HomeMy WebLinkAboutFizli 98-05-25
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IN THE MATTER OF AN ARBITRATION
BETWEEN:
KENORA ASSOCIATION FOR COMMUNITY LIVING
("the employer")
and
ONTARIO PUBLIC SERVICE EMPLOYEES UNION, LOCAL 702
("the union")
AND IN THE MATTER OF A GRIEVANCE OF MS. YVETTE FIZLI
' -
ARBITRATOR: Ian Springate
APPEARANCES
For the Employer: Fred Bickford, Counsel
James Retson, Executive Director
Wendy Fulton, Director of Finance and Administration
Diane Pelletier, Director of Community Mental Health
Support Services
For the Union: James Gilbert, Grievance Officer
Yvette Fizli, Grievor
HEARING: In Kenora on September 24, 1997
WRITTEN SUBMISSIONS: November 21, 1997; February 20; May 5, 1998
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AWARD
INTRODUCTION
The grievor was absent £rom work due to illness from January 11, 1996 to
February 28, 1996 inclusive. On April 4, 1996 she filed a grievance which challenged the
employer's treatment of benefit premiums as wellas her vacation and sick time in consequence of
her being off work.
Neither party contended that the grievor's absence related to a handicap as that term is
defined in the Human Rights Code and neither party relied on the provisions of the Code.
THE FACTS
The grievor is a full-time Community Support Worker. She started working for the
employer in 1987. Prior to 1996 she had at times been absent from work on account of illness but
always for less than 30 days and without the absence impacting on her benefit entitlements.
The grievor went offwork due to stress on January 11, 1996. She testified that initially
she was to be off for four weeks but because she was suffering from a bad cold her doctor
prescribed antibiotics and recommended that she stay off work for two more weeks.
Subsequently her doctor recommended that she stay off work for an additional week. Neither at
the hearing nor in its subsequent written submissions did the employer challenge the bona fides of
the grievor's absence.
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The grievor testified that during her absence she was not paid by the employer but rather
received weekly indemnity payments from an insurance company. She agreed with counsel for
the employer that she had made a claim for benefits to the insurance company.
The employer has a standard "Notice of Group Premium Payment" form which it uses
when an employee is expected to be off work in excess of30 days. The form advises the
employee that the employer's obligation to contribute to group benefit premiums ceases when an
employee is on a leave of absence without pay exceeding 30 calendar days. The form states that
if the employee does not wish to pay the premiums, the individual's coverage under the benefit
plan will cease and the employee will be responsible for providing information to the insurance
company sufficient to be reinstated on the benefit plan.
The grievor testified that she was given a Notice of Group Premium Payment form when
she provided the employer with a doctor's note. She said that she could not recall if this was
when she brought in a note after being off work for four weeks, or when she provided a note after
being off for six weeks.
The Notice of Group Premium Payment form has a place to be signed. by Ms. Wendy
Fulton, the employer's Director of Finance and Administration, as well as by the employee
involved. Ms. Fulton testified that the form is usually signed on her behalf my Ms. M. Zimmer
who reports to her. Four versions of the form were filed at the hearing, three with somewhat
different calculations of total premium costs. The fourth was a copy of one of the other versions
to which had been attached a note written by Ms. Zimmer. None of the four versions was signed
by Ms. Fulton, Ms. Zimmer or the grievor.
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Ms. Fulton testified that when an employee goes off work the employer's practice is to
continue making premium payments on behalf of the employee and later be reimbursed by the
employee. She indicated that for an extended absence an employee generally makes periodic
payments to the employer but for relatively short absences the repayment is done after the
employee returns to work through payroll deductions agreed to by the employee.
Ms. Fulton testified that on the basis of Ms. Zimmer's note attached to one ofthe Notice
of Group Premium Payment forms she understood that Ms. Zimmer had talked to the grievor,
perhaps over the telephone, and the grievor had agreed to repay premium payments through
payroll deductions. Ms. Zimmer's note read as follows: "Feb. 12/96 Yvette will pay $247.32
when she gets paid on March 1/96". Ms. Zimmer did not testify in these proceedings. The
grievor testified that she did not discuss payroll deductions with the employer in advance of any
deduction being made fTom her pay. This evidence falls short of establishing that the grievor
agreed to reimburs,e the employer for premium payments.
On March 13, 1996 the grievor received a memorandum fTom Ms. Carey Heron in payroll.
The memorandum advised the grievor that her vacation and sick leave entitlement would be
prorated as a result of her absence fTom work and that the employer would also be recovering
benefit costs fTom her.
On March 27, 1996 Ms. Marlene Kilfoyle, the employer's Assistant Director, Life Skills
Program, sent the grievor a memorandum setting out the employer's rationale for its proposed
action. The text of the memorandum is set out below. The underlinings were on the original
document.
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RE: Repayment of Insurance premiums, and pro-rating of vacation and sick leave
time while on short-tenn disability.
Group Insurance premiums must be repaid and both vacation and sick time must
be pro-rated according to the following tenus of the Collective Agreement:
1. Pro-rating of vacation time: Article 14.03(d) states that "a regular full-time
employee who is absent fÌ'om work during the vacation year in excess of30 days
shall have their vacation pay and time off for vacation pro-rated by the full period
of such absence." You were absent fÌ'om work for forty-nine (49) days, and your
vacation time has been pro-rated accordingly.
2. Prorating of sick time: Letter of Understanding (page 42) states that "sick
leave... is accumulated on the basis of one-half day for each month of work during
the period April 1 st to March 31st of each year." You did not accumulate sick
leave for the period that you were absent fÌ'om work.
3. Repayment of Insurance premiums: Article 17.06 of the Collective Agreement
states that "the employer's obligation to contribute towards premiums under
Article 17 ce,ases when an employee is on leave of absence without pay exceeding
30 calendar days or on other unpaid absence exceeding 30 calendar days: and the
employee will be solely responsible for making such contributions himself during
such absences exceeding 30 calendar days." As you were absent fÌ'om work for
forty-nine (49) days, and were not paid by the Kenora Association for Community
Living, you are responsible for paying your premiums for the full period of your
absence.
Sincerely,
"Marlene Kilfoyle"
Assistant Director, Life Skills Program
Ms. Heron sent a memorandum to the grievor on March 28, 1996 which set out specific
adjustments made to the grievor's vacation entitlement and sick leave, as well as the details of
payroll deductions respecting premium repayments. The text of the memorandum is set out
below. The grievor testified that after she received the memorandum she contacted union steward
Keith Bingham and they decided that she should file a grievance.
¡ 6
Yvette
Please note that we have recovered 3 days vacation and 6 hours sick time ITom this
pay for the time you were on short-term disability. As well, we have deducted
$148.40 for benefit premiums. Please be advised that there will be an additional
recovery of 2 hours vacation and 1/4 of an hour sick time as I miscalculated the
total to be pro-rated. There will also be a deduction of $171.22 for the balance of
the benefit premiums.
"Carey"
The parties signed their first collective agreement in November 1987. At the hearing the
parties agreed that a list prepared by the employer respecting employee absences between April
13, 1989 and March 12, 1996 should be made an exhibit. Many of the absences referred to on the
list were for less than 30 days. The list suggested that for absences in excess of thirty days, no
insurance premiums were repaid by employees prior to May 1992 and the employer had no record
of any adjustments being made to employee vacation and sick time entitlements prior to July
1993. From May 1992 to March 12, 1996 there were some 20 instances where employees repaid
insurance premiums. In at least 12 instances the employees had both vacation and sick time
adjusted.
Mr. Joe Barron is a staff representative with the Ontario Public Service Employees Union
("OPSEU") based at its Dryden regional office. He has been responsible for servicing the
bargaining unit comprised of employees of the employer since 1989. In his evidence Mr. Barron
contended that OPSEU is the bargaining agent for this bargaining unit. The collective agreement
in place at the relevant time, however, listed OPSEU Local 702 as the union party to the
collective agreement.
Mr. Barron testified that Local 702 is a composite local and only a relatively small
proportion of its membership is employed by the employer. He said that the president of the local
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has never been employed by the employer. Mr. Barron indicated that until his involvement with
the grievance giving rise to these proceedings he was not aware of the employer's practice when
applying the applicable provisions of the collective agreement.
Ms. Fulton testified that when an absent employee comes in to pick up an insurance claim
form or deliver a doctor's slip, Ms. Zimmer generally advises him or her of the impact of being
absent in excess of30 days. Ms. Fulton stated that she thought the employer's approach
encourages employees to return to work as soon as they are fit to do so. She noted that she was
aware of a couple of instances where employees could have stayed off of work longer but chose
not to do so because of the relevant collective agreement clauses.
THE PREMIUM REPAYMENT ISSUE
The provisions of the relevant collective agreement relied on by the parties with respect to
the premium repayment issue are set out below:
ARTICLE 15 - LEAVE OF ABSENCE
15.01 General Leave
(a) The Employer may grant leave of absence without pay to an employee.
Request for leave of absence shall be made in writing to the Executive Director.
.. .
ARTICLE 17 - WELFARE BENEFITS AND INSURANCE
17.01 The Employer will, upon completion of the probationary period, contribute
for regular full-time employees as follows:
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(a) To Prudential Insurance Company of America (Group Policy No. GY3897) (or
such other carrier as may be selected be the Employer providing similar insurance
coverage) an amount equal to one hundred percent (100%) of the billed insurance
premium applicable to the employee such Group Policy to include Vision Care to
cover employees and their dependents to a maximum of$100.00 for each two year
period per immediate family member or employee (subject to the tenus and
conditions of the plan);
(b) To a Sickness and Accident Weeldy Indemnity Insurance Plan an amount equal
to one hundred percent (100%) of the insurance premium subject to the tenus and
conditions of such plan. Such Weekly Indemnity Insurance Plan shall include the
following tenus:
(i) non-occupational accidents and sickness only;
(ii) benefits commence first day of absence due to
non-occupational accident; first day of absence due to
hospitalization and fifth (5th) day of absence due to sickness
effective April 1, 1989;
(iii) maximum of twenty-six (26) weeks benefits;
(iv) seventy-five percent (75%) of weekly salary to a maximum of
$1,500.00.
.. .
17.06 The Employer's obligation to contribute towards premiums under Article 17
ceases when an employee is on leave of absence without pay exceeding thirty (30)
calendar days or on other unpaid absence exceeding thirty (30) calendar days; and
the employee will be solely responsible for making such contributions himself
during such absences exceeding thirty (30) calendar days.
The representative of the union contended that Article 17.06 cannot apply to someone off
on sick leave because if it did, and the employee did not pay the insurance premiums, after 30
days he or she would be cut off sick leave benefits. He submitted that the intent of Article
17.01 (b) was to have coverage available to an employee for up to 26 weeks and if the parties
intended that employees on approved sick leave would be deprived of sick leave after 30 days
clear and express language would have been required.
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The union representative submitted that Article 17.01 (b) (iv) provides that employees are
to receive 75% of their salary while on short term sick leave. He argued that if they have to pay
premiums to maintain sick leave and other benefits it would substantially reduce their pre
injury/illness compensation. He further submitted that employees on sick leave are more likely to
require benefits than when they are healthier.
The representative of the union argued that the grievor had not truly been on an unpaid
absence as required by Article 17.06 since she was being paid by the employer through its
contractual obligations to provide insurance coverage. He also argued that the words "leave of
absence" in Article 17.06 relate back to the definition of leave of absence defined in Article 15.
He submitted that sick leave is not found under Article 15 and accordingly sick leave is not a
leave of absence for the purpose of Article 17.
As an alternative argument, the representative of the union contended that the grievor
ought to be reimbursed for the first 30 days worth of benefit costs. In support of this contention
he contrasted the language of Article 17.06 with that in Article 14.03 (d) which states that an
employee absent in excess of30 calendar days shall have vacation pay and time off for vacation
"prorated by the full period of such absence".
Counsel for the employer's response to this latter argument was that although different
language is used in the two articles, the effect of the language is the same, namely that the whole
period of absence must be taken into account in prorating sick leave and requiring that an
employee contribute towards benefit plan premiums. He argued that this conclusion is borne out
by the employer's evidence that both 14.03(d) and 17.06 have consistently been interpreted and
applied to mean that the whole period of the absence is considered.
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Employer counsel submitted that the grievor was on unpaid absence which exceeded 30
calendar days and as such she was solely responsible for the cost of insurance premiums. He
disagreed with the union's contention that the grievor was on a paid absence. In this regard he
referred to Re Retail Wholesale and Department Store Union. Local 414 and Canteen of Canada
Ltd. (1970) 22 LAc. 261 (H. D. Brown). The arbitrator in that case held that although pursuant
to the relevant collective agreement an employee had been entitled to a leave of absence without
pay due to illness, this did not relieve the company of its obligation to maintain her life insurance
coverage. Counsel for the employer contended that the Canteen case found that an employee
absent from work and receiving sick leave benefits is considered to be on an unpaid leave
Employer counsel also referred to Re Victoria Hospital COl:poration and Ontario Public
Service Employees' Union, an unreported January 12, 1995 award of a board of arbitration
chaired by arbitrator Felicity Briggs. The issue in that case was whether the employer could
prorate an employee's vacation entitlement while she was absent from work and in receipt of
workers' compensation benefits. The collective agreement stated that during an unpaid absence
exceeding 30 continuous days, credit for vacation purposes was to be suspended. The arbitration
board rejected the union's contention that the employee had been on a paid absence since she was
in receipt of workers' compensation benefits.
In the instant case employer counsel noted that in reaching its decision the arbitration
board in the Victoria Hospital case had relied on the following excerpt from Re Toronto General
Hospital and Ontario Nurses Association (1977), 16 LAc. (2d) 113 (H. D. Brown) at 117. The
collective agreement in the Toronto General case provided that an employee's service review date
was to be extended by the length of a nurse's absence without pay in excess of30 days. The
grievor had been absent for approximately two months while receiving workers' compensation
benefits.
, .
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First, dealing with the grievor's service review date, we have reference to the
above section in the appendix to the Collective Agreement, which in our opinion is
quite clear and unambiguous that providing the employee does not receive any pay
ITom the Hospital during an absence which exceeds thirty calendar days then the
service review date is extended by the length of the absence. In fact, the grievor
was absent ITom work at the Hospital in excess of thirty (30) calendar days in
1976, and did not receive pay directly ITom the Hospital in that period. "Pay" in
this context means wage payments, and in this regard see Re RetaiL Wholesale &
Department Store Union, Local 414 and Canteen of Canada Ltd. (1970),22
LAc. 261 (Brown). The Hospital therefore had a clear right to extend the
grievor's review date by the length of her absence in excess of thirty (30) calendar
days.
In his reply submissions the representative of the union noted that Victoria Hospital had
been a workers' compensation case. He also contended that it had been wrongly decided. In
support of this contention he referred to the decision of the Ontario Crown Employees Grievance
Settlement Board ("the GSB") in Dupuis 1335/86. That case concerned whether an employee off
with a work related injury could claim vacation credits. The collective agreement provided that
an employee was entitled to vacation credits with respect to a month or part thereof in which the
employee was at work or on leave with pay. In its decision the GSB quoted at length ITom, and
adopted the reasoning of, the GSB's decision in Sears 1129/86. In the Sears case an employee
who had been injured at work received 90% of his net salary ITom the Workers' Compensation
Board, for which the employer reimbursed the Board. The GSB held that in reality the money
had been paid by the employer through its reimbursement arrangement with the Workers'
Compensation Board and the employee had been on a leave of absence with pay. The GSB noted
that the circumstances involved could not be distinguished ITom an employee absent due to a
non-work related illness or injury for whom under the collective agreement vacation credits
accrued without inteffilption.
In the instant case Article 17.01 requires that the employer pay premiums for all regular
full-time employees. Article 17.06 exempts ITom this obligation those situations where an
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employee is on a leave of absence or other unpaid absence exceeding 30 calendar days. Because
of the inclusion of the phrase "or on other unpaid absence", nothing turns on the issue of whether
the grievor's absence was in fact a leave of absence.
As discussed later in this award, under Article 17.04 of the collective agreement,
employees receive certain sick leave days. Presumably when they utilize those days employees
are paid by the employer and accordingly are on a paid absence. An employee who is in receipt of
benefits ITom an insurance company, however, is not being paid by the employer. The facts in the
instant case differ ITom those in Sears and Dupuis since here the evidence suggests that the
employer paid premiums to obtain coverage under a policy of insurance. In my view an employee
on a non compensable absence who is in receipt of insurance benefits is on an unpaid absence.
Part of the union's argument was premised on the contention that should insurance
premiums not be paid for an employee on sick leave, then after 30 days that individual would be
cut off sick benefits. The union, however, led no evidence to indicate this would in fact be the
result. Further, the terms of the applicable insurance policy were not placed before me. I do not
believe it appropriate to simply assume that the continued payment of insurance premiums is
required to maintain an employee's benefits with respect to an ongoing absence.
Article 17.06 provides that the employer's obligation to contribute towards premiums
ceases when an employee is on an unpaid absence exceeding 30 calendar days. It then goes on to
state: "and the employee will be solely responsible for making such contributions himself during
such absences exceeding thirty (30) calendar days". I view this statement as indicating that an
employee's responsibility for contributions relates only to that portion of an absence that is beyond
the 30 days. This interpretation is supported by the fact that in Article 14.03(d), where the parties
clearly meant to cover all of an absence longer than 30 days, they did so by stipulating that
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employees: "shall have their vacation pay and time off for vacation pro-rated by the full period of
such absence". Similar language is not included in Article 17.06. Having regard to these
considerations, I find that the employer is required to make insurance contributions for the first 30
days of an unpaid absence and the employee is responsible to make the contributions beyond that
point. This means that in a case such as this where an absence turns out to be longer than
originally anticipated, an employee does not retroactively become responsible for the cost of
. .
msurance premIums.
The fact that the employer had a practice of treating the language of Article 17.06 as
covering all of an unpaid absence where part of it extended past the 30 day point does not alter
my conclusion. The ordinary meaning of the language in the collective agreement is what governs
unless a past practice clearly indicates that a different meaning was intended by both parties; or
alternatively the union's silence in the face of the practice can reasonably be interpreted as a
representation by the union to the employer that it would not rely on a strict interpretation of the
collective agreement. Either approach requires that a responsible official of the union knew about
the employer's practice. There is no evidence to suggest that the employer ever advised union
officials of its practice. Further, the evidence is not such that one can reasonably conclude that in
the normal course of events union officials must have become aware of the practice. The only
direct evidence on point was Mr. Barron's testimony that he was not aware of the relevant
employer practice until he became involved with the grievance which gave rise to these
proceedings.
In light of the above, I find that the employer was responsible for the payment of insurance
premiums for for the first 30 calendar days of the grievor's unpaid absence but not for the
subsequent portion of her absence.
, .
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SICK LEA VB ACCUMULATION
The collective agreement, as well as a letter of understanding between the parties, contain
the following provisions respecting the accumulation of sick leave:
17.04 The Employer will grant each regular full-time employee six (6) days sick
leave per year. Such six (6) days sick leave is non-accumulative and, therefore, is
not carried over ITom year to year.
LETTER OF UNDERSTANDING
.. .
2. This letter of understanding will further serve to confinn agreement that the six
days non-accumulative sick leave referred to in Article 17.04 of the Collective
Agreement will not apply to an employee until completion of three months of
employment and is accumulated on the basis of one-half day for each month of
work during the period April 1st to March 31st of each year. (Therefore, an
employee who is hired April 1 st would, after completion of three months of
employment, be entitled to one and one-half days sick 'leave and continue to accrue
one-half day per month for the remainder of the year.) However, such sick days
are non-accumulative and are not carried over ITom year to year. Therefore, any
unused accumulated sick days as of March 31st are tenninated and an employee
would begin accumulating one-half day per month effective April 1 st, again to a
maximum of six days.
. The letter of understanding provides for sick leave to be accumulated on the basis of
one-half day "for each month of work". Ms. Heron's memorandum of March 28, 1996 stated that
a total of 6 1/4 hours of sick time would be recovered ITom the grievor. This suggests that the
employer reduced the grievor's sick leave credits by a proportion which represented the number of
days she was off between January 11 and February 28, 1996.
The representative of the union contended that the letter of understanding was made
pursuant to Article 17.04 and not in defiance of it. He submitted that Article 17.04 requires the
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employer to grant six sick days per year to each full time employee and to deprive an employee of
the six days would require clear and express language. He argued that there is no express
collective agreement provision which states that if an employee is ill in a particular month she will
not earn sick credit for that month.
The union representative noted that in the Misericordia case the collective agreement
contained a specific provision that sick credits would not accumulate during periods of illness or
injury. He argued that to uphold the employer's position in the instant case would require
importing such a clause into the collective agreement.
As an alternative argument the representative of the union submitted that the grievor
ought not to have lost any sick leave accumulation based on the letter of understanding since the
letter speaks to "each month of work". He contended that the grievor worked up to January 10th
as well as on February 29, 1996 and accordingly she was entitled to accumulate sick credit for
both months. He argued that the letter of understanding does not require physical presence at the
workplace for each day of the month and so even if an employee worked one day in a specific
month she ought to earn the attendance credit for that month.
Counsel for the employer contended that the language of the letter of understanding
permits accumulation of sick leave on the basis of half a day for each month of work and thus
accumulation only occurs while the employee is at work. In support of this contention he relied
on Re North Bay Hospital Commission and Ontario Nurses' Association (1976) 13 LAC. (2d)
154 (Abbott). The issue in that case was whether time on sick leave was to be considered work
time for purposes of a clause which permitted the prorating of vacation pay when an employee
worked less than 1525 hours in a vacation year. The arbitrator rejected the union's argument that
paid sick leave and paid vacation were to be considered as time worked.
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Employer counsel also referred to Re City of Trail and International Association of
Firefighters, Local 941 (1983), 10 LAC. (3d) 251 (Munroe). The collective agreement in that
case provided that employees were to accumulate sick leave at one and a half days per month
worked or 18 days per year worked. The arbitration board held that an employee did not
accumulate sick leave while off work for some 15 and a half months.
Employer counsel submitted that if the union's interpretation was to apply, namely that as
long as an employee worked at least one day in each calendar month he or she would be entitled
to accumulate sick leave, an employee could potentially be off work for up to 60 days and still
accumulate sick leave. He argued that this interpretation would be absurd and unreasonable.
Employer counsel contended that the letter of understanding must be interpreted in the
context of its application as understood by the parties. He submitted that the letter states that sick
leave is accumulated on the basis of half a day for each month of work and this has always been
interpreted to be 30 days, not a specific calendar month. He argued that the evidence
demonstrated that an employee's sick leave accumulation is only affected where that employee is
absent for a period exceeding 30 days. In his reply submissions the representative of the union
contended that the employer could not rely on this practice as the union had not been aware of it.
The letter of understanding represents the parties' agreement respecting how Article 17.04
is to be applied, including when and how sick leave will accumulate. It provides that sick leave
will not accumulate for the first three months of someone's employment. Although the term
"employment" is used with reference to the first three months, the letter goes on to state that after
three months sick days will accumulate on the basis of one-half day "for each month of work" .
The reference to work indicates that the status of being an employee is not a sufficient basis for.
sick leave to accumulate.
,.
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Unlike Article 14.03 (d) which addresses vacation entitlement, the letter of understanding
makes no reference to prorating sick time. It provides that an employee is to accumulate half a
day for each month of work. In my view an employee either qualifies for half a day's sick credit
with respect to a particular month or does not. It is not open for the employer to give credit on
the basis of hours and tractions of hours. Further, for the reasons referred to earlier in this award,
the employer's practice of prorating sick time does not justifY a conclusion that the union shared,
. or agreed not to challenge, the employer's interpretation of the collective agreement.
The term "each month of work" can reasonably refer to a period trom a specific date in
one month to the corresponding date in the following month. However, because the letter of
understanding provides that any unused sick days will terminate as of March 31st each year, and
accumulation start over again effective April 1 st, in the normal course a month for sick leave
accumulation purposes will in fact be a calendar month.
Any sick days that might have been to the grievor's credit as of March 31, 1995 would
have been terminated. She would have again commenced accumulating sick days as of April 1,
1995. Lacking any suggestion to the contrary, I presume that up to the end of December 1995
she had put in nine months of work during which she accumulated sick day credits. The next
applicable month was logically January 1996.
The term "each month of work" requires that work be performed within a particular
month to justify the accumulation of half a day of sick leave. The more difficult issue is whether
there is a minimum amount of time an employee must work in a month to be credited for the half
day. One consideration is the fact the parties did not specifY any such minimum. Another is that
they used the word "each", a term generally used to refer to every one of two or more things.
Given these considerations, I believe the most reasonable interpretation of the letter of
,.
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understanding is that for every month in which an employee works, the employee accumulates
half a day of sick leave.
The grievor worked up to January 10, 1996. She apparently also worked on February 29,
1996. Accordingly, I find that the grievor was entitled to half a day of sick leave with respect to
January 1996 and another half a day of sick leave with respect to February 1996.
"
VACATION ENTITLEMENT
The collective agreement contains the following provisions respecting vacation
entitlement:
ARTICLE 14 - VACATION
.. .
14.03 (c) A regular full-time employee shall receive vacation credits on the
following basis:
(i) Effective April 1, 1994, an employee who has completed one
(1) or more years (but less than five (5) years) of continuous'
service as of April 1 st in any year shall be entitled to an annual
vacation with pay of three (3) weeks;
(ii) An employee who has completed four (4) full years or more of
continuous full-time service as of April 1 st in any year, shall be
entitled to an annual vacation with pay of four (4) weeks.
(iii) Effective April, 1994, an employee who has completed eight
(8) full years or more of continuous full-time service as of April 1st
in any year, shall be entitled to an annual vacation with pay of five
(5) weeks.
(d) A regular full-time employee who is absent ITom work during the vacation
year in excess ofthirty (30) calendar days shall have their vacation pay and time
off for vacation pro-rated by the full period of such absence.
.
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The representative of the union argued that Article 14.03(d) did not cover the grievor as
she was on a sick leave absence. He submitted that Article 14.03(d) does not cover every
possible time an employee is not physically in the work place. He noted in this regard that Article
14.03(iii) provides that certain employees are to receive five weeks vacation with pay. He raised
the possibility of an employee taking all five weeks together and asked if the employee would
have to repay vacation credits. He noted that the same type of issue would arise if an employee
was granted permission to cany one year's vacation credits into the following year.
The representative of the union submitted that there is no express language in the
collective agreement to restrict the accumulation of vacation time when an employee is on sick
leave, and accordingly the grievor was entitled to accumulate it during absences due to illness or
injury. In support of this position he referred to Misericordia Hospital and United Nurses of
Alberta. Local 11 (1989), 3 LA. C. (4th) 420 (G. E. Power). That case concerned an employee
who was away ITom work for almost 18 continuous months on a combination of sick leave, short
term disability and long term disability. The collective agreement provided that employees would
earn vacation entitlement during each year of continuous service in the employ of the hospital and
thát vacation pay would be governed by the position held by the employee. The agreement also
. stated that except for a leave of absence for union business, "in the case of a leave of absence in
excess of one (1) month, employees shall cease to accrue sick leave and earned vacation...". The
arbitrator held that the employee was entitled to accrue vacation entitlement while on sick leave
and short term disability, but not while on long term disability since the collective agreement
indicated that a person on long term disability did not hold a position. Although not specifically
stated, the arbitrator appears to have viewed sick leave and absence on short term disability as
being different trom a leave of absence.
" 20
In Misericordia the arbitration board at p. 425 quoted the passage set out below ITom a
December 16, 1987 unreported award of arbitrator Beattie in Re Royal Alexandra Hospital and
United Nurses of Alberta. Local 33. The representative of the union relied on this passage and
argued that there was not clear language which deprived the grievor ITom accumulating vacation
as well as sick leave credits while off on sick leave.
Guided by the principle, that the clearest language is required to deprive
employees of benefits which have been negotiated under a collective agreement,
we are satisfied that a provision recognizing accrued benefits cannot be interpreted
as limiting a specific benefit.
Counsel for the employer submitted that the effect of Article 14.03 is that an employee
who works less cannot accrue vacation credit at the same rate as those who attend regularly at
work. He contended that arbitrators have long recognized that similar collective agreement
language restricting the accumulation of vacation credits during lengthy periods of unpaid leave is
logical. He referred to Re Lions Gate Hospital and Hospital Employees' Union, Local 180
(1979), 23 LAC. (2d) 308 (Larson) where the collective agreement provided that if an unpaid
leave of absence exceeded twenty working days in a year the employee was not to accumulate
benefits ITom the twenty-first day. The arbitration board upheld a reduction of vacation
entitlement for an employee who because of severe illness had taken an unpaid leave of absence in
excess of 20 days. In the instant case employer counsel relied on the following excerpt ITom the
award at p.31 0:
That the collective agreement was intended to restrict the accumulation of
vacation credits during lengthy periods of unpaid leave has a certain logic. It seems
settled that vacation pay is an earned benefit comprising part of the wage'
structure. An employee earns a paid vacation while working in the ordinary course
of his employment. At vacation time he merely collects what he has already
earned. A paid vacation is not "a means of indemnifying employees against losing
... wages through not being allowed to work": Re T.c.F. of Canada Ltd. and
Textile Workers' Union of America. Local 1332 (1972), 1 LAc. (2d) 382 (Adell)
~ 21
at p. 384. It follows that an employee who works less would not be expected to
accrue vacation credit at the same rate as those who attend regularly at work.
Employer counsel disagreed with the union's contention that with the employer's approach
an employee.who took five consecutive weeks of vacation pursuant to Article 14.03(iii) would
have his or her annual vacation entitlement prorated tinder Article 14.03(d). He argued that it
would make no sense for an employee entitled to be away from work on vacation to have the
absence constitute absence from work under Article 14.03(d). He contended that such an
interpretation would fly in the face of the well established cannon of interpretation that where
there are potentially conflicting clauses in a collective agreement, the provisions should be
interpreted in the context of the whole agreement to give a meaning which would avoid any
inconsistency between the clauses.
I In his reply submissions the representative of the union agreed that it would make no
sense for absence on vacation to constitute an absence from work under Article 14.03(d). He
added that it was equally absurd to suggest that an employee sick for in excess of four weeks is
absent from work under that article.
The entitlement of certain specified employees to five weeks vacation 'with pay is
expressly dealt with in Article 14.03(c). In my view that entitlement cannot be eroded by other
more general collective agreement provisions.
The case law indicates that an employee on sick leave is entitled to accumulate vacation
entitlement unless the collective agreement clearly provides otherwise. Article 14.03(d) of the
collective agreement is worded more broadly than the relevant provision in the Misericordia
Hospital case. It provides for the proration of vacation entitlement for "a regular full-time
employee who is absent from work during the vacation year in excess of thirty (30) calendar
... 22
.
days". The grievor was absent from work in excess of 30 calendar days and thus covered by this
provision. Article 14.03(d) refers to prorating an employee's vacation entitlement "by the full
period of such absence". Accordingly, the employer was entitled to prorate the grievor's vacation
entitlement for the full period of her absence.
CONCLUSION
The grievance succeeds in part. I will remain seized of this matter to deal with any
difficulties the parties may encounter in determining how the grievor is to be compensated.
Dated this 25th day of May, 1998.
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