HomeMy WebLinkAboutUnion 13-11-13IN THE MATTER OF AN ARBITRATION UNDER
THE ONTARIO LABOUR RELATIONS ACT
THE OTTAWA HOSPITAL
("the Employer")
eM
ONTARIO PUBLIC SERVICE EMPLOYEES UNION
("the Union")
RE WAGE STANDARDIZATION AND PAY EQUITY
AWARD
ARBITRATOR: BARRY STEPHENS
FOR THE EMPLOYER: J.D. SHARP, Emond Harnden LLP
REBECCA OFFICER,
Director Labour and Employee Relations
FOR THE UNION: JANET BOROWY, VICTORIA REAUME
Cavalluzzo Shilton McIntyre & Cornish LLP
BRIAN GOULD, Chief Negotiator
STEVE NIELD, Supervisor Pay Equity Unit, OPSEU
ANN WALLACE, Senior Negotiator, OPSEU
MICHAEL DONALDSON, President OPSEU L. 464
TAM[ MACDONALD, OPSEU Staff Rep
LINDA O'REAGAN, Chief Steward Local 464
HEARING HELD IN TORONTO, ONTARIO ON NOVEMBER 6, 2013
History and Background
[1l | was appointed as Arbitrator to hear and determine all matters arising from the
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interest arbitration award of Arbitrator Russell Goodfellow dated June 3, 2003 and the
subsequent Supplemental Award dated December 9, 2003. My appointment was
confirmed by the parties in a Memorandum of Agreement dated September 24, 2004.
[2] On May 21, 2006, | issued a consent Order to assist the parties in the process of
arriving at a fair and reasonable settlement of all grievances, claims, pay equity and
wage standardization disputes. The consent Order created a process to enable the
parties to develop a new wage grid that provided appropriate and pay equity compliant
wages to all classifications in the OPSEU Bargaining unit. I had issued other awards and
orders concerning this long standing matter prior to the 2006 Order.
[3] The issues between the parties in the development of the new wage grid were
extremely complex because of the lack of verifiable historical documentation concerning
payroll, rapid and ongoing movement of jobs in the Hospital both in and out of the
bargaining unit, changes to 'obs over the historical period, possible weaknesses of the
evaluation systems and intervening settlements and interest awards impacting wage
ids.
[4] In the period since the issuance of the 2006 order, the parties engaged in lengthy
litigation with many hearing days and exhibits, wage analysis, statistical analysis and
workplace job duties analysis. The parties have also made extensive submissions to me
regarding the appropriate outcome to this long-standing process. This award confirms
the oral order issued at the hearing on November 6, 2013, directing the parties to
execute a settlement that will resolve all outstanding pay equity and maintenance issues
and will result in the implementation of a pay equity compliant wage grid.
[5] Accordingly, based on the information heard during the numerous days of
litigation, the exhibits filed and the submissions of the parties, I hereby issue the
following Order reflecting the complete resolution to all outstanding issues before me
arising from the Wage Standardization and Pay Equity process between the parties:
Decision
1. The Hospital will pay a lump sum payment in an amount not to
exceed ten million dollars ($10,000,000.00) to satisfy all claims,
including retroactivity, arising from the wage standardization process,
divided between eligible employees in accordance with Appendix A to
this Order. Eligible employees are the bargaining unit members listed
on the OPSEU seniority list dated March 31, 2007. For greater
certainty, the final cost to the Hospital or total amount payable by the
Hospital pursuant to this Order shall not exceed the above -noted
amount. Should any subsequent discussions, clarifications or
decisions of any kind, arising in any forum, require or result in
changes or adjustments to any terms or costs/cost allocations of this
Order or its attachment(s), the Hospital's liability cannot exceed the
sum set out above which represents the maximum cost of this Order.
Should such an issue arise which results in the Hospital's cost being
potentially greater than that referenced above, the parties will
reconvene, with or without my assistance, to make necessary
adjustments to Appendix A to ensure that the total maximum cost is
capper} at the above -referenced amount and the appropriate
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mechanism to recover any payments which exceed the required
Z Upon the issuance ofthis Order, the Hospital shall have thirty (3O)
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days to issue payment to eligible bargaining unit members (E8UM's)
who are currently employed by the Hospital an amount representing
approximately eighty percent (80Y6) of the individual lump sum
annount(|LSA) asset out in Appendix A.The Hospital shall have sixty
/60\ days after the dote of issuance of this Order to make the above -
noted payments to eligible bargaining unit members /EBUM'S\
entitled to an individual lump sum amount (|LSA) pursuant to
Appendix Awho are nolonger employed bythe Hospital.
3. An amount representing approximately twenty percent (70YA
(the "rernainder")ofthe individual lump sum onoount(|LSA) shall be
held back pending a review by the parties of any unforeseen errors
and omissions contained in Appendix A. The Union shall be required
to provide to the Hospital within thirty (30) days of the date of
issuance of this Order, o list of names of individuals allegedly omitted
from the list in Appendix A in error, if any, as well as the Union's
position with respect to the correct seniority date for those
individuals. Any and all eligible bargaining unit members (EBUM's) as
set out in Appendix A shall have thirty /30\ days from the date of the
payment outlined in paragraph 2 above to identify, in writing, an
alleged error. The parties agree to meet to expedite o review of the
alleged error and omission and tndetermine the appropriate remedy,
ifany. If it is determined that an adjustment is required for any
eligible bargaining unit member /EBUK4\, the Hospital shall conduct
the necessary recalculation of the remainder owing pursuant to
Appendix and adjust the lump sum units (LSU's) and individual lump
sum amounts (|LSA's) in Appendix /\accordingly. The amount due
and owing asthe remainder shall be paid within one hundred and
twenty (12O) days nfthe issuance ofthis Order.
4. The payment referenced above resolves all actions, claims,
complaints and grievances involved in my process and arising from
the Goodfellow award. For clarity, this payment represents full and
final resolution of the wage standardization process as well as any
actions, claims, complaints or grievances pursuant to the Collective
Agreement, the Labour Relations Act, the Human Rights Code or any
other applicable legislation asitpertains tothis process and the issues
over which | hold jurisdiction. Moreover, this order supercedes and
replaces any prior order | have issued in this matter to the extent
there isany conflict between this order and such previous order.
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5. Without limiting the generality of the foregoing statement, I order
that any grievances concerning classification or appropriate pay rates
or related matters arising before the date of issuance of this Order are
hereby fully and finally resolved. For the purposes of this Order, the
lump sums set out in Appendix A are inclusive of interest and any
requirements of the Collective Agreement not specifically mentioned
herein. The lump sum amounts shall not be used or included for the
purposes of calculating payment in lieu of benefits pursuant to Article
21 of the Collective Agreement nor shall these amounts be used in or
applied to the calculation of wages or remuneration for the purposes
of the pension plan.
6. The lump sum amounts set out pursuant to Appendix A shall be
subject to the usual and necessary statutory deductions and
withholdings. To ensure compliance with the cap on liability, the
lump sum amounts set out in Appendix A will also require deduction
of any of the Hospital's usual and necessary required remittances
from the final amounts payable to the eligible employees, including,
but not limited to El, CPP, WSIB and EHT. The amounts shall also be
subject to the deduction and remittance of union dues pursuant to
the formula in place as of the date of this Order.
7. For the purposes of achieving pay equity, pay equity maintenance
and the establishment of a deemed approved Pay Equity Plan, after
hearing further oral submissions of the parties with respect to these
issues, the parties have advised me that they have finalized the three
new schedules inclusive of the new wage grids and the information
necessary to achieve the formulae, mapping, placement and the new
rationalized grids, along with the details of individual payouts
resulting from the new pay equity compliant wage grids. The parties
have advised me that the schedules will constitute a pay equity
settlement compliant with, and subject to, section 25.1 of the Pay
Equity Act, to be executed immediately after the issuance of this
Order. I am advised the amount of the settlement set out in that
Agreement will be over and above the amount outlined in paragraph
1 of this Order and is not subject to the cap as set out in paragraph 1,
but will be subject to a separate cap in that settlement and limited by
the requirements to achieve pay equity as set out in the settlement.
8. 1 will remain seized of any implementation, interpretation and
enforcement issues arising from this Order and any other matter the
parties agree to place before me.
9. The parties may agree to extend any time line contained in this
Order by mutual written consent.
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[61 It is so ordered.
[7] As mentioned above, this has been a long and extremely complex process.
Fortunately, the parties have been very well served bvtheir respective representatives
and legal counsel throughout. The project took anumber ofyears tocomplete but itb
no exaggeration to state that, absent the efforts and good will of, all participants on both
sides of the table, this dispute had the potential to continue in litigation for many more
years. I highly commend the parties for the countless hours of hard work and
commitment that have gone into bringing these matters to a successful conclusion.
Issued atHamilton, Ontario this omday ofNovember 2O13.
Barry StephQen, rbitrator
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