HomeMy WebLinkAbout2013-3410.Santangelo et al.15-05-15 DecisionCrown Employees
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Commission de
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2013-0506-0052
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
BETWEEN
Ontario Public Service Employees Union
(Santangelo et al) Union
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The Crown in Right of Ontario
(Ministry of Transportation) Employer
BEFORE Nimal Dissanayake Vice-Chair
FOR THE UNION Leslie Gilchrist
Ontario Public Service Employees Union
Grievance Officer
FOR THE EMPLOYER Caroline Cohen
Treasury Board Secretariat
Legal Services Branch
Counsel
HEARING May 11, 2015
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Decision
[1] This decision concerns twenty grievances filed by individuals employed by the
Ministry of Transportation as Transportation Enforcement Officer 2 (`TEO`) in the
Central East and Central West Regions. On agreement the grievances were heard
together pursuant to the Mediation/Arbitration procedure in article 22.16 of the
collective agreement.
[2] The grievances were argued on the basis of documentary evidence and the following
Agreed Statement of Facts:
1. The Grievors are employed as TEO2s (Transportation Enforcement Officer 2) by the
Ministry of Transportation. The Grievors all work in the Central East and Central West
Regions of the Ministry of Transportation. Currently, within those Regions are several
districts, including Halton North, Halton South, 407/ETR and Hamilton-Niagara in
Central West; Aurora and Durham in Central East. At the time of the Grievance,
Central West consisted of Halton, Hamilton-Niagara. The dispute pertains to the
validity of the 407/ETR as its own district. It is not disputed that the Employer has
named the 407/ETR as its own district. While this document may use the word
“district” to refer to the 407 this should not be construed as a concession or agreement
by the Union that the 407 is genuine district in its own right.
2. Each district is managed by a district manager, who is responsible for, inter-alia,
directing and assigning staff, assigning overtime and reporting overtime hours worked
in his/her district, retaining staff seniority lists and staff contact information, etc.
3. Over the years, there have been a number of changes to the borders of the districts in
Central Region:
a. Until 2008, there were 7 districts in Central Region: Peel, 407ETR, Halton,
York, Durham, Metro Toronto, and Hamilton/Niagara. The District Overtime
Protocol-for Central Region was developed under that structure.
b. As of 2008, there were 6 districts: 407 ETR, Halton, Hamilton/Niagara, Aurora,
Peel and Durham.
c. In 2010: Central region split into East and West, no changes to the districts.
Central East took on Aurora and Durham, the rest was the Central West Region
d. In March 2012: Peel District disbanded and was integrated into Halton and
Aurora.
e. At the end of 2013: Halton was split into Halton North and Halton South.
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4. The 407 is owned by the 407 ETR Concession Company, a private company which,
through Schedule 13 of the Concession and Ground Lease Agreement with the
Ministry, reimburses the Ministry all time worked by staff assigned to work on the 407
district, including overtime.
5. Similarly, the 407 ETR Concession Company is responsible for reimbursing costs for
sick leave, vacations, training, equipment, etc. of the TEO’s working on the 407.
6. Highway 407 cuts directly through several districts including Halton, Aurora and
Durham. The 407 does not run through Hamilton-Niagara. Officers within Halton,
Aurora and Durham routinely patrol areas around but are not assigned to patrol on the
407. They may use the 407 in travelling from place to place, or where they have
followed a vehicle onto the 407, where, on very rare occasions they may pull it over to
inspect it. However, two Officers from Halton North have patrolled on the 407, with
the knowledge of their supervisor, when on LIDAR patrol. These individuals are Mike
Wozniak, who performed Lidar duties on the 407 on three occasions, and Anas
Bijadhai, who performed Lidar duties on the 407 once. LIDAR patrol involves using
radar to locate trucks going faster than 105 KM per hour. It is agreed that Officers in
Aurora, Halton and Durham would not be specifically requested by their Supervisors or
Managers to patrol on the 407.
7. Officers in the Durham, Aurora and Halton districts have not been specifically assigned
to patrol on the 407; however nor have they been directed to avoid the 407 in their
patrols. Over the years Officers have occasionally been reminded to patrol within their
districts’ boundaries.
8. The 407/ETR was defined as a district in 2001 While there are TEO2s employed
exclusively to work on Highway 407, until 2012, they were headquartered at the Peel
District Office, and shared a manager, supervisor, court officer and administrative staff
with the Peel District Officers. Shortly before 2012, the 407 Officers began reporting
to a trailer set up on 407 property in very close proximity to the actual highway.
9. On March 31, 2012, the Peel District disbanded and the Peel District office no longer
housed or headquartered any TEO 2s. When the Peel District disbanded, one (1)
administrative position, one (1) enforcement manager, and one (1) enforcement
supervisor were eliminated. The Officers from the former Peel District were
reassigned to Halton or Aurora. When this merger occurred, the Officers from the
407/ETR district who were previously headquartered at the Peel District Office
continued to report for their shifts at the trailer on the 407 property. At this point the
Halton (including some former Peel Officers) and 407 officers were assigned one
manager, and continued to share a court officer and administrative staff. A Halton
district supervisor, Sandra Rai, supervised both Halton and 407 staff. Administrative
staff and supervisors are not routinely shared between districts.
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10. Every January each district holds a district meeting. The Halton district meeting
includes the officers assigned to the 407. This year the Halton North, South and
407ETR had their district meeting together as did Kingston and Ottawa Districts in
East Region. It is agreed that much of the content of these meetings is not specific to
districts, although some elements, such as the Coordinator’s speech and service
recognition would be specific to the district. There are only five (5) officers assigned to
the 407, compared to 10-20 officers in these other districts.
11. Halton officers are organized into platoons associated within one station, however it is
not unusual for Officers to work at other stations. This is more common when there are
two stations across the highway from each other.
12. The job postings for TEOs indicate specifically the station for which a TEO is being
hired, however individuals are occasionally assigned to work out of a different location
without a transfer request. This rarely happens across districts. The TEO’s who work
on the 407 ETR either competed for or accepted lateral transfers for positions whose
postings specified that district.
13. Pursuant to Schedule 13 of the Concession and Ground Lease Agreement between the
Crown and the 407 ETR Concession Company, work performed on the 407 is billed to
the 407 ETR Concession Company Limited, as is the administrative support work.
Because of this billback, the work done on the 407 is assigned to its own cost centre.
The 407 has two cost centres, recovery and billing. Central West has 7 cost centres in
total. Central East region has 6 cost centres. Each district has at least one cost centre,
however it is not uncommon for a district to have multiple cost centres.
14. The Grievors have been aware that the 407 Officers accumulated more than average
overtime, although they were not aware until shortly before the grievance was filed the
significance of the difference. The overtime accrued by 407 Officers is greatly in
excess of what is accrued elsewhere in Central East and Central West Regions. In the
remainder of Central East and Central West Regions there is very little overtime, and it
is quite unpredictable. (The parties have some disagreement as to the degree of
knowledge the grievors had about the significance of the amount of overtime in the
407.)
15. Overtime hours were offered as per the Overtime Protocol, under which the 407 ETR
district staff were given first right of refusal for Overtime. Some of the grievors in
Halton and Aurora did not submit their availability for overtime work on the 407.
16. As a result of discussions at the LERC table, in 2007 the president of Local 506, Mr.
Joe Daniel and Mr. Shaun Dotzko, Acting District Enforcement Coordinator for Peel
and 407 ETR engaged in discussions regarding overtime in the Central Region. There
was no formal signed agreement between the Union and the Employer. The
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correspondence on the District Overtime Protocol- Central Region and associated
LERC Minutes confirming that the issue was resolved are attached.
17. As outlined in the District Overtime Protocol- Central Region, staff in each district is
given a right of first refusal for all overtime opportunities arising in their district. Any
overtime not accepted by staff in the district is offered to staff in other districts. When
Central Region was split into Central East and Central West, staff in each district
continued to have first right of refusal to overtime within their own district.
[3] The employer relied on the following additional facts:
Similarly, the 407 ETR Concession Company is responsible or
reimbursing costs for sick leave, vacations, training, equipment, etc. of the
TEOs dedicated to that district working on the 407. If the 407 is not its
own district, with its own dedicated staff and equipment, it would be
extremely difficult for the Ministry to identify these costs in order to
recover them from the 407.
Prior to 2001 the method of patrolling the 407 was to have each district
supply staff to the 407 on a rotational basis to meet the targets imposed by
the agreement with the 407 ETR Concession Company. That method was
very difficult to manage and the MTO fell behind in its
billing/reconciliation of costs from the 407. Both the billing and the
supplying of staff to meet the needs of the 407 were extremely time
consuming and used excessive staff resources to accomplish.
Making the 407 its own district with a dedicated staff on a permanent
basis streamlined many of the billing issues, reconciliation, and hours of
officers time being billed to the Hwy. Schedules could be much more
efficiently set to ensure coverage and as officers are dedicated to the Hwy
solely, so all time is directly billed and recovered at 100%. All time in
court is directly related to charges laid on the 407 as the officers spend all
their time patrolling the 407. However, if an officer from another district
is working on the 407, issues a ticket, and is required to defend that ticket,
at the same time as he is defending several other tickets from his home
district, the time spent by that officer in court defending the 407 ticket
should be billed back to the 407 ETR Concession Company Limited.
Clearly it is much more difficult to do that when the officer is not
spending 100% of their time in the 407 district.
Union counsel was not prepared to accept these additional facts as agreed facts, but also
stated that the union does not dispute the asserted facts.
[4] The employer treats each district as the local workplace for purposes of article UN 8.2.1.
It accepts the obligation to develop methods of distributing overtime among employees
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within each district, that are fair and equitable subject to operational requirements. The
union concedes that, as a general matter, it is the employer’s prerogative to define and re-
define the boundaries of districts, and to treat districts as the “local workplace” for
purposes of article UN 8.2.1. However, it takes issue with the employer’s designation of
the 407 Electronic Toll Road (“The 407”) as a district for overtime purposes.
Union Submissions
[5] Union counsel points out that all other “Districts”, except the 407, follow municipal
boundaries of a city, town or county. The 407 is an exception. It is a single highway
running the length of the two regions in question, over a distance of approximately 100
kms. While the 407 district is very small compared to the other districts within the two
regions, the overtime work arising in the 407 is significantly higher than in the other
districts. In most other districts there is little overtime work done. In some, overtime
rarely arises. The result is that the 5 TEOs working in the 407 district perform
substantially more overtime than TEOs in districts abutting the 407.
[6] Counsel stated explicitly that the union does not allege that the employer acted in bad
faith in deciding in 2001 to designate the 407 as a district. The employer was motivated
by the desire to achieve administrative ease and efficiency. However, it was submitted
that the absence of bad faith is not a complete defence because of the effect of the
decision. Counsel argued that monetary compensation is at the heart of any employment
relationship. The designation of the 407 as a district, and treating that district as the local
workplace for purposes of overtime distribution adversely impacts upon the grievors’
ability to earn a fair and equal share of overtime pay. In exercising management rights
the employer has the right to exercise discretion. However, where the effect of that
exercise of discretion is the denial of the fundamental right to monetary compensation,
the employer’s conduct must be subject to scrutiny by the Board.
[7] The Board was referred to Re Kuyntjes, 513/84 (Verity). Following a detailed review of
the jurisprudence, the Board wrote at p. 16:
In cases involving the exercise of managerial discretion, Boards of Arbitration
generally hesitate to substitute their view for that of the decision-maker, which is
recognition of the fact that Boards have less familiarity than does the Employer
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with the exigencies of the work place. However, Arbitrators must ensure that
decisions are made within the confines of certain minimum standards of
administrative justice. Those administrative law concepts relating to the proper
exercise of discretion include the following considerations: 1) The decision must
be made in good faith and without discrimination. 2) It must be a genuine
exercise of discretionary power, as opposed to rigid policy adherence. 3)
Consideration must be given to the merits of the individual application under
review. 4) All relevant facts must be considered and conversely irrelevant
consideration must be rejected.
[8] Union counsel argued that the employer was not entitled to consider only its own
interests in designating districts. It failed to consider a very relevant fact, i.e. the adverse
impact on the grievors’ rights under Article UN 8.2.1, and thereby did not meet the fourth
criterion set out in Re Kuyntjes.
[9] Counsel further submitted that the 407 is only a “paper district”. It does not function as a
district as other districts. It is a district only for administrative and paper work purposes.
While each of the other districts has its own District Manager, the 407 shares a District
Manager with another district. Similarly it shares the court officer and some
administrative staff with other districts. The TEOs working in the 407 attend staff
meetings along with TEOs from another district. Therefore, it is not truly an independent
district like other districts.
Employer Submissions
[10] Employer counsel submitted that although the 407 shares a manager and court officer,
and 407 staff attend staff meetings in common with staff from another district, it is not a
mere paper district as the union suggests. Since it is a very small district with only five
TEOs, it makes sense to share management and some staff. To do otherwise would be
wasteful. Subject to that difference, the 407 has its own inspection stations, vehicles,
office equipment, uniforms etc. just like any other district.
[11] Counsel pointed out that the use of TEOs from surrounding districts on a rotational basis
to perform enforcement duties on the 407 turned out to be unworkable. It created
significant problems in relation to the billing and recovery of costs from the 407
corporation. It was solely to address this that the employer decided in 2001 to treat the
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407 as a separate district with its own dedicated staff. Counsel submitted that since the
union is not alleging bad faith or discrimination, it has the onus of establishing that the
designation of the 407 as a district resulted in the violation of some right the grievors
have under the collective agreement. The union’s claim is that article UN 8.2.1 was
contravened. Counsel pointed out that while article UN8.2.1 refers to “local workplace”,
that phrase is not defined in the collective agreement. Therefore, the employer is entitled,
in the exercise of its exclusive management rights, to define what a local workplace is.
Provided it is done for legitimate business reasons, and in good faith, it has wide latitude
in that regard.
[12] Counsel emphasized that all employees post to a particular TEO position at a specific
location, using their seniority. If the 407 is a preferred location, any employee is entitled
to post to a vacancy in the 407, using his or her seniority. This is no different than
elsewhere in the OPS where employees use seniority to obtain preferred positions. She
submitted that for the Board to order that the 407 TEOs, who had successfully posted to
their positions by virtue of their seniority, are required to share the benefits of the
preferred location with TEOs in other districts, would be to negate the recognition
accorded in the collective agreement to seniority in job competitions.
Conclusion
[13] For the instant grievances to succeed, the union must establish that the grievors’ rights
under article UN 8.2.1 have been violated. The right accorded under that provision is for
fair and equitable distribution of overtime at the local level. The employer, in the
absence of a collective agreement definition of “local workplace”, treats each district as
the local workplace for purposes of article UN8.2.1. The union does not object to this as
a general matter. Its objection is limited to the designation of the 407 as a district, and
therefore as a local workplace. The union relied on the four-fold test in Re Kuyntjes, as
the basis for its argument that the employer’s exercise of the management right to
designate districts was in contravention of article UN8.2.1. Specifically, it was submitted
that the employer failed to consider a very relevant fact, namely the denial to the grievor
of fair and equitable access to overtime opportunities. Therefore, the exercise of the
management right failed to meet the fourth criteria in Re Kuyntjes.
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[14] The Board agrees with the employer that the test in Re Kuyntjes has no application in the
circumstances of this case. On a reading of the Board’s decision, it is apparent that the
test was devised for testing the validity of the employer’s exercise of discretion in
circumstances where an employee is accorded a right under the collective agreement
subject to discretionary approval of the employer. There, the collective agreement
provided that the employer “may grant an employee a leave of absence with pay for not
more than three days in a year upon special or compassionate grounds”. Thus there was a
specific provision granting the grievor a right or benefit at the discretion of the employer.
The issue was whether the employer properly exercised its discretion in denying approval
of the leave in the grievor’s particular circumstances. This is made clear in the test set
out by the Board for determining whether the exercise of discretion was proper, the third
criterion of which provides that “consideration must be given to the merits of the
individual application under review”.
[15] In the instant case there is no right claimed by any of the grievors. The right arising under
article UN 8.2.1 is only that the employer develop methods for distribution of overtime at
the local workplace that are fair and equitable. The employer has exercised its
management right to treat each district as the local workplace. Thus the fair and
equitable distribution envisaged is only among employees working in the local
workplace. i.e. the district. There is no suggestion that there is unfair or inequitable
distribution of overtime among TEOs working in the same district.
[16] To uphold the grievances, the Board would have to conclude that the employer`s exercise
of its management right to organize the workplace was improper. The union would have
the Board come to that conclusion by applying the test in Re Kuyntjes. Assuming
without finding, that the employer failed to consider a relevant fact as the union claims,
that does not entitle the Board to intervene. The employer exercises its exclusive
management rights on a day to day basis in a great multitude of ways. To name a few, it
decides what services to provide, to hire and lay off employees, the training, the size of
the workforce, the location of its operation, the equipment and work methods to be used
etc. If the union is correct, any such exercise of management rights may be challenged
on the basis of the Re Kuyntjes test. That simply is not the law.
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[17] The leading decision of this Board relating to the exercise of the exclusive management
rights under article 2 is Re Bousquet, 541/90 (Gorsky). It sets out the test that applies in
cases where the propriety of the exercise of management rights is at issue. At pp. 63-64
the Board stated:
All of the cases emphasize that in cases involving the exercise of managerial
discretion, the Board will hesitate to substitute its view for that of the employer as
long as certain minimum tests are met. These include the requirement that the
decision be a genuine one related to the management of the undertaking and not a
disguised means of achieving impermissible ends based on discrimination or other
grounds unrelated to the making of genuine management decisions. The facts
considered in making the decision must be relevant to legitimate government
purposes. Also, in making its decision management, provided it has acted in good
faith, as above described, need not be correct.
[18] There is no allegation that the employer acted in bad faith. It is also agreed that the
decision to designate the 407 as a district was made for legitimate government purposes.
Therefore, even if the Board is of the view that the employer could have addressed its
difficulties in some other way, that is not grounds for the Board to intervene. Article
8.2.1 does not contemplate fair and equitable distribution of overtime among all
employees doing the same work. The requirement is explicitly limited to employees
working within the local workplace. As long as the employer’s designation of the local
workplace is done for legitimate operational or business reasons; the decision is not
tainted by bad faith or discriminatory considerations; and the decision does not result in
the denial or abridgment of a right the grievors have under the collective agreement; there
is no grounds for the Board to intervene.
[19] The Board concludes that the union has not established that the employer violated article
UN 8.2.1 or any other provision by designating the 407 as a district, or by treating that
district as the local workplace for purposes of distribution of overtime. In light of that
conclusion, it is unnecessary to deal with the employer’s estoppel argument. All of the
grievances are hereby dismissed.
Dated at Toronto, Ontario this 15th day of May 2015.
Nimal Dissanayake, Vice-Chair