HomeMy WebLinkAbout1996-2105.Valentine.99-03-23 Decision
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ONTARIO EMPLOYES DE LA COURONNE
CROWN EMPLOYEES DE l'ONTARIO
1111 GRIEVANCE COMMISSION DE
SETTLEMENT REGLEMENT
BOARD DES GRIEFS
180 DUNDAS STREET WEST SUITE 600, TORONTO ON M5G 1Z8 TELEPHONEITELEPHONE (416) 326-1388
180,RUEDUNDAS OUEST BUREAU600, TORONTO (ON) M5G 1Z8 FACS/MILE/TELECOPIE (416) 326-1396
GSB # 2105/96 (96I041, 99B034 99B035), 0202/97 (97U089), 0894/97 (97U089), 2159/95 (960093),
1230/96 (960860 98A584), 1571/96 (960981), 1977/96 (96H105), 2346/96 (97C025),
2672/96 (97C090), 0170/97 (97C238), 0225/97 (97C276), 0837/97(970928), 1285/97(97B875),
1393/97 (97C478), 1519/97 (97G042), 0190/98 (98B197), 0890/97 (970947), 0891/97 (970848)
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
BETWEEN
OntarIO PublIc ServIce Employees Umon
(Valentme, DaSIlva, et allUmon Gnevance)
Grievor
- and -
~
The Crown m RIght of OntarIO
(Mmlstry of Fmance, Mimstry of Labour,
MmIstry ofCommumty and SOCIal ServIces)
Employer
BEFORE DJ D LeIghton V Ice-Chair
FOR THE Ed Holmes
GRIEVOR Counsel, Ryder Wnght Blair & Doyle
BarrIsters & SolICItors
FOR THE DaVId Strang
EMPLOYER Counsel, Legal SerVIces Branch
Management Board Secretanat
HEARING September 24 and 25, 1998
(Rev 13 Apr 99)
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ThIS decIsIOn concerns forty-five (45) mdIvIdual and policy gnevances WhICh
were consolIdated for the purposes of thIS heanng The parties agreed that the Issue
for the Board to address was the mterpretatIOn of Article 53 of the collective
agreement,
53 1 An employee whose semonty commences from a date pnor to
January 1, 1970, and who ceases to be an employee IS entitled
to be p8.1d an amount m respect of hIS or her accumulated
attendance credIts for contmuous servIce up to and mcludmg
March 31, 1978, in an amount computed by multIplymg half of
the number of days of hIS or her accumulated attendance
credIts at the date he or she ceases to be an employee by his
or her annual salary at the date he or she ceases to be an
employee and dIvIdmg the product by two hundred and SlXty-
one (261) For the penod from April 1, 1978, the benefits
described under Article 53 4 shall apply
532 NotwithstandIng Article 53 1, an employee whose semority
commences from a date on or after October 1, 1965, and
before January 1, 1970, who ceases to be an employee
because of,
(a) death,
(b) retirement pursuant to,
(1) sectIOn 17 of the PublIc ServIce Act
(P S.A.), or
(11) Articles 8 4, 8 6, 9, 10 1, 10,2, 103 or 17
of the OPSEU PenSIOn Plan and who IS
found by the OPSEU PenSIOn Trust to be
unable to perform hIS or her dutIes by
reason of mental or phYSICal mcapacity
and whose servIce IS terminated in
CIrcumstances under WhICh he or she IS
not entItled to a dIsability pension, or
(c) release from employment under section 22(4) of
the P S,A"
IS entItled to receive, for contInuous servIce up to
and includmg March 31, 1978
(d) severance pay equal to one-half (%) week of salary for
each year of contInuous servIce before January 1, 1970,
and one (1) week of salary for each year of contInuous
servIce from and mcludmg January 1, 1970, or
2
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(e) the am.ount m respect of hIS or her accumulated
attendance credIts computed m accordance With Article
53 1,
whIchever IS the greater, but he or she IS not entitled to receIve
both of these benefits
For the penod from April 1, 1978, the benefits described under
Article 53 4 shall apply
533 An employee whose senIonty commences from a date on or
after January 1, 1970, IS entitled to severance pay for each
year of contmuous servIce up to and mcludmg March 31,
1978,
(a) where the employee has completed one (1) year of
continuous servIce and ceases to be an employee because
of,
(1) death,
(n) retirement pursuant to,
1 section 17 of the P S ,A., or
2 Articles 8 4,86,9,10 1,102,103 or 17 of the
OPSEU PensIOn Plan and who IS found by the
OPSEU PenSIOn Trust to be unable to perform
his or her duties by reason of mental or
phYSICal mcapacIty and whose servIce is
terminated m CIrcumstances under whIch he or
she IS not entitled to a dIsabilIty pensIOn, or
(ni) release from employment under sectIOn 22(4) of the
PS.A.,
m the am.ount equal to one (1) week of salary for each year of
contmuous servIce, or
(b) where the employee has completed five (5) years of
contmuous servIce and ceases to be an employee for
any reason other than,
(1) dIsmIssal for cause under section 22 of the P S.A" or
(iI) abandonment of pOSItion under sectIOn 20 of the
PS.A.,
man am.ount equal to one (1) week of salary for each year of
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contInuous servIce
For the penod from April 1, 1978, the benefits described under
Article 53 4 shall apply
534 An employee,
(a) who has completed a mlllImum of one (1) year of contllluous
servIce and ceases to be an employee because of,
(1) death,
(il) retIrement pursuant to,
1 sectIOn 17 of the P S.A" or
2 ArtIcles 8 4,86,9,101,102,103 or 17 of the
OPSEU PensIOn Plan and who IS found by the
OPSEU PenSIOn Trust to be unable to perform
hIS or her dutIes by reason of mental or
physIcallllcapaClty and whose servIce IS
termmated in CIrcumstances under which he or
she is not entitled to a disability pensIOn, or
(iu) release from employment under sectIon 22(4) of the
PS,A.,
(IV) reSIgnatIon dunng the surplus notIce period, or
(b) who has completed a mlllimum of five (5) years of
contmuous servIce and ceases to be an employee for
any reason other than,
(1) dIsmIssal for cause under sectIon 22 of the P S.A" or
(u) abandonment of positIon under sectIon 20 of the
PS,A"
IS entItled to severance pay for contInuous servIce from and
after April 1, 1978, equal to one (1) week of salary for each
year of contllluous service from and after April 1, 1978
(emphasis added)
Counsel for the Umon submItted that an admlllistratIve error occurred in the
final preparatIOn of ArtIcle 53 of the collectIve agreement and the word "and"
(emphasized above) was wrongly mcluded in the language, thus rendenng the
prOVISIOn meanlllgless The "and" should have been an "or" Therefor the collectIve
4
agreement should be rectlfied. Counsel for the Employer took the posItion that the
collectlve agreement should not be rectified, and that the word "and" had not changed
the practice of the Employer m provIdmg benefits under thIS Article Counsel argued
that changmg the "and" to "or" would mcrease benefits, and thIS was not the
agreement of the Employer
Several arguments were advanced by the Union referrmg to particular groups
of employees, mcludmg transferees under AppendIX 9 and MmIstry of Fmance
employees who Jomed the Ontano PublIc ServIce (OPS) on January 1,1970, and
employees hIred between 1965 and before 1970, m addItion to the argument that
Article 53 should be rectified. However, the parties agreed that not all of the
mdIvIdual grIevors came WIthm the groups identified above Both parties agreed that
I am only to deCIde the mterpretatIon of Article 53, gIven the arguments, and not how
It applIes to the grIevors specIfically
EVIDENCE OF THE UNION
Mr John Joseph O'Bnen, who was chair of the central bargammg Team for the
Umon dunng the negotiations for the collective agreement, testified to hIS knowledge
of the negotIatlon of Article 53 The old collective agreement provided as follows.
532 NotWIthstandmg SectIOn 53 1, an employee whose semonty
commences from a date on or after October 1, 1965 and before
January 1, 1970, who ceases to be an employee because of,
(a) death,
(b) retirement pursuant to,
(i) Section 17 of the PublIc ServIce Act or
(ii) SectIOn 12 or 18 of the PublIc Service
Superannuation Act; or
(c) release from employment under subsection 4 of section
22 of the PublIc ServIce Act, IS entitled to receive, for
continuous service up to and mcludIng March 31, 1978
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(d) severance pay equal to one-half (%) week of salary for
each year of continuous servIce before January 1, 1970
and one (1) week of salary for each year of contmuous
servIce from and mcludmg January 1, 1970, or
(e) the amount In respect of hIS accumulated attendance
credIts computed in accordance With sectIOn 53 1,
whIchever IS the greater, but he IS not entItled to receIve
both of these benefits
For the penod from April 1, 1978, the benefits descnbed under section
53 4 shall apply
Changes to the OPSEU pensIOn plan were made dunng the term of the 1994-
1996 collectIve agreement. The PublIc ServIce SuperannuatIon Act was amended so
that It no longer applIed to members of the bargaimng umt, and in ItS stead pensIOn
entItlement was covered by the OPSEU penSIOn plan.
Mr O'Bnen testIfied that the Umon had two goals In negotIatIng ArtIcle 53
They Wished to add references to the OPSEU penSIOn plan, and include the substance
of the provIsIOns referenced In the old collectIve agreement to the PublIc ServIce
SuperannuatIon Act, ThIS language was proposed by the umon on the
recommendatIOn of theIr benefits and pension experts
In December 1995, the Union proposed the follOWing language be Included in
the new collectIve agreement,
Union Proposal, December 20, 1995
Delete any references In ArtIcles 53 and 81 of the collectIve agreement to
"section 12 or 18 of the Public Service SuperannuatIon Act" and replace
With "ArtIcles 8 4,86,9, 10 1, 102, 103 or 17 of the OPSEU pension
plan text" and the following:
" IS found by the OPSEU penSIOn trust to be unable to
perform hIS or her dutIes by reason of mental or phYSICal
incapacity and whose servIce is terminated in CIrcumstances
under WhICh he or she is not entItled to a d1.sability allowance
or annuIty"
It was Mr O'Bnen's eVIdence that the language was not accepted by the Employer
until late March of 1996 It was hIS eVIdence that the words "and who" found In the
current collective agreement were not In the proposal and that, In fact, the "and"
should be an "or" Dunng edltlng someone indIcated to hIm the words "the follOWing"
had been deleted, but the "and" remamed, Section 18 of the Public ServIce
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SuperannuatIOn Act had provIded
Section 18 Where a contributor who,
(a) has attained the age of sIXty-five years retires and IS not
entItled to a superannuatIOn allowance or annuIty; or
(b) is found by the Board to be unable to perform hIS or her
duties by reason of mental or physical incapacity and
whose servIce IS terminated m CIrcumstances under
whIch he or she IS not entItled to a dIsabilIty allowance or
annuIty; or
(c) has contributed to the Fund m respect of a period of less
than ten years, dIed leavmg a Widow or Widower, or a
child or children under the age of eighteen years,
tWice the amount of hIS or her contributIOns under sectIOn 7, With
mterest thereon, together With all other moneys paid mto the fund that
entItles hIm or her to credIt m the Fund, With mterest thereon, shall be
prod to hIm or her m monthly mstallments or otherwIse as he or she
dIrects or to hIS widow or her Widower or child or children, as the case
may be
Mr O'Bnen noted that smce the PublIc ServIce SuperannuatIOn Act provIded
altemate condItions for the benefit, thIS IS what should have been mcluded in the
collective agreement.
Mr O'Bnen testIfied further that dunng the edItmg of the collectIve agreement
the Umon pomted out ItS concem about the wordmg of ArtIcle 53 to the Employer,
noting that there was never any mtentIon of the Umon to mclude the word "and" He
noted for the Board that the first time the word "and" appeared in ItS present form
was on March 29, 1996 It was hIS VIew that as the collectIve agreement reads now an
employee that retires per Factor 80, must also be found to be dIsabled to get the
benefit under ArtIcle 53 The purpose of the Union's proposal was to capture the
provIsIOns of the PublIc ServIce Superannuation Act, In thIS negotIatIon the Umon's
goal was to maximize benefits for members who, because of massive downsIzing in the
govemment, would be losing theIr employment.
On cross-exammatIon, Mr O'Bnen acknowledged that at the time of the
negotiation of the collectIve agreement, the PublIc Service Superannuation Act no
longer applied to OPSEU members He acknowledged that not everythmg in the
PublIc ServIce SuperannuatIon Act had been mcluded m the OPSEU pensIOn plan,
7
and that the purpose of addmg language to the new collective agreement, whIch was
essentially the same as the language included m the PublIc ServIce Superannuation
Act, was to mclude a new benefit, When questioned by Employer Counsel as to
whether anyone m the negotiatmg team or the Umon told the Employer that the
intention of the change to Article 53 was to Improve benefits, Mr OBnen answered
that he dIdn't remember exactly what had been smd He thought that the team had
smd that they dIdn't want to lose any benefits, but he dId not remember If anyone on
the team told the Employer the proposed language was a greater or better benefit.
When Employer Counsel put it to Mr OBnen that one of the Employer's negotiators,
during dISCUSSIons about Article 53, asked specifically what the language was for, and
was told by the Umon that It was "housekeepmg," Mr OBnen said that he "can't
answer"
EVIDENCE OF THE EMPLOYER
Mr Kevm James Wilson, now DIrector of Corporate Labour Relations
Negotiations Secretariat, was the ChIef negotiator for the Employer at the central
bargmmng table Mr Wilson testified that he attended the bargmnIng seSSIOns at the
central bargmning table with Mr D Gray He testified that the Umon tabled ItS
pOSItion Wlth regard to Art1cle 53 on December 20, 1995, Wlth a large package of
proposed changes to the collective agreement. When the Employer team mquired mto
the purpose of the proposed changes to Article 53, Mr Beckerman, one of the Umon
negotiators, smd that it was "housekeepmg" m nature, and that the Umon was sImply
looking to amend the collective agreement to reflect changes to the OPSEU pensIOn
plan. Mr Wilson testified further that the Employer had only agreed to language that
dId not change the benefit as It stood pnor to bargmmng If It was merely
housekeepmg in nature, then it would not change existing benefits for anyone I twas
hIS understandmg through the negotiations that the Umon did not want to add
benefits, but wanted to ensure that It dId not lose benefits Mr Wilson smd that the
Employer has not changed how It admImsters Art1cle 53 He also noted that If the
Umon does propose a change to a benefit, It IS always costed. ThIS was not done for
Art1cle 53
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On cross-exammatIOn, Mr Wilson stated that the Umon's proposal was
referred to Mr Hill, an expert m pensIOns, for hIS reVIew Accordmg to Mr Wilson, It
was Mr Hill's VIew that no additional benefit was bemg added by thIS language Mr
Wilson agreed that Article 8 8 of the penSIOn plan IS not exactly the same as the
language proposed by the Umon to mcorporate the language of sectIOn 18 of the
PublIc ServIce SuperannuatIon Act. He agreed further that sectIon 18 mcludes an
"or" and not an "and", and that the old prOVIsIOn of the collectIve agreement dId not
refer to eIther Factor 80 or 90 He stated further that sectIon 12 of the PublIc ServIce
SuperannuatIon Act IS the same prOVISIOn as now found m ArtIcle 9 of the penSIOn
plan It was the mtent of the Employer to mamtam the eXIstmg benefit and not to
Improve It.
Mr Wilson acknowledged that the pnvatIzatIOn of a govemment servIce was a
matenal change m its operatIon Mr Wilson acknowledged that employees m an
operatIon WhICh has been pnvatIzed have no chOIce to remam m the OPS and the
pnvatIzatIon IS governed by AppendIX 9 of the collective agreement.
THE UNION'S SUBMISSION
Rectification
Counsel for the Umon submitted that ArtIcle 53 must be rectIfied because It
contains an inadvertent admmIstrative error WhICh makes the Article meanmgless
Counsel submItted that the Umon's proposal m December of 1995 to change ArtIcle
! 53 had two parts. The first part was mtended to delete any references to the PublIc
ServIce SuperannuatIon Act and mclude the relevant ArtIcles of the penSIOn plan
mstead, The second part was to mclude the prOVISIOns of sectIon 18(b) of the PublIc
ServIce Superannuation Act in the collective agreement. Counsel submitted that the
Umon held fast to that proposal until March 29, 1996 when the Employer accepted
the proposal However, when the proposal was put mto the final document, the words
"and who" were added when the word should have been "or" The language of sectIon
18(b) of the PublIc ServIce SuperannuatIon Act made three prOVIsIons that were m the
altematIve, that is they were linked With "or" and not "and"
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Counsel argued that the Article as It reads In the collective agreement IS
meaningless For example, under the current Article you have to be dead and not
entitled to a pensIOn. Or you have to be elIgIble for Factor 80 and incapacItated
physically or mentally This Interpretation IS not what the parties Intended or agreed
upon. Counsel argued that the pensIOn expert for the Employer had revIewed the
proposal pnor to the Employer's agreement to It, and argued that the expert must
have recognIzed the addItional provIsIOn Counsel argued that thIS ArtIcle reqUIres
rectification because there was an admInIstrative error He argued that I should
apply the doctnne of rectification because It would be eqUItable and provIde relIef
agaInst unjust ennchment. Counsel cIted Re Alcan Canada Products Ltd. and Metal
Foil Workers UnIon, Local 1663 (1982), 5 L.A,C (3d) (Arthurs), Re SemInole
Management and Engineenng Co. and CanadIan AutomobIle Workers, Local 195
(1989),4 L.A.C (4th) 380 (Watters) m support of hIS argument.
Ministry of Finance Grievors
Counsel argued In the alternative should I find that rectification IS not
warranted that employees who were mUnICIpal employees initially and then appoInted
to the OPS by OIC on January 1, 1970, should have theIr contInuous servIce date
deSIgnated as January 1, 1970 and not the date m WhICh they may have started With
the mUnIcIpality In antiCIpating an argument that thIS claim IS not timely, Counsel
argued that the date should always have been January 1, 1970 and that SInce the
Issue only arose when these members retired, that was the first notice they had of the
issue CalculatIng the continuous servIce date from January 1, 1970 affects the
termInatIOn benefits under Article 53 ArtIcle 53 3 provIdes that Employees with
continuous servIce dates between January 1, 1970 and March 3, 1978 are entitled,
With some condItions, to one year of credit for each year of servIce at the termInation
of theIr employment, Counsel CIted OPSEU (BIckerstaff) and the Mmistry of
Govemment Services (1979) 74/79 (SWinton) to support his argument.
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The Transferees
Counsel for the UnIon also argued that AppendIX 9 transferees to pnvate
employers who were deemed to resIgn if they dIdn't take ajob WIth the new employer
were released pursuant to the PublIc ServIce Act section 22(4) He argued that the
nght to resIgn belongs to each employee and that It must be voluntary A resIgnation
can't be a real resIgnation If there IS duress In the case of employees transferred
pursuant to privatIzatIOn, they are mformed by the Employer of two choIces they
may take the Job WIth the new pnvate company and resIgn from the OPS, or they may
declme to take the Job WIth the new pnvate employer and resIgn from the OPS
Counsel argued that Mr Wilson's eVIdence was helpful to the Union's argument
because he agreed that pnvatIzatIon was a matenal change to operatIOn He noted
that the UnIon was not takmg Issue WIth AppendIX 9, whIch deals WIth "reasonable
efforts as negotIated between the parties" Counsel cIted OPSEU (MawanI) and the
MInIStry of Government ServIces 1772/87 (Venty) for the propOSItIOn that
resIgnatIons must be voluntary He noted in conclUSIOn that If there is a finding that
these employees have been released, they get the "best of optIon" under ArtIcle
53 2.Ii(c) They get the best of accumulated credIts dependmg on the penod of theIr
employment.
Discrimination Argument
Counsel also argued that people hIred between 1965 and 1970 WIthOUt a
disability could accumulate sick credIts Half of the accumulated credIts would be
paid as a benefit on terminatIon of employment, DIsabled employees would have to
use sIck credIts m order to be away from work If they were disabled, and therefore
would not get prod the benefit of accumulated cremts on endmg employment.
Counsel argued that there was a direct connectIon between the collectIve agreement
and accumulated credIts and termmatIOn pay at the tIme of retIrement, Counsel cIted
OPSEU (Kimmel/Leaf) and the MInIStry of Government ServIces (1991) 21 L,A.C (4~
129 (Kaplan) to support hIS argument that the payment of terminatIon benefit at
retirement to people hIred between 1965 and 1970 resulted in adverse dIscnmination
to those employees who were disabled,
11
THE EMPLOYER'S SUBMISSION
Rectification
Counsel argued that there were two lmes of authonty on whether arbItrators
can rectify the collectIve agreement, The Supreme Court case of Re Port Arthur ShIP
Buildmg v, Arthurs et al, (1968) 70 D L R. (2d) 693 and the lme of cases followmg It
have held that arbItrators have no JunsdictIon to amend the collectIve agreement.
The Labour Relations Act sectIon 45(8) had given the power to arbItrators to go
beyond the collectIve agreement, but thIS provIsion has been repealed. Even when
the doctrme of rectIfication IS applIed, it is only m lImited CIrcumstances Counsel
argued where a second document needs to be mterpreted as It relates to an agreed
upon first draft, then rectIficatIon IS permItted, In Re CamI Automotive Inc. and
Canadian Auto Workers, Local 88 (1994) 45 L,A.C (4~ 71 (Brandt) rectIfication was
only ordered where both the employer and the umon agreed that there was a
typographIcal error
Counsel also relIed on Semmole, supra, to argue that the partIes must prove
that they mtended the partIcular language and here the Employer dId not. There was
no evidence that the Employer mtended to expand the benefit as the Umon now
argues In Counsel's submIssion, Mr O'Bnen's eVIdence was that the Umon intended
to preserve existIng benefits. Thus m Counsel's submISSIOn that there was a
mIsunderstandmg between the partIes, rather than any clear mtentIOn to Improve the
benefit under ArtIcle 53 Counsel noted that the benefit here IS modest. The
maximum benefit under Article 53 IS 26 weeks of pay and everyone who is a long-term
employee is gettmg 26 weeks of pay
Counsel acknowledged that ArtIcle 53 was certamly dIfficult, but there was no
evidence that members were not gettmg what they had bargained for He pomted out
that It was undIsputed eVIdence that Mr Gray had been told by the Umon negotIatIon
team that the proposed change to Article 53 was for "housekeepmg" Counsel noted
that the Employer has contmued to provide benefits as were m place m December
1995
12
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Ministry of Finance Grievors
Counsel argued that the Union's claIm that mUnICIpal workers who transferred
to the OPS on January 1, 1970 should have a contmuous servIce from that date
rather than the date they began with the mUnICIpalIty IS not 1:1mely Further, Counsel
argued that the UnIon IS estopped from relYIng on the stnct language of the collec1:1ve
agreement, MUnICIpal employees who became publIc servants on January 1, 1970,
have been credIted WIth an earlIer senIonty date and have had the benefit of the
earlIer date smce they began with the OPS TheIr vaca1:1on en1:1tlement and other
benefits have been calculated based on the earlIer date They can not now claIm a
later con1:1nuous service date of January 1, 1970 In order to Increase theIr benefits
under Article 53 Counsel asked me to reVIew the language of the order-In-council,
which governed the transfer of these employees from theIr mUnICIpal employer to the
OPS, theIr rights and en1:1t1ements Attendance credIts were specIfically provided for
In the order-In-COuncIl.
(2) Attendance CredIts
The accumulatIOn of attendance credIts while In the servIce of the
mUnICIpal assessment offies or office of the Distnct Assessor will be
recognized and recorded to the credit of the employee and may be
applIed to sick leave, other leave and separatIOn gratUIty as provIded
under The PublIc ServIce Act. Con1:1nuous servIce WIth the prevIOUS
employer WIll be Included In determining en1:1t1ement to separation
gratUIty (OC - 2618/69, P 3)
The Transferees
Counsel for the Employer argued that the transferees pursuant to AppendIX 9
who had reSIgned when theIr government servIce was pnvatized had not been
released under sectIOn 22(4) of the PublIc Semce Act and that there was no eVIdence
to Support a finding that there had been a release under the Act. Counsel argued that
the UnIon would have to conVInce the Board that there was no resIgna1:1on and,
therefore, AppendIX 9 dId not apply AppendIX 9, WhICh IS part of the collec1:1ve
agreement, provIdes at paragraph l(a) when an employee is transferred to a new
employer, he or she will be deemed to have reSIgned, These proviSIOns were
nego1:1ated and agreed to by the Employer and the UnIon Counsel argued that thIS
Issue was deCIded by the Board In OPSEU (UnIon Gnevance) and the MInIStry of
13
Consumer and CommercIal Relations (1997) 201/97 (FIsher) The collective
agreement provides for deemed resIgnations and the Umon can and has agreed to
such language m the collective agreement. Counsel argued that I should not vary thIS
decIsIOn unless I thmk that it is patently unreasonable
Discrimination Argument
Counsel argued that sIck credIts were deSIgned for dIsabled or sIck employees
and, therefore, cannot be dIscnmmatory for people hIred between 1965 and 1970 All
of these employees got approXImately 12 credIted days per year If an mdlvIdual was
not dIsabled, and dId not use the credits, he or she was allowed to accumulate half
the credIts and, ultimately, be prod the eqUIvalent benefit when they ceased
employment, A dIsabled person could use the credIts to top up sIck leave or
accumulate the credits and take half of the accumulated benefits on separatIon If a
dIsabled emp1oy~e used the full credIt he or she got 100% of the value Counsel noted
that severance pay was an earned benefit, Employees earn the same benefit and,
between the time of earmng and the time of retirement, can cash It m. Counsel
argued that this benefit was deSIgned to aSSIst SIck or dIsabled employees and there
was no adverse dlscnmmatIOn m the applIcation of Article 53
DECISION
The parties put the extrmsic eVIdence of the bargaining hIStOry of ArtIcle 53 m
the 1995-1996 round of negotiations before me by agreement. They have asked for an
mterpretation of ArtIcle 53 based on thIS evidence and their arguments. The first
Issue to be decIded IS whether the collectIve agreement should be rectIfied. Havmg
carefully conSIdered the eVIdence and the submIssIOns of the partIes, I find that I do
not have the power to rectIfy the collective agreement m thIS case
In CamI Automotive, supra, the Board summanzed the controversy m arbItral
Junsprudence on the issue of whether arbItrators have the power m an appropnate
case to rectify a collectIve agreement.
In Some early cases (Re Newfoundland Lrquor Corp and N.A.P E,
(1977),17 L.A,C (2d) 101 (ThIstle), Re Emco Ltd, and U S.W, Loc. 2699
(1977), 14 L.A.C (2d) 361 (Johnston)), arbItrators declmed to rectify m
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the face of clauses in the collective agreement prohibIting them from
"altenng, modIfymg, or amendmg" the collectIve agreement. In
Metropolltan Toronto Pollce Assn, v Metropolltan Toronto Board of Com'rs
ofPollce (1974) 45 D L.R. (3d) 548, (1975] 1 S C R. 630, 74 C L L.C
~14,223, the OntarIO Court of Appeal [26 D L.R. (3d) 672, (1972] 2 0 R.
793,72 C L L C ~14,125] expressed some reservatIons conceming the
power of an arbItrator to rectIfy a collectIve agreement.
That case and others were revIewed extensIvely m Re Alcan
Canada Products Ltd, and Metal Foil Workers' Unions, Loc. 1663 (1982),
5 L.A,C (3d) 1 (Arthurs), where It was held that, at most, the statements
of the courst m the Metro Pollce case were oblter dlctum, Further, It was
held that clauses m collectIve agreements preventmg the arbItrator from
"altenng" or "modifymg" the collectIve agreement do not have the effect
of preventmg the arbItrator from finding the real agreement of the partIes
and rectIfymg the ostensIble agreement m the way that will reflect the
real agreement. Subsequent to Re Alcan Canada Products Ltd, there
have been a number of cases m whIch arbItrators have followed that
case and have rectIfied the collectIve agreement where appropnate see
Re Ethyl Canada Inc, and E.C W U, Loc, 300 (1987), 26 L.A,C (3d) 201
(Devlm), Re Seminole Management & Engmeenng Co and c.A. W, Loc.
195 (1989),4 L.A.C (4th) 380 (Watters), Re Peterborough CWlC Hospltal
and I.UO,E., Loc. 796 (1991), 23 L.A,C (4~ 312 (Jackson)
The Board m Cami AutomotIve went on to conclude that the consensus of
arbItrators m 1994 was that they had the power to rectIfy collectIve agreements when
appropnate In the Board's VIew, this was supported by the amendment to the Labour
RelatIons Act which specIfically provIded pursuant to SectIOn 45(8) that arbItrators
have the power to "determme the nature of the differences [between the partIes] in
order to address their real substance" and "to determme all questIOns of fact or law
that arIse "
However, thIS prOVISIOn of the Labour Relations Act was repealed in 1995
Thus Employer Counsel IS of the VIew that thIS board has no JunsdICtIon to rectIfy the
collectIve agreement. Leavmg aSIde the question of whether thIS Board has any
junsdIctIon under any CIrcumstances to order rectificatIon, even under the broad view
of rectification (found m CamI AutomotIve or Semmole, supra), It would not be proper
m this case
The Board m CamI Automotive, havmg found the general JunsdictIon to rectify,
went on to state
Whether or not rectIficatIon should be ordered IS a matter of whether or
not the wntten agreement reflects the "true bargaIn" or "true concensus"
of the partIes to that agreement, In that regard eVIdence was led by the
company with respect to the actual agreement and mtentIons of the
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parties respectJ.ng art, 11 (c) That evidence related both to the
bargaIning conduct of the partIes and to the subsequent admmlstratIon
of art. 11 (c)
The eVIdence before me does not support a findmg that the wrItten agreement eIther
reflects or does not reflect the "true bargain." What the eVIdence does show IS that
there was no "true bargaIn" The unrefuted eVIdence of the Employer IS that at the
bargaInIng table the umon negotIators descnbed the changes to ArtIcle 53 as
"housekeepmg," There was no mtention of mcreasmg the benefit under Article 53
But If I was to accept the Dmon's argument that It should be rectified, then the Dmon
would have Improved the benefit. The evidence of the Dmon was also that It mtended
in ItS negotiatIOns to preserve the status quo The ArtIcle at 53 2(b)(ii) is clearly
meanIngless However, the Employer has contmued to admImster the benefit-
Ignonng the meanmgless part - as If It had been written to preserve the status of the
benefit as of December 1995
Having considered the Dmon's other submIssIOns, I find that the Dmon IS too
late to claIm that the Mumclpal employees, who became members of the OPS by
order-in-council on January 1, 1970, should have their contmuous servIce date
rectIfied to that date These employees have had the benefit of theIr earlIer
continuous servIce date - having had theIr start date WIth the municipalIty honoured
by the OPS BIckerstaff supra, IS of no assIstance on thIS Issue Finally, the Ole,
whIch appointed these employees, was clear in preserving theIr earlier continuous
servIce date and m addressmg credIts for sIck tune
The argument that transferees to pnvate employers pursuant to the provIsIOns
m AppendIX 9 have been released under Section 22(4) of the PublIc ServIce Act has
no merit. ThIS Issue was addressed and rejected m OPSEU Umon Grievance, supra.
There was nothmg m the Dmon's submIssIOn to persuade me that It was patently
unreasonable
The final argument to be addressed IS that employees hIred between 1965-
1970, who have used theIr sIck credits when ill or msabled, have been adversely
mscnmmated agaInst. I find no ment m thIS argument, The benefit was desIgned for
people who were ill. Those that used It got 100% of the benefit. Those that dId not
were permItted to take half of the remaImng credits on termination of their
employment as a retIrement gratUIty In these circumstances, there IS no
mscnmmatIon m the applIcatIon of ArtIcle 53
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I shall remain seized should the parties reqUIre further assistance
Dated at Toronto thIS 23rd day of March, 1999
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D, - eIg on, ice-Charr
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