HomeMy WebLinkAbout1989-0888.Jansen.90-05-08 ONTAR/O EMPL OYES DE LA COURONNE
CROWN EMPLOY£ES DE [. *ONTARrO
GRIEVANCE ' C,OMMIS$1ON DE
SETTLEMENT REGLEMENT
BOARD DES GRIEFS
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888/89
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT EOJtRD
BETWEEN:
OPSEU (Jansen)
Grievor
- and -
The crown in Right of Ontario
(Ministry of Correctional Services)
Employer
- and -
BEFORE: M.V. Watters Vice-Chairperson
I. Thomson Member
M. O'Toole Member
FOR THE $. Ballantyne
GRIEVOR: Counsel
Cavalluzzo, Hayes & Lennon
Barristers & Solicitors
· FOR THE S. Wilson
EMPLOYER: Counsel
Mathews, Dinsdale & Clark
Barristers & Solicitors
HEARING: April 14, 1990
The'grievor was discharged from his employment at. the
Toronto Jail on June 12, 1989. A grievance was subsequently
filed in which he claimed reinstatement and full compensation.
The dispute was scheduled for pre-hearing on November 1, 1989.
On that date, Hr George Richards, a Senior Grievance Officer with
the Union, attended on the grievor's behalf. Mr. Greg Lee, a
Human Resources Officer, represented the Employer. The sole
issue in this case is whether the latter gentleman made a
counter-offer which was later accepted by the Union. If a
settlement was, indeed, effected by the parties, this Board would
lack the jurisdiction to proceed with a hearing on the merits.
At the commencement of the hearing, counsel for the Employer
submitted that we Tacked the requisite authority to consider
whether a settlement had been concluded. Counsel argued that our
jurisdiction under the Crown Emoloyees Collective Barqaining Act,
R.S.O. 1980, Chapter 108, as amended, did not extend to the
interpretation of a memorandum of settlement. He further
asserted that the Board could not construe the flow of
documentation between the parties to determine if such evidenced
a settlement. The Employer relied on the award in Sim and Bain,
1387, 1388/86 (Draper) in support of this position.
The Board elected to reserve our decision on the above-
stated objection and proceeded to hear oral evidence. We have
now had the opportunity to fully consider the submission. In our
judgment, we do possess the jurisdiction to determine whether the
parties effected a settlement of the issues in dispute. We think
that this case is distinguishable from Sim and Bain. There, both
parties asked the Board to interpret terms of settlement which
had been reduced to written form. The Board concluded that it
lacked the necessary authority to embark on an interpretation of
the agreement. In this instance, we are being asked a more
fundamental question, this being, whether a settlement actually
exists between these parties. In our minds, this is a
significantly different issue. Indeed, the Board considers that
this case is much closer to the factual situation found in Cover,
256/80 (Kennedy) which was relied on by the Union. It is apparent
from a reading of the award that the Board there was prepared to
interpret written communications in an effort to find whether a
settlement had been reached. After examining these
communications, it held that a settlement did exist. The Board,
therefore, concluded that it would be improper to entertain the
merits of the dispute. In this re§ard, the award states at page
four (4)'
"There are numerous arbitral authorities to the
effect that a grievance that is settled, withdrawn
or abandoned cannot be'the subject matter of a
subsequent submission to arbitration."
We are inclined to adopt an approach similar to that employed in
Cover. More specifically, we conclude that our jurisdiction to
proceed is found within section 19 (1) of the Crown Employees
Collective Barqaininq Act. Under that section, the Board is
empowered to determine, inter alia, whether a matter is
arbitrable. In our assessment, it is necessary for us to examine
the facts in order to properly consider whether these parties
arrived at a binding agreement following the pre-hearing meeting.
If this question were to be answered in the affirmative, this
Board would be deprived of the right to hear the grievance.
Conversely, if the parties were not ad idem, the grievance could
go forward. The Employer would then be required to commence its
case and to show just cause for the discipline. A contrary
finding would, in our judgment, undermine the sanctity of
settlements freely concluded as it would permit parties to
withdraw from such agreements with impunity. For reasons which
are obvious, that result would not provide for good labour
relations. We are consequently disinclined to adopt reasoning
which could have that effect.
The Union argued, in the alternative, that the Employer had
waived its right %o now raise this objection. This submission
was premised on an earlier agreement of the parties to restrict
argument, before another panel of this Board, to whether there
had been a settlement of' the grievance. Zt is unnecessary to
address this argument given the conclusion stated above. Had we
been required to resolve the issue, the Board would have been
inclined to accept the Union's submission as we think it was
supported by the facts.
The Employer also objected to the introduction of evidence
as to what occurred during the pre-hearing of November I, 1989.
Simply put, it was counsel's submission that any discussions
theFein were made on a without pFejudice basis and should
therefore not be admissible. This position was rejected by the
Board at the hearing. The Board agrees with the geneFal
proposition that discussions at a pre-hearing made with a view to
narrowing or settling the outstanding issues would normally be
inadmissible. In this instance, however, it was necessary to
receive such evidence so that we could determine if an
unconditional counter offer had been made on behalf of the
Employer. We think that the type of situation now before us
constitutes an exception-to the normal rule. In our judgment,
evidence as to what transpired at a pre-hearing may be received
to establish the existence of a settlement. Ultimately, we
consider that our duty to determine the jurisdictional issue is
paramount to considerations which might otherwise serve to
exclude the evidence in question. If a Board were to find that a
settlement had not been reached on the facts, the matter could
proceed before another panel on the merits, This procedure would
elimihate the possibility of prejudice to the Employer.
Mr. Richards presented evidence for the Union. The Employer
elected against calling evidence. The testimony of Mr. Richards
may be stated as follows:
4
(i) Mr. Richards attended the pre-hearing on behalf of the
grievor who could not be in attendance on that day. At the
meeting, he presented prospective terms of'settlement to Mr. Lee.
The unexecuted memorandum of settlement read:
MEMORANDUM OF SETTLEMENT
BETWEEN
ONTARIO PUBLIC SERVICE EMPLOYEES UNION
AND
MINISTRY OF CORRECTIONAL SERVICES
RE: Grievance of D. Jansen Dated June 12, 1989
The parties hereby agree as follows:
1. The dismissal of Mr. Jansen dated is hereby
rescinded.
2. All records relating to the grievor's dismissal shall be
destroyed,
3. No reference to the circumstances giving rise to the
dismissal will be communicated to any prospective employer
asking a reference check on Mr. Jansen.
4. The grievor will submit and the employer will accept the
attached letter of resignation,
5, The employer wilt pay Mr. Jansen the sum of $ ,
6. The Grievance Settlement Board shall remain seized to deal
with any disputes that may arise over the implementation of
this settlement.
7. The union shall notify the Grievance Settlement 8card that
the request for a hearing is withdrawn.
BATEB at Toronto, this day of November, 1989.
FOR THE UNION: FOR THE EMPLOYER:
Attached thereto was an unsigned letter of resignation as
provided for in paragraph four (4).
(ii) After reviewing the above documents, Mr. Lee made
certain handwritten amendments to same. Firstly, with respect to
paragraph number four (4), he added the words "to be effective
the date of original dismissal." Secondly, paragraph number five
(5) calling for the payment of compensation was struck out.
Lastly, paragraphs six (6) and seven (7) were accordingly
renumbered. There was little discussion, if any, on the meaning
to be attributed to the other items. The pre-hearing then
adjourned so that Mr. Richards could get instructions on what he
perceived to be a counter offer. It was Mr. Richards
recollection that Mr. Lee did not specify this was a conditional
counter offer in the sense that it required the approval of his
superiors. Zndeed, he believed that Mr. Lee had the "authority
to make a deal."
(iii) the above-noted amendments were communicated to the
grievor by Mr. Richards through correspondence dated November 3,
1989. He enclosed therewith three (3) copies of a revised
memorandum of settlement as well as the draft letter of
resignation. The grievor was asked to review, sign and return
these documents. ~
(iv) Sometime thereafter, the grievor returned this documentation
to Mr. Richards. The grievor had signed the letter of
resignation. Additionally, he inserted the date of June 12, 1989
on same, this being the date of discharge pursuant to the revised
paragraph number four (4). The grievor did not sign the
memorandum o¢ settlement. He did, however, insert the date of
"12 June 1989" into paragraph number one (1) of same. This
document was subsequently signed by Hr. Richards. Zt was his
belief that the grievor had failed to sign through oversight.
Mr. Richards testified that the grievor was "quite content" with
the resolution of the matter. He had no doubt as to his
authority to sign the terms of settlement, Alt of this
documentation was subsequently forwarded to Mr. Lee on November
29, t989.
(v) In a telephone conversation in or about mid-December, 1989,
Mr. Lee questioned Mr. Richards as to the effect of paragraph
number three (3) of the memorandum of settlement. Mr. Richards
then advised that the prohibition contained therein would apply
to prospective employers within government, including the
Ministry of Correctional Services, as well as to those in the
private sector. Mr. Lee indicated that he had not intended this
result to flow from the language of this paragraph. Indeed, he
thought the language would entitle the Ministry to refuse to
rehire the grievor in future regardless of the disposition of
related charges in Court. Mr, Richards-testified that Mr. Lee
wanted to retain a right in the Employer to communicate with
Superintendents of other Ministry facilities as to the facts
surrounding the grievor's resignation.
7
(vi) By letter of December 19, 1989, Mr. Lee purported to
revise the terms o¢ the memorandum of settlement. The m~st
material revision was to paragraph number three (3) which had
been altered to read:
"No reference to the circumstances giving
rise to the dismissal will be communicated to
any other prospective employer asking a
reference check on Hr. Jansen". (emphasis
OM rs )
Mr. Richards was unwilling to entertain this change as he felt
that the grievor sh'ould be eligible for future government work if
acquitted on the outstanding charges. It was his evidence that
Mr. Lee did not, in any way, comment on such a caveat to
paragraph number three (3) during the course of their discussions
at the pre-hearing. He asserted that "a deal would not have been
struck" if Mr. Lee had insisted on the inclusi.on of that type of
provision in the memorandum of settlement. Mr. Richards informed
the Board he was surprised when the Employer attempted to raise
this issue for the first time in mid-December, 1989.
It was the position of the Union that a binding settlement
had been affected by the parties. Counsel described Mr. Lee's
amendment to the original Union proposal as a counteroffer. She
emphasized that this was accepted by the grievor and the Union
before the Employer attempted to withdraw from the agreement in
mid-December. Counsel noted that Mr. Lee did not indicate he was
making a conditional offer nor did he state that the terms of
same had to be approved by his superiors. We were urged to
conclude bhat if such a limitation had been intended, Mr. Lee
8
would have definitely expressed this at the pre-hearing. It was
the submission of the Union that an inference could be drawn from
his silence that he possessed the necessary authority to settle.
In summary, counsel argued that an agreement had been reached on
the appropriate disposition of the grievance. We were asked to
infer from the evidence that Mr. Lee understood the plain meaning
of same and to note that he had not attended at the hearing to
state otherwise. Lastly, counsel submitted that the settlement
was complete on the acceptance of the counter-offer and that it
did not have to be signed to be effective. Thereafter, it was
too late to unilaterally change the bargain, even though it might
then appear to be an unfortunate agreement from the perspective
of the Employer. To quote Union counsel, "second thoughts cannot
undo a done deal." The Board was referred to the following
awards in support Of this position: United Automobile, Aircraft
and Aqricultural Implement Workers of America (UAW - CIO) in re
The Fruehauf Trailer Company of Canada, Ltd., L.A.C. 848 (Cross,
November 30, 1951); United Automobile, Aircraft and A~ricuttural
Implement Workers of America (UAW - CI0) in re The Ford Motor
Company of Canada, Ltd, L,AiC. 1159 (Lang, November 29, 1952); ~.~
Bilt-Rite Upholsterin~ Co. Ltd.. And Upholsterers' International
Union of North American. Local 30, 24 L.A.C. (2d) 428 (Rayner,
November 1979).
In response, it was the position of the Employer that the
parties had never been ad idem on the terms of the settlement,
9
particularly, in respect of paragraph number three (3). Counsel
relied on Mr. Richards statement in chief that the paragraph was
to apply to any "other" employer. He urged we not accept the
subsequent clarification that was made, to the effect that it was
intended to encompass positions within the Ministry, as such was
elicited through a leading question, counsel further argued %hat
reference was not made to paragraph number three (3) in Mr.
Richards notes which were completed after the pre-hearing. We
were, therefore, requested to find that there was no agreement on
that item. Lastly, the Employer submitted that it should be
accorded the right to ratify the terms of any agreement made by
Mr. Lee. Counsel Submitted that such a right was.integral to .the
labour relations system.
The Board has now had the opportunity to review all of the
evidence presented. In our judgment, the facts support the
Union's claim that the Employer made an unconditional counter
offer which was accepted by the Union and the grievor prior to
Mr. Lee expressing concern as to the content of paragraph number
three (3). We have no doubt from the evidence adduced that Mr.
Richards had the authority to make the initial offer and to
accept the terms of the counter offer. Similarly, the Board is
unable to isolate any evidence suggesting that Mr. Lee's changes
to the original offer, which we consider to be tantamount to a
counter offer, were conditional in the sense they were subject to
the approval of others higher up within the Ministry. Mr.
10
Richards did not perceive that this right was retained by Mr.
Lee. It is our judgment, from an assessment of all of the
evidence, that had such right been retained, Mr. Lee would have
expressly declared this to be the case when the amended terms'
were advanced. The Employer's decision not to call Mr. Lee, has
left this assumption intact. In summary, the Board has been
persuaded that the parties did conclude a settlement of the
instant dispute. In so concluding, we reject the Employer's
submission that the parties were not ad idem. From our review of
the evidence, we are satisfied that the Employer offered to
settle the matter on the terms of the counter offer as proposed
at the pre-hearing.
From the facts presented, there was apparently little
discussion as to the content of paragraph number three (3). We
note that Mr. Lee did not make any alterations to this paragraph
as he did with respect to certain of the other items as
identified above. The Board has been satisfied t~at both parties
were content with the meaning of paragraph number three (3) until
the Employer began to have second thou9hts on same in mid-
December 1989. The Employer's decision not to call Mr. Lee as a
witness supports this conclusion. The Board is not inclined to
give effect to the Employer's argument which focused on Mr.
Richards use of the word "other" in reference to paragraph number
three (3). From All of his evidence, the Board cannot conclude
that Mr. Richards in any way suggested to Mr. Lee the paragraph
11
only applied to external or non-Ministry employers. We would
agree with counsel for the Union that the content of paragraph
number two (2) is consistent with this conclusion. We accept Mr.
Richards evidence that "a deal" would not have been reached if
such a restriction had been raised at the pre-hearing of November
1, 1989.
Counsel for the Employer did not argue that the grievor's
failure to Sign the memorandum of settlement constituted a fatal
omission, tn any event, the Board is in agreement with the award
in Bilt-Rite Upholstering Co. Ltd= that settlements do not have
to be put into written form to be binding upon the parties. On
the basis of all of Mr, Richards evidence, we have been persuaded
that the grievor intended to accept the. Employer's counter offer..
His signing of the letter of resignation and the filling in of
certain blank spots on the memorandum is consistent with such
intent. As previously stated, Mr. Richards also testified that
the grievor was satisfied with the agreement. Had such not been
the case, it is unlikely that he would have signed the document.
As an experienced Grievance Officer, he would fully comprehend
the pitfalls of signing such a document without the grievor's
consent and direction.
The Board has not been satisfied that Mr. Richards notes are
all that helpful in the resolution of this dispute. They are'
very brief in nature and, clearly, were not intended to document
all facets of the settlement.
12
The Board, therefore, concludes that the parties settled the
matter on the terms of the Employer's counter-offer as outlined
above. It is not this Board's task to interpret same, nor were
we ultimately asked to do so. In our judgment, it is up to the
parties to give effect to their agreement. Given our finding of
fact, the Board does not possess the jurisdiction to entertain
the merits of the dispute.
Dated at Windsor, Ontario this 8th day of Hay , 1990.
M.V. Wat~;s, Vice-Chairperson
13