HomeMy WebLinkAbout1998-1811.Szabo.01-02-19 Decision
o NTARI 0 EMPLOYES DE LA COL'RONNE
CROWN EAIPLOYEES DE L 'ONTARIO
-- GRIEVANCE COMMISSION DE
SETTLEMENT REGLEMENT
BOARD DES GRIEFS
180 DUNDAS STREET WEST SUITE 600 TORONTO ON M5G 128 TELEPHONElTELEPHONE, (416) 326-1388
180 RUE DUNDAS OUEST BUREAU 600, TORONTO (ON) M5G 128 FACSIMILElTELECOPIE. (416) 326-1396
GSB# 1811/98
OPSEU#99B236
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
BETWEEN
Ontano Pubhc ServIce Employees Umon
(Szabo)
Gnevor
- and -
The Crown m RIght of Ontano
(Ontano Realty CorporatIOn)
Employer
BEFORE Bram HerlIch Vice-ChaIr
FOR THE Don Martm
GRIEVOR Gnevance Officer
Ontano PublIc ServIce Employees Umon
FOR THE Fateh SalIm, Counsel
EMPLOYER Legal ServIces Branch
Management Board Secretanat
HEARING June 23 2000 Januan 29 2001
DECISION
On December 4, 1998 the gnevor filed a gnevance allegmg that he had been
"unJustly and Improperly dIsmIssed" It IS common ground that the events gIVIng nse to
that claim were apparent some three years earlIer m December of 1995 when the gnevor
receIved formal notIce from the employer that hIS pOSItIOn was to be surplused In
accordance With ArtIcle 24 of the collectIve agreement. It IS that process whIch IS now
pomted to as an unJust and Improper dIsmIssal.
The employer asserts that the gnevance IS untImely and ought to be dIsmIssed on
that baSIS. WhIle not senously challengmg the untImely nature of the gpevance, the unIon
asks that I exerCIse the dIscretIOn both partIes agree I have to extend the tIme lImIts m
thIS case The employer demes that there are any proper grounds for the exerCIse of that
dIscretIOn.
ThIS deCISIOn IS restncted to the tImelmess Issue and the questIOn of whether I
ought to exerCIse my dIscretIOn m that regard.
The partIes were able, for the purposes of thIS deCISIon, to agree upon the baSIC
facts as follows
1. The Gnevor, John Szabo, commenced employment as an Electncal
Inspector With the Mimstry of Government ServIces on October 5, 1987
2. By Order m CouncIl 356/93, the Mimstry of Government ServIces
functIOns were transferred to Management Board Secretanat ("MBS")
3 On or about July 15, 1993, the Gnevor filed two gnevances The 1993
gnevances are not related to the present gnevance
4. In or about 1994, MBS staff proVldmg servIces to the Ontano Realty
CorporatIOn were transferred to the Ontano Realty CorporatIOn ("ORC")
The ORC IS a corporatIOn under the CapItal Investment Plan Act, 1999,
c 23, as amended, carrymg out the busmess of provIdmg, to the
Government of Ontano and to others, servIces and financmg related to real
property and Improvements to real property
2
5 The Gnevor was amongst the staff transferred In 1994 and contmued
workmg as a Bmldmg Contracts AdmmIstrator With the ORC
6. At all matenal tImes hereIn the Gnevor was a member of the Ontano
PublIc ServIce Employees Umon ("OPSEU")
7 On December 29, 1995 the Gnevor receIved SIX (6) months notIce that hIS
posItIOn With the ORC was to be surplused In accordance With ArtIcle 24
of the applIcable CollectIve Agreement. Under ArtIcle 24, a pOSItIOn could
be surplused where there IS a shortage of funds or work.
8. On or about January 10, 1996 the Gnevor accepted hIS surplus notIce and
severance payments. The Gnevor worked through hIS SIX (6) month notIce
penod. For the SIX (6) month notIce penod, the Gnevor, at hIS own
request, was placed With a pnvate sector firm m order to aSSIst hIm m
traInmg for future Job prospects. The ORC prOVIded the Gnevor With full
salary and benefits dunng hIS placement.
9 On January 22, 1996, Mr Szabo placed the Crown on notIce regardmg a
statement of claIm [regardmg what was described as hIS havmg been
"Improperly termInated by the Ontano ProvmcIaI Government"]
10 On or about June 20, 1997 the Gnevor commenced a CIvIl actIOn agamst
the employer m the Ontano Court (General DIVISIon)
11 On or about May II, 1998 the Employer brought a motIOn to have the
Gnevor s actIOn dIsmIssed. The Court dIsmIssed the Gnevor s actIOn on
the grounds that It had no JurIsdIctIOn over the subJect matter of the actIOn.
12. On or about June 30, 1998 the Gnevor appealed thIS deCISIon to the
Ontano Court of Appeal
13 On or about December 4, 1998, the Gnevor filed hIS gnevance
14 On or about October 25, 1999 the Court of Appeal dIsmIssed the Gnevor s
appeal
At the ImtIaI day of heanng (June 23, 2000), the partIes consented to adJourn thIS
matter largely as a result of late notIce to the employer that the unIon mtended to call
eVIdence It asserted would establIsh that, dunng the CIvIl lItIgatIOn process, the employer
had made representatIOns mdIcatmg that It would not pursue any tImelmess obJ ectIOns
3
When the matter reconvened on January 29, 2001, we heard the eVIdence of Mr
Robert MacRae, who had been the gnevor s counsel throughout the cIvIl htIgatIOn
proceedmgs. At the commencement of that second day of heanng, Mr Martm had
mdIcated on behalf of the unIon (and perhaps at vanance With the preVIOUS advIce), that
Mr MacRae s testImony would fall short of estabhshmg any exphcIt Waiver of tIme
hmIts by the employer We were told, however, that It would support the conclusIOn that
there had been at least an ImphcIt agreement or Waiver such that the employer ought not
to be permItted to rely on ItS tImelmess ObjectIOn or, put more precIsely, such that I ought
to be mfluenced to exerCIse my dIscretIOn m tm gnevor s favour As Will be described
shortly, Mr MacRae s eVIdence faIled to hve up to even that dImInIshed advance bIllmg.
As a consequence and although the employer had arranged for the presence and possible
testImony of counsel who had represented It m the cIvIl htIgatIOn, the employer opted to
call no eVIdence
The agreed facts set out earher reqUIre some supplementatIOn m VIew of the
eVIdence from Mr MacRae ThIs was not the first tIme Mr MacRae had represented the
gnevor Few details were presented or are necessary for our current purposes It would
appear, however, that sometIme pnor to hIS alleged dIsmIssal the gnevor was a co-
defendant (along With hIS employer) m a proceedmg commenced by a person who had
dealmgs With the gnevor and hIS employer That matter was settled. Dunng the course of
or as part of the settlement of that matter, It IS alleged that certam promIses were made to
the gnevor by the employer His subsequent termmatIOn, It IS asserted, was mconsIstent
With those promIses
Consequently, when the gnevor receIved hIS surplus notIce, he sought Mr
MacRae s advIce Although we heard no testImony from the gnevor, the eVIdence and
agreed facts before me suggest that the earhest date upon whIch he sought any counsel
from the unIon regardmg hIS collectIve agreement nghts was m June of 1998 some 212
years after receIvmg hIS surplus notIce In any event, the gnevor and hIS counsel formed
the shared VIew that smce the gnevor s nghts were founded m a settlement and/or
promIse secured m the context of the earher cIvIl actIOn, those nghts could not be
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enforced WIthm the collectIve bargammg regIme or under the collectIve agreement. The
proper manner of enforcmg those nghts was thought to be by way of a cIvIl actIOn. That
actIOn was commenced m June of 1997 (notIce of such mtentIOn havmg been provIded to
the Crown m January of 1996)
From the outset m respondmg to the Statement of Claim (and throughout the
htIgatIOn process), the employer took the positIOn that the court lacked JunsdIctIOn to
hear the matter because the gnevor s terms and condItIOns of employment were governed
by the terms of the collectIve agreement and that the proper forum for challengmg the
gnevor s termmatIOn was through the grIevance and arbItratIOn procedure, a process that
the gnevor had faIled to engage
Even m the face of that formal posItIOn clearly and exphcItly artIculated m the
employer s Statement of Defence m July of 1997, the present gnevance was not filed
untIl December of the folloWing year
As set out earher, the employer s motIOn to dIsmIss the case was granted m May
of 1998 In ItS endorsement the Court concluded that It was Without JunsdIctIOn to hear
the matter because the dIspute fell squarely to the Gnevance Settlement Board. The Court
took the OppOrtunIty to draw comfort from the fact that the effect, If any, of the
"collateral" agreement rehed upon by the gnevor was an Issue thIS Board could
determme even, potentIally, by consIdenng common hw doctnnes such as detnmental
rehance
Very shortly after the decIsIon of the Court Issued, Mr MacRae suggested that the
gnevor Immediately file a gnevance Some seven months later that was done Some three
weeks after the decIsIon of the Ontano Court (General DIvIsIon) was Issued, the gnevor
filed a NotIce of Appeal of that decIsIon m the Court of Appeal. That appeal was
dIsmIssed m October of 1999
5
Although Mr MacRae may have been called for that specIfic purpose, there IS
very httle m hIS eVIdence, whIch mchnes me to exerCIse my dIscretIOn to extend tIme
hmIts m thIS case Certamly there IS nothmg m that eVIdence to support even the
inference that there was an implicit agreement or Waiver on the part of the employer that
It would not raise any tImelmess Issues m the present proceedIngs For as Mr MacRae
candIdly acknowledged (despIte a suggestIOn to the contrary m hIS August 13, 1998
correspondence to the unIOn Staff RepresentatIve), the Issue of tIme hmIts for a gnevance
was never dIscussed With any employer representatIve Indeed, he acknowledged that the
Issue of tIme hmIts (for a gnevance) never even surfaced m any of hIS dIScussIons With
the gnevor untIl after the Judgement of the Court m May of 1998 Even then It appears
that the Issue of tIme hmIts was first raised by the unIon sometIme after that date, when
the gnevor first approached It for assIstance
There IS perhaps an eqUItable appeal to be made for the exerCIse of dIscretIOn to
extend tIme hmIts m thIS case It can be described fairly sImply The employer has
mamtamed throughout that thIS IS the proper forum to determme the gnevor s claim.
Havmg prevailed m that VIew, It should not now be open to the employer to aVOId a
determmatIOn of the ments of that claim by resort to a "techmcal" obJectIOn such as
tImelmess.
A vanatIOn on that theme mfuses the concerns expressed and, to some extent,
acknowledged, by both levels of the courts Indeed, It was concern about thIS dIfferent
potential "meqUIty" whIch featured much more prommently m Mr MacRae s eVIdence
The gnevor Wishes to rely on a "collateral" agreement forged, or so It was wrongly
thought, outsIde the reach of the collectIve agreement and the gnevance procedure It
would be meqUItable for the employer to prevail m ItS VIew that the matter belongs before
thIS Board and to then argue that thIS Board has no JurIsdIctIOn to consIder the terms and
CIrcumstances of that "collateral" agreement. That VIew was echoed by the endorsement
of the Court of Appeal, whIch noted and endorsed the employer s acknowledgement that
"there IS no basIs for an arbItrator to refuse to hear eVIdence about the alleged
representatIOn/collateral agreement and to fashIOn a remedy accordmgly If appropnate"
6
But even acceptmg the legItImacy of that consIderatIOn, It does not amount to an
unfettered hcense to, several years later, file the gnevance, whIch ought to have been
filed at the outset. The concerns about the Impact of legal chOIce of forum IS a separate
matter from the general and specIfic reqUIrements to file gnevances m a tImely fashIOn.
Indeed, had such a gnevance been filed, there IS every hkehhood that the partIes mIght
have been able to agree on the forum m whIch to first determme the JunsdIctIOnal Issue
perhaps even Without preJudIce to the nght to subsequently proceed m the other forum If
necessary
Why that was not done m thIS case remams somethmg of a mystery And, perhaps
more Importantly, why no gnevance was filed early on durmg the relevant sequence of
events IS equally mystenous The gnevor, who dId not testIfy, has offered no dIrect
explanatIOn for that oversIght or for hIS apparent utter failure to even raise or dISCUSS the
matter With hIS bargammg agent untIl sometIme m or after May of 1998 That failure IS
all the more emgmatIc when one consIders the gnevor s preVIOUS famIhanty With the
gnevance procedure, the employer s mdIcatIOn from the very outset that It had acted
pursuant to the terms of the collectIve agreement and (once the cIvIl proceedmg had been
commenced) ItS subsequent Immediate and contmumg assertIOn that the matter ought to
have been the subJect of a gnevance rather than a cIvIl proceedmg.
The apphcable collectIve agreement contams the folloWing provIsIon.
2721 An employee who beheves he has a complamt or a dIfference shall first
dISCUSS the complamt or dIfference With hIS supervIsor WIthm twenty
(20) days of first becommg aware of the complamt or dIfference
I note as well that (whIle the employer dIsputes that thIS IS a true dIsmIssal
gnevance - the gnevor haVIng been IdentIfied as surplus) ArtIcle 2782 provIdes
Any employee who IS dIsmIssed shall be entItled to file a gnevance at
the second stage of the gnevance procedure provIded that he does so
WIthm twenty (20) days of the dIsmIssal.
7
The unIOn suggested that smce ArtIcle 27 2 1 mcludes a subJectIve element tied to
the gnevor s knowledge, that the gnevor may not have "been aware" of the complamt or
dIfference until, at the earhest, the rulmg of the Ontano Court (General DIvIsIOn) That
suggestIOn can be qUIckly dIsposed of. WhIle there IS undoubtedly a subJectIve
component to the language under consIderatIOn, It IS of no assIstance to the gnevor m thIS
case A gnevor who IS legItImately unaware of the facts gIvmg nse to an alleged vIOlatIOn
of the collectIve agreement may well have twenty days from first becommg aware of
those facts to mvoke the gnevance procedure That IS hardly the case here As suggested
m Tltomey, 1956/97 (Brown), It IS knowledge about the facts not knowledge of relevant
legal theones, whIch tnggers the collectIve agreement tIme hmIt. There IS nothmg before
me to suggest that the gnevor was not, from the outset, m posseSSIOn of all of the relevant
facts asserted to gIve nse to hIS claim of Improper dIsmIssal. Thus, It IS clear that the
gnevance was out of tIme and that the only remammg Issue pertams to the possible
exerCIse of my dIscretIOn.
I am asked to exerCIse the dIscretIOn conferred upon me by sectIOn 48( 16) of the
Labour Relations Act 1995 whIch permIts me to extend the tIme If I am satIsfied that
"there are reasonable grounds for the extensIOn and that the OpposIte party Will not be
substantially preJudIced by the extensIOn"
Numerous cases have consIdered the apphcatIOn of thIS provIsIOn mcludmg the
often cIted decIsIons m Becker Milk Company and Teamsters Union, Local 647 (1978),
19 L.AC (2d) 217 (Burkett) and Greater Niagara General Hospital and ON.A. (1981),
1 L.AC (3d) 1 (SchIff)
The factors that those (and many subsequent) arbItrators have consIdered m
determmmg whether or not to exerCIse theIr dIscretIOn have been IdentIfied by arbItrator
Burkett as follows
1 The reason for the delay gIven by the offendIng party
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2. The length of the delay
3 The nature of the gnevance
and by arbItrator SchIff
1 The nature of the gnevance.
2. Whether the delay occurred m mItIally launchmg the gnevance or
at some later stage
3 Whether the gnevor was responsIble for the delay
4 The reasons for the delay
5 The length of the delay
6 Whether the employer could reasonably have assumed the
gnevance had been abandoned.
There IS no doubt that the gnevance m thIS matter IS one of sIgmficant
consequence - the gnevor claims he has been dIscharged and seeks remstatement and
compensatIOn. I note agam, however, that while It does purport to be a dIsmIssal
gnevance, the employer asserts that the matter mvolved the apphcatIOn of the Job security
prOVISIOns of the collectIve agreement and was not a dIscIplmary matter Thus whIle the
consequences of the actIOn challenged by the gnevance are undoubtedly severe, thIS may
not be a typIcal dIscharge case
The delay bemg pomted to IS the delay at the very outset of the gnevance
procedure l.e the failure to even file a gnevance
The reason and responsibIhty for the delay are hIghly problematIc m thIS case On
one level, one mIght conclude that there sImply IS no reason, let alone any good reason,
for the delay On the most chantable readIng of the facts, the gnevor may be seen to have
followed bad advIce But even that conclusIOn IS less than apparent. For Mr MacRae
made It clear that hIS VIew had been that the cIvIl proceedmg was the appropnate route to
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follow He advIsed the gnevor accordmgly and the actIOn was commenced. Events
proved that advIce to have been wrong. But even If there IS some eqUItable basIs to
protect the gnevor from hIS rehance on legal advIce, whIch proved to be mIsgUIded, It IS
less than clear that provIdes a reason for the gnevance not haVIng been filed. Unhke the
case of Wicken, 2216/97 (Knopf), (a case m whIch the Board declmed to exerCIse ItS
dIscretIOn to permIt a gnevance filed some 1612 months after tre dIscharge), there was no
suggestIOn m the mstant case that Mr Szabo had been specIfically advIsed to not file a
gnevance No explanatIOn was provIded as to why the commencement of the CIVIl actIOn
precluded the gnevor from filmg a gnevance (or even consultmg With hIS bargammg
agent m that regard) And finally, even If one mIght be tempted to somehow otherWIse
"forgIve" the delay to the pomt that the court vmdIcated the employer s posItIOn m May
of 1998, there IS sImply no explanatIOn before me whatsoever for the subsequent
contmumg delay m filmg the gnevance Even after Mr MacRae exphcItly advIsed hIS
chent, m wrItmg, to "forthWith (Immediately)" file a gnevance, It took some seven
months for that to happen.
The length of the delay IS enormous and mIhtates very strongly agamst the
exerCIse of any dIscretIOn. The Board m the Wicken case observed that no case With
sImIlar collectIve agreement language was cIted whIch had permItted a gnevance to
proceed folloWing a delay of 1612 months from the date of termmatIOn. The delay m the
present case IS more than double that m Wicken no case was presented to me m whIch
tIme hmIts were extended m the face of such a delay
Fmally, I consIder the Issue of preJudIce and whether the employer could
reasonably have assumed the gnevance had been abandoned. The magmtude of the delay
IS so extreme m thIS case that, Without more, I mIght be prepared to conclude that
substantial preJudIce would result to the employer If It were now reqUIred to defend the
gnevance Indeed, It may well be that the onus of estabhshmg no such preJudIce falls to
the party seekmg to have the tIme hmIts extended. However, there are some reasons to
conclude, m thIS case, that the resultmg preJudIce mIght not IE as severe as a three year
delay mIght otherWise suggest. For despIte the utter mactIvIty msofar as the gnevance
10
procedure was concerned, It was abundantly clear to the employer that the gnevor was
challengmg hIS termmatIOn. And whIle there may not have been a complete IdentIty
between the terram that would have been covered m the gnevance procedure and that
whIch the gnevor Ill-advIsedly sought to traverse m the cIvIl proceedmg, there can be
httle doubt that the prmcIpal facts relatmg to the termmatIOn are promment and central m
both. Thus, It IS perhaps more dIfficult for thIS employer to assert that It could have
assumed the gnevance, or at least the gnevor s challenge to the propnety of hIS
termmatIOn, had been abandoned.
On the other hand and whIle It may be a factor ultImately of a remedIal nature, I
cannot help but comment on the dIfferences m the rehef sought and aVailable m the
gnevance as opposed to the cIvIl proceedIng. It IS only With the filmg of the gnevance
that a claim for remstatement IS made - years after the Impugned termmatIOn. The claim
m the cIvIl proceedmg was (not all surpnsmgly gIven the vanance of aVailable remedIes)
restncted to damages. Thus, the employer can legItImately assert that no claim
whatsoever for remstatement was made untIl the gnevance was filed years after the fact.
There may well be eVIdentIary matters relatmg to the Issue of rem statement whIch were
not raised or sought to have been raised m the cIvIl proceedmg.
When I consIder all of the factors canvassed, I am forced to conclude that thIS IS
not an appropnate case for the exerCIse of my dIscretIOn. The magmtude of the delay and
the reasons proffered for It are such that, despIte the Importance of the gnevance and the
possible mIxed nature of the resultmg preJudIce, I do not consIder It appropnate to
exercIse my dIscretIOn to extend the tIme hmIts.
The gnevance IS untImely and IS therefore dIsmIssed.
Dated at Toronto thIS 19th day of February 2001
. ~
. I - ~_~~w.
- ~ -~,
Bram Herhch, Vice-Chairperson
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