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HomeMy WebLinkAboutAnger Group 05-03-08 THE MA-I-I-ER OF AN ARBITRATION BETWEEN FANSHAWE COLLEGE (the "College") and ONTARIO PUBLIC SERVICE EMPLOYEES' UNION (the "Union") RE: GROUP GRIEVANCE CONCERNING ARTICLE 13.2.1.1 PROTECTIVE FOOTVVEAR OPSEU GRIEVANCE #2004-0109-0013 BOARD OF ARBITRATION: PAMELA COOPER PICHER- CHAIR ED SEYMOUR - UNION NOMINEE MICHAEL RIDDELL-COLLEGE NOMINEE APPEARANCES FOR THE UNION: Tim Hannigan- Counsel .lean Fordyce - Local Union President Reid Clark - Grievor APPEARANCES FOR THE COLLEGE: Aida Garfield - Counsel Linda Ballantyne - Director Human Resources Sheila Wilson - Acting Staff Relations Consultant A hearing in this matter was held in London on January 19, 2005. AWARD The Union filed a group grievance dated April 28, 2004 asserting that the College was acting in breach of article 13.2.1.1 of the collective agreement by insisting on receipts for the purchase of protective footwear as a precondition to paying employees the $100.00 footwear allowance set out in article 13.2.1.1. Article 13.2.1.1 provides as follows: 13. HEALTH AND SAFETY 13.2.1.1 Footwear Where an employee is required by the College or by legislation, in order to perform his/her duties, to acquire and wear protective footwear, the College shall pay to such employee, on the first pay day in April in each year, an allowance of one hundred dollars ($100.00). The employee shall provide evidence, if required, that protective footwear was purchased. Over the years, a provision similar to article 13.2.1.1 has been in the parties' numerous collective agreements. It is common ground that prior to the events leading to this grievance, the College had never asked employees to produce receipts as "evidence ...that protective footwear was purchased". The parties agree that while the College, at times, has required "evidence ...that protective footwear was purchased", the evidence so required has been normally in the form of "show me your boots", as opposed to the production of receipts. The parties further agree that on multiple other occasions over the years, the College has not asked for any evidence that protective footwear has been purchased as a precondition to paying the $100.00 allowance. Accordingly, the evidence and submissions reveal that over the many years of the implementation of the footwear allowance, the College has essentially paid employees who are required to wear protective footwear the $100.00 allowance on an annual basis asking, at most, that the employees simply show the College their protective boots as "evidence ...that protective footwear was purchased". The resulting situation has been that employees have received the $100.00 allowance in respect of years in which they have not actually purchased boots. The following example describes the situation. In a given year #1, an employee might pay $150.00 for a particularly good quality pair of protective boots, thereby paying more than the allowance would cover. In year #2, that same employee might not need to replace his or her boots due to the good quality of the purchase in year #1. In year #3, the same employee might then need to replace his or her protective footwear and, once again, might pay $150.00 for another pair of good quality boots. It is evident that as article 13.2.1.1 has been applied over the years, this employee would have received the $100.00 allowance in each of the three years. The only precondition to the payment of the allowance has been that the employees show their boots to management if such has been required. Accordingly, as emphasized by the Union, the employees have received their $100.00 allowances even in years when they have not actually purchased boots. The situation giving rise to the instant grievance is that prior to the allowance payment in April of 2004, the College announced that it would be requiring the production of receipts for the purchase of protective footwear as "evidence ...that protective footwear was purchased" before it would pay the $100.00 allowance. Accordingly, by insisting on the production of receipts as "evidence ...that protective footwear was purchased", employees would no longer receive the $100.00 allowance in a year in which they did not purchase boots, even if the reason for not purchasing the boots was that the employee had paid a premium for particularly good quality protective boots the year before, as set out in the example, above. In response to the College's announcement that it would be requiring receipts for the payment of the April 2004 allowance, the Union filed a grievance on April 28, 2004 asserting that the requirement of receipts as proof of purchase was not only a breach of the requirements of article 13.2.1.1 but also an inappropriate departure from past practice. Following a grievance meeting between the parties on June 15, 2004, the College stated that it would not strictly enforce its requirement for receipts for the payment of the April 2004 allowance. The College reasoned that given the timing of the College's notification, employees might not have been aware of the need to keep their receipts at the point when they purchased the protective footwear to which the April 2004 allowance would apply. At the same time, however, by a memorandum dated June 22, 2004, the College stated that it was putting the Union and it's membership on notice that in respect of the April 2005 footwear allowance, it would require the production of receipts as proof of purchase. As an additional modification, and in order to further extend the notice period for the employees, the College stated at the instant arbitration hearing in January of 2005 that it would not actually require receipts in respect of the April 2005 allowance. The College confirmed, however, that for the April 2006 allowance, it would insist on receipts as "evidence ...that protective footwear was purchased" before it would pay the $100.00 allowance. The Union maintains that the footwear allowance provision is designed to provide approximate compensation for the cost of the protective footwear. Union counsel contends that the parties have estimated that an allowance of $100.00 annually is appropriate compensation for a requirement to wear protective footwear, whether or not protective footwear is actually purchased in any given year. As noted, the Union emphasizes that an employee purchasing particularly high quality protective footwear in one year might not need to replace that footwear in the following year. In contrast, another employee might buy lower quality protective footwear and thus might need to replace the footwear every year. By the Union's interpretation of article 13.2.1.1, each of these employees would receive the same $100.00 allowance annually, without regard to whether the protective footwear actually had been purchased in the given year, as long as the employee is always wearing appropriate protective footwear. In contrast, the College asserts that article 13.2.1.1 is not a reimbursement provision and is not designed to compensate employees for the actual cost of protective footwear. The College emphasizes that it's interpretation of the footwear provision is that it provides an allowance of $100.00 to help defray the cost of protective footwear in a year when, and only when, protective footwear is purchased. Counsel for the College contends, thereby, that if no purchase of protective footwear is made in a given year, there is no cost to defray and, accordingly, no entitlement to the footwear allowance. Counsel for the Union maintains that given the practice between the parties over the years respecting the application of the article 13.2. 1.1 protective footwear allowance, the College is estopped from insisting on the production of receipts as a precondition to the employees' entitlement to the $100.00 allowance. Counsel for the Union maintains that the College is estopped from requiring employees to produce receipts in any period of time arising under the current collective agreement because, it argues, the Union has not had an opportunity to bargain changes to the protective footwear provision in the face of the College's insistence on the production of receipts. The Union maintains that it has relied to its detriment on the College's alleged practice of not requiring receipts as evidence of purchase by negotiating successive collective agreements with the understanding that the "evidence ...that protective footwear was purchased" under article 13.2. 1.1 would not include receipts. Effective with the College's memorandum of June 22, 2004, which stated that the College would insist on receipts for the April 2005 allowance, employees have known that they would need to keep receipts in order to collect the annual footwear allowance payable on the first pay day of April 2005. Since that time, the College has extended by a further year, i.e. to April of 2006, the point before which it will require receipts. The College will be paying the April 1, 2005 footwear allowance to all employees falling under article 13.2.1.1 whether or not they produce receipts for the purchase of such footwear. It will not be until April of 2006 that the College will require receipts as "evidence ... that protective footwear was purchased". Accordingly, the employees now have a notice period of some twenty-one months during which time they know that they will need to keep receipts for the purchase of protective footwear in order to collect the $100.00 allowance in April of 2006. In addition, the Union currently has the opportunity to bargain the collective agreement that will replace the current agreement, which has an expiration date of August 31, 2005. The Union has an opportunity to bargain changes to the article 13.2.1.1 footwear allowance in the face of the College's stated requirement that it will insist on the production of receipts as "evidence ...that protective footwear was purchased" and that it will insist on such receipts as a precondition to the payment of the $100.00 allowance in April of 2006. Ms. Jean Fordyce, the Local Union President since 1991, testified that the current two year collective agreement expires on August 31,2005. She noted that in the coming few months following January of 2005, the parties will be exchanging positions in the negotiation of the replacement collective agreement, which is bargained centrally. Ms. Fordyce commented that the procedure followed by the Union is that prior to the exchange of such positions, the Locals submit their proposals to a central Union committee. The central committee then determines which demands will actually be exchanged with the College. Ms. Fordyce stated that on the day of this arbitration, January 19, 2005, she notified the Local team that she wanted the team to press in instant bargaining for an improvement to the protective footwear provision in article 13.2.1.1. Ms. Fordyce acknowledged that there is no guarantee that the central Union bargaining committee will actually put the Local's demand on the table in the upcoming bargaining. The opportunity is there, however, if the Union wants to press for a change to article 13.2.1.1. Having carefully considered the position of the parties, the Board of Arbitration is satisfied that even if there has been a clear and consistent practice under article 13.2.1.1 that receipts would not be required as a form of "evidence ...that protective footwear was purchased", the College has provided the Union with sufficient notice to bring that practice to an end. The Board is satisfied that both the notice period of approximately twenty-one months and an intervening opportunity to bargain changes to article 13.2.1.1 in the negotiations that are currently underway to replace the collective agreement expiring on August 31,2005 are sufficient to negate any detrimental reliance that otherwise might have existed. Measured from the point of the instant Arbitration hearing in January of 2005, there are some fifteen months before receipts will be required in respect of the allowance payable in April of 2006. The Board does not accept the submission of the Union that the practice cannot be brought to an end at the stated termination date of the current collective agreement on August 31, 2005 and, instead, must wait until such time that the parties actually reach agreement on a replacement agreement, i.e. even if that is at some point after August 31, 2005. Accordingly, for the reasons set out, the Board has determined that the College is not estopped through past practice from requiring receipts as a form of "evidence ...that protective footwear was purchased" as a precondition to the payment of $100.00 in April of 2006. Sufficient notice and an opportunity to bargain have brought an end to whatever practice may have existed respecting the requirement of receipts as "evidence ... that protective footwear was purchased", pursuant to article 13.2.1.1. We turn then to the interpretation of article 13.2.1.1, standing on its own, without regard to past practice. It is the position of the Union that the College's requirement to pay the annual allowance of $100.00 in respect of protective footwear is mandatory and is not dependant on the production of "evidence ...that protective footwear was purchased", even when such is required by the College. Counsel for the Union submits that the two mandatory stipulations referred to in article 13.2.1.1 (first, that the College will pay the footwear allowance on the first pay day in April in each year and, second, that employees shall provide evidence that protective footwear was purchased when required by the College) are two separate requirements and ones that are not linked in their operation. Accordingly, the Union maintains that the stipulation that, "The employee shall provide evidence, if required, that protective footwear was purchased" is not a precondition to the College's requirement that it pay, annually, a $100.00 footwear allowance. Having carefully reviewed the evidence and the submissions of the parties, the Board of Arbitration cannot agree. The Board is satisfied that the plain meaning of the two stipulations in article 13.2.1.1, when read together, is that, if required, the employee shall provide evidence that protective footwear was purchased as a precondition to the College's obligation to pay the $100.00 footwear allowance on the first pay day in April of each year. The Board concludes that the plain meaning of the second stipulation in article 13.2.1.1 in respect of the employees' requirement to provide evidence of purchase when such evidence is required by the College is only fulfilled if it is read as a precondition to the College's obligation to pay the allowance. Moreover, the Board is fully satisfied that receipts for the purchase of protective footwear fall squarely within the meaning of the word "evidence", such that the College's requirement for the receipts falls directly within its entitlement to insist that employees provide "evidence ...that protective footwear was purchased". Accordingly, for the reasons set out above, the Board concludes that the College's stated intention of requiring receipts as "evidence ... that protective footwear was purchased" as a precondition to paying the footwear allowance payable in April of 2006 is fully consistent with the terms of article 13.2.1.1 and is well within the College's rights under the collective agreement. In the result, the group grievance, hereby, is dismissed. Date at Toronto this 8th day of March 2005. Pamela Cooper Picher Chair S.C. I concur. "Ed Seymour" Union Nominee I concur. "Michel Riddell" College Nominee