HomeMy WebLinkAboutP-2014-4453.Kettle.15-11-17.DecisionPublic Service
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PSGB#P-2014-4453
IN THE MATTER OF AN ARBITRATION
Under
THE PUBLIC SERVICE ACT OF ONTARIO
Before
THE PUBLIC SERVICE GRIEVANCE BOARD
BETWEEN
Ronald Kettle Complainant
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The Crown in Right of Ontario
(Ministry of Transportation) Employer
BEFORE Kathleen G. O’Neil Chair
FOR THE
COMPLAINANT
Ronald Kettle
FOR THE EMPLOYER Jennifer Richards
Treasury Board Secretariat
Legal Services Branch
Counsel
SUBMISSIONS
CONFERENCE CALL
July 3, 2015
March 17, August 19, 2015
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Decision
[1] This decision deals with the employer’s preliminary objection to the complaint of
Ronald Kettle, which claims entitlement to a lump sum payment for 2014. The
employer maintains that the adjudication of this complaint should not proceed on
the merits on the following grounds:
a. Mr. Kettle is ineligible to file a complaint about a working condition or term of employment since
he was retired and no longer a public servant at the time he filed his complaint, and was not
employed continuously for at least six months before the deadline for giving notice.
b. The Board has no jurisdiction over the subject matter of Mr. Kettle’s complaint since it relates to
pay-for-performance.
c. The Board has no jurisdiction over the subject matter of Mr. Kettle’s complaint as Mr. Kettle
signed a full and final release on April 3, 2014.
[2] The Employer withdrew a preliminary objection to the effect that the complaint
was not filed in accordance with the mandatory statutory timelines.
[3] By contrast, the complainant disputes the applicability of each of the preliminary
objections, and asks that his complaint be allowed to proceed to a hearing on its
merits.
The factual and procedural context
[4] The facts necessary to this decision are those asserted by Mr. Kettle, which are
assumed to be true for the purposes of this motion, and are summarized below.
In any event, there was no significant dispute about the facts, although there is
disagreement about their legal effect. Having carefully considered all three
objections and Mr. Kettle’s detailed and able response, I have determined that it
is only necessary to deal with the first, and have therefore not set out additional
facts that would have been necessary to the consideration of the others.
[5] Mr. Kettle retired from his employment as an Area Contracts Engineer with the
Ministry of Transportation on December 31, 2013, which means he had worked 9
months of the 2013-2014 fiscal year. Just over a year later, on January 5, 2015,
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after Mr. Kettle was unable to confirm whether he would receive a lump sum
payment in respect of the fiscal year which ended March 31, 2014, he launched
this complaint. He claims that he is owed the lump sum payment, because in his
view, his salary in the years leading up to his retirement had been composed of
biweekly salary payments and a lump sum payment to maintain salary at
previous levels. Since, for the fiscal year in question, Mr. Kettle was only paid
biweekly salary, and no lump sum, he claims he has been denied his full
compensation.
[6] The lump sum payments in question have been the subject of a significant
amount of litigation before this Board. As discussed more fully in several
decisions of this Board starting with Smith et. al and the Crown in Right of
Ontario (Ministry of Community Safety and Correctional Services, PSGB# P-
2012-4155, dated July 9, 2014 (O’Neil), 2014 CanLII 48098 (ON PSGB), such
payments were paid to employees who had been at the maximum of their pay
scales in 2011. Pursuant to the terms of the pay for performance policy up until
2011, they had received their pay for performance in a lump sum, rather than an
increase in salary rate, so that their annual compensation included their salary
and the lump sum payment. By contrast, managers who were not at the top of
their salary grids received pay for performance as salary rate increases up to the
maximum of the grid. When the employer set pay for performance at 0% as part
of a wage restraint program after 2011, there was no opportunity to be paid pay
for performance. The employer decided to pay lump sum payments for managers
who had been at the top of the pay grid to maintain their compensation at the
pre-restraint level, so that it would be a compensation freeze, rather than a pay
cut. Mr. Kettle received such lump sums in respect of the fiscal years ending in
2012 and 2013.
[7] The lump sum payments were provided for in policies that were published after
the end of the fiscal year, and had conditions and exceptions related to their
payment. In the policy relevant to Mr. Kettle’s claim, entitled Compensation and
Eligibility Procedures 2014, section 4, “Principles”, indicates that the earnings of
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specified non-bargaining unit employees were to remain at 2011-2012 levels,
subject to the eligibility criteria and the exceptions set out in the policy. Further,
section 5.1 provides that one of the mandatory initial eligibility requirements was
that the non-bargaining unit employee in question continue to be in a non-
bargaining unit position on the last working day of the fiscal year which ended
March 31, 2014. The undisputed fact that Mr. Kettle was no longer in such a
position at the end of the fiscal year is the basis of the employer’s contention that
Mr. Kettle is not entitled to the lump sum payment. Mr. Kettle has several
thoughtful arguments about why he considers this position to be unfair and
inconsistent with other policies of the employer, but those arguments are not to
be addressed in the context of this preliminary motion. The procedure is that the
Board first decides if it has jurisdiction to hear the matter, and if so, would
schedule a further hearing to decide the merits of Mr. Kettle’s claim. If the finding
is that there is no jurisdiction, then the complaint cannot be entertained by the
Board, as it only has the powers given it by statute. Accordingly, questions
posed by Mr. Kettle such as whether he lost salary or wages as he claims and
whether it is discretionary to pay or not pay the full salary or wage for the job, are
questions not addressed in this decision. Similarly, the decision does not deal
with Mr. Kettle’s submission that, since the lump sum payment was meant to
compensate employees so that they would not suffer a loss salary or wage, that
any employee who worked even one hour in the reporting year who did not
receive a proportional lump sum payment would have suffered lost wages, which,
in his view, the OPS cannot retain on the basis the non-eligibility rules relied
upon by the employer.
Statutory Provisions
1) The following provisions of the The Public Service of Ontario Act (PSOA) and
Regulation 378/07 are relevant to the consideration of this matter:
2. (2) For the purposes of this Act, the following are public servants:
1. Every person employed under Part III.
2. The Secretary of the Cabinet.
3. Every deputy minister.
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4. Every employee of a public body
5. Every person appointed by the Lieutenant Governor in Council, the Lieutenant
Governor or a minister to a public body. 2006, c. 35, Sched. A, s. 2 (2).
….
3. Except where otherwise provided, a reference in this Act to a former public
servant is a reference to a person who ceased to be a public servant on or after
the day on which this section comes into force. 2006, c. 35, Sched. A, s. 3.
…
56. (1) Sections 57 to 65 apply to public servants and former public servants
other than public servants who work or, immediately before ceasing to be a
public servant, worked in a minister’s office. 2006, c. 35, Sched. A, s. 56 (1).
Same, ministers’ offices
(2) Sections 66 to 69 apply to public servants and former public servants who
work or who, immediately before ceasing to be a public servant, worked in a
minister’s office. 2006, c. 35, Sched. A, s. 56 (2).
And from Ontario Regulation 378/07 under PSOA:
2. (1) A person who is aggrieved by his or her dismissal for cause under section
34 of the Act may file a complaint about the dismissal for cause with the Public
Service Grievance Board,
(a) if the person is eligible under sections 5 and 6 to file such a complaint;
(b) if the person gives notice in accordance with section 8 of his or her proposal
to file the complaint; and
(c) if the person complies with the filing requirements set out in section 10. O.
Reg. 378/07, s. 2 (1).
(2) Subsection (1) does not affect the right of a person to file a complaint under
Part V of the Act (Political Activity) or a complaint under Part VI of the Act
(Disclosing and Investigating W rongdoing). O. Reg. 378/07, s. 2 (2).
….
4. (1) Subject to subsection (2), a public servant who is aggrieved about a
working condition or about a term of his or her employment may file a complaint
about the working condition or the term of employment with the Public Service
Grievance Board,
(a) if the public servant is eligible under sections 5 and 7 to file such a complaint;
(b) if the public servant gives notice in accordance with section 8 of his or her
proposal to file the complaint; and
(c) if the public servant complies with the filing requirements set out in section 1
O. Reg. 378/07, s. 4 (1). Eligibility to File a Complaint
Eligibility generally
5. (1) Subject to subsections (2) and (3), a public servant or other person is
eligible to file a complaint if he or she was appointed by the Public Service
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Commission under subsection 32 (1) or (2) of the Act to employment by the
Crown. O. Reg. 378/07, s. 5 (1).
(2) If any of the following circumstances existed at the material time, a public
servant or other person is not eligible to file a complaint:
1. He or she was a member of a bargaining unit represented by a bargaining agent under
the Crown Employees Collective Bargaining Act, 1993 or under the Ontario Provincial
Police Collective Bargaining Act, 2006.
2. He or she was represented by the Ontario Crown Attorneys’ Association or the
Association of Law Officers of the Crown under an agreement between the
Crown and one or both of those Associations.
3. He or she was employed in a position that was classified under subsection 33
(1) of the Act as a term classified position.
4. He or she was employed for a fixed term,
i. on a non-recurring project,
ii. in a professional or other special capacity, or
iii. on a temporary work assignment arranged by the Public Service Commission
in accordance with a program for providing temporary help.
5. He or she was employed for a fixed term for fewer than 14 hours per week,
employed for a fixed term for fewer than nine full days in four consecutive weeks
or employed for a fixed term on an irregular or on-call basis.
6. He or she was employed for a fixed term during his or her regular school,
college or university vacation period or was employed for a fixed term under a
co-operative educational training program. O. Reg. 378/07, s. 5 (2).
(3) Subsections (1) and (2) do not affect the right of a public servant or other
person to file a complaint under Part V of the Act (Political Activity) or a
complaint under Part VI of the Act (Disclosing and Investigating Wrongdoing).
O. Reg. 378/07, s. 5 (3).
Restrictions, complaint about dismissal for cause
6. A person is eligible to file a complaint about dismissal for cause only if, immediately
before his or her dismissal,
(a) he or she had been employed continuously for at least 12 months for a fixed term or a
succession of fixed terms under subsection 32 (1) or (2) of the Act; or
(b) he or she was employed otherwise than for a fixed term and was not on probation. O.
Reg. 378/07, s. 6.
7. (1) A public servant is eligible to file a complaint about a working condition
or a term of employment only if he or she had been employed continuously for at
least six months before the deadline for giving notice in accordance with section
8 of his or her proposal to file the complaint. O. Reg. 378/07, s. 7 (1).
(2) Despite subsection (1), the following public servants are not eligible to file a
complaint about a working condition or a term of employment:
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1. A public servant employed in a position that is classified under subsection 33 (1) of
the Act as a position within the Senior Management Group.
2. A public servant who is employed as a Branch Director or as a Hospital
Administrator.
3. A public servant who is employed in a position with headquarters located
outside Ontario.
4. A public servant who is employed by the Crown as a lawyer. O. Reg. 378/07, s. 7 (2).
Notice of proposal to file a complaint
8. (1) A person who proposes to file a complaint shall give notice of the proposal to the
following person or entity:
1. A complainant who, at the material time, worked in a ministry shall give the notice to his
or her deputy minister.
2. A complainant who, at the material time, worked in a Commission public body shall give
the notice to the chair of the Public Service Commission. O. Reg. 378/07, s. 8 (1).
(2) Subsection (1) does not apply with respect to a complaint under Part V of the Act
(Political Activity) or a complaint under Part VI of the Act (Disclosing and Investigating
Wrongdoing). O. Reg. 378/07, s. 8 (2).
(3) The notice must set out the reasons for the complaint. O. Reg. 378/07, s. 8 (3).
(4) The notice must be given within the following period:
1. For a complaint about dismissal for cause, within 14 days after the complainant
receives notice of the dismissal.
2. For a complaint about a disciplinary measure, within 14 days after the complainant
receives notice of the imposition of the disciplinary measure.
3. For a complaint about a working condition or a term of employment, within 14 days
after the complainant becomes aware of the working condition or term of employment
giving rise to the complaint. O. Reg. 378/07, s. 8 (4).
Considerations and conclusions
[8] The employer argues as its principal objection to the Board’s jurisdiction, that in
accordance with regulation 378/07 under the Public Service of Ontario Act, the
PSGB does not have the jurisdiction to hear a complaint about a working
condition from a retired employee, as the person is no longer a public servant,
and, in Mr. Kettle’s case, had not worked for the employer for the six months
prior to the deadline for giving notice of his complaint. The employer relies on
the Board’s previous interpretation of the statutory provisions in its decision in
Burt and the Crown in Right of Ontario (Ministry of Community Safety and
Correctional Services) PSGB# P-2010-1988 (O’Neil).
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[9] Mr. Kettle argues that he is in a different position than the complainant in the Burt
matter, as he is complaining about salary, rather than a term or condition of
employment as Mr. Burt was. Further, he argues that the interpretation argued
by the employer should not be considered correct, because it would deprive an
employee of the right to legal recourse for the last pay period after he is no
longer an employee. The interpretation would, in Mr. Kettle’s view, set a
dangerous precedent, essentially leaving the employer unaccountable for
contractual obligations, both as to proper pay, and the obligation to treat
employees fairly, consistently and in an unbiased manner.
[10] Mr. Kettle urges the Board to find that the wording “material time”, which appears
in s. 8(1) of the applicable regulation, set out above, should be interpreted to
mean that eligibility should be determined as of the material time, meaning when
he was a public servant. Further, he submits that the meaning of section 7(1)
which requires that a public servant be employed continuously for at least six
months before the deadline for giving notice in accordance with section 8 of his
or her proposal to file the complaint, merely means that a person in the employ
for less than six months may not grieve, rather than that he or she has to be
employed immediately before the deadline to give notice. Mr. Kettle observes
that this is usefully contrasted with s. 6 of the regulation which provides that a
person is eligible to file a complaint about dismissal for cause only if he or she
had been employed continuously for a least 12 months, immediately before his or
her dismissal.
[11] As to the last point, the Board agrees with Mr. Kettle that, given the distinction
between sections 7 and 8 of the regulation, and the absence of the word
immediately in s. 8, the fact that he was not employed for six months immediately
prior to his complaint is not a bar to the board’s jurisdiction. Nonetheless, the
Board remains of the view, as expressed in Burt, that the legislature chose to
define public servant in a way which means that only a current public servant can
file a terms and conditions grievance, as opposed to a dismissal for cause, and
certain other complaints, which a “person” who meets the other requirements
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may file. The facts are different for Mr. Kettle than for Mr. Burt, both complaints
complain about terms and conditions of employment, in Mr. Kettle’s case, his
lump sum payment, which he claims is part of his contract of employment, which
makes his complaint one related to his terms and conditions of employment.
[12] As the regulation has not been amended in any way relevant to this complaint,
the following observations of the Board in the Burt decision remain true:
It is true that the Board is a creature of statute with limited jurisdiction. Specifically, the
type of grievance that Mr. Burt has filed, "a working condition" grievance, presupposes a working
condition, which means a feature of the work an employee does. Once the grievor retired, he
ceased to be an employee, and ceased to have working conditions. Although the legislature has
extended certain rights to former public servants, it did not extend the right to grieve their former
working conditions.
I note that it also true, as suggested by the grievor's argument, that there is no explicit
statement in the PSOA or the regulations that retired public servants cannot grieve working
conditions. Nonetheless, I agree with employer counsel that when it amended the PSOA in 2007,
the Legislature put in a definition of public servant and changed the wording in a way which
makes it quite clear that its intention was that, in order to grieve working conditions, a grievor has
to be employed in a Ministry, rather than just an individual person who might or might not be so
employed.
[13] I have carefully considered Mr. Kettle’s argument that the above interpretation
prevents a person from having recourse for salary and other issues, including
their final pay, if they have not resolved them prior to leaving the employ.
Although the above interpretation means that it is true that there is no recourse to
this Board by a former public servant for terms and conditions of employment,
depending on the issue, there may be recourse elsewhere. In any event, the
PSGB is bound by the statute and the regulations and is not persuaded that it
has the jurisdiction to entertain Mr. Kettle’s complaint.
* * *
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[14] For the above reasons, the employer’s motion is granted as the Board does not
have the authority to hear this complaint about terms and conditions of
employment from a former public servant.
Dated at Toronto, Ontario this 17th day of November 2015.
Kathleen G. O’Neil, Chair