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HomeMy WebLinkAboutDhawan 06-07-10 i IN THE MATTER OF AN ARBITRATION BETWEEN: SENECA COLLEGE i (The "College") -and - ONTARIO PUBLIC SERVICE EMPLOYEES UNION (The "Union") AND IN THE MATTER OF THE GRIEVANCE OF SONIA DHAWAN CONCERNING THE SUPPLEMENTARY UNEMPLOYMENT BENEFIT PLAN David K.L. Starkman Chair Pamela Munt-Madill Union Nominee Robert Gallivan College Nominee APPEARANCES FOR THE COLLEGE Craig Rix Counsel APPEARANCES FOR THE UNION Sheila Turkington Counsel A Hearing in this matter was held on February 1, 2006 at Toronto, Ontario I AWARD I I The Union alleges that the College has violated the provisions of article 22.02 of the collective agreement by not paying the grievor, Sonia Dhawan, the supplementary unemployment benefits to which she is entitled. The College asserts it has made appropriate payments in accordance with the collective agreement. The relevant provisions in the collective agreement are: 15.01A A full-time employee who has completed one full academic year's service with the College shall be entitled to a vacation of two months as scheduled by the College. A full-time employee who has completed less than one full academic year's service with the College shall be entitled to a two month vacation period and shall be paid the remainder of the employee's prorated annual salary. 15,0113 A teacher assigned to teach for an additional month (11'h month) over the normal teaching schedule of the equivalent to ten months as part of a continuous 12 month program shall be entitled to a vacation of one month, as scheduled by the College. Such teacher shall also receive a bonus of ten percent of the employee's annual regular salary for the additional eleventh month of teaching assignment to be paid on completion of such assignment. A teacher assigned to teach in the eleventh month for less than a full month will be entitled to a pro-rata amount of the ten percent bonus referred to above, to be paid on completion of such assignment. 22.01E The College will not require an employee to take vacation entitlement concurrently with leave under this Article. 22.026 An employee entitled to leave under 22.01, who provides the College with proof that the employee has applied for and is eligible to receive unemployment insurance benefits pursuant to Sections 22 or 23, Employment Insurance Act, S.C. 1998, C.23, shall be paid an allowance I 3 in accordance with the Supplementary Unemployment Benefit Plan (S.U.B.). i 22.02C Payments made according to the Supplementary Unemployment Benefit Plan will consist of the following: (i) for the first two weeks, payments equivalent to 93% of the regular salary which the employee would otherwise have earned during the period. and (ii) for the balance of the period during which the employee is eligible to receive unemployment insurance benefits pursuant to Section 22 or 23, Employment Insurance Act, S.C. 1996, c.23, payment equivalent to the difference between the sum of the weekly E.I. Benefits the employee is eligible to receive and any other earnings received by the employee, and 93% of the regular salary which the employee would otherwise have earned during such period. The parties agreed to the following facts: 1. The Union and the College are governed by the collective agreement between the College Compensation and Appointments Council for the Colleges of Applied Arts and Technology and the Ontario Public Service Employees Union, with a term extending from September 1, 2003 to August 31, 2005. 2. Sonia Dhawan is e.employed as a Counsellor with Seneca College. g Her employment is covered by the collective agreement. 3. The academic year for 2004105 commenced on September 1, 2004 4. Employees earn an annual salary under the collective agreement. The annual salary is earned over ten months of work. The College has a practice of spreading out payment of this salary through installments extending over a 12 month period and including the two month unpaid vacation period established under article 15 of the collective agreement. 5. Ms Dhawan began receiving partial payment of her 2004/2005 annual salary following September 1, 2004. The College began i 4 making salary payments every two weeks based on 101261 of the annual salary amount. i i 6. Ms Dhawan commenced a pregnancy and parental leave on October 31, 2004 which extended to October 22, 2005. 7. The College initially began paying Ms Dhawan SUB payments calculated on the following basis. The College calculated a daily amount by dividing Ms Dhawan's annual salary by 217, representing the College's calculation of the number of days in a calendar year except for weekends, holidays and the two month vacation period under article 15 of the collective agreement. The college multiplied this daily amount by 5 to obtain a weekly amount. It multiplied this weekly amount by 93% and paid to Ms Dhawan the difference between this and the amount of employment insurance benefits Ms Dhawan was receiving. 8. In the course of the academic year, the College contacted Ms Dhawan to advise that it believed it had made an error in its calculation of SUB payments to her. It revised its calculation as follows. The College calculated a dally amount by dividing Ms Dhawan's annual salary by 261, representing the College's calculation of the number of days in a calendar year except for weekends, and holidays. The 261 figure is based on pro rating the annual salary over 12 months and paying it over that 12 months. The figure is the total of 365 calendar days less weekends and holidays. The College multiplied this daily amount by 5 to obtain a weekly amount. It multiplied this weekly amount by 93% and paid to Ms Dhawan the difference between this and the amount of employment insurance benefits Ms Dhawan was receiving. 9. The only monies that Ms Dhawan received during the October 24, 2005 to December 16, 2005 period were portions of salary that the employer had not yet paid to her from September 1, 2004 to October 31, 2004 period as a result of the College's practice of spreading the annual salary earned over 10 months across 12 months of salary payments. 10. In addition to this, Ms Dhawan is scheduled to take her vacation entitlement in the 2005/2006 academic year before August 31, 2006. Ms Dhawan's 2004/2005 vacation entitlement was scheduled upon her return from her leave between October 29, 2005 and December 16, 2005, r i I V Attached as part of the statement of Agreed Facts was a Chart showing both the payments the College made to Ms Dhawan each week of her leave together with the amounts the Union claimed should have been made. That Chart is attached as an Appendix to this Award. i The Union submitted that the language of article 22.02C(ii) was clear that the grievor, while on mate rnitylparentaI leave, was entitled to be paid the difference between what she received in Employment Insurance benefits and 93% of the monies she would otherwise have earned during the period. In its view, her salary is earned over a ten month, or 43 week period, thus one uses a divisor of 217 to determine a daily rate. The Union also submitted that the ten month rate should continue to be paid for the full twelve months of the leave so as not to financially disadvantage the grievor in the year following her return to work. In the Employer's view, the grievor is entitled to have her salary topped up to 93% of what she otherwise would have earned, and because the grievor's salary is paid over twelve months, what she would have been paid requires use of the divisor of 261 referred to in the Agreed Facts. In its view, if the grievor was paid according to the Union's calculation, then during the period of the grievor's leave of absence she would receive almost 112% of the annual salary she would otherwise have earned had she been at work during that year, and the parties could not have intended such a result. i ' I The Union acknowledges this result, but points out that, if the College's interpretation is l 6 accepted, then the grievor will in fact receive less than 93% of her earnings when one looks at the impact of the leave upon the grievor in the period October, 2005 when she returned from parental leave, until September, 2006, being the end of the 2006 vacation period. When the grievor returned from her leave in October, 2005 she was given two months of vacation pursuant to article 95.01A. During that vacation period, the grievor received from the Employer the deferred salary from working September to October, 2004, immediately prior to her leave, which amounted to $237.30 per week. As well, because the grievor was on vacation and not at work during the months of November and December, 2005, the College was not paying her regular salary and was therefore not setting aside any deferred salary, so that when the grievor goes on vacation in the months of July and August, 2006, she will have deferred salary from working only six months, January to June, and therefore she will receive less money during the summer months of 2006, than she otherwise would have received had she been at work, and had salary deferred in the months of November, and December, 2005. In the Union's view, if one looks at what the grievor would receive, on its interpretation of the collective agreement, in the two year period from the commencement of the leave in October, 2004 until the end of the summer vacation period in September, 2006 she i would receive 93% of her wages during the period October, 2004 until October, 2005 and 900% of her annual wages for the period January, 2006 and ending in August, 2006. if the Employer's interpretation is accepted, during the period of her leave she E i 7 would receive 93% of what she otherwise would have received during the period of the leave, 8nd less than one hundred per cent of her salary during the period from the end of her leave in October, 2005 and the end of the summer vacation period in August, 2006. The Employer responds that one should not look at this matter over a two year period, as the language of article 22.02C(ii) is clear that the grievor is only entitled to a top up to 93% of what she otherwise would have earned during the period of the leave, and the impact of this provision on the grievor's salary in the year following the leave is not material in determining the meaning of the words used in article 22.02C. The Employer made no explicit representations as to what the grievor will earn in total during the period September 1, 2005 until August 39, 2006. The Union responded to this submission by submitting that the parties negotiated language in the collective agreement which indicates that the parties intended to look beyond the one year period. DECISION It is clear that full-time academic staff such as the grievor earn their salary over a ten month period. It is also clear that the College has an administrative practice of withholding a portion of the salary each pay period and paying this money during the two month vacation period which usually occurs in the summer months. This is i 8 administratively convenient for both the College and the academic staff. The difficulty in this matter is caused by three factors. The first is that employees, such as the grievor, "earn" their salary over a ten month period and then have two months of unpaid vacation, usually in the summer months, The second factor is the practice of the College of withholding a portion of an employee's salary during the month(s) it is being earned, and paying the withheld monies to the employee during the two month vacation period. The third factor is the language of the collective agreement which prevents the College from requiring an employee to take vacation during the period of a leave. Article 22.02(ii) of the collective agreement requires the College to pay to an employee on maternity/parental leave, "93% of the regular salary which the employee would otherwise have earned during such period". To the College this means that an employee such as the grievor, who was paid $61,090.00/year prior to the commencement of her leave would receive 93% of that amount during the term of her leave, assuming there were no salary adjustments during the period. As can be seen from the Chart appended hereto, that is the amount the grievor actually received. i In the Union's view, such a payment results in the griever being penalized in the year following her return from the leave. Article 22.01 E provides that the College cannot require an employee to take vacation concurrently with the leave. The grievor therefore took two months 'vacation' upon her return to work for which she received $2,035.65 in f 3 9 total, being the money withheld during the September to October, 2004 months immediately prior to going on leave. In the Union's view the griever will receive less money in the July - August, 2006 vacation period, because she had no earnings, and therefore no withholdings in the November - December, 2005 months when she was on vacation. Thus over a two year period the griever will be paid approximately $7,185.00 less than she otherwise would have received had she not taken the leave of absence. The Union argues that the grievor should be paid the ten month rate for the entire twelve months of her leave. This would include payment for each week of a leave that falls during the summer months, because in its view those are weeks when the grievor is not on vacation by virtue of article 22.01 E, and therefore should be deemed to be earning money. The Union acknowledges that its interpretation will result in payments in the period from September, 2004 until August, 2005 of approximately $7,185.00 more than what the grievor would otherwise have received had she not taken the leave. The Union submits however that if this overpayment is not paid in the first year the grievor will be penalized in the second year by receiving less than she otherwise would have earned and that it could not have been the intention of the parties to penalize employees by a reduction in their take home remuneration for taking a mate rnitylparental leave of absence. In resolving this matter, the Panel has looked to the words used by the parties, as signifying their intentions. The grievor is entitled to receive from the College "93% of the I i 10 regular salary which the employee would otherwise have earned during such period". It is clear that the period referred to is the twelve months of the grievor's leave. The parties agreed that the grievor's salary at the commencement of her leave of absence was $61,090.00 and that during her leave it was increased according to the collective agreement to $62,189.00. The parties also agreed that the grievor earned her salary over a ten month period. The collective agreement provides that the College shall top up the grievor's salary to 93% of what she otherwise would have earned. As is evident from the attachment, that is what the grievor received. To adopt the Union's interpretation of the collective agreement would mean paying the grievor almost 112% of her salary during the twelve months of her leave instead of the 93% required by Article 22.02C which is contrary to the express language used by the parties. We also find that the Union's argument and reliance on the vacation provisions of the agreement to be unpersuasive in interpreting the meaning of Article 22.02C as nothing in article 22.01 E supports paying the grievor more than 93% of the salary she otherwise would have earned during the period of her leave. i Accordingly, we conclude that Ms. Dhawan was paid correctly in accordance with Article 22 of the collective agreement. Her grievance therefore is hereby dismissed. This decision is without prejudice to the right to file a subsequent grievance should the grievor feel she was not properly compensated for the 2005-2006 academic year i i Dated at Maberly, Ontario this 10`h day of July, 2006 i I David K.L. Starkman Chair "i dissent" - see attached Pamela Munt-Madill Union Nominee "I concur" Robert Gallivan College Nominee i I I APPENDIX `A' 1 e• Sonia Dhawan atal; 51 weeks nan. Leave: October 31,2004-Februay 26,2005 I arental Leave: Februa 27,2005-October 22,2005 Union Re nest Re u5ar Salary Regular Salary- Deferred Sal.For 04!05 SUB Benefits Paid+EJ. SUB Payment Paid at 12 mths. Earned at 10 mths lVacation 1 1110 for entire leave leek Sala Rate Service Type 263 (21 (0ct23-Dec 16,2005) 1 Comments ;ptember 1-4,2404 $58,891.00 Fuli'1irne $676.91 $814.16 513725 e tember5-11,2004 $61,090.00 Full Time 51,170.31 51,407.60 5237.30 s tember12-18,2004 $61,090.00 Full Time $1,170.311 $1,407.60 $237.30 :ptemberl9-25,2004 $61,090.00 Full-rime $1,170.311 $1,407.60 $237.30 :ptember266-October 2,2004 $61,090.00 Full-time $1,1M311 $1,407.60 $237.30 ctober 3-9,2004 $61,090.00 FuIITune $1,170.31,111 $1,407,60 $237.30 ctober 10-16,2004 $61,090.00 Full Time S1,170.311 $1,407.60 $237.30 ctober 17-23,2004 $61,090.00 Full Time S?,170.31 $1,407.60 $237.30 otober24-30,2004 $61,090,00 Full Time $1,170.311 $1,407.60 $237.30 .tober31-November 6,2004 $61,090.00Waitin Period $1,170.31 S1,407.601 $1,088.39 1 51,309.07 wember 7-13,2004 $61.090.00 Waintin2 Period S1,170.311 $1,407.601 1 $1,088.3191 $1,309.07 wernber14-20,2004 $61.090.00E.I,+Sub Payment $1,170.31 $1,407.60 $1,088.391 $1,309.07 ' wember21-27,2004 $61,090.00 E.I.+Sub Pa ent $1,170.31 $1,407.60 $1,088.391 $1.309.071. wember 28-December 4,2004 561,090.00 1 E.l,+Sub Pa ment $3,170.31 $1,407,60 51,088.39 $1,309.07 :cember 5-11,2004 $61,090.00 1 E.l.+Sub Payment 1,1770.31 $1,407.60 $1,088.39 $1, -38,2004 51 .33 51,40760 $1, 88.39 09-0;1 .wrnber12 , E 3091 j :cember 19-25,2004 $1,170.31 $1,407.60 $1,309.07 , :cember26-Janus 1,2004 561,090.00 El.+Sub Pa ent $1,170.31 $1,407,60 $1,088.39 $1,309.071 ry nau 2-January 8,2005 $61,090.00 E.1.+Sub Payment $1,170.31 S1,407.601 $1,088.39 $1,309.07 nua 9-15,2005 $61,090.00 E.I.+Sub Payment $1,170.31 $1,407.601 $1,088.39 $1,309.07 nuary 16-22.2005 $61,090.00 E.I.+Sub Payment $1,170.31 $1,407.60 $1,068.39 53,309.071 nua 23-29,2005 $61,090 GE.I.+Sub Payment $1.170,31 $1,407.60 $1,088.39 $1,309.071 nua 30-February 5,2005 $61,090.00 E.1.+Sub Pa ent $1,170.31 $1,407.60 $1,088.39 $1,309.07 :brua 6-February 12,2005 $61,090.00 E.I.+Sub Payment $1,170.31 51,407.60 $1,088.39 $1,309.07 ,bra 13-19,2005 $61,090.001=.1.+SubPayment $1,170.31 $1.407.60 $1,088.391 $1,309.07' :braua 20-26,2005 $61,090.00 E.I.+Sub Payment $1,170.31 $1,407.60 $1,088.391 $1,309.07 bruary27 March 5,2005 $61,090.00 E.1.+Sub Payment $1,170.31 $1,407.60 $1,088.39 $1,309.071 arch 6-12.2005 $61,()90.00 1 E.I.+Sub Payment $1,170.31 $1,407, 51,088.39 51,309.07 $61,090.00E.l.+Sub Payment 60 $1,088.39 $1,309.07 arch13-19,2005 $1,170.31 $1407.60 arch 20-26,2005 $61,090.00 El.+Sub Payment $1,170. 407.601 $1.088.39 $1,309.07 vch27-31,2005 $61,090.00 E.I.+Sub Pa ent $93625 $1,126.081 $870.71 $1,04726 ril 1 -2,2005 $62,189.00 E.l,+Sub Payment $23827 $286"591 $221.59 $266.52.1 aril 3-9,2005 $62,189.00 E.I.+Sub Payment $1.191.361 $1,432.931 $1,107.96 $1,332.62 *10-16,2005 $62,189.00 E.1.+Sub Payment $1,193.36 $1,432.93 $1,107.96. $1,332.62 4117-23,2005 $62,189.001=_1.+Sub Payment $1,191.36 $1,432.93 $1,107.96 $1,33162 ril 24-30,2005 $62,189.00 E.I.+Sub Payment $1,191.36 $1,432.93 $1,107.95 $1,332.62 ty 1-7,2005 $62,189.00 E.S.+Sub Payment $1,191.36 $1,492.93 51,107.96 $1,332.62 iy 8-14,2005 $62,189.00 E.I.+Sub Payment $1,191.36 $1,432.93 $1,107.96 $1.332.62 jy 15-21,2005 562,189,00 I E.I.+Sub Payment $1,191.36 $1,432.93 $1,107.96 $1,332.62 ix 22-28,2005 $62,189.00 E.I.$Sub P3yrnent $1,191.36 51,432.93 5?,107.96 $1,332.62 i N N N N O N N N N T Ti N N N N N ° V7 W M m m W a0 cp O M 1D l0 V7 r VI (O V]fQ[O fb L7 m W Oj O L9 17 67 in L7 47 N p NCV[+tN6 6CVNN(+IN N C�i CJ Oi to MC3 Cio L74jOO h y Mc•7 M(•] W [O C'7M M MMMC] Mw fA MmaONmm+>a W O7 m MMM[h o N MM M M MMmMh L•{(nM M(y c! 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(n N N 6'i Cn 69 Ui N(9 c+3 43 N to M C9 en 49 19 M tf/c9 VI 69 (Wil coo - ro V% � ro ;a 4 C C C C C C C C C C fU G3 N � N N d N N W W N CU 41 v W N Q1 N W N N Q1 f0 @ @ !9 @ N t4 t0 p �u @ M @ R3 @ @ @ @ tti to [0 DA.0 AaA.R l}AQ AA9AA A17 A -0S J J J J J 7 J J J J J 3 7 J J h a 7 7 J J J J 13 fn CrJ(n 011(r3T OM T O W U) OM T O M M Cn U7 OM to � + + t + * + f t + + 4 t + + + t t b + + + fi + NOftP V) wu7u.iuI ill Wuiaiuirciui€ciui€i WWuiulWwww o CD,00000OOppdopp000 on00000II N N o 0 0 0 0 o o 0 ¢0 0 0 0 n n 4 0 0 0 O C 7 c 3 0 agog' 6 iaidi6.cr)aiui0)6ciai @ err W W c0 x00000W a1 m SO WCO Ok] W NNNNNNN r r r rrr r .rvvrer r.rr N n A aNN CIS CVNNN N N V 'V ct ct e} gg W W D NC4(V N N N CD 0 l0 lO f0 1O t0 W c�W (D `W @ t9 t9(9 FR FFy Efl Eif Vt CfY!A 69 69 69 1Ft CA w 0 c9 c9(9 0 6)eEi fo No(!1 ° 0 "N 0 m 0 N CJ N o @ ' 0 L a( noun `w v C O 17:5 u7(f1 V3 of O O N O p L7 tl E Sq ALL N W QOo (f�L7 Loin OPO O QOO 0 1�6 CV N h N �oON o ° G7N N C1 i°�4oON ca�FNNNNN ..0! c'9��CV o m . d, Nrn oi. vriiniinq m E E E E E 1CN of tl WA.6A aD ¢¢ C fC �n fl � 5 ��� � � 3�� �r arwm�n m m m RgaLI D � DISSENT OF THE UNION NOMINEE i i With all due respect I must disagree wifh the Majority. The Majority is correct in basing their decision on the wording of Article 22.02 {Ii} of the collective agreement as signifying the parties' Intentions, The Majority however makes an error in applying the clear intent of this provision to the grievance before them. Tho wording of Article 22,02(11) dearly signifles the parties' Intention to support individuals on a Maternity/Paternity leave at a level of Income close to their normal earnings. Basic principles of contract interpretation roquirs that this dear Intention be supported by an interpretation of the Article. The Majority's decision not only does not support this clear Intention but Is patently unreasonable In light of this clear Intention. The Majority makes an error of fact on page 10 of the declslon In finding that the regular salary which the Grievor would have earned during the twelve month period of her leave was approximately equal to her annual salary. As is clear from the collective agreement provisions and the submissions of both parties, the Grievor's annual salary is based on a twelve month academic year during which she receives a two month unpaid vacation, This is not'the situation of the Grievor while on her leave. Article 22.01E of the collective agreement prevents the College from requiring the Grievor to take her vacation concurrent with her Maternity/Parental leave. The Grievor therefore deferred her unpaid vacation entitlement until her return from her leave. Such a deferral was accepted by all parties. The Grievor would not therefore have earned her regular salary during the twelve month period of her leave. She would have regularly earned an amount which recognized she did not receive her vacation entitlement. a The calculations submitted by the Union accurately reflect a correct application of all of the provisions of the collective agreement, These calculations recognize thy,. clear intention of Article 22.02 (il) to support the Grievor's Income during the period -if her leave at a level equal to 93% of her regular earnings with deferral of her unpaid vacation entitlement until her return. The Gdevor's financial position is then consistent with the language of the colloclh/e agreement. The proof of the Major€ty's error is the gross difference In remuneration between the obvious intention of the partles drafting the collective agreement and the result in this grievance. As Is admitted by the Majority, the result of their interpretation of Article 22.02(il) Is to cause this Gria•+or to suffer a financial loss of approximately $7,800 in addition to the expected 7% loss as a result of her Maternity/ Paternity Leavn Stich a result can only be said to be patently unreasonable In light of the char unequival i Intention of Article 22.02(ii). In light of tire, above It is clear the Majority has made several errors in arriving at their conclusion. For this reason both the analysis and the result of the Majority's derision should be rejected and an interpretation of this provision which is consistent with accepted principles of contract Interpretation should ba suhstituted The grievance should be allowed and the drlevor should immediately be paid the amounts owing to her as outlined In the Union's submissions with all appropriate Interest, i ; M91 90(l