH clients,
not PEH employees. Put another way, the evidence of Ms.
Wayte makes clear that the placement of clients was the
priority and, accordingly, came first. Reasonable
efforts, she testified, could not stand in the way of
moving clients to transfer payment agencies.
12
Union Argument
In the union's submission, the evidence established that the employer had
not made reasonable efforts to secure employment for PEH employees.
Indeed, the evidence, in the union's view, demonstrated that the employer
had made virtually no efforts, at least no efforts of any significance. What
efforts it did make, Mr. Leeb argued, could hardly be called reasonable.
Referring to the evidence, the union took the position, simply put, that all
that the employer did was send a letter, attend a few meetings and make
some telephone calls. The various transfer payment agencies were asked if
they would be interested in hiring PEH employees, but no negotiations with
them ever took place; indeed, it was made clear to them that they could hire
whomever they wanted. The transfer payment agencies were not even
obligated to answer Ministry questions about their hiring plans.
To be sure, PEH held a job information day; what it did not do was use its
enormous bargaining power, given that it was the funder for the transfer
payment agencies, to actively encourage them to hire PEH employees.
Moreover, the union argued that the evidence established, at the very least,
that the Ministry made the same efforts on behalf of a group of employees
where there was no reasonable efforts obligation as those it made for PEH
employees. When faced with an obstacle, for example, the existence of
unionized transfer payment agencies and the concomitant problems of
integrating employees by seniority, identified by the transfer payment
agencies as one of the main barriers to hiring PEH employees, the Ministry's
response was to simply accept the situation, not deal with it in some
13
proactive way. Other examples, which counsel reviewed, confirmed that
this was the Ministry's approach.
What was really remarkable about the evidence, in the union's submission,
was that the employer purported to be making reasonable efforts on behaJf
of employees about to be surplused, but the members of management
charged with this responsibility did not even know which individual
employees would be receiving surplus notices until just days before those
notices were scheduled to come into effect. Also indicating the complete
failure of the employer's approach, the union argued, was that management
was very well aware that senior employees, who should have been protected
by Appendix 9, would actually be worse off by the manner in which the
employer went about the closures because they would be the last ones left
at work and, as a result, would be least likely to be hired by the transfer
payment agencies as their hiring processes arising out of tl1e receipt of
new clients would have already taken place. It was quite clear, at least to
the union, when all the evidence was collected, that the employer was going
through the motions, no more.
Indeed, when this case was compared with other cases, and some evidence
was tendered with respect to the reasonable efforts made by the Ministry
of Agriculture and Food when hundreds of jobs were transferred to the
University of Guelph, it was clear how sorely lacking the Ministry's efforts
really were. And in that regard, it was quite astonishing, the union
suggested, that the employer did not bother to involve the union in any of
its planning and only informed the union about those limited steps
taking when it specifically requested some information. What was
14
required, in the union's view, was its involvement as soon as the
divestment or closure decision was made -long before, in effect, specific
employees were identified for surplus. Moreover, given that the evidence
establishes how phased-in closures could detrimentally affect senior
employees, it was necessary, the union suggested, for the parties to
develop an overall 'framework or policy in order to anticipate and then
prevent this result. It was also clear, the union suggested, that the
Ministry needed a policy setting out its obligations in meeting the
reasonable efforts requirements of the collective agreement.
The evidence also demonstrated, in the union's submission, the need for the
employer, in negotiating the transfer of public servants, to provide some
incentive to the transfer payment agencies. Given that Appendix 9 offered
the employer the possibility of avoiding enhanced severance obligations if
employees were placed in jobs that meet its terms, the amount of enhanced
severance that would be saved was, the union suggested, the absolute
minimum amount that could and should be used in the negotiation of
placements for surplused public servants. Indeed, there would be
occasions, Mr. Leeb observed, where the placement of an employee would
save other costs. On those occasions the financial incentive could and
should, the union believed, be increased to at least equal the saving realized
by the government.
In conclusion, the union took the position that the evidence established a
complete failure by management to meet its obligations under Appendix 9.
This was, therefore, Mr. Leeb argued, an appropriate case for the to
exercise its jurisdiction and direct a cessation of all further surplusing
15
until the government had complied with Appendix 9. It was neither right
nor proper, in the union's view, to suggest that individuals detrimentally
affected by a failure to make reasonable efforts could later, through a
damages award, be made whole. The fact of the matter, in the union's view,
was that the Ministry's lack of compliance with the provision had led and
was leading to great harm to individual employees who, but for this breach,
might have been able to secure jobs in their communities. Because of this
breach, that was not possible and an award of damages would not suffice.
Employer Argument
In the employer's submission, the proper basis for determining whether the
employer had engaged in reasonable efforts as required by the collective
agreement was to consider whether there was a logical connection between
the actions it took and the obligations Appendix 9 imposed. In this case,
counsel argued, the evidence demonstrated such a connection and that being
the case, counsel argued that this grievance should be dismissed.
The fact of the matter, counsel argued, was that the employer did attempt
to find jobs for the affected employees. A job information day was held.
The union's request for information was answered. Real efforts were made
to ensure that the transfer payment agencies were kept fully informed
about the employees at PEH. Those transfer payment agencies were
encouraged to hire those employees. Management wrote the transfer
payment agencies, attended at meetings of their boards of directors, and
followed up by telephone and otherwise in order to keep abreast of the
status of their hiring decisions as clients were transferred out of
These efforts were, counsel argued, by any measure, reasonable. There was
16
nothing in Appendix 9, counsel observed, that required the employer to offer
financial incentives as part of its obligation. The employer's obligation
was to make reasonable efforts. The efforts in this case were rationally
connected to the employer's obligation. The employer had, in effect, done
what it had agreed to do: make reasonable efforts to assist employees in
finding jobs.
Reasonable efforts, counsel continued, were not "all efforts." They were
not "every" effort." They were not successor rights. They were not efforts
to the point of undue hardship. The term did not mean that no stone should
be left unturned. Giving effect to this clause did not impose on the employer
the obligation of giving the union everything it asked, and more. None of
this, counsel argued, is what the clause entailed. What was required was
that the employer make efforts that were reasonable in the circumstances,
and in this case, the efforts that were made, counsel submitted, more than
met this test. The Ministry did try to get employees jobs, but, to give one
example, the transfer payment agencies had their own bargaining agents and
collective agreements, and as the receiving workplaces were unionized, the
seniority of PEH employees could not be readily transferred. This affected
management's ability to secure for PEH employees BPS jobs. This did not
mean, however, counsel argued, that what the employer did to assist the
PEH employees was not reasonable. Placed properly in context, the
employer took the position that its efforts were reasonable in this
particular case. For those reasons, the grievance should and must fail.
With respect to the various remedies requested by the union, the
submitted, at the outset, that this is not a case that came close to
17
satisfying the legal requirements for what was in effect a request for an
injunction prohibiting further facility closures or shutdowns, even
assuming for the sake of argument that the Board had power to grant a
remedy of that kind. First of all, there was simply no basis in the evidence
to find that a failure to grant the request could lead to irreparable harm.
The employer was, counsel noted, explicitly entitled by the collective
agreement and otherwise to close facilities. The only issue was whether it
made reasonable efforts pursuant to Appendix 9 and if, for some reason, his
argument on the merits was rejected, counsel took the position that the
appropriate remedy was damages.
With respect to the various other remedies the union proposed, counsel
suggested that rather than mandating the creation of some new committee
structure to deal with divestments and closures, that any matters of this
kind should be referred to the ERCs, the establishment and running of wl,ich
were already provided for in Article 16 of the collective agreement.
Insofar as it was considered appropriate to direct the parties to negotiate
some framework arrangement for divestments and closures, the employer
took the position that the timelines for the conclusion of such negotiations
must be quite short as Ministry plans for the closure of facilities were
well under way.
Decision
Having carefully considered the evidence and arguments of the parties, I am
of the view that the employer had not, as it is obligated to, made
reasonable efforts.
18
Little purpose would be served in these reasons for decision in providing an
extensive review of the evidence. Suffice it to say that the evidence amply
demonstrates that the efforts management made were
de minimis, at best.
Indeed, this conclusion is reinforced by that fact that there is evidence that
the employer made the exact same efforts (if not more) for a group of
employees to whom it owed no obligation whatsoever. By any measure,
holding a job information day, writing letters, making telephone calls to
follow-up, and attending at meetings does not come close to complying
with this provision of the collective agreement. These are the kinds of
actions many employers would take absent a legal requirement that it do
something proactive. Accordingly, I can only conclude that this grievance
must succeed and I so declare.
Having reached this conclusion and having made this declaration, this is an
appropriate case, in my view, to set out a non-exhaustive general list of
some of the kinds of steps management should take in order to comply with
Appendix 9, as well as direct some specific remedies to deal with the
breach. Obviously, each case will differ and in each case the employer will
have to carefully consider what it is about that case which is distinctive
and which therefore calls for a new or different approach. The fact is that
the privatization program will be carried out in different ministries in
different ways and the words "reasonable efforts" must be interpreted in a
way that makes sense.
Before turning to the specific relief being granted in this case, a number of
general principles can be set out. First and for-emost, as employer
argued, making reasonable efforts does not mean "every" effort or "all
19
efforts." It means making efforts that are reasonable all things considered,
and that will, given that this is a broadly worded clause of general
application, depend on particular circumstances of individual cases.
Having said that, it is my view that the reasonable efforts obligation begins
as soon as the decision to divest is made. It is not confined solely to
employees who have been identified for surplus. It applies to all employees
in a facility for, as this case demonstrates, it is obvious that the obligati·on
cannot be applied piecemeal when an entire facility is being closed down
and the wor.k transferred to the BPS. Certainly, the obligation to make
reasonable efforts does not arise only when specific employees are
identified for surplus for that identification may take place at a time when
no reasonable efforts can be made. Moreover, as employees will be generally
surplused by seniority, divestment plans must take that into account and
ensure, inasmuch as possible, that senior employees are not effectively
deprived of the benefits of the provision.
Second, it is incumbent upon management to involve the union in
discussions about how it proposes to meet its reasonable efforts
obligations and to commence those discussions immediately following the
decision to divest. Obviously, these discussions cannot be pro forma. They
must be meaningful exchanges of relevant information and ideas directed at
assisting the employer in discharging its obligations under the collective
agreement. While employer counsel suggested, should a remedy of this kind
be directed, that the discussions take place in the context of already
established ERCs, it is my view, given the importance and of
the reasonable efforts obligation, that meetings to discuss developments
20
and exchange information should be dedicated to this subject and not
included on ERe agendas dealing with workplace issues much more
generally.
Third, as the employer's own policy with respect to transfers to the broader
public service makes clear -as does this case -the employer must do more
than simply inquire whether the receiving transfer payment agency is
interested in hiring public servants. The transfer of work, the policy
indicates, is a negotiated one. And negotiation means give and take, not a
simple request without even the obligation -again this case -that
questions be answered.
The structure of Appendix 9 indicates, and this purpose does not appear to
be fundamentally in dispute between the parties, that it was developed to
create a financial incentive to the employer to place public servants in jobs
that met certain terms with avoidance of enhanced severance costs, and
possibly more, the benefit to the particular ministries. At a minimum
and, obviously each case will differ -amounts up to avoided costs should be
used as an incentive to secure jobs for public servants, many of whom,
Appendix 9 begins, "served for a lengthy period." It is quite conceivable
that financial incentives could have been used to overcome some of the
difficulties identified in this case that were said to make it difficult to
directly place PEH employees. The fact that the Ministry has not previously
had to enter into negotiations with a BPS transfer payment agency, and
possibly its union, to give just one example of how it might give effect to
this provision and its reasonable efforts obligation, does not mean it
should not do so if its efforts in doing so would, in all the circumstances,
..
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be reasonable.
Fifth, in general, this type of case is not one that meets established legal
tests for the granting of interlocutory relief. However, it is imperative
that management keep careful records of its reasonable efforts and all
surplus activity arising out of the disposition. These records will
determine whether entitlements were missed and the quantum of damages,
if any, that should flow in the result.
Turning now to this specific case, I make the following directions:
1. The Ministry is directed, in each of the facilities covered by this award,
to hold bi-weekly meetings with the union to advise the union of its
reasonable efforts and to enter into a dialogue with the union as to how to
best meet its obligations. These meetings should commence immediately.
2. The Ministry and the union will meet forthwith in order to discuss how
best to manage the closure of these facilities in light of the employer's
obligations to make reasonable efforts and the requirement that employees
be surplused on the basis of seniority. The parties may, if they wish,
request from the Board the assistance of a mediator. Should the parties
prove unable to agree on a framework within sixty days of the release of
this award, they may return to the Board on an expedited basis and
jurisdiction is specifically retained to determine this issue.
3. The Ministry is directed to negotiate with the transfer payment
agencies the placement of public servants whose jobs will be lost as the
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result of the facility closures and work transfers. These negotiations must
include the offering of a financial incentive in accordance with the general
principle set out earlier in this award.
4. The Ministry is directed to keep careful records of all of its surplusing
and divestment activities to date, and of all of its planned surplusing and
divestment activities with respect to each of these facilities. The union is
to be provided with copies of these records.
Finally, it should be noted that in this case I have found that the Ministry
has failed to meet its obligations under Appendix 9, and have issued a
declaration to that effect. Accordingly, the parties may schedule a hearing
before any panel of the Board to deal with the question and quantum of
damages to the union and to individual employees, if any, arising out of this
breach.
DATED at Toronto this 2nd day of June 1997.
William Kaplan
Vice-Chairperson