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HomeMy WebLinkAbout1988-0458.Robinson.90-01-02:." CROWN EMPLOYEES DE L'ONTA RiO ~ GRIEVANCE C,OMMISSION DE SETTLEMENT REGLEMENT (~-_ JA. N161990~.(~e.} BOARD DES GRIEFS ~,~%.o,,u~ ,,.,.,,,_,, %,~.~,,/ ;80, RUE OUNOAS OUES~ TO~NTO, (ONTARIO) MSG IZg . BUR~U 21~ (416) 5~- 0458/88 IN THE MATTER OF AN ARBITRATIO~ Under - · s~ c~o~ sM~o~sss co~sc~vs Bx~C~m~N~ Before ..}~ -. Ab~.ij~;$ T~E GRIEVANCE SETTLEMENT BOARD Between: 0PSEU (Robinson) Grievor _ .and.~_- The Crown ~n Right of Ontario (Ministry of Culture and Communications) Employer Before= R.L. Verity, Q.C. Vice-Chairperson P. Klym Member - A. Merritt Member For the Grievor: P. Lukasiewicz Counsel Gowling, Strath¥ & Henderson Barristers & Solicitors For the Employer: C. Slater Senior Counsel Human Resources Secretariat Management Board of Cabinet Hearing: December 14, 1988 DECISION In this matter, the Employer.denied the grievor an annual merit increase on May 1, 1988 based on unsatisfactory work performance. In a grievance filed, William Robinson alleged that he was improperly denied the merit increase. The remedy requested was retroactive payment of the increase together with interest. The Employer rais. ed a prelminary~objection that the Board was without jurisdiction to hear the denial of a merit increase. The Union maintains the Board has jurisdiction to determine the merits. The preliminary matter proceeded by waY of concise oral submissions following the introduction of some 12 Exhibits. William Robinson is employed as an Instructor/Researcher at the Ontario Science Centre in Toronto. On August 17, 1987, he received a formal performance review from Supervisor Luigia DeDivitiis. .T~e appraisal was critical of. the grievor's performanJe in'a~ number of areas and required improved performance with regard to demonstration training, meeting deadlines, and keeping the supervisor informed. The appraisal was not grieved. On November 7, 1988, Ms. DeDivitiis sent the 'grievor a lengthy memorandum specifying areas of perceived sub-standard performance. That memorandum {Exhibit 4) reads, in part, as follows: May l, 1988 is your merit date. I hope to see a substantial improvement in your work performance before .that date. If your work performance remains unsatisfactory I Will defer your merit increase for 6 months ..... ...I have dealt with your unsatisfactory work performance on various occasions. We have discussed your unsatisfactory work performance at your performance review as well as at other meetings. Your inability.to meet_ deadlines lead to a one day unpaid suspension for you on Tues. July 7, t987 ..... On April 27, 1988, the grievor was advised that hfs merit increase would be deferred. Again, the grievor was informed of specific areas of unsatisfactory performance. The memorandum (Exhibit 3) reads, lin part: On March 8, 1988 we had a meeting to discuss the Deferral of Merit Raise .... Since the March 8th meeting we have had several conversations and two formal meetings (March 27 and April 7, 1988) to set priorities and deadlines and to discuss your-work' - performance .... Several extracts from the Ontario Manual' of Administration were made Exhibits at the hearing. The following provisions are relevant.:- ONE STEP SALARY INCREASE Entitlement: 'A public servant, providing his work has - been satisfactory, Shall be granted an - increase in salary annually or semi-annually, as prescribed in the · applicable salary schedule, from his existing rate to the next higher rate in the salary range. Anniversary Date The anniversary date: ~rmination, . Is a date established for each employee General Rule: for use in salary increase procedure; · Will be the first of the month following appointment or other transaction, except that where the transaction occurs on the first calendar day or the first working day of a month, the first calendar daY of that month will be the anniversary date. The above general rule is subject to some modification, depending upon the type of transaction, as detailed in the appropriate sections of this manual. (See Alpha-Subject Index.) - Salary Increase - GENERAL POLICY - One step salary increases: Provisions: . May be granted annually or lsemi-annually as prescribed by the applicable salary schedule; · Will take effect on the employee's anniversary date. ANNUAL INCREASES - An employee whose position is allocated to a classification for which annual increases are stipulated ,~ will: . Have one anniversary date per year; . Be eligible for salary increases at intervals of twelve months from the anniversary date established at the time of assignment to the classification. Deferment Of Salary GENERAC - Anniversary dates for salary ~ncrease for review purposes may be deferred under Reasons of certain conditions where an employee fails Performance: to perform up to the standards for his position. PERIOD OF DEFERRA~ - Where an employee is denied a salary increase on his anniversary date due to unsatisfactory performance: . his anniversary date will be deferred for a period of six months for classes with annual increase provisions and three n~nths for classes with semi-annual increase provisions; .. a salary increase may be recommended on i, the deferred anniversary date; and . a new anniversary date is established, based on the date the deferred increase is granted, GUIDELINES - A salary increase may be deferred for unsatisfactory performance according to the following guidelines. At the time it becomes evident t~at an employee's performance is such that his work falls below the output expected from the job, corrective action should be taken by his supervisor. If the situation is such that the supervisor considers that an increase in salary may not be earned, he must so inform the employee, and set out formally for the employee the ways in which his work is not satisfactory. This must be done sufficiently in advance of the employee's anniversary date to provide the employee with a reasonable opportunity to improve his performance. ~ If, in spite of corrective action, the employee has not improved his performance by the time of his anniversary date: · a salary increase may be deferred for a period of six months in the case of a classification with annual increase Provisions, and three months in the case of a classification with semi-annual increase provisions; · during the three or six month period, the employee's performance must again be reviewed and, if-no improvement in Performance is noted, the salary increase may be deferred for a further three or six months. - If, during a second three or six month deferral, the employee has not improved his Performance sufficiently, to warrant the granting of a salary increase, action to effect demotion or dismissal should be considered. The purpose.of these guidelines is not to facilitate demotion of dismissal, but rather to estao)ish a supervisor/employee relationship that will assist in correcting situations involvin9 marked under-performance. PERFORMANCE APPRAISAL Performance Appraisal Performance appraisal is a three-step process whereby a manager and an employee: · define the performance that is expected of the employee during, the next review period; · discuss performance on an ongoing basis during the review period; and · evaluate job performance at the end of the review period. Reference was made to the following sections of the Crown Employees Collective Bar§aining Act: .2 18.(1) Every collective agreement shall be deemed to provide that it. is the exclusive function of the employer to manage, which function, without limiting the generality of the foregoing, includes the right to determine, _ (al employment, appointment, complement, organization, assignment, discipline, dismissal, suspension, work methods and procedures, kinds and locations of equipment and classification of positions; and _ (b) merit system, training and development, appraisal and superannuation, the governing principles of which are subject to review by the employer with the bargaining- agent, _ and such matters will not be the subject of collective bargaining nor come within theljurisdiction of a board. (2) In addition to any other rights of grievance under a collective agreement, an employee claiming, {al that his position has been improperly classified; (b) that he has been appraised contrary to the governing principles and standards; or (c) .that he has been disciplined or dismissed or suspended from his employment without just cause, may process such matter in accordance with the grievance procedure provided in the collective agreement, and failing final determination under such procedure, the matter may be processed in accordance with the procedure for final determination application under section 19. The Employer argues that s.18(1)(b) of the Crown Employees Collective Bargaining Act confers upon the Employer exclusive jurisdiction to.establish and manage the merit system including the right" to determine under what circumstances' the merit increase will be given or deferred. Mr. Slater relied upon the decision of Vice-Chairman Palmer in OPSEU (J. Dickie) and Ministry of Health, 314/85-as being dispositive of the instant grievance. He contended that the real issue was the denial of a merit increase and that the limited right given an employee under 18(2} to grieve an appraisal does not grant a similar right to grieve the denial of a merit increase. For the Union, Mr. Lukasiewicz contended that while the Board had no jurisdiction with regard to the structure of the merit system, it did have jurisdiction to consider an attack on the management of the merit system. The Union acknowledged that the form of the grievance was problematic, However, the thrust of the .Union's argument was that the~parties under~tood the grievance was in reality an attack on the accuracy of appraisals on which the denial of the merit increase was founded. Mr, Lukasiewicz argued that appraisals and the merit system are inextricably intertwined. The Union maintained that Exhibits 3 and 4 constituted appraisals and that the issue therefore becomes whether or not those appraisals were completed in accordance with the governing principles and standards. In sum, the Union sought the r~ight to attack the accuracy of alleged incorrect appraisals (Exhibits 3 and 4). At the hearing, the remedy sought by the Union was the removal of alleged inaccurate appraisals and the substitution of proper appraisals. Despite the attractiveness of the Union's argument, the Board is persuaded that the Employer's pretminary objection is well-founded. Under s.18(1)(b) of the Crown Employees Collective Bargaining Act, the merit system is a matter within the exclusive jurisdiction of the Emplyoer subject to the limited right given the Union to review "the governing principles" with th6 Employer. The sub-section also provides that matters specified in (1)(al and (b) cannot be the subject of collective bargaining or come within the jurisdiction of the Grievance Settlement Board. In addition, the Collective Agreement is silent on the subject of a merit increase. t Inevitablly, there will be some relationship between performance appraisals and the merit system. The Ontario Manual of Administration Policy on Performance Appraisals doeslstate that "other organizational requirements such as merit pay...are facilitated by performance appraisals". However, in our opinion, the merit system and the appraisal process are separate and distinct entities. In these particular circumstances, the formal.appraisal was completed in August of 1987 and made no mention of a merit'increase. Although the documentary evidence established that the gfievor was unhappy with the appraisal, he chose not to file grievance. In s. 18{2)(b} of the Crown Employees Collective Bargaining Act, an employee is given the limited right to grieve that he has been appraised "contrary to the governing principles and standards". There is no corresponding right to grieve the merit system. -9- While it may be said that the contents of Supervisor DeDivitiis' memoranOa (Exhibits 3 and 4) relate exclusively to the grievor's perceived unsatisfactory performance, they do not constitute formal appraisals. Rather, they are part of the process specified in the One-Step Merit Increase at pp. 7 and 8 of the Ontario Manual of Administration. In OPSEU (Flinn et al) and Ministry of Health, 22/88, Vice-Chairman Kennedy makes the following relevant comments at pp. 7 and 8: ...the jurisprudence of this Board clearly establishes that the jurisdiction under Section 18{2){b) applies only to a formal appraisal of the Grievor in his existing job. Reference may be made to Isaac and MacIsaac 742/83 (Kennedy}, Cloutier 20/76 (Beatty), and Cunningham 279/79 (Jolliffe). The Union alleged that the facts of the Dickie case, supra, represent an attack on the structure of the system and not an attack on the management of the system. With respect, we cannot agree. Vice-Chairman Palmer's comments at pp. 5 and 6 of the Dickie DecisiOn merit repetition: ...Obviously, the request.of the Union asks us to determine the way in which the Employer has managed the merit system which is established..This, in our opinion, is something we cannot do. All the right the Union has with respect to this system is to have the ability to review "the governing principles" of this plan with the Employer. For the reasons stated, the Board. must conclude that we are without jurisdiction to determine the merits of the denial of a merit increase. - 10- Accordingly, the preliminary objection must succeed. DATED at Brantford, Ontario, this 2nd day of January, 1990. R, L. VERITY, Q.C. - VICE-CHAIRPERSON "I dissent" (Dissent attached) P. KLYM - MEMBER A. MERRITT - MEMBER DISSENT With great respect to the reasoning by the Chair regarding the issues in the preliminary objection to arbitrability by the Employer, I find I must dissent. Section 18(1)(b} of The Crown Employees Collective Act gives the employer the right to determine the merit system. There is no argument that the determination of the system (its structure, provisions and details) are not subject to review by the Grievance Settlement Board. However, there is a considerable difference between establishing or "determining" a merit system and the day to day application of that system to individual employees. The Act does not specifically state that it is also an exclusive management right, not subject to any review by the Grievance Settlement Board, to apply the rules of the merit system they have established to individual employees in any manner they see fit. In my opinion, neither Section 18(1)(b) nor any other section in the Act precludes a reversal of a management decision on an individual merit increase if this is a' consequence or a remedy flowing from a 'reviewable issue. As an analogy, consider the issues of complement or assignment. It is accepted that both these issues are generally outside the jurisdiction of review by the Grievance Settlement Board. However, if an issue such as Safety and Health is determined to exist, the consequences or remedy flowing from this revieWable issue could necessitate that the Grievance Settlement Board involve itself in the issues of complement or assignment. Failure to involve these otherwise "exclusive" functions could result in the Grievance Settlement Board's inability to fashion a remedy in deciding an issue as required by Section 19 of the Act. Similarly the Grievance Settlement Board, through' its jurisdiction flowing from a reviewable issue, may find it necessary to involve itself in the application of the merit system in fashioning .a remedy and, in my opinion, the'Act does not preclude this. The majority decision places some reliance on the decision in the case of OPSEU (J. Dickie) and Ministry of Health, GSB 314/85. In my opinion this case is distinguishable from 'our issue. In the Pickle case, the grievor was absent due to sickness for 115 calendar days. The merit system plan provided that where there was a Leave of Absence, with or without pay, and in excess of 60 days, the merit increase would be deferred'. The real issue was whether sickness absence fell into this category of "Leave of Absence with or without pay". There were no facts or subjective judgements by management in dispute. The issue was an interpretation of the provision of the merit plan. One can understand the rationale in the Dickie decision when they refer to the employer's right to manage the plan, because the "managing" to which they were referring was the making of objective interpretations of the provisions of the plan. The Board in the Dickie case was not faced with an issue of a management' decision made under the plan based on incorrect facts or information. The situation would be subs'tantially different if they were faced with a dispute regarding a wrong calculation of 60 days of absence or other incorrect information such as an employer performance appraisal. I do not believe the Dickie case stands for the proportion that it is the exclusive right for the employer to make decisions for an individual employee based on incorrect facts or information and that such a deci§ion is not subject to review. It is logical to conclude that if the grievor's performance appraisal had been judged as being satisfactory then he would have received the merit increase. Indeed the One Step Salary Increase provision in the Ontario Manual of Administration states that a public servant shall be granted an increase providing his work has been satisfactory. The grievor's formal appraisal was in August of 1987. He did not agree with this appraisal and there was. correspondence between him and his supervisor into November 1987, when the supervisor - through Exhibit 9, dated November 10, 1987, re-affirmed her appraisal and set down specific assessments of his performance and the improvements she wished in the deficient areas. This was all part of and a continuation of the particular appraisal of August, 1987. I would also consider that the letter to the grievor on March 7, 1988 (Exhibit 4) advising him that his merit increase, was in Jeopardy is actually a review and a continuation of these same issues that are in dispute in the performance appraisal. Obviously the appraisal of the grievor had an impact on his merit increase. The merit system and the' appraisal system may technically .be separate entities but -there can be no doubt that there is an interrelation and that they are in fact intertwoven. The issue before this Panel is - What. is the real grievance? Even though the statement of the grievance is that he was denied his merit increase, it seems obvious to me that he is complainlng regarding his performance appraisal which resulted in a denial of his merit increase. This is the only reason he did not receive the increase. Indeed the employer's written answer to the grievance (Exhibit 12) refers specifically to the dissatisfaction with his work as he was informed through his performance appraisal. Perhaps if the grievor had clearly put down the words on the grievance stating that he felt he was improperly appraisal and, as a result, denied a merit increase, the perception of the jurisdictional issue might have been different. But this is in fact the~real grievance. Unfortunately workers are not all aware of the nuances in how they form their complaint into words and I do not believe it is proper for arbitration boards to be.overly technical and Iegalistic in appreciating this reality. As stated above, in my opinion the real grievance involves performance, appraisal and the Board has ju=isdfction pursuant to Section 18(~2)(b). I believe nothing turns'on the issue that no grievance .regarding the appraisal was not filed when the grievor first .expressed dissatisfaction with the appraisal. Since jurisdiction flows from Section 18(2) of the Act, timeliness cannot be affected by the terms of the Collective Agreement, as stated in GSB Decision 2165/86 Arora (Chairman R.L. Verity). I would disallow the preliminary objection and proceed to hear the merits of the grievance. Peter Klym~ ~~