HomeMy WebLinkAbout1991-0860.Policy.92-03-17~-'~ :-.: '" ~ ONTARIO EMPtO YES DE LA ¢OuRONNE
~" ' "~' '~ ' ~ ~: ' CROWN EMP£ OYEE$ DE,~ 'ONTARIO
GRIEVANCE C,OMMISSION DE
SE3'FLEMENT REGLEMENT
BOARD DES GRIEFS
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860/91
IN TH~ MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES coLLEcTIVE BARGAINING ACT
Before
BETWEE~
OLBEU (Policy Grievance)
- and-
The Crown in Right Of ontario
(Liquor Control Board of Ontario)
Employer
BEFORE: H. Waisglass Vice-Chairperson
G. Mai esky Member
R. Scott Member
FOR THE L. Steinberg
GRIEVO~ Counsel
Koskie & Minsky
Barristers & Solicitors
FOR TH~ R. Little
EMPLOYER Counsel
Hicks, Morley, Hamilton, Stewart, Storie
Barristers & Solicitors
HEARING October 11, 1991
January 8, 1992
GSB 86~/gl
IN THE~ATTER OF AN ARBITRATION ,
UNDER
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
BEFORE
THE GRIEVANCE SETTLEMENT BOARD
BETWEEN:
OLBEU (POLICY GRIEVANCE)
GRIEVOR
-AND-
THE CROI~N ~N RIGHT OF ONTARIO
(LCBO)
EMPLOYER
BEFORE: H.J. WAISGLASS Vice-Chairperson
G. MA3ESKY ~ember
3, SCOTT Member
FOR THE GRIEVOR: LARRY STEINBERG, C'ounsel
Koskte Mtnsky
FOR THE EMPLOYER: ROBERT LITTLE
Hicks, ~orley
HEARINGS: October ll, L991 AND January $, 199Z
DECISION
This ~s n Union Policy Griewnce dated ~y 23, ~991 ~nd submitted by the
President, 3ohn £oones, alleging that the changes introduced by ~he Employer
!
regard(rig the shift scheduling For Asstston~ ~ogers v~ot~te, amon~ othe~
things, Articles ~,¢ ((ti) and 6.1¢ of ~he cottec[tve og~ee~ent.'The grievance
asks "6or oil employees to work according to the collective agreement os ~n
the post,-and the new practice to cease (m4n. edtatety."
The grievance w~s clarified at the hearing, Prior to the change att A and 8
skores were staffed by one monage.r (not ~n the bargaining un~t) and two
assistant managers (in the bargaining uni~). The assistants rotated on o
weekly basts between the dog and afternoon~shiFts. The change eliminated the
2
positron of one assistant and required the other to work steady afternoon
shifts, while the manager worked steady day shifts. The Union ~lleges that the
new practice of pernmnentty ossign(pg on ~ssiston~ manager (n the A and B
stores to the afternoon shifts violates the collective agreement, particularly '
Article 6.14.
The Union submits ~hot ~he grievance had been settled at o meeting he~d on
October 7, ~99~ (n the office of Gar She~ood, L£~O's V~ce-Pres~dent,
The meeting was celled by Sher~od for
resolution of this grievance in advance of the he~ring dote that had beenlset
For October ~lfh. Attending that meeting were Sherwood, accompanied by Sandy
R~e, Director of StoF~ Relations and Cannes, the Un,on President, accompanied
by the Business Agent, Heino Nielsen. Each of these Four persons testified at
the hearing.
The issues before this Board to decide ore whether or not the grievance has
been settled~by the port,es; and (F ~o, ~t ~re the terms of the settlement
upon which they hod agreed.
There are no significant differences between the four ~itnesses in their
testimonies regarding ~hot took place at the meeting of October ?th and the
exchanges between them the next day. The Employer and the Union boEh
acknowledge that there had been on agreement ~n principle reached orally
that day, but the Employer submits that the agreement ~s not completed in
that it h~d not been put in wr~t(ng, which both pert(es h~d undertaken ~o do.
Once the po~{es had completed their discussions Qn the substantive points For
the settlement, the Union indicated after a bmief coucus that it accepts the
Employer's oFFem. The Union mode no Further ¢ounteroproPosols. At that po(mt,
when tt ~os cieor to oil four ~tnesses that they hod on mgreemen~ tn
principle, the Employer asked the Union if i~ ~utd now withdrow the -
grievance. The Union ~greed to ~thdro~ the grievonce, hue not i~ediotely,
not until the agreement ~os put in ~riting. The Union asked ~o hove ~hi~ done
(mmediotel7 before the participants lef~ thor meeting. R~e offered to prepare
~ draft of the ogreqment in princEple and send it Eo the Union by 6ox eorl~
next ~rning. This ~os accepted.
The next day, after Iunch-time, and after the Union had responded by fox to
the Employer's first draft oF the terms of settlement, the Employer had beco~e
aware of a substantive matter whtch tt had not r~ised ~t the meeting the
previous day. That afternoon the £mptayer tn6or~ed the U~ton that the
agreement would, apply only to current ~ncu~benis of the o~s~stant manager
position and not to future incumbents ~nd tt required ~h(s provision to be
included ~n the ~emoP~ndum o~ settlement. The Union eefuses to add this new
substantive provision, ~nsisting that ~he deal hod been co, plated and closed.
The Union representatives left the October 7~h meeting believing that the
grievance had been set~ied and tha% it remained-only to complete the
procedure! undertakings made by bo~h par~ies to express that verbal settlement
tn ~r~ing and then to inform the GS8 ~ha~ tt v~! be unnecessary ~o proceed
with the scheduled hearing because the grievance was se~t~ed. I~ ~s the
Union's view that the question oF "withdrawal' was a matter of informing the
GS8 that the hearing scheduled for the next week could be cancelled.
Un(on witnesses testified that the Union's response [tha'~ (6 wilt
{t has the settlement tn writing] was intended to keep pressure on the
E~ployer to complete the task oF writ(rig the m{nutes of settl~ent, tn order
to avo(d the unreasonable delays that ~t h~d previously experienced i~ similar
s~uot~ons.
The Employer's representatives testified tha~ ~hey regarded the Union's
refusal to "~rLthdrow*' the grievance to mean ~hat the grievance ~s naa serried
until such time that the ~greement in principle i~ put in writing.
In a literal sense, o grievance may De w~hdrawn only before tt (s resolved.
~tthdrowal impltes ~hat the grievance ~i~l not.be pursued towards ~s
resolution. The settlemen~ of ~ grievance implies that the ~rtevonce is no
longer there to be withdrawn or pursued, ond need not De ~djudtcated. I~ ts
not pursued further because there is nothing ~eft to be pursued.
find that '~hen t~e~orties s~Qke of the "withdrawal oF the ?iqvpnce~', at
~he. October 7 ~eetin~, they had tn mind th~$ mace ~rec~s~ meaning: "~thdram.~
the Un~on's g~plicoti~n to_adjudicate the Urt~yonce~
4
The Employer's conduct the next day, (n prepo~ing and sending to the Union its
written version of the agreement in princkple, confirms tho~ the grievance had
been settled verbally. The Employer's oF~er to settle was presented and
discussed. In the course of discussions the Emp~oyer'agreed to modify its
offer (n accordance with some of the proposaks put forward by ~he Union, The
modified offer was accepted by the Union. The Union bresented no counter-
proposals, Its acceptance ~os cleorly~rlthout conditions and ~ithout
reservations, Neither party presented'further substantive points. There ~os
meeting of minds on all o~ the substantive aspects o6 the grievance which were
presented end dEscussed at the settlement meeting. Sherwood testified that he
had authority to settle and that he presented and explained to the Union
o~ the points contained (n the memo he hod prepared For h(mself in mdvance of
the meet(n§. Also, he comf~rmed that it was not in h~s mind ~0 msk the
to "grondfmther" the settIement; that is, to rest~c~ its Opp~icotion to
assistants currently o$signed to t~o-shift s~ores. He testified that he ~ouid
have presented this proposition hod it been En his mind to do so, but tt hod
not come to his m(nd.until the oFter~oon o6 the nex~ day. He testified also
'that he had earlier presented th(s point ~s port of o proposed package
settlement for ~he grievance at 6 meeting ~4th the Union ~he prev(ous June.
The package was rejected and ~h(s port(culor'po(nt hod not been
ogotn after that meet(ag in June, not until after the agreement in principle.
was reached.
The Board f~nds that the grievance ~s settled verbally. At the t~me of
se klement all of the terms ~nd condition~ canto{ned in the Employer's offer
~ere accepted by the Union as a complete pa~koge, The package settlement
resolved oll outstanding substantive Factors and precludes eitheP poPty from
subsequently pursuing any chonge or addition to, or delet(on from the ~ackag~.
Upon completion of the settlement verbally the port%es undertook to express
its terms, in o written memorandum promptly the next day. The Employer's f~rs~
draft o~ the settlement terms did no~ contain the substantive restrEc~on
wh%ch the Employer later attempted to impose. The Union has the Pight to
re~use the EmpIoyer's proposat to odd to or to chon§e substantively the terms
of settlement which the parties had agreed upon verbally. £onsequently, the
Employer.refused to complete (ts undertok{ng to put %he settlemen~ terms
o ~emo~'ondum, Nevertheless, the verbal agreement reno(ns o~d expresses the
ter~s upon which the grievance is resolved.
It now re~otns to determine Iwhot were the terms upon which the grievance was
serried orally. They ore expressed and confirmed tn the evidence produced at
the hearing, porticulart~ by Exhibit 1 [the first drafts of ~he ~greement
which the Employer ~nd the Union hod submitted to e~ch other] and by ~hot ~[
four witnesses agreed were the ter~s end conditions for settlement ~hich hod
been offered by ~he Employer and accepted by the Union.
We establish as ~oct tha~ the parties hod agreed upon the fo~'ko~ng points'
(1) The terms of the settlement shall become effective November
I,~991.[Thts is indicated by Exhibit 1. 2t ~s contained in
each droft.]
(2) Assistant managers tn double ~hift sto~es shall be assigned
to woPk the afternoon (second) shifts on a weekly or biweekIy
rotationaI b~sis. The assistant m~nager sholI not nor~ally he required
to work more than half of the scheduled second shifts within the one-
or two-week cycle. [This is confirmed by the exhibits as well as the
~fva vo~e evidence of the witnesses.]
Assistant managers ~y elect to be scheduled to ~o~k mor~ than ho~{ of
the afternoon shifts on o voluntary basis. ~t is understood however
~hat the assistant. ~nager h~s the right to revert to rot~tion~[
schedu~in9. Scheduling preferences must be indicated before store
staff schedules ore completed. [This is confirmed b7 the exhibits and
the ~ ~oce evidence.]
(4) ~hen the assistant monogee has not been assigned to work the a~ePnoon
shift, this ~ssignment wire be offered to ~he most senior employee in
the next ~owest c~osstficet~on tn the store who ts quaEtfted to
perform said ~sstgnment. [This term Ks .in the Employer's first
draft and confirmed by the Union's draft, as well ~s by viva race
evidence.]
(5) ~hen asstgning e~ployees :o the second ~htft, the Sto~e h~noger will
make eveey reasonobte effort to balance the needs oF the staff with
operQtionoI requirements of the store. [This term is expressed in
Employer's first draft and the Union does not deny that it was
included tn ~he verbal offer which it had accepted.] ,
The above five points express completely the substance of the verbal agreement
to settle the grievance. It represents o meeting of the minds of the parties
at the time the offer was made and accepted. No other substantive issues were
raised. If there hod been onylother substantive point(s) inlthe m(nds of the
parties at the time of the negotiations which concluded in the var'be!
agreement, they~ould have been and should have been expressed in their
respective offers and/or counter of Eer$. The Employer hod included the
regarding the restrict(on of the agreement to curren£ employees, in on earlier
offer which had been presented to mad rejected by the Union the previous'June.
it iS quite legitimate for the Un,on to consider that point to hove been
withdrnwn when it is not raised again ~n the' course o? ~he negotiaeions that
were resumed in October,
In pddition to the above-noted substantive points of agreement, the part,es
hod. agreed atso, o% the time, ~o two procedural matters which Followed the
verbal agreement to set~le the grievance. After'the Union refused his request
to withdraw the grievance immediately, saying not" until language covering
agreement in p2incipte ~s drafted and accepted", Roe undertook to dr~ft the
language covering the agreement in principle. The Unio~ asked him to do tt
"~s soon as possible as arbitration date is set ~or October llth". Rme
responded quickly by foxing~the droft to the Union the next manning. Their
conduct confirms the view thor language drofting.~os o procedural matter, no{
a condition o~ settlement. It w~s not raised until after the Union had
accepted the Employer's offer to sortie.
The second procedural matter which the parties hod a~reed upon, Following
their agreement to settle.the grievance, concerned communications Peganding
the set~Iement to the mona§ers and employees affected by it. In response 'to
the Union's request, Sherwood undertook to let the Union see any circ~lor$
regarding %he mgreement before they are sene to the emptoyees.
?
There is a statutory requirement that a collective agreement must De ~n
writing. {Crown Employees Collective Bargaining Ac~, 1 (1) Cd); and
There ts no similar statutory requ~r~nent regarding the settlement of
grievanceS. A verbot agreement to settte ~ grievance ~s b~nd~ng o~) both
parties, It does no~ hove to b~ tn writing. ThSs ~s ~Fftrme~ by the Follow~ng
case~ brought to our attention by counsel ~o~ the
Re BILT-RITE UPHOLSTERING AND UPHOLSTERERS' UN~ON {Z4 L,A.C.(Zd) p.4ZS};
RE CONTZN[NT~L CAN CO & GRAPHIC ART INT'L UNZON {~0 L.A.C. (2d) p.35}.
RE SUSS ~OOD£RAFT LTD [19&3-OLRB Rep. April
R~ PERFECTION RUG CO LTD [~9$4-OLRB Rep 2mnuory
It should be noted that the Crown Employees Collective Bargaining Act
encouroges ~he parties to determine their own grievance procedures on o
voluntary hosts. The §rievonce procedures ore not prescribed ~n the ~ct, The
statute also encourages the voluntary resolution of grievances ~nd prov~de~
for arb(trotion os a last resort: '"Every collective agreement shall be deemed
to provide that tn the event the parties are unable to effect ~ settlement of
any differences between them ....... such matter mmy be referred for arbitration
to the Gr~eYance Settlement Board." [Section 19 (~)].
It shoutd be noted further that the .Collective Agreement contains ~ gr{evonce
procedure ond that the Preamble to that Agreement stQtes ~hoE tis ~urpose "ts
to establish mhd continue h~rmon{ou$ relations between the Employers amd the
employees covered Dy thls Agreement and consistent there~th to provide
procedures ~or the prompt ond ~ust d~sposition.of d~f~erences Qnd grievonces."
There is nothing tn either {he ColLec~(ve Agreement or the governing stotute
thor requ~es the settlemen~ o~ grievances in wr~inN. A collective a~reemen~
must be in ~riting, bu~ not the settlement of a grievance, It ts incumbent
upon grtevQnce orDitrQtors to sho~ defereoce to the voluntor~ settlement of
grievances ~hether or not such settlements Qre expressed in writing or
verbally. Section 29 of the Act ~oes not permi~ the Grievance Settlement Board
to decide o d~f~eremce in the event thor the p~rEie$ are ob!e to e~ect o
settlement of that difference voluntorily~ ~hether orally or in ~riting,
8
We h~ve exom~ned the case law referred
~e'h~ve cqns~dered car~(~l~y ~he re~re$~totions mode ~ r~spec~ to ~he
~ppttcobiltty of those cases'to the case at hand. With respect, ~e Find mo~
of those cases ore not relevant to the questions we must
grievance is settled by on oral agreement and ~hethe~ on oral settlement of
grievance is enforceable, i
The Bowt~ko case [79 D.L.R. (~TH)] concerns negotiations for a complex
co~m~ercial franchise contract, where there ~as an oral ~9reement on s~ne
poin[s of variation fro~ ~he s~andard form of the franchise ~reement. The
cou~t found ~ho~ no final agreement hod been reached. "Tile co~plex te~s
the ~greement could not be regarded as mere formaI[ties or os routine
~angua§e, and, os the subsequent conduct of the para,es sho~ed, ~here was no
a~ree~ent between them on these
Zn the Nonoi~o case [Nana[mo Daily Free Press andI the Vancouver
Typographical Union, Loca[ 22e --Unpublished arbt[ratton decision] [he .U~ton
Fa(led to estobl[sh tha~ there v~s a set~le~en~ moJe between the parties. The
~rbitrotion board [H.A. Pope, Cho~r] Finds there was o misunderstanding
bet'~een the parties as to whot wos conctuded between them. Unlike the case at
hand, the Arbitration Board in that case Found: "The Un(on leF~ with the
understanding that the dispute h~d be~n settled whereas the E~p[oyer [eft with
the understanding ~hot the disputed ~ork~outd continue to be done by members
of the b~rg~in~ng unit .... ~
The Graphic Centre case [19?60LR8 Rep ~ay 221] is distinguishable in that
it concerns the duty under the Ontario Labour Re,arians Act [l~.ke other
collect(ye bargaining statutes] "to borgoin in good Faith and make every
reasonable effort to make a caE[ecl(ye agreement". Like the Cro~n Employees
Cotlect(ve Bargain(rig Act and other similar statutes, the Labour Relations Act
defines ~ c~llective agreement as "an agreement in ~riting". ~e p?oces~
requirements For de.~ermining q collective agreemen~ are on enti£e~y d~.fferen~
mgtter ~han For the determinat~on of o ~r(evance se~lemen%. ~hile ~he
collective borgaining statutes noted above requi~e a coELective agreement to
be'in writtn~ nothing in the applicable statutes nor in common taw requires
.tha-t the terms of settlement of a grievance arising under a cotlec~[ve
agreemen~ De expresse~ in writin~ before tha~ settiement can be enforced in
As exp!oined in the Perfection Rug decision [cited above]:
"..In complex matters, negotiations may proceed o~ally un~il the po~ies Fee!
they h~ve reoched ~greement (n ppinciple, leaving the
details to be woPked out thereoe~er in ~he process of d~of~ing o ~itten
ogreemeot. To the extent the anticipated ~ritten ogreemen~ is required or
expected to contein terms or resolve points no~ 6inolized du~(ng oro~
negotiations, it con fairly be s~id ~hot there is no ~greemen~ until the
required document h~s been finalized and executed. Delivery and execution o~
~he onttcipoted document is, tn those circumstances, o precondition to the
existence of ~ bindtng agreement. In each cose.v~here o written agreement is
contempIoted, it is 'a question of constructton, whether the parties tntended
that the terms agreed should merely be put into form, or whether they should
De subject to a new agreement the terms of which ore no~ expressed in
de~oil' ~
In the case before this panel, the evidence i~s very clear that the parties hod
completed on oral ogreemen~ on %he terms of settlement Fog %his grievance ~nd
thor the oral ne§otiotions left no subs%ontive points to be finolized and no
de~oils to be worked out thereafter in ~he dt'a~ting process. The Facts of
this case indicate tha~ ~he parties intended that %he ~erms agreed upon should
mereIy be pu~ into Form,
The Spottiswoode case [June ZO,194g, All Engtqnd L~ Reports'Anno%oted
Vol. Z, Spo%tiswoode v Doreen Appliances, Ltd. (~o~d 6,eene M.R.),67j concerns
o l~ndlord ~nd tenant dispute where the court found that the agreement between
the parties was "subject to con~roct" which under settled low clearly meons
that "~he intention of the parties is that neither of them is to be
contractuol!y bound until a contract is signed in the usual ~oy." ~hot ~he
parties hod in e{fect is nothin~ more than "o cant?act ~o enter in~o ~
10
contract, which, the authorities have established now quLte p1ainly is not d
b~nding contract at all." In the grievance case before us, the tegal question
oF ~subject to contract~ is not in evidence.
Again, tn ~he Davis of Georgia case [ 65 WWR,~B.C. 1968, Nunroe,J.,
p. Z5[]the dispute invotved o conkroct for the purchase o~ putp mQchines where
the agreement ?or sate ~s "~ubject to. contract", and where the court held
that no en{orceoble agreement ever come in~o being since the port,es were
never ad ~dem os to the terms of the contract; at no time d~d either potty
ever regmrd itself os contractually bound in specific terms os appeared from
the fact of their continued negotiations and bargaining. In the grievmnce
dispute at hand we have found the parties were ad idem, and the evidence
indicates that the parties acknowledged that they had on agreement in
principle, and tho~ ~heir agreement was not "subject to contract'.
We short now examine what we'bel{eve is the most pertinent among the decided
cases refer~ed to us by Employer's counsel. In the Toplin case [GSB'
'OPSEU AND HINISTRY OF CORRECTIONAL SERVICES] Vice-choir Samuels dismissed the
Ministry's preliminary objection -that the grievances hod been settled- on the
?ouDds that "there ~os no settlement in this testimony. While it appeared to
the Ministry thor o number of the grievor's concerns hod been met, at no time
had oll the details of a settlement been agreed by the parties ..... UntJ[
all the ter~$ were agreed ~n one package, the part~es ~ou~d have no
set~Jemen~, And ~hey never teethed ~he poin~ of agreeing on all the terms
o se~t[ement. Un~! such ~ point ~s reached, either party could change its
m~nd ghoul Ony of the ~te~s which ~y hove se~ed se~sfectony o~ [he
The facts in the grievance before this poneZ are tn contrast to the Facts in
Topttn. Unlike that case, the Union in this case accepted all of the-terms
contained in the Employer's offer. There ~os nothing left to negotiate. ~hen
the Union accepted alt of the ~erms ~n the Employer's package~ the parties
reached the point of agreeing on all the ~erms of a settlement. It is no~ ~oo
ta~e For e~her the Union or the Employer to add o new term or to change i~s
mind about any of the ~tems in the agreed package.
For the reasons s~ Forth herein, the Board decides that the grievance
succeeds. The Board Finds that the grievance has been settled on the
facts set ~or~h above and directs the Employer to implement the settlement
forthwith.
DATED AT HAmiLTON, ONTARIO~ THIS
"I D~ssen=" (dissen'c a=tached)
R. SCOTT,
Between: ~.
ONTARIO LIQUOR BOARD EMPLOYEES' UNION
-and-
THE CROWN IN THE RiGHT OF ONTAR~IO
(Liquor Licence Board of Ontario)
The Grievance Settlement Board
Grievance - Policy
860/91
UNION NOMINEE ADDEND UM
After reviewing the award in the above captioned matter, I am delighted that an
award of the Grievance Settlement Board speaks to the fundamentals of sound labour
relations. I believe the board has taken a necessary step in articulating the balance between
verbal settlements and the good of faith the parties. The award makes abundant sense, and
contrary to the employer's legal argumentd at the hearing, I truly hope they now
understand the gundan~ental importance of "verbal agreements" with respect to settlement
matters.
Finally, I believe this award also echo's the sentiments of Edward Seymour who
recently expressed a dissent in OPSEU (Burton et al). and Ministry of Tourism and
Recreation, 452/90, 602/90, 615/90, 617/90:
'"I f'unnly believe that the evidence presented at the hearing
strongly supports the union's perception of events as they
occurred. I believe this decision is wrong and it could have a
negative impact on future negotiations between the parties. In
Collective Bar~aini_n.~. the 'word of the parties is a crucial
element in ensuring harmonious relationships. We need only
to observe the relations between the Canadian Union of Postal
Workers (CUPW) and Canada Post to see the level to which
relationships can deteriorate when the two sides in the
collective bargaining process distrust one another."
[emphasis added]
As well, this award is clearly the product of the Chairman's fifty odd years in the
industrial relations field. And with that kind of experience guiding this board, we were
able to look at this matter in terms of the future interests of the parties, becattse this award
has some far reaching implications that bodes well for industrial relations in the Ontario
Public Service
Respectfully submitted by,
~~~S UL TANT SER VICES
GM/m~
MARKHAM, Ontario
February 14th, 1992
Dissent of J. R. Scott
I have read the decision of the Board in this matter and find I disagree with
· its conclusions.
The Board was faced with a' situation wl~ere representatives of the employer
and of the union met in an attempt to resolve a union grievance which challenged
the employer's right to schedule certain assistant store managers.
At a meeting on October 7, 1991, the parties reached agreement in principle
on a number of points which appeared to settle the grievance, but the union took
the position that they would not withdraw their grievance until language covering
the issues was drafted, and "accepted" by the union. However, before the written
agreement could be finalized, a more critical difference of opinion arose.
The emplo3er made it known to the union that while discussing the points
of settlement on October 7, 1991, they were contemplating only the current assistant
managers. The union, on the other hand, made it clear that they were talking Of
both current and future assistant managers.
At this point the parties realized a settlement was not possible and the union
decided to proceed to the Grievance Settlement Board for a. resolution o~ ire
dispute.
The parties first argued the question of whether the verbal agreement was
a valid agreement o? if it was not an agreement until it was reduced to wr/ting.
I am prepared to admit there were compelling arguments on both sides of
this question, but since it was the union that insisted they would not withdraw their
gr/evance until the language covering the agreement "was drafted and accepted," I
lean towards the view that there never was a legal agreement in this case.
With respect to the question as to whether or not the agreement applied to
future assistant managers, it was not surprising that witnesses for the union
supported the union's position and witnesses for the employer supported the
employer's position. The important point, in my view, is that'nothing in the
testimony of either party discredited the testimony of the other. This lends support
to the position that the panics were not on the same wavelength when they were
discussing a settlement of the grievance on October 7, 1991. The employer was
speaking to an agreement which applied to current' employees only, while the union
was speaking to an agreement which applied to future as well as current employees.
Counsel for the employer argued that there was no meeting of the minds
when the parties reached an agreement in principle on October 7, 1991 and,
therefore, there was no agreement in law. He submitted case law to support this
position, Angevaare v. McKay Ontario CoUnty Court, Kennedy Co. Ct.J,
September 20, 1960 and Morrison v. Burton et al Alberta Supreme Court
Egbert, J., June 28, 1955.
Under the circumstances of this case, it is incumbent on the Board to
consider any factors which will heIp it decide if, indeed, there was or was not a
meeting of minds.
3
One such factor: was put to the Board in the form of a question by Counsel
for the employer. After establishing through witnesses for both the employer and
the union that the employer would gain nothing from the agreement in principle
unless it applied only to current employees, he put this question to the Board:
Why would the employer agree to something that gave them nothing and, i~ fact,
left them in a worse position than if there was no agreement?
I' suggest the answer to that question is obvious and it was answered in very
categoric fashion by the person who had the authority to approve the agreement,
Mr. Gar Sherwood, Vice-President Retail.
This question was put to Mr. Sherwood by a member of the Board:
"Would you have approved the agreement in principle
if you thought it applied to future employees?"
His concise answer was: "No, I would not."
The award, at page 4, suggests that it was not Mr. Sherwood's intention to
restrict the agreement's application to current assistant managers. Beginning at
line 13 on page 4 is the following comment:
· "Also, he confirmed that it was not in his mind to ask
the union to "grandfather" the settlement; that is, to
restrict its application to assistants currently assigned to
two-shift stores."
This, I suggest, does not correspond with my understanding of
Mr. Sherwood's evidence.
4
Mr. Shcr~vo~cl w~s asked b), counsel for the union, "Why would you not raise
the question of grandfathering at the October 7th meeting?" Mr. Sherwood's
answer was: "It never entered my mind because we were dealing with existing
employees."
In other words, Mr. Sherwood participated in the discussions on October 7,
1991 and approved the agreement in priniciple that flowed from that discussion,
under the clear impression that they were "dealing with existing employees."
His clear and unequivocal evidence can be interpreted in no other way.
The essence of this aspect of the employer's case is that there was not a
meeting of minds in the discussion of October 7, 1991 and it is immaterial whether
this resulted from an oversight by one party or another.
As mentioned earlier, the employer relied, in part, on the case of Morrison
v. Burton (Alta. 1955, Egbert, J.) wherein it is stated:
"The law is clear that under certain circumstances
mistake may exclude real consent; if each party meant
~ some definite thing but not the same thing as the other
party meant, their minds never met."
Another pertinent passage from that decision reads:
"If agreemem in this sense is wanting, it is immaterial
whether its absence is due to the mistake of one party
or both. In either case it is the absence of a meeting
of minds which prevents the contract being formed.
The award, at Page 6, expresses the view that because the parties reached
agreement in principle on the five points discussed on October 7, 1991, this
5
"represents a meeting of the minds of the parties at the time the offer was made
and accepted." This, I Suggest with respect, misses the whole point of the
employer's argument and the law cited by Egbert, J. supra.
There clearly was no meeting of minds in this case and on that ground alone
I would l~ave come to the conclusion there was no valid agreement between the
parties.