HomeMy WebLinkAboutBianco Group 11-05-30In the Matter of a Labour Arbitration pursuant to the Ontario Labour Relations Act
Between:
CANADIAN BLOOD SUPPLY
-and-
ONTARIO PUBLIC SERVICE EMPLOYEES' UNION
LOCAL 5103
OPSEU FILE No. 2010-5103-0005
Group Grievance of Bianco and Hunter
Arbitrator: Randi H. Abramsky
Appearances
For the Union: Carolyn Janusz Counsel
For the Employer: Sarah Eves Counsel
Hearing: April 19, 2011 with additional written submissions on May 4, 2011
and May 18, 2011
Gt`1'Ll 9 C
At issue is whether the Employer, Canadian Blood Supply, violated the collective
agreement when it selected two employees, with less seniority than the grievors, for an
Instructional Staff Training Program (ISTP), following which they would serve as
trainers when needed. The grievors, Ms. Angela Bianco and Ms. Jean Hunter, assert that
the Employer's action violated Article 4, Management Rights; Article 16.02, Promotions;
and 16.03, Temporary Transfers, of the collective agreement.
The Employer asserts that there has been no violation of the collective agreement,
and raised two preliminary motions to dismiss the grievance. This Award addresses the
Employer's motions to dismiss.
Facts
The parties proceeded for the purposes of these motions on the basis of agreed
facts, as outlined by counsel in opening statements and the relevant documents.
On February 10, 2010- k. the Employer issued a memo to Clinic Services Staff,
advising that Clinical Services would be taking part in an ISTP training program in April,
and asked staff interested in participating to submit their names and submit a letter of
interest. It further states:
As the number of available slots to attend the session is limited the selection of staff
will be based on the following criteria:
• Strong clinical skills in the collection of blood and blood products.
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• Excellent organizational skills
• Demonstrated commitment to continuing education
• Excellent verbal and written skills
• Good attendance record
Both grievors, who are full-time phlebotomists, timely submitted a letter of interest
and were interviewed for the ISTP program, along with other staff members who applied.
At the conclusion of the process, the Employer selected two employees, both of whom
were junior to the grievors. Both successful applicants were given notice of the hearing
in this matter, but chose not to attend.
According to the ISTP On the Job Trainer Self Study guide, On the Job (OTJ)
Trainers provide one-to-one training or coaching to staff on procedures or processes in
their business area. OTJ Trainers are utilized, as needed, for new hires and coaching
staff. In 2010, one of the successful applicants worked for 7 hours as a trainer, and the
other worked for 29 hours. In 2011, to date, one worked for 4 hours as a trainer, and the
other worked 25.5 hours. When performing this work, each was paid a 90 cent/hour
premium for their time, as required by Article 31.01(a) of the collective agreement. That
provision reads:
ARTICLE 31— POSITION PREMIUMS
31.01(a) Effective date of ratification, a premium of ninety cents ($0.90) per hour
will be paid to employees assigned as On -the Job Trainers (excluding Preceptors).
All outstanding grievances related to training premiums shall be withdrawn.
Once the ISTP training is successfully completed, the employees are utilized as OTJ
trainers, when needed, but retain their current classification.
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On March 9, 2010, the instant grievance was filed alleging that the Employer's
selection for the ISTP training violated Articles 4, 16.02 and 16.03. Those provisions
read as follows:
ARTICLE 4 — MANAGEMENT RIGHTS
4.01 The parties hereto agree that the operations of the Employer entail working
methods, hours and processes which are peculiar to it.
4.02 The parties further acknowledge that it is the exclusive function of the
Employer, subject to the provisions of this Agreement, to manage and control its
operations, and without limiting the generality of the foregoing, to:
a) maintain order, discipline, and efficiency;
b) hire, transfer, promote, classify, demote, layoff, assign work, and suspend or
discharge employees for just cause, and introduce new or improved methods or
facilities.
c) manage, control, continue, discontinue in whole or in part the Employer's
operations, and without restricting the generality of the foregoing, to determine the
number of employees, schedule of activities, kinds and locations of machines and
processes to be used and the scheduling and conducting of clinics and deliveries
and the determination of their locations, in accordance with the function of the
Employer.
4.03 The Union recognizes that all employees who are members of the clinic teams
and all other members of the bargaining unit must work in co-operation with one
another.
4.04 These management rights shall not be exercises in a manner inconsistent with
the provisions of the Agreement.
ARTICLE 16 — VACANCIES, PROMOTIONS AND TRANSFERS
16.01 Vacancies
a) When the Employer determines that a vacancy is to be filled, or a new position
is created within the bargaining unit, it shall be posted on the Union bulletin board
for a period of seven (7) working days. When a full-time position becomes vacant
and where operationally feasible, the Employer shall post the vacancy as a full-time
position.
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b) Notices of vacancies or new positions shall include. for informational purposes:
i) the location of vacancy;
ii) classification;
iii) qualifications
16.02 Promotions
For the purpose of this Agreement, a promotion shall mean a change from one
position to another position, within the bargaining unit, with a higher pay scale.
a) In cases of promotion the following factors shall be considered:
i) skill, ability;
ii) seniority.
It is understood that where the qualifications referred to in factor i) above are
relatively equal, factor ii) will govern.
b) The promoted employee will be given a trial period in which to demonstrate her
ability to perform the new task to the satisfaction of the Employer. For full-time
and temporary full-time employees the trial period will be three (3) months. For
part-time and temporary part-time employees the trial period \� i f 1 be four hundred
eight seven and a half (487.5) regular hours....
c) When an employee is promoted from one position to another, the salary of such
promoted employee shall be advanced to that step in the scale of her new position
which is next higher than her current rate, or, to that step which is next higher again
if such salary increase is less that the employee's next normal increment.
d) ...
16.03 'Temporary Transfers
a) Any employee who, for the convenience of the Employer is temporarily transferred
to another job, within the bargaining unit, for which the rate of pay is different from
that in effect for such employee's regular job, shall be paid while so employed as
follows:
i) if the rate of pay for the job to which she is transferred is less than her regular pay,
she shall continue to receive her own higher rate of pay.
ii) if the rate of pay for the job to which she is temporarily transferred to is higher, at
the same step in the new salary scale, than the employee's regular pay, she shall
receive the higher rate of pay or the job to which she is temporarily transferred....
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e) Whenever an employee is assigned by the Employer the additional
responsibility to direct or oversee work of other employees within their
classification, she shall be paid a premium of $0.90 cents per hour or portion
thereof for such assignment in addition to her regular hourly salary.
Also relevant are Article 30 and Article 31, and Schedule A. They provizle. in relevant
part, as follows:
ARTICLE 30 — POSITION DESCRIPTION
30.01 All employees are entitled to have in their possession, a copy of their current
Position Description. It is understood that position descriptions as appended to this
contract are current as of the date of signing of this agreement.
B-1
Clerk
B-2
Medical Secretary (Bilingual)
B-3
Stores Accountant
B-4
Utility Person I
B -4a
Utility Person II
B-5
Clinic Assistant
B -5a
Phlebotomist
B-6
Laboratory Assistant
B-7
Driver
B-8
Date Entry Clerk
B-9
Donor Services Representative
B-10
Administrative Assistant
B-11
Technical Support Analyst
30.02 The Position Descriptions shall accurately reflect only those duties which are
applicable to all members of that position.
30.03 Any employee who is not required by he Centre's administration to perform
all of the standard duties of her Position Description shall receive no reduction in
her weekly rate of pay.
30.04 An employee cannot be required to perform duties which are not contained
in his position description.
30.05 Supervisors will not customarily perform the duties of a bargaining unit
employee.
30.06 a) If the Employer creates a new Position Description it shall establish the
job description and wage rate and give written notice of the Union of the new wage
rate.
In
ARTICLE 31— POSITION PREMIUMS
31.01 a) Effective date of ratification, a premium of ninety cents ($0.90) per hour
will be paid to employees assigned as On -the -Job Trainers (excluding Preceptors).
All outstanding grievances related to training premiums shall be withdrawn.
b) Effective date of ratification, a Clinic Assistant w ho is assigned to work the
"Prep" Table shall receive a premium of $6.00 for each shift so assigned. It is
understood that employees who are assigned to relieve for rest periods or meal
breaks, are not eligible to receive such premium.
c) A Driver who is assigned for a full shift to drive the Bloodmobile shall be paid
a premium of six dollars ($6) for that shift inclusive of registration duties.
31.02 Any Clerk who performs Secretarial Duties for any Medical Officer or PhD
shall receive a premium of $4.00 per day for each day that she is so assigned.
31.03 The parties understand and agree that the position premiums in Article 31
shall be paid when any employee is required to perform such function.
On April 15, 2010, a grievance meeting was held, (iL:nng which the Union alleged that
the Employer violated the collective agreement by not selecting the candidate for ISTP
training based upon Article 16.02(a)(i) and (ii). On April 21, 2010, Ms. Lisa Bruce,
Senior Human Resources Advisor, denied the grievance in writing. In pertinent part, the
letter states:
[R]eceiving ISTP Training is not considered a promotion, and .. there is no
classification position within the Collective Agreement called ISTP Trainer. A
phlebotomist who receives the ISTP Training is still considered to hold the
classification of Phlebotomist, so again, this is not considered a promotion within
the boundaries of the Collective Agreement....
In 2000, a similar grievance arose between the parties which resulted in an
arbitration award issued by Arbitrator Jane Devlin on January 7, 2002. In that case, the
grievor, Ms. Lorna Widdis, a Clinical Assistant II, alleged that the Employer violated
the collective agreement by selecting a less senior employee, Ms. Barb Suave, for the
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"ISTP Trainer position." The Union claimed, among other arguments, that the ISTP
Trainer was a "position" which was improperly awarded to an employee with less
seniority, citing Article 16.02(a) of the collective agreement, which is identical to the
language in the current collective agreement.
Arbitrator Devlin began her analysis of this issue with the parties' definition of
"promotion" as set out in Article 16.02, which states that a promotion involves "a change
from one position to another position, Nk t iM the bargaining unit, with a higher pay
scale." (Decision at p. 14) She noted that ISTP Trainer 1's not one of the positions listed
in Article 31 of the Agreement — a provision similar to now Article 30, which lists the
positions in the bargaining unit and appends the current position description for each
position to the collective agreement. She further noted that while the parties' did not
include ISTP Trainer as a position in then Article 31, they did enter into a Memorandum
of Understanding in December 1999 in which they agreed that employees involved in
training other employees in new processes, procedures or technology would receive a
premium equivalent to 6% above their base rate of pay. She concluded: "In my view, this
memorandum supports the conclusion that rather than constitute a `position', training
duties involve a work assignment for which employees receive premium pay." (Decision
at p. 16). She continued:
In this regard, it would appear that employees who are assigned to perform training
duties retain their existing positions and the premium to which they are entitled is
expressed as a percentage of their base rate of pay. Moreover, a premium payment
of the kind provided for in the Memorandum of Understanding can be distinguished
from a "higher pay scale". which is one of the features of a promotion as that term
is defined in Article 16.02 of the collective agreement. In my view, a `higher pay
scale" refers to a wage rate or, more precisely, a range of wage rates similar to
those set out in Schedule "A" for the positions for which there are job descriptions
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appended to the agreement. For ISTP training duties, there is no wage rate or range
of rates but rather a premium, which is expressed as a percentage of an employee's
base rate of pay.
On this basis, Arbitrator Devlin concluded at p. 18, that "ISTP training duties do not
constitute a position but rather a work assignment for which employees receive premium
pay in accordance with the Memorandum of Understanding executed by the parties in
December, 1999." She, therefore, could not conclude that Ms. Suave had been promoted
"as there was not a change in her position of Clinic Assistant II to another position
involving a higher pay scale." She therefore dismissed the grievance.
In March 2001, the successful appiicanI from the grievance involved in the Devlin
Award, Ms. Barb Suave, as well as another employee, filed grievances alleging that the
Employer was not tli operly paying the training premium, citing Article 16.03(d). That
provision, under the Temporary Transfer heading, states:
16.03(d) Whenever an employee is assigned by the Employer the additional
responsibility to direct or oversee work of other employees within their
classification, she shall be paid a premium of $0.90 cents per hour or portion
thereof for such assignment in addition to her regular hourly salary.
The Employer took the position that this provision related to "lead hand" type duties, not
training, and the matter was referred to arbitration.
These grievances, however, were resolved during collective bargaining
negotiations for the 2001-2005 collective agreement, when the parties' added a new
provision, Article 32.01, entitled "Position Premiums'-, to the collective agreement. That
provision added the following language to the collective agreement:
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ARTICLE 32 — POSITION PREMIUMS
32.01 (a) Effective date of ratification, a premium of ninety cents ($0.90) per hour
will be paid to employees assigned as On -the -Job Trainers (excluding Preceptors).
All outstanding grievances related to training premiums shall be withdrawn
(b) Effective date of ratification, a Clinic Assistant who is assigned to work the
"Prep" Table shall receive a premium of $6.00 for each shift so assigned. It is
understood that employees who are assigned to relieve for rest periods or meal
breaks, are not eligible o receive such premium.
(c) Effective date of ratification, a Driver who is assigned for a full shift to drive the
Bloodmobile shall be paid a premium of $4.00 for that shift.
Based on the inclusion of these provisions, the Union withdrew the Suave and other
grievance on July 29, 2002. This provision did not exist at the time of the Devlin
Award.
Reasons for Decision
A. Is the Devlin Award dispositive of the instant grievance?
The Employer asserts that the Devlin Award is determinative of this issues raised in
the instant grievance. It contends that Arbitrator Devlin held that there was no "ISTP
Trainer" position and thus no "promotion" under Article 16.02 of the parties' collective
agreement. Instead, what was involved was an assignment of training work which the
parties' had agreed was to be paid a premium for such work. It submits that this
conclusion and interpretation of Article 16.02 and the collective agreement is dispositive
of the grievance in this case. It submits that the Union is trying to get "another kick at the
can" through this arbitration.
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The Union contends that the facts were different and the language of the
collective agreement at the time was different. Specifically, it asserts that Article
31.01(a) [formerly Article 32] did not exist then and was not considered by Ms. Devlin.
It also asserts that the training there included classroom training, which does not occur at
present. The Union argues that the outcome of this matter should be different, based on
those differences, particularly the inclusion of Article 31.01(a).
The Employer did not assert that the Devlin Award was res judicata, and, given the
fact that the collective agreement was amended to include new language that had not
been considered by Ms. Devlin, I could not conclude that the "issue" was the same.
Nevertheless, I find the analysis and conclusions reached by Arbitrator Devlin to be
persuasive and applicable to the facts in this case.
The Union's main contention is that Article 31.01(a) created the position of On -the -
Job Trainer, at a higher rate of pay, and therefore, selection of an individual to become an
On -the -Job Trainer is a "promotion" under Article 16.02 — a "change from one position
to another position, within the bargaining unit, with a higher pay scale." The Union
points to the heading of the provision "Position Premiums" (emphasis added), and asserts
that this language creates the posi! oii of On -the -Job Trainer, which did not previously
exist in the collective agreement when considered by Arbitrator Devlin, and warrants a
different conclusion.
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Having carefully considered the collective agreement as a whole — particularly Article
16 in its entirety, Article 30, Article 31, Schedule "A"' and the position descriptions
included in the collective agreement — I find that I am not persuaded that Article 31.01(a)
created a position of On -the -Job Trainer at a higher wage scale. Rather, it provides a
premium payment of $0.90 cents per hour when an employee is engaged in On -the -Job
training activities.
The provisions of the collective agreement demonstrate that when the parties` mean
to include a position in the bargaining unit, they do so explicitly and through a spy c 11 f ed
procedure. Article 16.01(a) states that "[w]hen the Employer determines that ... a new
position is created within the bargaining unit, it shall be posted..." There is no evidence
or suggestion that the position of On -the -Job Trainer was ever posted, nor has the Union
grieved that the Employer improperly failed to do so. Article 30 lists all of the positions
in the bargaining unit, and states that "[a]lI employees are entitled to have in their
possession a copy of their current Position Description" and appends a copy to the
collective agreement of all of the positions. On -the -Job Trainer is not listed, nor is there
a position description for it included in the collective agreement. Schedule "A" lists the
wage rates for each position. -1 Here is no listing for On -the -Job Trainer. No grievances
have been filed asserting that the Employer violated these provisions in regard to the On -
the -Job Trainer position.
It is true, as
the Union
contends, that Article
31
employs the heading "Position
Premiums" and
states that
"employees assigned
as
On -the -Job Trainers" receive a
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premium of 90 cents per hour. On its face, however, this language does not create a
position of On -the -Job Trainer. It obligates the Employer to pay a premium when an
employee is assigned on-the-job training functions. The use of the word "premiums" in
the heading and the word "assigned" in subsection (a) — as well as in subsections (b) and
(c) — cannot be ignored and must be given meaning - specifically, that a premium is to be
paid when employees are "assigned" to various tasks.
This interpretation, moreover, is explicitly provided for in Article 31.03 which states:
"The parties understand and agree that the position premiums in Article 31 shall be paid
when any employee is required to perform such function." Therefore, when an employee
is "assigned as On -the -Job Trainer", she is paid a premium of $0.90 cents per hour "to
perform such function."
A similar conclusion was reached in Re St. John's Transportation Commission and
The Amalgamated Transit Union, Local 146 [unreported decision of Arbitrator Alcock,
Feb. 7, 1993)]. In that case, there was a provision entitled "Driver -Trainers" which stated
that "driver -trainers will be responsible for observing and correcting any inadequate
operation of a bus by an operator....' Another provision, entitled "Premium for
Training", stated that "operators engaged in training of new operators shall be entitled to
a premium of forty-five cents per hour...." To muddy the water even further, the
Employer posted for a driver -trainer and when the individual was selected posted a notice
that "Paul Prowse has been selected for the position of Driver Trainer/Safety
Instructor..."
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The arbitrator concluded that the "Driver -Trainer" provision had to be read in
conjunction with the "Premium for Training" provision, which "made it perfectly clear
there is no separate classification of Driver -Trainer." (Decision at p. 12). Rather, "the
person who does the training is entitled to premium pay only in respect of training duties
performed." He concluded that the reference to Driver -Trainers in the collective
agreement was not meant to create a classific oioji. but "is merely a convenient term used
as a substitute for the expression "operators engaged in training of new operators."
(Decision at p. 12). He further concluded that "the ill conceived wording on the posting
and the notice making reference to a `position' does not create a position where one did
not actually exist in the first place." (Decision at p. 13).
The same conclusion applies here. Article 31.01(a) must be read in conjunction with
the collective agreement as a whole. Its use of the word "Position" in the heading docs
not create a position of On -the -Job Trainer. The provision clearly provides a premium
for training work. It does not, by its terms or in context, create a new position.
Given the collective agreement provisions, considered as a whole, had the parties
intended to create a position of On -the -Job Trainer, they would have done so far more
clearly, and would have had it listed in Article 30 and included a position description and
wage rate in Schedule "A" — or the Union would have filed a grievance over the
Employer's failure to do so long before now. The language of Article 31.01(a) was first
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introduced in the 2001-2005 collective agreement. It was continued without change in the
most recent collective agreement, 2008-2011, and presumably in the collective agreement
before that as well.
Further, even if I could conclude that On -the -Job Trainer was a "position" (which, for
all the reasons set forth above, I do not), I could not conclude that the 90 cent premium is
"a higher pay scale" within the meaning of Article 16.02. The 90 cents is a premium — an
additional payment — paid in addition to an employee's regular wage rate when assigned
the specified extra tasks. As Arbitrator Devlin concluded at p.17, "a premium
payment ... can be distinguished from a `higher pay scale', which is one of the features of
a promotion as that term is defined in Article 16.02 of the collective agreement." A
"higher pay scale", she concluded, referred to "a wage rate or, more precisely, a range of
wage rates similar to those set out in Schedule "A" for the positions for which there are
job descriptions appended to the agreement."
This interpretation is supported by the language of Article 16.02(c) which states
that when an employee is promoted from one position to another, the salary of the
promoted employee "shall be advanced to that step in the scale of her new position.
which is next higher than her current rate..." This language demonstrates that the
"higher pay scale" referred to in the definition of a promotion under Article 16 refers
to a higher range of wage rates as set out in Schedule "A" of the collective agreement
-- not a premium of $0.90 cents for those times that an employee is assigned to
perform an additional function such as on-the-job training.
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While Arbitrator Devlin was commenting on the premium agreed to by the pct -f it c s
in their December 1999 Memorandum of Understanding, the same conclusion applies
here in respect to Article 31.01(a). It is a premium paid to an employee assigned to
On -the -Job training duties. There is no wage rate or range of rates for On -the -Job
training functions. The premium set forth in Article 31.01(a) does not create a "higher
pay scale."
Similarly, Arbitrator Alcock determined in St. John's Transportation Commission,
supra at p. 12, that entitlement to premium pay for an extra task "is quite different from
the standard rate of pay set for a classification whereby an employee would be paid the
established rate no matter what combination (1l' duties he peiTorl"cd in his classification."
Consequently, for all of these reasons, I conclude that the Devlin Award is, despite
the addition of Article 31.01(a), determinative of the issues in this case. Now, as then,
there is no "position" of On -the -Job Trainer in the collective agreement, and the persons
who have been assigned that role have not been "promoted" within the meaning of
Article 16.02. As Arbitrator Devlin concluded at p. 18:
ISTP training duties do not constitute a position but rather a work assignment for
which employees receive premium pay... In the result, for the reasons set out, I
cannot conclude Ms. Suave was promoted as there was not a change in her position
of Clinic Assistant II to another position involving a higher pay scale.
The Union also argued that the Employer's selection violated Article 16.03,
Temporary Transfers. Upon review, I can find no violation. The assignment of On -the -
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Job Training functions is not a temporary transfer to "another job." It is the same job —
with the assignment of an additional function for which the empim ees receive a premium
under Article 31.01.
B. Did the Employer violate Article 4 — Management Rights - of the collective
agreement?
The Union contends, in the alternative, that even if there was no promotion
involved, the memorandum sent to clinic staff concerning the ISTP training 1?rogram,
which outlined specific criteria that was to be considered for the selection, was not
followed, and that the Employer's selection, therefore, was arbitrary, unfair and
unreasonable. It contends that the Employer failed to exercise its management rights in a
reasonable or non -arbitrary manner in selecting the ISTP trainers. and thereby violated
Article 4 of the collective agreement.
The Union first contends that there is an implied duty on the Employer to treat
employees in a fair and reasonable manner, which allows the Union to challenge an
employer's exercise of its unfettered discretionary powers under the collective
agreement. In support, it cites to Re UNITE HERE Ontario Council, Local 2347 and
Canadian Niagara Hotels Inc. (Strecker Grievance) [2007] O.L.A.A. No. 581 (Howe)
Re Family and Children's Services of Waterloo Region and OPS'EU, Local 258 (Reddy
Grievance) [2006] O.L.A.A. No. 295 (Herman); Re Sobeys Milton Retain Support Centre
and UFCW Canada, Local 175 (Brown Grievance) [2008] O.L.A. No. 329 (Albertyn),
Re Brampton Hydro Electric Commission and National Automobile, Aerospace and
17
Agricultural Implement Workers Union of Canada (CAW -Canada), Local 1285 (1993) 15
O.R. (3d) 733 (Ont. Div. Ct.).
It further submits that if the Devlin Award is binding and the assignment of ISTP
training is not a promotion but a work assignment, the case law establishes that the
assignment must be made in a fair and reasonable manner, citing Re Cancoil Thermal
Corp. and UFCW,, Local 175 (Smith Grievance) [2009] O.L.A.A. No. 556 (Starkman)
and Re NGF Canada Ltd. and Workers United Ontario Council (2010), 194 L.A.C. (4th)
264 (Surdykowski). It submits that the grievance should be heard on the merits on this
basis.
The Union also contends that employers are required to apply published rules and
policies in a fair, reasonable and non -arbitrary manner. It submits that the heart of this
grievance is the Employer's unreasonable, unfair and arbitrary application of its
published policy regarding the selection criteria for the ISTP trainer assignment, and that
this claim should be heard on the merits. In support it cites to Re Trenton Memorial
Hospital and ONA, Local 183 (1.984), 15 L.A.C. (3d) 440 (Emrich): Re Tupperware
Canada 19 and UFCW, Local 832 (Union Policy Grievance) (1991), 19 L.A.C. (0) 151
(Steel). The Union submits that this obligation includes policies that are not part of the
collective agreement, such as mandatory retirement policies, citing Re Independent
Electricity System Operator and Society of Energy Professionals (Islam Grievance)
[2006] O.L.A.A. No. 60 (Herman); Re Metropolitan Separate School Board and OPSEU
(Cobban Grievance) (1995), 50 L.A.C. (0) 378 (P. Picher).
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Alternatively, the Union submits that if I conclude to follow the arbitral
jurisprudence that requires a "hook" into the collective agreement for a board of
arbitration to review the Employer's exercise of a right reserved to management, as set
out in Re Blue Line Taxi Co. and R. W.D.S. U, Ontario Taxi Union Local 1688 (1992), 28
L.A.C. (0) 280 (Bendel), the requisite "hook" is found in Article 31 of the collective
agreement which establishes a premium of $0.90 per hour for performing OTJ training
duties. It contends that this express right to a premium if selected as an ISTP trainer is
undermined by the Employer's improper selection. It cites to Re Regional Municipality
of Waterloo and LUPE, Local 1883 (2003), 116 L.A.C. (4th) 381 (Stewart) and Re Union
of Needletrades, Industrial and Textile .Employees, Local 13 05 and NGF Canada Ltd.
(1997), 66 L.A.C. (0) 408 (Ray) in support of its position.
The Employer asserts that the grievance is not arbitrable on any of these bases.
The Employer asserts that the Union's claim that it failed to follow the February 10, 2010
memo, a document outside of the collective agreement, is not arbitrable, nor is there an
independent violation of a right contained in the collective agreement or a statute. It
distinguishes all of the cases cited by the Union. It relies on the following authorities: Re
York Region Roman Catholic Separate School Board and Ontario English Catholic
Teachers' Association (1995), 52 L.A.C.(41h) 285 (Kaplan); Re Municipality of
Metropolitan Toronto and LUPE, Local 43 (1991), 19 L.A.C. (4th) 287 (Davis); Re
Ministry of Community Safety and Correctional Services and OPSEU (May) (2007), 89
19
C.L.A.S. 170 (Abramsky); Re Regional Municipality of Waterloo and CUPS, Local 1883
(2003), 116 L.A.C. (4th) 381 (Stewart).
I have carefully reviewed the cases cited by both parties and their thorough and
thoughtful submissions. Although there is some divergence in the arbitral jurisprudence,
in my view, Arbitrator Bendel correctly determined that an employer has an implied
obligation to administer the collective agreement in a fair or reasonable manner in the
following situations, in Re Blue Line Taxi Co. and T. W.D.S. U, Ontario Taxi Union, Local
1688 (1992), 28 L.A.C. (4th) 280, at par. 24-25:
First, if a provision of the collective agreement expressly confers a discretion on the
employer, an arbitrator could conclude that it was intended that the discretion be
exercised fairly or reasonable. Secondly, it has been held that an employer is
implicitly precluded from acting unreasonably (in areas not expressly regulated by
the collective agreement) if that might lead to specific provisions of the agreement
being negated or undermined. [citations omitted].
As I understand the law, therefore, the employer will only be answerable for the
exercise of a management discretion if a link to the collective agreement can be
established. Such a link might be found to exist if (a) the collective agreement
expressly confers or recognizes a management discretion, or (b) the exercise of the
management discretion might lead to specific provisions of the agreement being
negated or undermined.
This analysis comports with the decision of the Ontario Court of Appeal in Re
Metropolitan Toronto Board of Commissioners of Police and Metropolitan Toronto
Police Association (1981), 124 D.L.R. (3d) 684, at p. 687 [leave to appeal to the S.C.C.
refused] quoted in Re Municipality of Metropolitan Toronto and Canadian Union of
Public Employees, Local 43, supra at p. 292:
If however, the majority of the Divisional Court in the Marsh case were purporting
to lay down a general rule, that all decisions of management pursuant to a
management rights clause which do not contravene any other provisions of the
N1
agreement must stand the further test whether in the opinion of an arbitrator they
were made fairly and without discrimination, then with respect we do not agree....
In our opinion, the management rights clause gives management the exclusive right
to determine how it shall exercise the powers conferred on it by that clause, unless
those powers are otherwise circumscribed by express provisions of the collective
agreement. The power to challenge a decision of management must be found in
some provision of the collective agreement.
Consequently, to the extent that the Union asserts that there is a general implied duty
on an employer to treat employees in a fair and reasonable manner, irrespective of any
link to the collective agreement, I cannot agree. Arbitrators do not have general
jurisdiction to dispense labour relations justice or fairness — there must be a connection to
rights contained in the collective agreement, or an employment-related statute. Both the
grievance procedure and the Ontario Labour Relations Act give arbitrators jurisdiction to
decide "any difference that arises between the parties related to the interpretation,
application or administration of this Agreement, or where an allegation is made that this
Agreement has been violated." For a grievance to be arbitrable, there must be some
connection to the employees' rights under a collective agreement, or an employment-
related statute.
It is undisputed that the collective agreement between the parties does not address
ISTP trainer selection. Nor does the management rights clause in Article 4 require, as
some clauses do, that management exercise its rights and discretion in a fair, reasonable
or non -arbitrary manner. To establish the requisite link to the collective agreement, the
Union points to the premium payment for the performance of ISTP training duties found
in Article 31. It submits that the Employer's arbitrary selection of ISTP trainers negated
or undermined the benefit of Article 31 to the grievors, citing Re Regional Municipality
21
of Waterloo and LUPE, Local 1883, supra and Re Union of Needletrades, Industrial and
Textile Employees, Local 1305 and NOF Canada Ltd., supra. The Union also relies on
the purpose clause in the collective agreement, wherein the parties' agreed to
"maintaining satisfactory working conditions, hours of work and wages for all
employees."
The Employer takes the position that the existence of a premium payment does
not establish the necessary link to the collective agreement to confer jurisdiction on an
arbitrator to review its selection of employees for ISTP training. In support it cites to Re
York Regional Roman Catholic Separate School Board and O. E. C. T.A. (Phillips), supra.
In Re York Regional Roman Catholic Separate School Board, supra, the grievor
alleged that she was improperly denied a department head position. The School Board
had posted for the position and had an internal policy on promotions which stated that
"[p]romotions ra i l l be based on demonstrated ability, skill, attitude as well as willingness
to promote the Catholic education system." The 1 inion asserted, among other things, that
the School Board unreasonably applied this policy. The only reference to the department
head position in the collective agreement was a provision detailing the compensation to
be paid for it. At the hearing, the employer asserted that the grievance was not arbitrable
since the promotion policy was not part of the collective agreement and that there was no
other basis for the arbitrator to assert jurisdiction.
22
Arbitrator Kaplan determined that he could not base jurisdiction on the "single
indirect reference to the position at issue in this case in the salary grid..." (Decision at p.
293.) Nor did the promotion policy, which was outside of the collective agreement,
confer jurisdiction. In so ruling, he relied on an earlier decision between the parties by
Arbitrator Keller, Re O.E.C. T.A. and York Region Roman Catholic Separate School
Board (1995), 49 L.A.C. (4t") 123, at p. 127, in which a very similar issue arose. In that
case, Arbitrator Keller determined that a premium pay provision in the collective
agreement was insufficient to establish jurisdiction. He wrote at p. 127:
In the instant case, the only reference in the collective agreement that is relevant is
the provision that indicates the premium for those promoted to positions of
responsibility.... The mere fact that there is a reference to a rate of pay if a
promotion occurs pursuant to a policy outside of the collective agreement is not
sufficient. There still must be some tie-in to a provision of the collective agreement
to allow an arbitration board to determine if management has acted unfairly,
arbitrarily, discriminately or in bad faith. ...
Arbitrator Kaplan determined that the parties had decided what matters they wished to
include in the collective agreement, and inferentially, what matters they wished to
exclude from coverage. Having made that decision, he determined that he had "no basis
to take jurisdiction in a case simply because one of the parties claims that certain
management actions are unreasonable. That claim does not constitute a `grievance' as
defined by this collective agreement." (decision at p. 294).
In my view, the same rationale applies here. The parties did not include ISTP
training selection in their collective agreement. They only included a premium for it,
after a dispute arose concerning payment for such training, and grievances were filed
alleging that payment was due under Article 16.03(d). The parties then negotiated a
23
specific premium for performing ISTP training duties and withdrew the grievances.
This premium does not give an employee any right or claim to be assigned to ISTP
training duties. Consequently, the inclusion of this premium does not make the
selection of employees for ISTP training arbitrable.
The case of Re Regional Municipality of waterloo and Canadian Union of Public
Employees, Local 1883 (2003), 116 L.A.C. (41h) 382 (Stewart), relied on by the Union, is
distinguishable. The issue of arbitrability was not raised in that proceeding. Instead, the
Union argued that the Employer improperly failed to consider seniority in temporarily
assigning employees to supervisory duties, relying on a general seniority provision and
the management's rights clause which obligated the Employer to "exercise management
rights in a fair and equitable manner." There was also a Letter of Understanding
regarding premium pay for the temporary assignment of managerial duties.
Consequently, the arbitrator was not faced there with the issue of whether the premium
pay provision, standing alone, created jurisdiction to hear the grievance.
The Unio, i also relies on Re Union of Needletrades Industrial and Textile
Employees, Local 1305 and NGF' Canada Ltd. (MacCloud Grievance) (1997), supra. In
that case, the Employer, after having announced its intention to train three Relief Charge
Hands as back up Charge Hands for its three shifts, and to award that training to the most
senior person in each shift, the Company chose not to proceed with the training for the
grievor but did train the other two selected employees. The Union asserted, among other
things, that the Employer's denial of this training opportunity to the grievor undermined
24
and potentially negated his seniority rights and ability to compete in the future for a
Charge hand position. On that basis the grievance was found to be arbitrable.
In my view, this is the strongest argument regarding arbitrability presented by the
Union. The analysis, though, is hampered by the bare minimum of facts that were
presented. It is not clear on the evidence how an OTJ training opportunity might impact
promotional opportunities within the bargaining unit. Indeed, it is not clear what
promotional opportunities Phlebotomists have. They are the second highest paid position
in the unit, second only to the Technical Support Analyst which involves a completely
different skill set and duties. There was no evidence presented that establishes that denial
of this training opportunity would "negate" or "undermine" the grievors' rights in terms
of a promotion under Article 16.02 of the collective agreement. In contrast, in the NGF
Canada case, the connection between training for a Relief Charge Hand and the impact
that would have on an opportunity to become a Charge I land was clear and evident.
I also cannot conclude that jurisdiction may be based on the purpose clause of the
collective agreement. That provision states:
The purpose of this Agreement is to establish an orderly collective bargaining
relationship between the parties and to provide means for the prompt disposition of
grievances to establish and maintain satisfactory working conditions, hours of work
and wages for all employees within the bargaining unit.
At this point in the development of the law, where many collective agreements
specifically provide that the Employer is to administer its management rights and the
25
collective agreement in a "fair and equitable" manner, I cannot imply such an obligation
based on the language used by the parties here.
Finally, the Union asserts that jurisdiction may be based on the selection criteria
that the Employer established but allegedly did not follow. It contends that once the
Employer established this selection criteria, it had to apply it in a reasonable manner. It
asserts that an arbitrator has jurisdiction to ensure that Employer rules and policies are
reasonable and consistently applied. In support, the Union cites to Re Lumber & Sawmill
Workers" Union, Local 2537 and KVP Co. Ltd. (1965), 16 L.A.C. 73 (Wren); Re OPSEU,
Local 245 and City of Hamilton (Attendance Management Policy Grievance) [2009]
O.L.A.A. 383 (Wh;:Mker); Re Trenton Memorial Hospital and ONA, Local 183, supra; Re
Tupperware Canada and UFCu; Local 832, supra; Independent Electricity System
Operator and Society of Energy Professionals, supra; Re Metropolitan Separate School
Board and OPSEU, supra.
Both Re Trenton Memorial Hospital, supra and Re Tupperware Canada,
supra, involved arbitral review of employer policies which allegedly conflicted with
rights under the collective agreement. In Re Trenton Memorial Hospital, the collective
agreement provided that the Union "may hold meetings on Hospital premises
providing permission has been first obtained from the Hospital." After three ge i c r ; i E
union meetings, the Hospital revised its policy to preclude such meetings on its
premises. The parties, in that case, agreed that the collective agreement gave the
employer discretion about such meetings and that if the exercise of that discretion
26
could be shown to be in bad faith, arbitrary , �r discriminatory, it would violate the
collective agreement. That is a markedly different situation than the instant case,
where there is no specific collective agreement right at issue.
Likewise in Re Tupperware Canada, supra, the collective agreement stated
that the authorized Business Agent of the Union "shall have access to the building
during normal business hours with the consent of the Plant Manager." The Employer
then adopted a policy denying the Business Agent access to the plant's work areas and
lunch room. The arbitrator clearly had jurisdiction to review management's discretion
in that case.
Consequently, in neither decision did the arbitrator review the Employer's
application of a policy without , egard to rights under a collective agreement. The
same is true in Re Independent Electricity System Operator, supra, a mandatory
retirement case. There the parties had included the Retirement Policy, the Pension
Plan and its Brochure as part of the collective agreement. (Decision, par. 10) Under
the policy, the Employer could extend an employee's retirement in exceptional
circumstances, as determined by the Employer. The arbitrator, there, clearly had
jurisdiction to review the Employer's exercise of its discretion under the policy.
Similarly, in Re Metropolitan Separate School Board, supra, which also involved
application of a retirement policy, the Union claimed that the policy violated
management's rights to make and enforce reasonable rules as well as negatively impacted
27
the grievor's seniority and pension rights under the collective agreement. The board of
arbitration held that the Employer had the right to institute a mandatory retirement policy
under the collective agreement and the Education Act, but that it could not be exercised in
a manner that was arbitrary, discriminatory or in bad faith.
In Re KVP Co. Ltd., supra, also relied upon by the Union, an employee was
discharged based on a rule promulgated by the Employer which required dismissal if an
employee's wages were garnished three times. The board of arbitration determined that
company rules with disciplinary consequences had to be consistent with the terms of the
collective agreement, must not be unreasonable, had to be clear and unequivocal, brought
to the attention of the employee and notified that a breach could result in discharge as
well as be consistently enforced. In Re OPSEU and City of Hamilton, supra, the Union
challenged an attendance management policy as unreasonable and contrary to the
collective agreement, and the arbitrator had jurisdiction to review the policy. Again, in
each case, there is a direct connection to the collective agreement.
There is no evidence concerning the Employer's creation of the selection criteria
for ISTP training. But assuming it is a "policy", it has no potential disciplinary
consequences for employees, nor is it alleged that the policy violates the collective
agreement as in the cases cited. I also note that in the York Region Roman Catholic
Separate School Board case, supra (and the Keller decision the arbitrator relied upon),
there was a similar document outlining selection criteria which the parties agreed was
outside of the collective agreement and did not confer jurisdiction. Here, liken ise, the
28
selection criteria for ISTP training was outside of the collective agreement. An allegation
that it was not properly followed, where there is no impact on rights under the collective
agreement, is not arbitrable.
Finally, the Union contends that if the Devlin award is followed and the
assignment of ISTP training is not a promotion but a work assignment, it submits that
there is an obligation to make such assignments in a fair and reasonable manner. It cites
to Re Cancoil Thermal Corp., supra and Re NGF Canada Ltd., supra.
In C'ancoil Thermal Corp., the Employer determined that it only needed one
operator, not two, and laid off the grievor from her position, transferring her to a lower -
rated job. The Employer did not provide an explanation, insisting that it had the
exclusive right to determine staffing levels. The board of arbitration reviewed the
Employer's determination, stating at par. 20: "When the exercise of a management right
arguably interferes with the right of an employee to continue in the position which she
bid into, it is incumbent on the Employer to offer some explanation for its actions... The
absence of any explanation however leads to the conclusion that the Employer acted in an
arbitrary manner."
In NGF Canada Ltd., supra, the Union challenged the Fmp)oyer's assignment of
employee kitchen cleanup duties (i.e., nonproduction work) to bargaining unit employees
on a rotational basis, rather than seeking volunteers and, if that failed, assigning the work
in inverse seniority, as it argued was required by the collective agreement. The Union
IM
asserted that the Employer's assignment was arbitrary and discriminatory and did not
comply with the collective agreement. The arbitrator determined that the Company's
approach to the cleanup problem was not arbitrary, unfair or in bad faith and that there
was no violation of the collective agreement, since production work was not involved.
The arbitrator continued, in rather strong terms, at par. 22:
[T]he residual management rights theory underlies the collective bargaining regime
in this jurisdiction. This means that a unionized employer must act in a manner that
is not arbitrar\ , discriminatory or in bad faith, but retains all of an employer's usual
management rights except to the extent that the collective agreement fetters any
such right expressly or by necessary implication. There is no management right that
is more fundamental than the right to organize and direct the workforce, and more
specifically to assign work to the employees. Indeed, unions generally spend much
collective bargaining time and effort trying to negotiate collective agreement
provisions which do just that. Clear collective agreement language is required to
fetter an employer's right to assign work. There is no such clear collective
agreement language that operates to fetter the Company's general management
right to assign the cleanup work in issue in this case. 4n the contrary, the
Company's management right to operate and manage its business in a manner
consistent with the collective agreement includes the right to assign work as it sees
fit subject only to the express provisions of the agreement (and any applicable
legislation).
Consequently, in each case, arbitral jurisdiction was based on allegations that rights
under the collective agreement had been violated by management's actions - not
simply that the employer failed to follow its own policies or make work assignments
in a reasonable and non -arbitrary manner.
Conclusion:
For all of the reasons set out above, I conclude that the grievances must be
dismissed.
30
Issued this 30th day of May, 2011
/s/ Randi 11. Abramsky
Randi H. Abramsky, Arbitrator
31