HomeMy WebLinkAbout1989-0812.Zonni & Hardy.91-08-01 ONTARIO EMPLOYL~S DE LA COURONNE
CROWN EMPLOYEES DEL 'ONTARIO
GRIEVANCE C,OMMISSlON DE
SETTLEMENT REGLEMENT
BOARD DES GRIEFS
180 DUNDAS STREET WEST, SUfTE 2tOO, TORONTO, ONTARJ~D. MEG ?~,,~ TELEF~OIVE/TE~F~ONE.. (4t$) ..7----~- t38~
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812/89, 1472/89
~N THE ~TTER OF
Under
THE CROWI~ R,v.P~ES COLLECTIVE~B~IN~N~ ~CT
Before
CUPE (Zonni/Hardy)
Gri evor
The Crown in Right of Ontario
(Workers' Compensation Board)
Employer
BEFORE: B. Kirkwood Vice-Chairperson
T. Browes-Bugden Member
I. Cowan Member
FOR THE B, Toop
GRIEVOR National Representative
CUPE Local 1750
FOR THE R. Stewart
EMPLOYER Counsel
Winkler, Filion & Wakely
.. Barristers & Solicitors
HEARING April 25, 1991
D~CZSZO~
The Union claimed that the Board violated articles
24.04 and 24.05 of the Collective Agreement by its failure to
reimburse the grievors for kilometrage costs incurred by them
in attending a training session at the Downsview
Rehabilitation Centre on June 6, 1989 in the case of Mr.
Hardy and June 8, 1989 in the case of Mr. Zonni.
It was agreed by counsel for the parties that the
evidence as given by the grievor Dennis Hardy was
representative of the evidence of Mr. Zonni, with one
exception which we have referred to in this decision.
The grievors were Rehabilitation Counsellors. As
their job was to find gainful employment for injured workers
with either their prior Board or with other .employers the
grievors had to have a car to perform their Job. They spent
one day a week in their office at 2 Bloor Street East and the
balance of their time on the road.
From 1982 to 1986, Mr. Hardy was paid a kilometre
allowance for his attendance at training sessions and
meetings which were held for the most part outside his normal
work base, once a year.
In 1989, the Board changed its computer software to
improve its system for the payment of benefits to injured
workers. 'In order that. all its employees would be able to
use the new procedures, the Board held a training session for
both their bargaining unit and non-bargaining unit employees
in eight of their Integrated Service Units (ISU). As there
were approximately 98 to 150 employees involved in each unit
and there was little time to implement the system, the Board
held the training session at the Downsview Rehabilitation
Centre. Due to the numbers of employees involved in the
training session, the Board decided not to pay for any
kilometres travelled to the transportation, but provided
alternative arrangements for public transportation. A
memorandum dated May 24th, 1989, was.forwarded to all staff
and members of the ISU which included both bargaining unit
and non bargaining unit staff advising them of the
transportation arrangements. The memo stated:
As you are all aware, WBS training for ISU staff will be
commencing on June 5, 1989, at the DRC.
For the convenience of staff, arrangements are being
made for charter bus service from Wilson subway station.
As bus will leave the Wilson subway station at 8:30 a.m.
each morning and transport staff to'the DRC.
The bus will also transport staff from DRC back the
Wilson subway stop at the end of the day.
Staff will be asked to make their own .arrangements for
transportation between their home and the Wilson Subway
Station. While the Board will reimburse staff for
return subway fare, mileage cost will not be paid. For
those individuals who opt to drive to DRC, mileage costs
will not be paid, however, free parking is available.
Lunch will be provided at DRC at no cost to staff.
Mr. Brown, the grievors' supervisor, testified that
management staff advised employees that there would also be
taxis available for groups who had missed the bus.
Mr. Hardy did not recall whether or not he was
given the notice. The Union agreed that Mr. Zonni received
this notice.
After considering the procedure that was followed
by the Board, Mr. Brown's undisputed testimony that he spoke
to the grievors on two separate meetings prior to the
training session, explaining the situation, and Mr. Hardy's
testimony that he submitted his claim for this particular
kilometre charge separately from his usual claims as he
expected his claim to be rejected, we find on the reasonable
balance of probabilities that Mr. Hardy, did have notice of
the transportation arrangements.
On the days of the training sessions, the grievors
took their cars and submitted a claim for the kilometres
covered as they had done in previous years, and their claim
was denied.
The Union's counsel submitted that the Collective
Agreement incorporated the expense policy in Article 24.04.
He argued that the collective agreement was ambiguous and
past practice could be used as an aid to interpretation, as
the article did not determine when an individual could use a
car and it made no reference to training sessions. The
Union's counsel argued that the Board was bound by article
24.04(a) of the collective agreement to continue its past
practice. Alternately, he submitted that the Board was
estopped from changing its practice until the next Collective
Agreement. was signed.
The Board's counsel submitted that it was inherent
in the exercise of management's rights in the collective
agreement that management reserve the right to choose the
most appropriate means of transportation. The Board
considered fairness, efficiency and economy before deciding
that alternative transportation would be 'made and
specifically precluded the claim for kilometrage for
attendance at this training session.
The Board's counsel argued that the collective
agreement was not violated as article 24.05 applied only if
the employee was required to use his car. In this case, he
submitted that the grievors were not required to use their
car as alternative means of transportation was provided. He
further argued that the. Board did not violate the policy as
reimbursement for transportation had to be authorized which
in this case it was not. He further submitted that the Board
was not estopped from not reimbursing the grievors as the
grievors were not detrimentally affected by the policy.
Article 24.04(a) and 24.05 state as follows:
24.04 Meal allowance
(a) The current practice concerning meal and
expense policy will be continued for the
duration of this Agreement.
The daily meal allowance for three meals in a
day is subject to a maximum daily allowance of
$23.00
This amount is itemized as follows:...
24.05 Kilometrage Rates
(a) If an employee is required to use his own
automobile on the Employer's business, the
following kilometrage rates shall be paid:
Effective May 30, 1990:...
The relevant portions of the Policy and Procedure
Manual state.
EXPENSE ACCOUNTS - EXPENSE ACCOUNT POLICY
POLICY
It is the policy of the Worker's Compensation
Board to reimburse employees for expenses
incurred in the performance of their assigned
duties in accordance with the general
provisions set out below.
Under no circumstances does the Board require
an employee to incur reasonable and necessary
expenses for the conduct of Board business,
without reimbursement within approved
quidelines, as a condition of employment.
TRAVEL AND TRANSPORTATION
GENERAL
All travelling expenses, within budgetary
limits are to be authorized by the employee's
immediate supervisor. This authorization is
subject to further approval as may be required
by the Executive Director concerned.
METHOD OF TRANSPORTATION
The method of transportation used will be that
which involves the least expense to the Board
considering both the dollar cost and the
travelling time involved.
PUBLIC TRANSPORTATION
Where public transportation is used by an
employee on Board business, the expenses will
be reimbursed.
AUTOMOBILE TRAVEL
An employee may, with supervisory approval,
drive his or her own automobile on Board
business.
DISTANCE TRAVELLED BETWEEN EMPLOYEE'S RESIDENCE AND THE BOARD WORK BASE
An employee using'his or her own automobile or
a Board automobile who is required to travel ·
on Board business, will not be .allowed to
claim from the distance travelled between the
employee's residence and the Board work base
unless approved by the employee's supervisor~.
It was established and it was agreed by the Board
that it did in the past pay rehabilitation officers for the
costs- of kilometres travelled to training sessions held
outside the normal work base and the Board did admit that on
this occasion it changed its policy.
The management has a broad ability to manage its
workforce under the management rights clause. However, these
rights are subject to the rights and obligations negotiated
in the collective agreement.
Article 24.04 and article 24.05 set out the rights
and obligations relating to meal and kilometre allowances.
The ambiguity in article 24.04 lies in the use of the words
"expense policy". The term "expense policy" is very broad
and therefore we do not find that it is circumscribed by the
Board's past practice of reimbursing the grievors for the
kilometres travelled to training sessions outside the normal
work base. Similarly do we do not apply such a narrow
interpretation and find that it is limited to the meal
allowance. The meal allowance is contained in the article
and such an interpretation would make the words "expense
policy" redundant. We find however, that "expense policy"
refers to the Policy and Procedural Manual which contains 9
pages relating to the conditions for payment of expenses for
both bargaining unit and non-bargaining unit personnel.
By including a reference "expense policy" in
article 24.04, the parties have agreed that the terms of the
expense policy as set out in the Policy and Procedural Manual
will not be changed during the course of the collective
agreement.
The issue is then whether articles 24.04 or 24.05
of the collective agreement have been violated and whether
the expense policy has been changed.
Article 24.05 of the collective agreement set out
the rates payable for each kilometre travelled when an
employee "is required to use his car on the Employer's
business."
We do not find that the grievors were required to
use their cars on these occasions. On this case the grievors
had to attend on Board business to attend the training
sessions, but as alternative transportation was provided,
they did not require a car.
Furthermore, the policy set out the terms and
conditions of entitlement and reimbursement of kilometrage
rates. Article 24.05 cannot be interpreted to entitle the
employees to reimbursement for kilometres travelled mere}y
because the employee needs a car to do his job on most days.
The employee must meet the pre-conditions set out in the
policy. The policy required authorization 'for reimbursement
of expenses. In this case the Employer specifically revoked
any authorization that may have been implied from past
practice.
'Therefore the grievors cannot on a strict
interpretation of the collective agreement be entitled to a
recovery of expenses for kilometres travelled.
The issue is then, can the Board rely on its strict
legal rights under the collective agreement and refuse to pay
these costs on the basis of its past practice. In order to
do so, the union must .use the principle of estoppel as a
sword, to create a Substantive right which was n6t contained
in the collective agreement.
The application of estoppel as a sword has been
both accepted and rejected by arbitration boards. However,
without determining whether it ought to be applied in this
case, and assuming that it can be applied as a sword, there
is a fundamental difference between this case and the
principles that were developed in the cases presented by the
union. Although we are not bound to follow those cases,
those cases illustrate a fundamental principle that must be
present for estoppel to apply which is not present here. The
essence of estoppel is to correct inequities that flow from a
'~" 10
strict interpretation of the contract by parties to the
contract, who have relied on conduct or promises that have
not strictly conformed to the wording of the contract. The
parties to the contract are the Board and the union. The
parties in the case before us are the Board and the union,
but the affected party is the grievor. The grievors must
then, to be successful, rely on the contract as "amended" or
interpreted by the. parties to the contract after the
application of the principles of estoppel.
The cases submitted by the Union illustrated the
relationship between the actions of one party and the
detrimental reliance of the other party. Each one was a
union grievance. Where -the employer was estopped from
interpreting the collective agreement to its benefit, the
union had been induced or had acted On the employer's
representation, to its detriment and had been prevented from
negotiating an item during the term of its collective
agreement.
In RE CN/CP Telecommunioations and Canadian
Telecommunications Union (1981) 4 L.A.C. (3d) 205, which
was upheld by the Divisional Court at Re C.N.R. et al. v.
Beatty et al. (1981) 128 D.L.R. (3d) 236, 34 OR (2d) 385, 82
CLLC para. 14163, the employer had gratuitously paid wages to
a group of employees for the three day waiting period before
weekly indemnity payment began. The arbitrator barred the
employer from discontinuing the practice during the balance
of the term of the collective agreement as the employer had
by its conduct induced the union to believe that the practice
would continue and the strict rights under the collective
agreement would not be enforced, and the union, by forbearing
to bargain for the continuation of the benefit, had
detrimentally relied on the Board's representation.
11
Office & Professional Employees' International Union,
Local 166 1 L.A.C. (4th) 418 (P. Haefling) the arbitrator
held that management could not change a longstanding practice
and exercise its management's rights to eliminate designated
parking spaces for bargaining unit members. The employer had
induced the union to rely on its past practice by. providing
the current rules and regulations relating to parking spots
to the union during its negotiations. As a result the union
was affected detrimentally by not negotiating this item at
its negotiations and was prevented from resolving the issue
until the next round of negotiatfons.' The same principles
were applied in Re Windsor Western Hospital.Centre Inc.
(I.O.D.E. Unit) and Ontario Nurses' Association 8
L[A.C. (4th) 116 (Watters).
This is fundamentally different from the case
before us, in which the party,' the union, was not a pgrty to
the agreement as' modified by the affect of estoppel. There
was no evidence that the union knew of the past practice;
that it perceived the arrangement as a part of the agreement
with the Board, which effectively would interpret the
collective agreement. Nor did the union rely on that term to
'its detriment. There was no evidence that the Union relied
on the representation of the Board that it would pay these
expenses for all training sessions, and therefore was
prevented from negotiating this item in any negotiation
session. In the case before us, it was the individual
grievors who were not parties to the contract, that were
attempting to fix a term of the contract and thereby, bind the
union to their position.
Furthermore, the application of the principle of
estoppel whether it be used as a sword to create or enforce a
substantive right or alternatively as a shield, it is an
equitable remedy and is used to correct an inequity. In this
situation there is no inequity, the grievors were treated the
same way as all t~e other employees. They were provided a
means of transportation and reimbursement for public
transportation as were all the other employees.
In conclusion we find that the Board is not
estopped from exercising its management's rights. It did so
within the context of the collective agreement and the
expense policy. Therefore this grievance is dismissed.
Dated at Toronto, thi~Ist day of August, 1991.
B. A.'Kirkwood, Vicechairperson
T. Browes-Bugden~Uni°n Member
I. Cowan~ Employer Nominee