HomeMy WebLinkAbout1997-2032.Farache et al.98-06-23EMPLOY& DE LA UWRONNE
DE L’ONTAFW
COMMISSION DE
RkGLEMENT
DES GRIEFS
180 DUNDAS STREET WEST SUITE800, TORONTO ON M5G fZ8 TELEPHONE&LiPHONE : (416) 326-1388
180, RUE DUNDAS OUEST; BURE4U SW, TORONTO (OM h45G II8 FACSIMILElT~LkCOPIE : (476) 326-7396
GSB#2032/97, 2045/97, 2046/97, 2 179197
OLB#384/97, 01 l/98, 012/98,495/97
IN THE MATTER OF AN ARBITRATION
Under -
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
BETWEEN
OLBEU (Farache/Dorfkm/Ford/Keenan)
- and -
The Crown in Right of Ontario
(Liquor Control Board of Ontario)
BEFORE P. Knopf Vice-Chair
FOR TEIE
UN-ION
J. Noble
Legal Counsel
Ontario Liquor Board Employees Union
FOR TECE
EMPLOYER
A. Renton
Counsel
Liquor Control Board of Ontario
HEARING April 28, 1998
Grievors
Employer
PRELIMINARY DECISION
The parties have consolidated four grievances. The grievances are filed as
a result of the implementation of a mandatory retirement policy in 1997 affecting all
employees of the LCBO, including bargaining and non-bargaining unit members. Up to
that point, mandatory retirement had been imposed upon full-time members of this
bargaining unit. As of October 1997, the mandatory retirement was applied to casual
employees as well. The four grievors were casual employees over 65 years of age. They
protest the application of this policy to their circumstances.
The Union intends to put forth eight arguments in an attempt to persuade
this tribunal that the Employer cannot require casual employees to retire at a specific age.
In a nutshell, the Union’s arguments can be summarized as follows:
The I Jnion’s Allegations
(0 The grievors have been dismissed without just cause and the
Employer must justify their dismissal as it would a discharge.
(ii) The Employer’s policy discriminates against the grievors on the
basis of age and amounts to a violation of Article 2.1 of the
collective agreement.
(iii) The Employer is not entitled to cause these employees to lose their
seniority and deem them to be terminated because the
circumstances do not fall under Article 3 1.5.
-2-
(iv) The Employer’s policy is discriminatory because it does not apply
equally to all employees because other casual employees over age
65 have been allowed to continue to work.
(4 The policy is arbitrary and discriminatory because it is not based on
a bonajde occupational qualification.
(vi) The Employer should be estopped from changing its policy because
at least three of the four grievors relied on the previous policy of
not requiring mandatory retirement for casuals. Therefore, they
passed up opportunities to be full-time because of the mandatory
retirement.
(vii) The Employer should be estopped from changing its policy in the
middle of the collective agreement because it failed to give notice to
the bargaining agent before implementing a change in policy.
(viii) The pol icy is arbitrary, discriminatory and in bad faith because it is
designed to “clear out as many casuals as possible and replace them
with casuals hired at later times who are paid at a much lower rate.”
The Employer adamantly disputes all of these allegations, but reserves its
right to reply to the allegations if the hearing proceeds on its merits.
The Union’s arguments have raised several preliminary issues. The parties
have requested rulings on these preliminary matters prior to embarking upon a hearing
-3-
into the substantive issues in dispute. By agreement, the parties made oral submissions
and then filed written submissions. This preliminary award is based on a consideration of
the written and oral submissions filed. The three preliminary issues shall be dealt with in
turn.
1. Arbitrabilitv
The Employer is arguing that the grievances are inarbitrable. The
Employer emphasizes that Article 2.1(b) of the collective agreement prohibits
discrimination and also references the Ontario Human Rights Code section 5(2) and
Section 10. It was submitted that the Code’s definition of age as being “18 years or more
and less than 65” is applicable to this situation and means that nothing in the collective
agreement prohibits a mandatory retirement policy at age 65. Therefore, the Employer
argues that there is nothing in the collective agreement which prohibits a mandatory
retirement at age 65 or upon which the Union can rely to base its case. Further, this
collective agreement has no management rights clause, therefore the Employer argues that
its right to manage is not fettered by anything in the collective agreement. The Employer
also argues that nothing in the collective agreement restricts its right to implement policies
upon full-time or part-time casuals. Therefore, the Employer submits that nothing in the
collective agreement gives this tribunal jurisdiction to deal with the grievances as framed.
The Employer also argues that this case should not be dealt with as a “dismissal case” and
that the Board should follow the Bell Canada decision and decline jurisdiction. See Bell
Canada and Office and Professional Employees’ International Union, Local I3 I (1973),
37 D.L.R. (3d) 561 (S.C.C.). The Employer also relies on Carleton University and
United Steelworkers of America (1993) 37 L.A.C. (4th) 269 (Young), Miracle Food
Mart Canada and U.F.C. W., Locals 175 and 633 (1995) 48 L.A.C. (4th) 377 (Petryshen)
-4-
and Corporation of the City of Etobicoke and C. U.P. E., Local 18.5 (1996) 54 L.A.C
(4th) 229 (Springate).
In response, counsel for the Union argues that the matter does raise arbitral
issues within the jurisdiction of this tribunal. The Union argues that Article 2.1 (b) of the
collective agreement gives protection against age discrimination that has brought it under
the protection provided under the Human Rights Co-de and has “no upper limit age
restriction” with respect to protection against age discrimination. The Union argues that
the Employer has violated the collective agreement in its actions and that this gives
jurisdiction for this arbitration. Further, the Union argues that the Employer has.acted in a
manner that is arbitrary, discriminatory and in bad faith, contrary to “accepted case law
and the implied management rights clause” of this collective agreement. Further, in
support of its argument that this should be treated as an unjust dismissal case, the Union
argues that the instant grievors are distinguishable from the situation before the Supreme
Court of Canada in the case of Bell Canada and the Off rce and Professional Employees’
InternationaI Union, Local 131, supra. In a general sense, the Union argues that the
Employer’s submissions should not be considered as sustainable preliminary arguments
against arbitrability, but rather an indication of how the Employer seeks to defend its
actions in law. Finally, the Union argues that the grievances assert that the Employer is
estopped from changing its policy and practice regarding casual employees and as such
should be treated as a matter that falls within the jurisdiction of this tribunal.
In reply to the Union’s submissions, the Employer took grave exception to
several aspects of the submissions which could be interpreted as expanding the scope of
the grievance. The Employer reserved the right to make full submissions on the scope of
the grievance if the matter proceeds on its merits. Counsel for the Employer also stressed
that there should be no “implied management rights” read into this collective agreement
-5-
nor should there be considered a prohibition against acting arbitrarily, discriminatorily or
in bad faith under this collective agreement. Finally, the Employer suggested that there is
no jurisprudence that would allow a union to raise an estoppel argument in the face of the
other party taking the position that the grievance was inarbitrable. For all these reasons,
counsel for the Employer asked that the grievance be ruled as outside the jurisdiction of
this tribunal.
Decision With Respect to Arbitrability
After having considered the submissions of the parties, it must be
concluded that the grievance raises arbitral issues concerning the application,
interpretation, administration and compliance with the collective agreement. Because the
questions raised by the grievance may have to be canvassed in great detail when the merits
of the case are considered, I will not go into an extensive analysis of the case law
concerning age discrimination under collective agreements like or similar to this one. I
will simply deal with the jurisdictional matter. In the Bell Canada case, supra, the
Supreme Court of Canada was dealing with the question of whether an employer, having
retired one of its employees at a specific age, would be required to go to arbitration of a
grievance that described the mandatory retirement as a “dismissal”. The Court declared
that the arbitrator had erred in law in finding that the employee had been dismissed and
further that the decision was made without jurisdiction under the collective agreement.
Insofar as this assists the case at hand regarding the jurisdiction issue, the Bell Canada
case, supra, is of no assistance to the Employer. In the Bell Canada case, the question of
retirement was held to be outside the scope of the “interpretation” or “violation” of that
collective agreement. However, in the case at hand, this tribunal has jurisdiction over the
broader issues of “interpretation, application, administration or alleged contravention” of
the collective agreement. The grievances raise allegations concerning the administration
.
-6-
of the collective agreement including estoppel, arbitrary application and discriminatory
application. Further; it is alleged that the mandatory retirement amounts to a violation of
the “non discrimination” provision of the collective agreement. Everything the Employer
has raised by way of a preliminary objection to jurisdiction is more properly characterized
as raising very significant defences which the Union will have to answer. But they do not
oust the jurisdiction of this Board of Arbitration.
Further, the Employer’s reference to the Ontario Human Rights Code and
the restrictive definition of age also amounts to a significant factor that the Union will
have to address if it hopes to succeed in this case. But the Employer’s argument is, again,
a defence, not a bar to jurisdiction. The allegation of discrimination amounts to an
allegation of violation of section 2.1 of the collective agreement, That allegation gives the
Board jurisdiction and a responsibility to hear the merits of this case. This, in turn, gives
both parties the opportunity to present their arguments and their defences.
Accordingly, the tribunal accepts that it has jurisdiction over the
grievances and is prepared to hear and determine the matters on their merits.
2. Order of Proceedings
The Union argues that the Employer should proceed first with the
presentation of the evidence because the termination of the grievors should be viewed as
“akin” to a dismissal where the employer bears the onus of proof. Because the Employer
has this onus as a result of being in possession of the facts which prompted the
termination, the Union argues that the Employer should lead evidence of the actions it
took prior to the terminations. In support of this suggestion, the Union relies on the case
of Cott Beverages Inc. and Teamsters Union, Local 938 (1992), 28 L.A.C. (4th) 257
-7-
(Haefling). The Union argues that the case is distinguishable from the facts which led to
the conclusion in the Bell Canada case, supra.
The Employer argues that the Union should proceed first with the
presentation of the case. The Employer further argues that this case is fundamentally a
complaint about mandatory retirement. The Employer characterizes the termination of the
grievors’ employment as “non-disciplinary” and acknowledges that the termination cannot
be sustained on the basis of “just cause”. The Employer argues that the real issue in
dispute is whether it has the right to impose mandatory retirement on these individuals.
Therefore, it is argued that the onus of proof and evidentiary burden should rest on the
Union which is alleging the violation of the collective agreement. The Employer also
asserts that the Union would bear the onus of proof on the estoppel argument. Therefore,
the Employer suggests that the hearing be bifurcated and proceed on the estoppel issue
before embarking on a consideration of the merits. In support of these propositions the
Employer relies on the Bell Canada case, supra, as well as Canada Packers Inc. and
U.F.C. W., Local ll#P (1991), 18 L.A.C. (4th) 442 (Solomatenko), Mather and LCBO,
GSB File No. 2260/95, unreported decision of B. Kirkwood dated July 29, 1996 and
Carter and LCBO, GSB File No. 1735/96, unreported decision of Nimal Dissanayake
dated March 13, 1998.
De i ion cs
The general principle of arbitral proceedings is that the party asserting a
violation of the collective agreement bears the onus of proving its case and calling
evidence first. This enables that party to establish the context for the case and allows the
other party to defend its actions after having the benefit of hearing the case it has to meet.
The most common exception to this rule is a disciplinary discharge where the employer
-8-
bears the onus of proceeding first and explaining why it has imposed the discipline. This is
because the employer is in possession of the facts which have prompted the discipline and
which explain its action. This also avoids the dilemma of an individual having to prove
why s/he should not have been disciplined before the case against him/her has been
presented. See Canada Packers Inc. and U. F. C. W., supra.
The case at hand is not a discipline case. The Union is alleging a violation
regarding the interpretation and application of this collective agreement. The Union is
aware that the basis of the terminations is solely the application of the mandatory
retirement package. The Union is alleging that the package has been applied in a
discriminatory way, in an unequal way and that its very existence violates the collective
agreement. In the alternative, the Union is alleging that it can sustain an estoppel
argument to prevent the Employer from applying the policy to these grievances. The
Union bears the onus of proof on all those allegations. Therefore, both conceptually and
practically, the only logical way to proceed is to have the Union proceed first.
Accordingly, I declare that the Union shall proceed first with the presentation of
evidence and argument in this case.
It would not be prudent to bifurcate the estoppel issue away from the rest
of the case. If the hearing were to deal first with the sole issue of estoppel, the parties
could conceivably be left with a ruling only on the question of the application of the
mandatory retirement policy during the life of this collective agreement or upon four
individuals. The main question to determine is the efficacy of the policy itself. A festering
and unanswered question that has been referred to arbitration will not serve the parties’
interests. No labour relations or procedural interests would be served by such a
bifurcation. It could also lead to a prolonging of the case rather than a narrowing of the
-9-
issues. Therefore, these proceedings should resume with the Union on notice that it bears
the onus of proceeding first on the presentation of every issue raised by these grievances.
3. Disclosure
The Union seeks an order regarding pre-hearing disclosure of the
following:
(9 Details of any bargaining unit or non-bargaining unit employees who
have reached 65 years of age and who continue to work since the
policy of mandatory retirement has come into force. The details the
Union seeks are the names, dates of birth, positions, titles of such
people and whether they were bargaining unit members or not.
Further, the Union is seeking their first date of employment.
(ii) The names of employees of the LCBO who were subjected to the
new mandatory retirement policy across the province.
The Union submits that this information is arguably relevant. Union counsel indicated that
she could provide the names of some employees whom the Union believes continue to
work although they are over 65 and whose circumstances suggest a discriminatory
application of the policy. The Union also says the names and details it is seeking would
allow it to ensure that the rights of all its members have been protected.
The Employer resists this request for disclosure, arguing that the Union is
on a “fishing expedition” and is seeking irrelevant, personal and confidential information.
- lo-
Further, the Employer asserts that the policy has been applied consistently to all
employees and the Employer assures the Union of this fact.
Decision With Resuect to Disclosure
If the Union were unable to name any people who it believes are continuing
to work because of an inconsistent application of this policy, this request would appear to
be a classic example of a fishing expedition. But the Union is able to put forward specific
names. It is in the parties’ best interest to clarify and resolve suspicions with an accurate
information exchange. This could avoid more difficult labour relations problems in the
future and protracted litigation. Further, the names and the information the Union is
seeking are directly relevant to the issues raised in this grievance with regard to the
discriminatory application of the policy. Therefore, it is appropriate for pre-hearing
disclosure to be ordered. Therefore, I order as follows:
(1) The Union is to supply the Employer with the names of all people
the Union believes are over 65 years of age and who are continuing
to work despite the implementation of the mandatory retirement
policy.
(2) Upon receipt of the names from the Union, the Employer is to
supply the Union with the names, dates of birth, dates of-
commencement of employment, positions and titles and indications
of whether the person is a bargaining unit member, of all people
over 65 years of age who continue to work after the
implementation of the mandatory retirement policy.
“
I
.’
- ll-
The Employer should also indicate whether an extension to age 66
allowed under the policy was applied for and granted to each of
these individuals. In those cases, the Union should be given the last
date worked by these people.
(3) I decline the Union’s request to order that the Employer supply the
Union with a list of all employees who were subject to mandatory
retirement. The purpose of disclosure is not to facilitate the
Union’s desire to discover further potential grievances. The Union
has other means available to it to protect its membership. .
Accordingly, that request is denied.
It is my hope that these preliminary rulings will assist the parties in their preparation for
the presentation of this case. At the request of the parties, this arbitrator remains seized
with this matter. If any further preliminary matters arise or my assistance could help in the
organization of the presentation of the case, I invite the parties to seek my assistance at
their convenience. The matter is to be scheduled for hearing in consultation with the
parties.
DATED at Toronto, Ontario, this 23rd day of June, 1998
Paula Knopf - VicdChairpers