HomeMy WebLinkAbout1991-1584.Brummell.93-01-04 ONTAI~O EMPLOYES DE LA COURONNE
CROWN EMPLOYEE$ DE L'ONTARIO
GRIEVANCE C~MMISSlON DE
· SETTLEMENT REGLEMENT
BOARD DES GRIEFS
180, RUE DUNDAS OUEST, ~UREAU 2700, TORONTO (ONTARJOJ.
1584/91
iN T~ ~TTER OF ~ ~IT~TION
Un4er
T~ CRO~ EHP~ES COL~CTI~ B~AININ~ ACT
Before
~ GRI~CE SETT~~ BO~
BE~EN
OPSEU (B~mmell)
Grievor
The Cro~ in Right of Ontario
(Minist~ of Health)
~plo~er
B~FO~ B. Kir~o~ Vice-Chai~erson
J. Car~thers Me. er
~- D. Montrose Me. er
FOR THE P. Chapman
GRIEVOR Counsel
Ryder, Whitaker, Wright & Chapman
Barristers & Solicitors
PO~THE P. Murray
~MPLOYER Counsel
Hicks, Morley, Hamilton, Stewart, Storie
Barristers & Solicitors
HEARINg July 28, 1992
DECISION ON THE F.,HPLOYER'S PRELIMINARY OBJECTION
The grievor joined the public service on June 19, 1989,
as a maintenance carpenter. The grievor claimed he accepted his
position in the public service after representations were made by
the Employer to the grievor that his employer and employee pension
contributions and his resulting pension credits could be
transferred to the Public Service Board without any cost to him.
In fact, the transfer cannot be done without the grievor paying
approximately $58,000. The Union is asking this Board to order
the Employer to pay the required sum to transfer the pension
credits to the Public Service Board.
Employer's counsel objected to the Board's jurisdiction
to determine this matter. Employer's counsel argued that matters
of superannuation were within the ~exclusive functions of
management and outside the Board's jurisdiction. Union's counsel
agreed that this was a matter of superannuation, but argued the
Employer's actions aRd representations had estopped the Employer
from relying on its management's rights, and therefore the matter
was subject to the Board's jurisdiction. The parties agreed that
the Board ought to make its determination on this jurisdiction
before hearing the merits.
The facts as they relate to this preliminary matter are
as follows.
The grievor had been employed for 12 years and three
months by Canadian National Railway ("CN").and held 12 years three
months pensionable services under the CN pensionable plan. While
the grievor was employed with CN, he won a job competition for the
position of maintenance carpenter at the Brockvilte Psychiatric
Hospital. He joined the public service on June 19, 1989, as a
maintenance carpenter. However, he took a leave of absence from
- - Page 3
CN to try out the job, before he terminated his employment with
CN.
Prior to terminating his employment with CN, the grievor
spoke to Shirley~Drummond, the Senior Personnel Clerk at the
Ministry, and asked whether he could transfer his pension credits
from CN to the Public Service Pension Plan. He asked whether the
transfer would be under a reciprocal agreement. The grievor
understood that under a reciprocal agreement, ~he .employer and
employee contributions in his pension fund could be transferred to
a new employer's pension fund without any cost to him, and would
allow him to have full pensionable service with a new employer.
We are advised by counsel that this is an accurate understanding
oX the effect of a reciprocal agreement entered into by two
employers over pension credits.
Ms. Drummond told the grievor that she was unsure, but
she would check. She subsequently advised the grievor before the
grievor left his employment with CN that a reciprocal agreement
was in place and his credits would be transferred without cost to
him.
Approximately one year after the grievor left CN, the
problem surfaced. At the end of 1990, the Public Service Pension
Board sent forms to the grievor and to the Employer permitting the
transfer of Credits between Via Rail and the Public Service
Pension Board. The grievor showed Ms. Drummond that the name of
his previous employer was wrong. Ms. Drummond corrected the forms
and returned them to the Public Service Pension Board. The
grievor became concerned that there may be a problem with the
transferring his pension credits and again asked Ms. Drummond if
it was permitted. He was then given a memorandum saying that
there was no reciprocal agreement between CN and the Public
Service Pension Board. Ms. Drummond agreed to write to the Board
and did so in a letter dated February 11, 1991, seeking
clarification. On February 11, 1991, the Public Service Pension
Page 4
Board sent a letter to the grievor advising him that there was no
reciprocal agreement between CN and the Public Service Pension
Board, but indicated that under the new Public Service Pension Act
the grievor could buy back his credits. The cost of the buy back
was calculated at approximately $88,900.00. The grievor's
previous employer could transfer the employee contribution of
approximately $30,000.00 to the Public Service Board without a
reciprocal transfer agreement. In June 1991, when the grievor I
learned that it would cost him approximately $58,000.00 to place
himself in the same position as he was when he left CN, he filed
this grievance.
Following the filing of the grievance, the Employer ~ade
representations to the Public Service Board appealing the Public
Service Board's interpretation. In January 1992, the Public
Service Board confirmed to the Employer and grievor that there was
no reciprocal agreement in place. ' The Public Service Board
proposed an alternative. As the grievor had filed under the
previous Public Service Superannuation Act, the Public Service
Board recommended that the grievor file under the new Act, which
had different transfer provisions. Through a series of letters,
the Public Service Board also asked the CN to forward both the
employer and employee contributions.
This grievance was~originally scheduled for hearing in
early 1992. As the parties had not received any response from CN
the parties agreed to adjourn the hearing. Both parties continued
to maintain contact with the Public Service Pension Board, and
press CN to transfer the credits. CN finally responded on July
21, 1992. CN also confirmed that there was no reciprocal transfer
agreement and advised the Employer and the grievor that it was not
prepared to transfer the employer and employee contributions to
the Public Service Board without the reciprocal agreement. CN
agreed to only transfer the employee contributions.
- - Page 5
The union advised the Board that if the Board was to
proceed to hear the merits of the case, the Union would lead
evidence to show that the grievor would not have terminated his
employment with CN if he had not been able to transfer the
pensionable credits without cost to himself. If he had known of
any cost to transfer the credits or any other problems he would
have looked for employment elsewhere. The grievor was not under
any urgency to leave CN, but was planning ahead around possible
future changes at CN.
The Employer admitted that Ms. Drummond represented to
the grievor that there was a reciprocal agreement in place. For
the purposes of this preliminary matter, the Employer took the
position the board was to assume that the Employer advised the
grievor that she would look into the pensions and advise him on
the reciprocal agreement. It was the Employer's understanding
that the Ministry of Government Services advised Ms. Drummond that
there was an agreement. The Employer assumes that the Ministry of
Government Services thought that VIA Rail and CN were the same
employer. However, if this matter should proceed on its merits,
the Employer will disagree as to what precisely was represented,
at what time. Employer's counsel also stated that it would lead
evidence that the Employer was unaware that the grievor had been
employed with CN at the time of winning the competition, and that
he terminated his employment with CN on the representations made
%0 transfer his pensions credits.
Araument
Employer's counsel argued that this~ grievance was
inarbitrable as superannuation does not fall within the Grievance
Settlement Board's statutory jurisdiction. Sections 18 and 19 of
the Crown Employee's Collective Bargaining Ac% ("CECBA")
limit the Grievance Settlement Board's jurisdiction to only those
matters arising from the collective agreement and those matters
Page 6
specifically referred to in Article 18(2) of CECBA. Section
18(1)(b) specifically gives management exclusive rights over
superannuation and specifically ousts the Grievance Settlement
Board's jurisdiction over management's exclusive rights.
Employer's counsel argued the board's jurisdiction, is
limited to those matters that are rooted in a collective agreement
and the Board had no jurisdiction to enforce a verbal agreement.
She relied on Fournier and Ministry of Health GSB #86/76 (D.M.
Beatty), OPSEU (Changoor) and Crown in Right of Ontario
(Ministry of Transportation) GSB #526/82 (R.L. Verity), OPSEU
(Maddock) and Crown in Right of Ontario (Ministry of
Community and Social Services) GSB #1947/87 (R.J. Delisle),
the Nova Scotia Supreme Court Decision of Re Hawker Siddele¥
Canada Inc., Trenton Works Division and United
Steelworkers of America, Local 1237 150, D.L.R. (3d) 509,
OPSEU (Coubrough/Sinisalo) and the Crown in Right of
Ontario (Ministry of Health) GSB #3018/90 (M. Gorsky) and Sim
and Bain Crown in Right of Ontario (Ministry of
Correctional Services)GSB #1387/86, and 1388/86 (P.M. Draper).
Employer's counsel submitted that the 'conclusions that ought to be
drawn from the case law were that:
(1) The Grievance Settlement Board has no jurisdiction to
force an oral promise especially in circumstances where
the rights are not embodied in the collective agreement.
(2) Estoppel is only applicable when there is a right
embodied in the collective agreement.
(3) Estoppel is to prevent a Party from relying on the
strict contractual rights.
(4) Estoppel must apply only to the parties to the
collective agreement.
Page 7
Employer's counsel argued that there has been no breach
of the collective agreement. Employer's counsel also argued that
any alleged failure to properly deal with the transfer of the
grievor's pension credits to the Public Service Pension Plan was
not a disciplinary matter, as alleged by the grievo~ in his
grievance, and therefore was outside the collective agreement.
Employer's counsel argued that the grievance procedure
and the arbitration procedure cannot be used to create rights
where none exists under the collective agreement or under CECBA.
Similarly damages that~do not specifically relate to an article of
the collective agreement are outside of the jurisdiction of the
Grievance Settlement Board. She argued this Board has no inherent
jurisdiction to do justice, no matter how compelling the case may
be. As Article 27 prohibits the Grievance Settlement Board from
altering, amending or enlarging the collective agreement, any
attempt by this board to make any order relating to pension
credits would violate article 27.
Employer's counsel further argued, that even if an
obligation was shown to exist, because it was made at the time of
hiring, it falls outside the collective agreement. There is no
jurisdiction to deal with the matter. Therefore, in summary, the
Board has no jurisdiction to hear the matter or to apply the issue
of estoppel, as the claim for pension credits does arise from the
application or interpretation of the collective agreement.
Union's counsel admitted that this is a matter of
superannuation which is within the exclusive jurisdiction of
management under Section 18(1) of CECBA. However, Union's counsel
argued that the Grievance Settlement Board has recognized that it
does have jurisdiction to enforce matters which are within
exclusive management's rights and are outside the provisions of '
the collective agreement where the employer has limited its rights
by exercising its discretion. She submitted that if the Union is.
able to show that the components of estoppel are met the Employer
cannot rely upon its exclusive management's rights as a defence.
The Union submitted that the Employer ~ade representations to the
grievor that the pension credits would be transferred in full, the
grievor detrimentally relied on those representations, terminated
his prior employment and became an employee of the Ministry. The
Employer was therefore estopped from relying on its management
rights and must be ordered to pay the cost of transferring the.
credits to the Public Service Board.
The Union relied on the cases of OPSEU (Baars, et al)
and the Crown in Right of Ontario (Ministry of Culture and
Communication) GSB #457/90 (S. Stewart) OPSEU (Hall) Crown in
Right of Ontario (Ministry of Correctional Services) GSB
#579/90, 580/90 (M. Wafters) OPSEU (Hopkins) The Crown in
Right of Ontario (Ministry of Correctional Services) GSB
#373/86 (I. Springate) Re Pacific Press Ltd. in Vancouver-New
Westminster Newspaper Guild, Local 115 31 L.A.C. (3d) (D.R.
Munroe) and Canadian National Railway Company, et al v.
Beatty, et al (1981) 4, L.A.C. (3d) 205, and the Divisional
Court Re. C.N.R et al. and Beatty et al. (1981) 128, D.L.R.
(3d) 236', 8~ C.L.L.C. at p. 12,785;
Decision
Sections 18 and 19 of CECBA establish the Board's
jurisdiction. They state:
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,
(a) employment, appointment, complement,
organization, assignment, discipline,
dismissal, suspension, work methods and
procedures, kinds'and locations of equipment
and classification of positions; and
Page9
(b) m~rit 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 matter of
collective bargaining nor come within the jurisdiction
of a board.
(2) In addition to any other rights of grievance under
a collective agreement, an employee claiming,
(a) that his position has been improperly
classified;
'(b) that he has been appraised contrary to
the governing standards and principles;
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 applicable under section 19.
19(1} Every collective agreement shall be deemed to
provide that in the event the parties are unable to
effect a settlement of their differences between them
arising from the interpretation, application,
administration or alleged contravention of the
agreement, including any question as to whether a matter
is arbitrable, such matter may be referred for
arbitration to the Grievance Settlement Board and the
Board after giving full opportunity to the parties to
present their evidence and to make their submissions,
shall decide the' matter and its decision is final and
binding upon the parties' and the employees covered by
the agreement.
The relevant portions of Article 27 of the collective
agreement state:
27.1 It is the intent of this Agreement to adjust
as quickly as possible any complaints or diiferences
between the parties arising from the interpretation,
application, administration or alleged contravention of
this Agreement, including any question as to whether the
matter is arbitrable.
Page 10
27.16 The Grievance Settlement Board shall have no
jurisdiction to alter, change, amend, or enlarge any
provision of the collective agreement.
Section 18(1) of the collective agreement specifically
gives the Employer the exclusive function to deal with
superannuation and excludes the Board's jurisdiction, when it
states "such matters will not be the subject of collective
bargaining nor come within the jurisdiction of a Board". Union's
counsel agreed that there was no breach of the collective
agreement. She argued that the Union was relying upon the
application of the collective agreement, which was within the
Board's jurisdiction. Union's counsel did not point to the
application of any particular article of the collective agreement,
but relied on the application of the doctrine of estoppel..
The doctrine of estoppel has been applied to limit
management rights and confer the board jurisdiction. Lord
Denning's exposition on the doctrine of estoppel in Central
London Property Trust Ltd. v. High Trees House Ltd. [1947]
1 K.B. 130 has been the foundation of its application. The
quotation that has been used so often to articulate the principles
of estoppel is :
The principle, as I understand it, is that where one
party has, by his words or conduct, made to the other a
promise or assurance which was intended to affect the
legal relations between them and to be acted on
accordingly, then, once the other party has taken him at
his word and.acted on it, the one who gave the promise
or assurance cannot afterwards be allowed to revert to
the previous legal relations as if no such promise or
assurance had been made by him, but must accept their
legal relations subject to the qualification which he
himself has so introduced, even though it is not
supported in point of law by any consideration,, only his
word.
Lord Denning went on to emphasize that "the doctrine is
only applicable in those circumstances (i) where the parties have
Page 11
already entered into a definite and contractual relationship..."
In the context of management-union relations, the collective
agreement creates this contractual basis against which the conduct
or representations are applied.
The application of the doctrine of estoppel has evolved
over recent years. In the earlier decisions, such as the 1977
decision of OPSEU(~ournier), boards frequently did not consider
applying the doctrine of estoppel. Boards looked strictly to the
rights conferred by the collective agreement. In
OPS~.u(Fournier), the grievor asked for and was given permission
to be taken off vacation leave and put on bereavement leave when
her husband died while she was taking her vacation. When the
grievor returned from her leave, the grievor learned, that her
absences were considered part of her vacation, as she was not
entitled to the leave under the terms of the collective agreement.
To meet the criteria of the bereavement leave provisions, the
grievor had to "otherwise be at work" which did not encompass
being on vacation. The board did not even consider the concept of
estoppel. The board held that the board's jurisdiction was
circumscribed by the four corners of the agreement. It did not
have any jurisdiction to apply an oral agreement between the
grievor and her employer, which was contrary to the provisions in
the collective agreement.
In OPSEU(Changoor), the collective agreement was
silent on the right to schedule overtime and therefore the right
fell within management's exclusive rights. The board recognized
that the employer made an oral promise to the grievor to schedule
him two instances of overtime, but did not keep its promise. The
board found that the board did not have jurisdiction to enforce an
oral agreement which was not supported or embodied in the
collective agreement. The grievor's entitlement had to be found
within the collective agreement. As a collateral matter, however,
that board accepted the limitations on the use of promissory
Page 12
estoppel as a defence to an allegation of contractual breach,
rather than as a sword to assert a claim.
OPSEU(Maddock) followed OPSEU(Changoor) and declined
jurisdiction to enforce an agreement the grievor made with her
supervisor, when there was no provision in the collective
agreement that supported her entitlement.
The CN/CP case has been a pivotal point in the approach
to the application of estoppel. The CN/CP case is not in variance
with the earlier cases in the sense that the entitlement to a
right must arise from the collective agreement, but it departs
from the earlier cases, as it accepts the use of the doctrine of
estoppel to assert a right that arises from the conduct of a party
in the application of the collective agreement. In the CN/CP
case, the Canadian National Railway Company became a successor
employer to Canadian Pacific Limited. The court upheld the
application of estoppel by conduct when the arbitrator considered
the application of the collective agreement. The preceding
employer had paid sick pay benefits to some of its employees
without waiting for the three day waiting period to pass as
required by the collective agreement. When the successor employer
purchased the company, it wished to revert to the strict wording
of the collective agreement. Arbitrator Beatty applied the
doctrine of estoppel by conduct and held that the employer had
represented to the employees that they would not be governed by
the strict legal rights as set out in the collective agreement,
but by the longstanding practice. The court recognized that the
application of collective agreements is squarely within the
jurisdiction of arbitrators in labour"disputes. The arbitrator was
not interpreting the collective agreement, but making a finding as
to its proper application and giving consequential relief. The
'court recognized that the arbitrator was not modifying the
collective agreement, but was applying the collective agreement as
represented by one party to the other.
Page 13
The Nova Scotia Supreme Court considered, but
distinguished the CN/CP case in the Hawker Si44ele¥ case. The
court held that the arbitrator was limited by the terms of the
collective agreement. The court found that the arbitrator erred
when he relied on evidence of past practice to support a claim
made by the union that was not found in the collective agreement.
The court did not accept the use of promissory estoppel in areas
where there was no provision in the collective agreement. The
court distinguished the CN/CP case from the facts before it, by
concluding that in the CN/CP case, there was a provision in the
collective agreement that conferred rights, against which
promissory estoppel was applied, whereas in the Hawker Si4dele¥
case, the contract was silent on the rights in issue, and there
was nothing to which promissory estoppel could apply. The court
found that the effect of Lord Denning's exposition on the
application of promissory estoppel is that the conduct of one
party induces the other to believe that the strict rights under
the contract, the collective agreement in that case, will not be
enforced. It "only applies in cases where one party is able to
point to the relevant collective agreement for an explicit
statement of the legal rights which he, she or it alleges have not
been enforced." Therefore the court l~m%ted the application of
the doctrine of estoppel to situations which flowed from the
application of a ter~of the collective agreement.
It is now well established that promissory estoppel or
estoppel by conduct .have a place in labour matters and can be
considered in the interpretation and application of collective
agreements. Since CN/CP, the affect of the application of the
doctrine of estoppel has been to limit management's rights.
Estoppel is used, however, where representations made by the
employer flowed from the application of the collective agreement
as evidenced by the conduct, promises or actions of a party.
Although CN/CP also established that the doctrine of estoppel was
applicable to representations made by the parties to the contract,
in some cases, the doctrine has since been extended to
P~ 14
representations made by the employer to individuals, which
representation was then relied upon by the union to its
detriment,(OPSEU(Baars)). In some situations, it has been
extended further to apply not only between the parties to the
collective agreement, but between individuals,
((OPSEU(Hopkins)), (Re Pacific Press)).
In OPSEU(Baars), the employer presented guidelines to
the union on how it would contract out work, a~ter two earlier
grievances for overtime were filed. The union withdrew its
grievances, after receiving the guidelines and payment for the
grievors. In the grievance decided by the panel chaired by vice-
chairperson Stewart, the grievors alleged that the employer
violated its overtime provisions by failing to provide overtime
work on a rotational basis in accordance with the Local Minutes of
Understanding, which was attached to the collective agreement.
The union claimed that the employer failed to follow its
representations on the earlier guidelines and violated the
overtime provisions by contracting out work contrary to the
guidelines. The board found that the grievances were properly
characterized as contracting out grievances and fell within the
employer's exclusive discretion. The board held that those
matters falling under s.18(1) of CECBA are within the employer's
exclusive rights, unless the Union is able to establish that the
doctrine of estoppel should apply so as to restrict the employer
in the exercise of its rights. Estoppel applied only to the
parties to the contract. The board found that it was significant
that the agreement was not a complete ban on contracting out and
did not negate the employer's statutory rights. It was consistent
with the preservation of statutory powers. This case is similar
again to the CN/CP case in that the board had to consider whether
the letter of understanding that was attached to the collective
agreement was to be followed or was its application modified by
the employer when exercising its management rights.
Pagel5
In OPSEU(Hopkins), the board extended the application
of the doctrine of estoppel to representations made by a party to
the contract to an individual, where there was no reliance by the
union on the representations of the employer. In this case, the
grievor was ill and was approaching the end of his vacation and
sick leave credits. The employer advised the grievor that he
could resign, go on long term income protection or be transferred
into a less stressful position, until the grievor was able to
perform his usual position. The collective agreement limited the
option to return to a former position six months from the
transfer. The grievor chose to accept the less ~tressful
position. The grievor made the request to return to his position
well after the six months had passed. The board held that the
employer had made an open ended offer to the grievor, as to when
the grievor could return to his former position and could not now
rely on the wording of the collective agreement. This case is
again similar to the CN/CP case in that the grievor is able to use
the.doctrine of estoppel to limit the employer from relying on the
strict wording of the collective agreement in contradiction to the
employer's earlier representations. Again the representations
flowed from the application of the collective agreement.
In Re Pacific Press the issue was whether the grievor
was a permanent employee under the terms of the collective
agreement. The board accepted the principle that estoppel is
aDplied in labour relations matters. As estoppel was considered a
relevant principle, the board accepted evidence on alleged
representations and made findings on the representations made.
The board found that the employer represented to the grievor, who
was a temporary employee, that he would become a permanent
employee. Based upon the board's determination on the employer's
representations, the board found that the employer was estopped
from denying the grievor his status as a permanent employee.
The case which is most similar to the case before this
board is the case of OPSEU(Coubrough/$inisalo) and Ministry
Page 16
of Health. Two employees were told at time of hire that their
work week was 36.25 hours. There was innocent and not intentional
misrepresentation on the part of the employer to hire the
employees for other than a 40 hour work week. They were later
given a memorandum confirming a 40 hour work week. The collective
agreement stipulated that the normal work week was 40 hours. The
board held that as the "agreement" made at the time of hire was
inconsistent with the collective agreement, it did not bind the
employer. After a lengthy review of arbitral jurisprudence, the
board declined to apply estoppel, as it found that the
representations was not made to one of the parties, nor was the
union affected adversely. The board further found that if the
representation was one which the employer made that was outside
the collective agreement, the board has no jurisdiction to deal
with it. Vice-chair Gorsky states at page 19:
To the extent that the Grievors may be pursuing their
claims based on their having achieved rights outside the
collective agreement, we have no jurisdiction with
respect to such matters and this would also apply to the
claim for estoppel arising out of the alleged
representation made at the time of hiring where it does
not affect the Union party to the collective agreement.
The cases presented by both parties reflect that the
boards' jurisdiction over the application of collective agreements
using estoppel. Although the Halls case does not go so far as to
explain the limitations of the use of estoppel, when the board
found that it was within management's exclusive rights to
determine the area of search for a job vacancy, the employer's
representations to the grievor did in effect, affect the
applications of the vacancy provisions.
In this case, at the time the representations were made,
there was no agreement nor contractual relationship between the
grievor and the employer. When the grievor took the position and
severed his employment with CN, the basis for the consideration of
estoppel crystallized. Upon joining the public service the
Page 17
grievor obtained the right to have this~ Board determine whether
the issue was arbitrable. Our jurisdiction is determined by
sections 18 and 19 of CECBA. Aside from the particular areas set
out in sections 18(2) and 19, our jurisdiction arises from the
collective agreement.
As the'exercise of management functions'and the exercise
of the obligations under a collective agreement must together
encompass all the rights and obligations of the parties, whenever
management acts in a manner that is inconsistent with the
collective agreement, or differs from the strict wording of the
collective agreement, the employer must either be breaching the
collective agreement, applying the collective agreement and
thereby placing restrictions on its management rights, or acting
within its exclusive management'rights. We have jurisdiction only
in the first two cases.
In each case of estoppel, the actions, representation,
conduct or promises of one party to another, do not reflect the
strict wording of the contract governing their relations. In a
sense, upon the reliance on these representations by the other
party, a separate arrangement is created. However, when that
arrangement is considered with the contract that governs the
parties, the arrangement modifies the strict wording of the
contract, when it is applied.
Our jurisdiction arises not from the representations
made by the employer which restricts their management rights. Our
jurisdiction arises from the contract, the collective agreement.
We have jurisdiction when the conduct, representations or promises
of the parties affects the application or interpretation of the
contract. There is a distinction between representations made by
a party which are relied upon by the other, which may create a
tortious or even separate contractual basis for a cause of action,
and representations which can estop a party from relying on the
strict wording of the contract in the application o r
interpretation of a contract. While the arrangements,
representations and promises may appear to reflect a separate
agreement, the affect of the legislation has provided the board
jurisdiction only in those cases where that agreement or
arrangement flows from the application or interpretation of the
collective agreement.
The resulting change in the collective agreement from
the words contained in the agreement is not a modification of the
agreement made by the Board contrary to article 27.16, but is the
application of the agreement, which reflects the modification of
the agreement made by the parties through their actions.
We find that the representation that was made in this
case was an an oral promise made to a person who was not an
employee at the time, which for the purposes of this preliminary
matter is to be taken to have induced that person to leave his job
and take a job with the public service. This change was to the
employee's detriment. However, the claim that the Union makes is
not based upon any violation of the collective agreement,' but is
rather an attempt to enforce a representation that falls outside
the collective agreement and falls within the exclusive rights of
the Employer..
The grievor may have a cause of action, but we
unfortunately, we do not have jurisdiction to resolve the issue
between these parties. We cannot go beyond the jurisdiction the
legislation has provided. We accept that where the criteria for
estoppel is established, and the actions, promises or
representations flowed from the interpretation or application of
the collective agreement, estoppel limits management's rights to
the actions or representations made. In this case, the Union
agreed that there was no breach of the collective agreement.
Although the union argued that it was relying on the application
of the collective agreement there was no provision that is the
basis of that argument. On the assumptions that we were asked to
Page 19
make, we have enormous sympathy with the griever, however, with
true regret, we uphold the Employer's preliminary objection and
dismiss this grievance.
Dated at Toronto, this 4th day of Ja.uary, 1993.
B.A. Kirkwood, Vice-Chairperson
"I Dissent" (dissent to follow)
J. Carruthers, Union Member
D. Montrose, Employer Member
RE BRUMMELL GSB#1584/91
DISSENT
I have read the decision of the majority in this matter and
with respect, I must dissent. I am particularly concerned with
their comments the Baars (GSB #457/90) and Hall (GSB #579-80/90)
decisions, in which this Board had previously dealt wi~h issues of
estoppel in cases dealing with management rights under CECBA s. 18(1).
In my view, both cases clearly establish that a party can assert an
estoppel argument against a management right even where there is no
specific collective agreement provision governing the matter in issue.
The majority appears to reject this reasoning in their comments on
page 18, although they have not clearly explained their reasons for
departing from these decisions.
In additi~on, I am concerned with their conclusion, also on page
~ that the representation to the grievor was made at a time when
he was not an employee. In fact, the evidence clearly showed that
Mr. Brummell had already been offered and accepted a j.ob with the
Ministry, and had even begun work (although he had not yet terminated
his employment with CN) at the time of his conversations with Mrs.
Drummond.
Given that it was'~bsolutely clear on the evidence that Mr.
Brummell was misled by the employer with the effect'that he left his
job with CN and is now unable to transfer his pension credits without
a cost of more that $50,000, I would have found that there was an
estoppel in this case and that as a result the Ministry should have t~o
bear the costs of the transfer. A decent pension is one of the main
benefits an employee gains from long service with an employer, and
Mr. Brummell had been deprived of his pension from CN due to the
mistake made by his present employer.
It appears to me employer or representative owed prosPective
employee a duty of care, I feel this duty of care has been breached.
~hers, Union Member February 7, 1993