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HomeMy WebLinkAboutO'Marra 14-02-26In the Matter of a Labour Arbitration pursuant to the Ontario Labour Relations Act Between: CANADIAN BLOOD SERVICES -and- ONTARIO PUBLIC SERVICE EMPLOYEES’ UNION Grievance of Steve O’Marra OPSEU File No. 2012-5101-0002 Arbitrator: Randi H. Abramsky Appearances For the Union: Robin Lostracco Counsel For the Employer: Sarah Eves Counsel Hearing: January 20 and Feb. 14, 2014 in Toronto. 2 AWARD This grievance involves a dispute between the parties as to whether increases to shift and weekend premiums negotiated for the 2010-2014 collective agreement are to be paid retroactively to April 1, 2010, or from the date of ratification, April 12, 2012. It involves an interpretation of the parties’ Memorandum of Settlement and their collective agreement. Facts The parties have a long-standing collective bargaining relationship. The parties’ 2002-2005 collective agreement dealt with the issue of retroactivity in Schedule “A”. It read as follows: SCHEDULE “A” April 1, 2002 – 7%, all rates and ranges. April 1, 2003 – 6.6%, all rates, all ranges. April 1, 2004 – A general wage increase to all rates and all ranges equal to that negotiated between the Participating Hospitals and the Ontario Public Employees Union…. The Employer shall provide full retroactivity based on the foregoing base rate adjustments on all earnings (exclusive of premium and overtime) between April 1, 2002 and the date of ratification. The 2005-2007 collective agreement contained similar language, except the parties agreed to remove the exclusion of overtime from the retroactivity proviso. It reads: 3 SCHEDULE “A” April 1, 2005 – 3%, all ranges and ranges, unless otherwise specified below. April 1, 2006 – A general wage increase to all rates and all ranges equal to that negotiated between the Participating Hospitals and the Ontario Public Service Employees Union…. Biomedical Technologists – Hamilton Site 1%, retroactive to April 1, 2005 … Biomedical Technologists – Toronto Site 3%, retroactive to April 1, 2005. … Equipment Specialists – Toronto Site 1%, retroactive to April 1, 2005 … Quality Assurance Associates – Hamilton Site The Quality Assistant Associate wage scale shall be that established by the Parties pursuant to the MOU re: Quality Systems Associates, but shall be subject to the general wage increases in Schedule “A” above. The Employer shall provide full retroactivity based of the foregoing base rate adjustments on all earnings (exclusive of premium) for the term of the Collective Agreement. The parties’ Memorandum of Settlement in regard to the 2005-2007 collective agreement, dated August 9, 2005, continued the terms of the prior collective agreement “except as otherwise amended hereunder.” It also provided as follows: 3. All provisions mutually agreed to by the parties as contained in the attached “Agreed Upon Items” documents shall be effective the date of ratification of the Collective Agreement, unless otherwise specified therein. The parties agreed to identical language concerning retroactivity in the 2007-2009 collective agreement, in Schedule “A”. It reads: 4 SCHEDULE “A” April 1, 2007 – 3%, all rates and ranges. April 1, 2008 – 3.25%, all rates and ranges. April 1, 2009 – A general wage increase to all rates and all ranges equal to that negotiated between the participating hospitals and the Ontario Public Service Employees Union…. The Employer shall provide full retroactivity based of the foregoing base rate adjustments on all earnings (exclusive of premium) for the term of the Collective Agreement. The parties’ Memorandum of Settlement in regard to the 2007-2010 agreement included the following terms: 5. The parties herein agree that the terms of the Collective Agreement shall be from April 1, 2007 to March 31, 2010. 6. The parties further agree that the amendments to the Collective Agreement shall be effective on the date of ratification except as provided otherwise in these terms of settlement. 7. Wage increases shall be retroactive to April 1, 2007 on all earnings (exclusive of premium). Retroactive pay adjustments shall be paid no later than sixty (60) days from the date of ratification by both parties. 8. Unless otherwise specified, terms set out in the foregoing shall become effective the date of ratification by the Executive Management Team of Canadian Blood Services and the membership of OPSEU Locals 5101 and 210 (Professional Unit). The 2010-2014 agreement used different language – both in Schedule “A” and the Memorandum of Settlement. Schedule “A” omits the last sentence that had appeared in the prior agreements – “The Employer shall provide full retroactivity based of the 5 foregoing base rate adjustments on all earnings (exclusive of premiums) for the term of the Collective Agreement.” Instead, Schedule “A” provides as follows: SCHEDULE “A” April 1 2010 – 2.50%, all rates and ranges. April 1, 2011- Lump Sum as per attached. April 1, 2012 – Lump Sum as per attached. April 1, 2013 – 2.75%, all rates and ranges. The 2010-2014 Memorandum of Agreement, signed on April 4, 2012, provides as follows, in relevant part: 3. The parties agree that the term of the collective agreement shall be from April 1, 2010 to March 31, 2014. 4. The parties further agree that the Collective Agreement shall incorporate all terms of the previous Collective agreement including Letters of Understanding unless modified or changed herein which expired on March 31, 2010, together with the following amendments attached hereto as Appendix “A”, “B” and “ C”; 5. The parties further agree that, except as specifically stated otherwise, the Collective Agreement (Appendix “A”, “B” and “C”) shall be effective on the date of Ratification of the Collective Agreement. Wage increases shall be retroactive to April 1, 2010 to all employees on the date of the Union’s ratification. For the purposes of clarity, unless otherwise agreed to in this Memorandum wage rates shall be rounded to two decimals. 6. All wages shall be retroactive and paid within three (3) pay periods of the Union’s Ratification. All retroactive payments shall be paid for all hours worked. The parties both presented their lead negotiators to testify about the 2010 negotiations and the Memorandum of Settlement. Mr. Steve Saysill, OPSEU Supervisor of Negotiations, Broader Public Sector, testified that the 2010-2014 round of collective bargaining was his first with this Employer, although he was familiar with prior bargaining agreement and negotiations though his review of the collective 6 bargaining file. He has been involved in collective bargaining negotiations since 1986. Mr. Saysill testified that negotiations concluded on April 4, 2012, with the signing of the Memorandum of Settlement. Once the parties reached a tentative agreement on the outstanding issues, he prepared the Memorandum of Settlement, from his template, for the Employer’s team to review and amend. It was his recollection that it was presented to Mr. Rob Burwash, lead negotiator for the Employer, through either a USB port or an email. Mr. Burwash made one amendment to paragraph 5, adding the words “except as specifically stated otherwise.” The Union team then reviewed the Memorandum of Settlement to ensure that all of the terms were correct, and a question arose in regard to premiums and whether they would be retroactive. Mr. Saysill stated that he thought they would be retroactive based on the change to Schedule “A” – the elimination of the last sentence – so retroactivity no longer would exclude premium payments. But he wanted to be sure that the Employer was on the “same page” on that issue and so went to discuss it with Mr. Burwash. He also did not want to “blindside” the Employer about the premiums. He acknowledged that there was no discussion during collective bargaining concerning retroactivity. From his perspective, there was no need to, until that point. According to Mr. Saysill, this discussion took place in the Employer’s caucus room and was to clarify that retroactivity was inclusive of wages, overtime, and premiums. He stated that Mr. Burwash “paused, we talked about it”, there was a 7 “brief discussion” and then he said, “yes, we’re on the same page.” Mr. Saysill then advised his team that retroactivity included the increase in premiums, and the parties signed off soon after. Mr. Burwash had participated in the 2002-2005, 2005-2007, 2007-2010 negotiations, and was lead negotiator for the Employer for the 2010-2014 agreement. He stated that in the three rounds prior to 2010, the Employer had not applied premium increases retroactively. The parties had “never negotiated language that provided for that.” Retroactivity, he stated, applied to wages, overtime, vacation pay and pay-in-lieu – all things that are a function of the hourly rate, or a percentage of the wage rate. There was “no particular reason” why the retroactivity language in the 2007 Memorandum of Settlement was not used, except that Mr. Saysill provided the draft document. He did not compare the 2007 Memorandum of Settlement to the draft provided by Mr. Saysill. In his view, the word “earnings” as used in the 2007 settlement was more encompassing that the word “wages”, and therefore “all earnings” required specific language to exclude premiums. It was Mr. Burwash’s recollection that Mr. Saysill came into the Employer’s caucus room, with his laptop, to go over the Memorandum of Settlement. He did not recall a USB port or an email, and stated that the Employer’s computers would encrypt a document from a USB. He added an amendment to paragraph 5 –“except as specifically stated otherwise” – and that was the only change. The purpose of this amendment, he stated, was that the parties had to specifically state what would be retroactive, that 8 without a specific date tied to it, the change would be effective upon ratification. He agreed that Mr. Saysill and he had a conversation about retroactivity, and that Mr. Saysill posed a question about retroactivity, but his understanding was that Mr. Saysill was asking about “wage-based retroactivity – overtime and vacation.” When he agreed that they were on the same page, he was “not answering with shift-based premiums in mind.” He could not recall Mr. Saysill’s “exact words”, but he knows that he “didn’t intend to convey there would be retroactivity on shift-based premiums.” He did not recall the discussion to include premium pay. After the agreement was ratified in April 2012, the Employer applied the 2010 wage increase retroactively to April 1, 2010, including overtime, vacation pay and pay- in-lieu, but did not apply the increases to shift and weekend premiums. Article 18.06 and 18.07 state: 18.06 Shift Premium (a) An employee whose work hours extend past five (5:00) p.m. on any of her scheduled work days shall be paid, in addition to her straight time pay, a shift differential of one dollar and eighty cents ($1.80) per hour for each completed hour actually worked between five (5:00) p.m. to midnight and two dollars and twenty cents ($2.20) per hour for each completed hour actually worked between midnight and seven (7:00) a.m. (b) The above noted premium shall not form part of the employee’s hourly rate of pay. 18.07 Premium Workdays (a) Weekend Premium Any full-time employee who is scheduled to work and works a shift where any hours fall between 00h01 Saturday and 23h59 Sunday shall receive a premium of two dollars and thirty-five cents ($2.35) for each hour worked of that shift that falls between 00h01 Saturday and 23h59 Sunday. (b) Consecutive Weekend Premium 9 Any full-time employee who is scheduled to work and works a shift where any hours fall between 00h01 Saturday and 23h59 Sunday on two consecutive weekends shall be credited at straight time and paid a premium of one-half (0.5) times her basic hourly rate for all hours worked on the second, and any subsequent weekends. This article shall not apply if consecutive weekends are worked due to employee initiated changes. (c) Part-Time Weekend Premium Part-time employees shall be paid a weekend premium of two dollars and thirty- five cents ($2.35) per hour for all hours worked between 00h01 Saturday and 23h59 Sunday, when scheduled as part of the employee’s regular workweek. Similar shift and weekend premium language was contained in the 2007-10 agreement, with the premium amounts increasing in the 2010-2014 agreement. The collective agreement, at various points, specifically deals with the retroactivity of certain provisions. Reasons for Decision The onus is on the Union to establish, on the balance of probabilities, that its interpretation of the collective agreement was the intention of the parties and that the Employer violated the collective agreement when it failed to apply the shift and weekend premium increases retroactively to April 1, 2010. The goal in an interpretation case is to ascertain the intent of the parties, based on the language of their agreement. As set out in Re Rayside-Balfour (Town) and C.U.P.E., Local 6 (Vacation Pay Grievance) [2000] O.L.A.A. No. 90 (Marcotte), at par. 10, quoting Brown and Beatty, Canadian Labour Arbitration, 3rd Ed., at par. 4:2100 (citation omitted): 10 But the intention must be gathered from the written instrument. The function of the Court is to ascertain what the parties meant by the words they have used: to declare the meaning of what is written in the instrument, not of what was intended to have been written; to give effect to the intention as expressed, the expressed meaning being, for the purpose of interpretation, equivalent to the intention. Likewise, in Re Metropolitan Toronto Zoo and C.U.P.E., Local 1600 (Wage Increase Grievance) [2004] O.L.A.A. No. 217 (Brent), the Board, also quoting from Brown and Beatty, at par. 4:2100, stated at par. 6: In short, it is our task to ascertain the intention of the parties from an examination of the collective agreement itself. We must presume that the parties intended what they put in the collective agreement and ‘when faced with a choice between two linguistically permissible interpretations…[be] guided by the purpose of the particular provision, the reasonableness of each possible interpretation, administrative feasibility, and whether one of the possible interpretations would give rise to anomalies.” In this case, although both parties argued that the contractual language was clear and unambiguous, each argued, in the alternative, that if the provision was deemed ambiguous, the extrinsic evidence supported their position. In Re Metropolitan Toronto Zoo, supra at par. 5, the board of arbitration stated that ambiguity is not just when there is a disagreement between the parties as to the meaning of a provision. Instead, an ambiguity arises “where there are two reasonably possible meanings to a clause and it is impossible to resolve the dispute by reference to the clause itself or to the context of the document in which it is to be found, then a resolution must be found by reference to extrinsic evidence.” There are two provisions in the Memorandum of Settlement which deal with retroactivity – paragraphs 5 and 6. The Employer asserts that the Union must establish 11 that premium increases are “wage increases” under paragraph 5 in order to be retroactive, and that the parties only agreed to make “wage increases” retroactive. It submits that the Union cannot rely on paragraph 6 – that “[a]ll wages shall be retroactive…” - because it contradicts paragraph 5 and is vague and unclear. The Union submits that paragraph 6 expands on paragraph 5. It submits that premium increases are part of an employee’s wages. In my view, the question of retroactivity in regard to premium increases turns on paragraph 6 of the Memorandum of Settlement, specifically whether such premiums are included in the words “[a]ll wages shall be retroactive” and “[a]ll retroactive payments shall be paid for all hours worked.” In construing a contract, all words are presumed to have meaning, and different words usually means that different things were intended. Here, the parties used different words in paragraphs 5 and 6. Paragraph 5 states that “wage increases shall be retroactive to April 1, 2010.” Paragraph 6 states that “all wages shall be retroactive….” If “all wages” meant exactly the same thing as “wage increases”, the first sentence of paragraph 6 would be redundant and have no meaning. Consequently, “all wages” in paragraph 6 must mean something other than “wage increases”. I agree with the Union that paragraph 6 expands on paragraph 5 in terms of what is retroactive. Under the Memorandum of Settlement, in order for premium increases to be retroactive, they must fall within the words “all wages” under paragraph 6. Unlike a number of other provisions in the collective agreement, there is no specific mention of 12 the date for the premium increases to take effect in the agreement. Consequently, unless premium payments are included as part of “all wages” in paragraph 6, the effective date would be the date of ratification under paragraph 5 of the Memorandum of Settlement, which states: “The parties further agree that, except as specifically stated otherwise, the amendments to the Collective Agreement (Appendix “A”, “B” and “C”) shall be effective on the date of Ratification of the Collective Agreement.” The Employer argued that, in this case, there was a reverse presumption – that the date of ratification was the effective dates of any changes to the collective agreement, unless otherwise specified. That is true. The normal presumption in terms of retroactivity is that the whole agreement is retroactive, based on the duration clause. Re Penticton and District Retirement Service and H.E.U., Local 180 (1977), 16 L.A.C. (2d) 97 (Weiler). In Re City of Hamilton and A.T.U., Local 107 (2009), 187 L.A.C. (4th) 425 (Levinson), the parties agreed to language which “displaced the general presumption of retroactivity that might otherwise arise…” The parties did the same in paragraph 5. But that reverse presumption does not answer the issue raised in this case, whether shift and weekend premiums are included in the words “all wages” as set out in paragraph 6 of the Memorandum of Settlement. The Union takes a broad reading of the words “all wages”. It cites to the definition of “wages” in Black’s Law Dictionary that “wages include every form of remuneration payable for a given period to an individual for personal services, including salaries, commissions, vacation pay, bonuses…” as well as Barron’s 13 Canadian Law Dictionary: “[b]roadly, any compensation given to a third party in consideration of his or her work or services.” It cites to the Ontario Employment Standards Act, S.O. 2000, Ch. 41 (1), which defines “wages” to mean “monetary remuneration payable by an employer to an employee under the terms of an employment contract….” It asserts that “all wages” is as broad as “all earnings”, relying on the definition of “earnings” in Black’s Law Dictionary, as “[r]evenue gained from labor or services…” It relies on Re Rayside-Balfour (Town), supra, in which the arbitrator adopted the broad definition of “wages” found in Black’s Law Dictionary. The Union contends that shift and weekend premium payments are part of the wages paid to employees for their services. The Employer asserts that premium pay is not part of the wages, citing Re Maxville Manor and U.S.W.A.(1992), 27 C.L.A.S. 222 (Bendel). In that case, Schedule “A” of the collective agreement, which was a first collective agreement, set out rates of pay for January 1990, June 1990 and January 1991, and stated: “Retroactivity for all employees for all hours paid on separate cheque no later than June 27, 1991.” The collective agreement did not provide for shift premiums, although prior to the agreement the employer had paid employees a shift premium. In calculating what was owed to the employees retroactively, the Employer offset the total compensation paid to the employees, including the shift premium. The Employer took the position that the employees’ wages consisted of the hourly rate and pay and the shift premium, and therefore the amounts paid were properly offset from anything owed. The arbitrator, at par. 8, found “no merit in this argument”, concluding that “[s]hift premiums, 14 although part of employees’ remuneration and perhaps ‘wages’ for certain purposes, are, in a collective bargaining context, usually regarded as distinct from rates of pay.” Consequently, he determined that the Employer improperly offset premium payments when determining monies owed to the employees. The parties, here, did not define “[a]ll wages” and it is not clear if a broad reading or a more narrow reading should apply. In my view, the dispute “cannot be resolved by reference to the clause itself or to the context of the document…” Re Metropolitan Toronto Zoo, supra at par. 5. Therefore, I find it appropriate to consider the extrinsic evidence led by the parties. The testimony of Mr. Saysill and Mr. Burwash, however, does not assist in determining the intent of the parties. There is some conflict in the evidence presented, although I conclude that both witnesses testified honestly and sincerely. Their testimony reveals that there was no common understanding concerning the retroactivity of the premium increases. Although Mr. Saysill understood that he was clarifying that retroactivity was all-inclusive, including premiums, that was not Mr. Burwash’s understanding. When he agreed with Mr. Saysill that they were on the “same page” in terms of retroactivity, he did not understand his agreement to include premiums. On the contrary, he thought that the inclusion of the words “except as specifically stated” in paragraph 5 meant that a specific date would have to be included by the parties, or the effective date would be the date of ratification. 15 Nevertheless, I find that the history of Schedule “A” and the Memorandum of Settlements over the past negotiations supports the Union’s position in this case. The 2010-2014 agreement significantly changed the wording used by the parties. The retroactivity language found previously in Schedule “A” was eliminated. Schedule “A” no longer stated: “The Employer shall provide full retroactivity based of the foregoing base rate adjustments on all earnings (exclusive of premium) for the term of the Collective Agreement.” This amendment is significant because paragraph 4 of the Memorandum of Settlement provides that “the Collective Agreement shall incorporate all terms of the previous Collective agreement …unless modified or changed herein…” The parties modified Schedule “A”: premiums were no longer specifically excluded from retroactivity and the reference to “all earnings” was also eliminated. Instead, retroactivity was addressed in paragraphs 5 and 6 of the Memorandum of Settlement. They provide: 5. The parties further agree that, except as specifically stated otherwise, the amendments to the Collective Agreement (Appendix “A”, “B” and “C”) shall be effective on the date of Ratification of the Collective Agreement. Wage increases shall be retroactive to April 1, 2010 to all employees on the date of the Union’s Ratification. For the purposes of clarity, unless otherwise agreed to in this Memorandum wage rates shall be rounded to two decimals. 6. All wages shall be retroactive and paid within three (3) pay period of the Unions Ratification. All retroactive payments shall be paid for all hours worked. The Employer asserts that “all earnings” is a broader concept than “ all wages”, and that the retroactivity language in the Memorandum of Settlement is actually more restrictive than the prior last sentence of Schedule “A”, and limits retroactivity to items 16 driven by an hourly wage rate. The Union argues that “all wages” – with no exception for premiums - expands what is retroactive and includes premium pay increases. Under the circumstances, particularly the elimination of the last sentence in Schedule “A”, I conclude that the most reasonable interpretation is that “[a]ll wages” means all of the compensation that employees receive for their labour, including overtime, vacation pay and shift premiums. “All wages” may a somewhat more limited concept than “all earnings” used previously by the parties – but there is a significant overlap, and it includes payments for the employees’ labour. Black’s Law Dictionary defines “earnings” as “[r]evenue gained from labor or services…” and “wages” as “payment for labor or services usu. based on time worked…” Mr. Burwash testified that retroactivity was limited to terms that were a function of the hourly rate or a percentage of the hourly rate, and did not include premiums. By the terms of the collective agreement, however, shift and weekend premiums are an additional payment for hours worked, based on the time of the day, or weekend work. Though not part of the basic wage rate for a position, shift and weekend premiums form part of the wages that employees who work the late shift or on weekends receive for their work. The Employer argues that the parties did not negotiate about the retroactivity of premiums. Historically, premiums had been excluded from retroactivity and the Employer would not have agreed to make such payments retroactive without receiving a benefit in exchange. 17 When the parties eliminated overtime from the exclusion of retroactivity found in Schedule “A” in 2005, the matter was clearly bargained. There is no evidence that the retroactivity of premium pay was bargained in the 2010-2014 round, except for the disputed discussion between Mr. Saysill and Mr. Burwash. In Re Pre-Con Inc., supra, the employer made a similar argument – that retroactive payment of premium increases was “unintended” because the parties did not negotiate such a result. The arbitrator did not accept that argument because the language, as interpreted, provided for that result. He concluded at p. 363: Retroactivity of shift premiums cannot properly be said to be an unintended result: the intention of the parties is to be drawn from the collective agreement itself, whether or not the intention of one or another of the parties be fully expressed therein. … This is an example of the words quoted in Brown and Beatty, Canadian Labour Arbitration, at par. 4:2100, that the function of the arbitrator is to “to declare the meaning of what is written in the instrument, not of what was intended to have been written.” It appears from the evidence that Mr. Saysill attempted to clarify with the Employer this very issue – to ensure there was agreement and ensure that the Employer was not “blindsided” on this issue. Mr. Burwash, however, did not understand his “agreement” to mean that premium increases would be retroactive. Consequently, we are left with the language negotiated by the parties. It was not just “wage increases” that were to be retroactive. The parties agreed that “[a]ll wages shall be retroactive…” Unlike the prior Schedule “A”, there was no 18 exclusion for premiums, and, for the reasons set out above, I conclude that shift and weekend premiums fall within the words “all wages” – payment for their labour – of the employees. The case of Re Maxville Manor, supra, is distinguishable. There, Schedule “A” provided: “Retroactivity for all employees for all hours paid…” and the arbitrator determined that it was “limited to rates of pay.” He determined that although shift premiums were “part of the employees’ remuneration and perhaps ‘wages’ for certain purposes” they were distinct from “rates of pay.” Here the parties agreed that “all wages shall be retroactive” not just rates of pay. Had the Memorandum of Settlement been limited to “wage increases” in paragraph 5, the decision in Re Maxville Manor, supra, would be instructive. But the parties, here, provided that “all wages shall be retroactive” and that includes more than the straight wage rate. It includes premium payments paid for the hours worked. On-call pay, which the Union conceded was not retroactive, is different than shift and weekend premiums. On-call pay is not payment for hours worked. It is payment for the inconvenience of being “on-call” and subject to being called into work. Premium pay is an additional payment, beyond the basic wage rate, for certain hours worked outside of the normal work week. It is not inconsistent that premium pay be considered part of “all wages” paid for “all hours worked” but not on-call pay. 19 Finally, the Employer asserted that the contra proferendem rule of construction applied and that any ambiguity in the Memorandum of Settlement should be construed against the Union because the document was written by the Union. I find it unnecessary to consider that rule of construction, as I find that the Union has established, on the balance of probabilities, that the premium increase falls within the ambit of words “all wages shall be retroactive…” Conclusion For all of the foregoing reasons, the grievance is allowed. The Employer is directed to pay the shift and weekend premium increases retroactively to April 1, 2010, for all applicable hours. I shall remain seized. Issued this 26th day of February, 2014. /s/ Randi H. Abramsky ______________________________ Randi H. Abramsky