HomeMy WebLinkAbout1996-2294UNION97_01_28
ONTARIO EMPLOYES DE LA COURONNE
CROWN EMPLOYEES DE L'ONTARlO
1111 GRIEVANCE COMMISSION DE
SETTLEMENT REGLEMENT
BOARD DES GRIEFS
180 DUNDAS STREET WEST SUITE 2100, TORONTO ON M5G 1Z8 TELEPHONE/TELEPHONE (416) 326-1388
180, RUE DUNDAS OUEST, BUREAU 2100, TORONTO (ON) M5G 1Z8 FACSIMILE/TELECOPIE (416) 326-1396
GSB # 2294/96
OPSEU # 96U142
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
BETWEEN
OPSEU (Union Grievance)
Grievor
- and -
The Crown in Right of ontario
(Management Board Secretariat)
Employer
BEFORE W Kaplan Vice-Chairperson
FOR THE G. Leeb
GRIEVOR Grievance Officer
ontario Public Service Employees Union
FOR THE E. Johnson
EMPLOYER Employee Relations Officer
Management Board Secretariat
HEARING January 20, 1997
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Introduction
As is well-known, the Government of Ontano, the employer In this case, has
embarked on a privatization initiative In November 1996, the decision was
reached to substantially increase the purchase of translation from outside
suppliers A Request for Proposals was developed and translators currently
employed in the Ontario Public Service were invited to bid to supply
translation services A November 1996 government memorandum provides,
in part:
Employees will be allowed the opportunity to bid to supply these
translation services on the same basis as other suppliers, providing they
do not have a conflict of interest or unfair advantage gained through
employment. If an employee is a successful bidder, the employee must
resign from the Ontario Public Service on or before the commencement of
the contract.
Since the employee must resign to take the contract, the employee is not
entitled to the surplus provisions including enhanced severance The
employee will receive normallegisfated severance
On November 27, 1996, a grievance was filed taking issue with the poliCY
set out above and alleging a violation of Article 24 and Appendix 14 of the
collective agreement. On January 20,1997, that grievance proceeded to a
hearing in Toronto At the request of the parties, I issued a verbal decision
at the conclusion of the case Written reasons were promised, and the
following award sets out the background of the case, the evidence heard,
the arguments of the parties and my reasons for decision
Before turning to the evidence and arguments, it is useful to set out a
number of the uncontested facts Approximately twenty-eight employees
are affected by this pnvatization initiative To date, none of these
employees have bid for the translation work. Acceptance of a bid does not
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guarantee any work, all that it does is result In the placement of the
individuals name on a roster which provides the hope, but absolutely no
guarantees, of future contract employment. Initially, bids were to be made
by 3 00 P m on January 23, 1997 That date has been subsequently extended
by one week.
Union Submissions
In the union's submission, the employer's policy was unreasonable and was
directly contrary to the terms of the collective agreement, most
particularly Article 24 and Appendix 14 Mr Leeb noted that section 1 (a) of
Appendix 14 required the employer to make reasonable efforts to assist
employees in securing employment when work was privatized Directing
employees to resign upon submission of an accepted bid that guaranteed no
work was hardly, in the union's submission, a reasonable effort. Moreover,
Mr Leeb noted, paragraph 5 of Appendix 14 provided employees with the
opportunity to bid or tender on the same basis as non-employees The
effect of the employer's policy, however, was to put employees in a
particularly disadvantageous position than non-employees by foisting upon
them the requirement that they resign and lose important benefits in the
collective agreement that had been negotiated on their behalf
Not only was the employer's policy, in practice, an unreasonable one, It was
also, in the union's view, directly contrary to the stated purpose of
Appendix 14 which was to assist employees in finding new work when their
jobs were lost. The purpose of the provision was not, Mr Leeb argued, to
depnve employees of the benefits of the collective agreement most notably
the severance and enhanced severance provisions
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Refernng to the evidence of Ms Eleanor Paul, one of the translators
affected by the policy, Mr Leeb argued that the Board should, in the
exercise of its remedial powers, not only declare that the policy was of no
force and effect, but should also extend the timehnes for the submissions
of bids Mr Leeb argued that until the merits of this matter had been
addressed, none of the affected employees were in a position to submit a
bid given the extremely negative consequences of doing so Mr Leeb
concluded by asking me to remain seized with respect to the
implementation of my award
Employer Submissions
In the employer's submission, the Board was without jurisdiction to rule on
the employer's policy, a policy which Mr Johnson asserted, the employer
was entitled to promulgate pursuant to its management rights In the event
that I concluded that I did have the jurisdiction to hear this case, the
employer took the position that there had been no collective agreement
breach Mr Johnson argued that it made sense that an employee would have
to resign his or her employment in order to take another job Nothing in the
collective agreement, Mr Johnson observed, precluded the employer from
requiring the resignation of an employee who decided to bid on government
work It was also arguable, to say the least, that in bidding for the work at
issue, and in having a bid accepted, an employee was, in effect being
transferred to another employer The result of such a transfer, pursuant to
section 1 (a) of Appendix 14, was the loss of any collective agreement
rights other than severance pay It may be true, the employer pointed out,
that an affected employee was denied certain benefits by this policy, for
example, enhanced severance But it was equally true that the employee
5
gained somethIng, namely the opportunity to provide services to the
employer on a contractual basis In that way, the purpose of Appendix 14
- assistmg employees in gaining employment - was being given effect For
all these reasons and others, Mr Johnson asked me to uphold the
government's policy and to dismiss the grievance
Union Reply
In reply, Mr Leeb took the position that the promulgation of the policy
requiring the resignation of successful bidders was nothing more than a
tactic designed to preclude employees from enjoying their collective
agreement rights And, he argued, it was simply unfair to require
employees to resign their jobs, and lose their benefits simply for the
opportunity to have their names placed on a list of people who mayor may
not be offered government work. That, he submitted, was not what
Appendix 14 was all about and that, he pointed out, was not the usual
practice in other ministries where work was being contracted out. He
concluded his submissions by again asking me to find the policy in violation
of the collective agreement, and by urging me to extend the deadline for the
submission of bids in order to give the affected employees a real
opportunity, assuming that the policy would be struck down, of submittmg a
bid
Decision
At the conclusion of the hearing I advised the parties that the grievance
was allowed In particular, I found that the policy was in breach of Article
24 and Appendix 14 and, in the exercise of the Board's remedial powers, I
extended the deadline to February 14, 1997 for the submission of bids
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In my VIew, the policy vIolates the collective agreement for a number of
reasons First of all, the employer, in Appendix 14, makes it very clear that
Its restructuring initiatives could have a significant effect on employees,
many of whom have served for a lengthy period As a result of this
recognition, the employer committed itself to making reasonable efforts to
ensure that where there is a disposition or transfer of bargaining unit
functions that employees in the bargaining unit obtain employment. In this
case, the most direct effect of the contested policy is not to assist the
employees in obtaining employment but to deprive them of the rights
provided for in the collective agreement that have been negotiated on their
behalf This, surely, cannot constitute a "reasonable effort." And this
reason alone would have been a sufficient one for finding for the union
There are a number of other reasons, however, for doing so The result of
the policy is to place employees in a disadvantaged position as compared to
individuals outside of government who bid for the work. Government
employees whose bids are accepted lose their jobs, with none of the
benefits of surplused employees Individuals from outside the public
service whose bids are accepted do not lose their jobs In this way,
government employees are being treated differently, a violation I find of
section 5 of Appendix 14
A few other points are in order The Board obviously has jurrsdlction in a
case of this kind as it directly involves the mterpretation of the provisions
of the collective agreement. That being saId, I simply cannot accede to the
employer's suggestion that successful bidders have obtained employment
7
and should by operation of Appendix 14 be deemed to have resigned All that
they have obtained is the right to be considered for work, and that IS hardly
a transfer to a new employer Whether the employer has the right by
promulgation of policy to Insist on the resignation of employees, as the
employer suggested in its submissions, is a matter that need not be
addressed in this award
Accordingly, and for the foregoing reasons, the grievance is upheld I find
the policy set out above to be in conflict with the collective agreement and
I so declare I also, in the exercise of the Board's broad remedial powers,
extend the deadline for the submission of bids to February 14, 1997 I
remain seized with the implementation of this award
DATED at Toronto this 28th day of January 1997
t '\..--
William Kaplan
Vice-Chai rperson