HomeMy WebLinkAbout2000-0319.Leung et al.01-07-26.Decision
~~~ o~~o EA1PLOYES DE LA cOURONNE
_Wi iii~~~i~T DE L 'ONTARIO
COMMISSION DE
REGLEMENT
"IIIl__1I'" BOARD DES GRIEFS
Ontario
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GSB#0319/00 0388/00
UNION# OOB 194 00B206 00B207
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
BETWEEN
Ontano PublIc ServIce Employees Umon
(Leunge et ai, GUIllermo/Chen)
Grievor
-and-
The Crown In RIght of Ontano
(Mimstry of Finance)
Employer
BEFORE RandI H. Abramsky Vice-Chair
FOR THE GRIEVOR Don MartIn
Gnevance Officer
Ontano PublIc ServIce Employees Umon
FOR THE EMPLOYER Mary Pat Moore
Counsel, Legal ServIces Branch
Management Board Secretanat
HEARING December 11 2000 January 22, 2001 March 26 2001
May 1 2001 May 2, 2001 May 28 2001 June 11 2001
AWARD
ThIS case Involves a group gnevance filed by twelve CorporatIOns Tax AudItorS
In the Mimstry of FInance challengIng the delay and subsequent cancellatIOn of a
January 1999 Job competItIOn for seventeen (17) Semor CorporatIOn Tax AudItor
posItIOns SpecIfically the gnevance alleges, In pertInent part, as follows
Based on the postIng from "Employment Opportumtles" dated February
22, 2000 re Semor CorporatIOn Tax AudItor I hereby submIt my
gnevance wIth respect to the cancellatIOn of the competItIOn for Semor
CorporatIOn Tax AudItor [dated January 9 1999] My gnevance IS
based on ARTICLE 6 and applIcable ArtIcles of the collectIve agreement,
WIth respect to "PostIngs and FillIng of vacanCIes or new posItIOns"
The foundatIOn for the above gnevance IS
- Management has not provIded myself or others any explanatIOn as to why
they delayed the competItIOn and the subsequent cancellatIOn of the
competItIOn.
- The Mimstry of FInance clearly IndIcates In theIr letter dated December
21 1999 they Intend to re-advertlse for the same posItIOns In the near
future See attached copy of the re-advertlsement made In regards to the
new competItIOn, It IS eVIdent there has been no changes In the
qualIficatIOns reqUIred.
- The fact IS the knowledge and expenence reqUIred for a Tax AudItor Level
5 IS IdentIcal to the prevIOUS posItIOn referred to as FInanCIal Officer Level
5
- It appears that thIS process has been orchestrated to accommodate
management's desIre to fill the posItIOns WIth IndIVIduals who dId not
prevIOusly apply to the March [SIC] 1999 competItIOn. ThIS clearly shows
that management Intends to dISCnmInate agaInst myself an others who had
competed In the last competItIOn held In March [SIC] of 1999
- Due to the delay and subsequent re-advertlsement, I have expenenced
both anxIety and stress, WhICh has produced an unhealthy workIng
envIronment, both for myself and my colleagues
2
The "settlement desIred" IS "to have management contInue wIth the prevIOUS competItIOn
as there was no JustIficatIOn for ItS cancellatIOn."
The February 2000 competItIOn proceeded and there were ten successful
applIcants Those Incumbents were advIsed of thIS proceedIng. Some attended the
heanng but none decIded to partIcIpate
Facts
On January 9 1999 the Mimstry of Finance posted for seventeen "Semor
CorporatIOn Tax AudItor" posItIOns In the classIficatIOn of FinancIal Officer 5 (atYPIcal)
(hereInafter "F05") The posItIOns were to be In London (4 posItIOns) North York (7
posItIOns) Misslssauga (1 posItIOn) and Oshawa (7 posItIOns) The cloSIng date of the
postIng was January 29 1999
ThIS postIng was part of the second phase of the "Tax Integnty Program" ("TIP-
2") desIgned to Increase the complement of audItors to ensure corporate tax enforcement
and complIance The TIP ImtIatlve began In the Fall of 1998 wIth an Imtlal round of new
hmng. The postIng In January 1999 was part of the second phase of hmng. In all, the
Mimstry was seekIng to hIre approxImately 500 employees under the TIP program. As a
result, at the same tIme as the postIng for the Semor CorporatIOn Tax AudItorS, the
Mimstry also posted for many other Jobs, IncludIng 86 CorporatIOn Tax Field AudItorS at
the FInanCIal Officer 4 (atYPIcal) level, 42 Semor Field AudItorS at the FInancial Officer
3
4(atYPlcal) level, 160 FIeld AudItorS, FinancIal Officer 2 (atYPIcal) level as well as a
number of managers
One hundred forty (140) applIcatIOns were receIved for the Semor CorporatIOns
Tax AudItor F05 posItIOns All of the gnevors applIed before the January 29 1999
deadlIne SometIme thereafter 39 of the applIcants were advIsed that there would be a
wntten exam on March 1 1999 WhICh "wIll be used to screen out candIdates to a
manageable number for IntervIew purposes" These applIcants were advIsed that "[t]he
IntervIews wIll be scheduled later In March, probably the week of March 22-26" and that
the IntervIew board would consIst of three Group Managers at the AM-20 level The
same group of managers had performed the Imtlal screemng of the applIcatIOns
One of the gnevors, Steven Pestell, testIfied that he studIed extensIvely on hIS
own tIme for thIS exam and then took the exam of March 1 1999 He was not advIsed of
the test results RIchard Gruchala, DIrector of the CorporatIOns Tax Branch, testIfied that
the test was marked In March and that eleven applIcants successfully passed the test but
no one was IntervIewed.
The partIes agreed that there were qualIfied applIcants for the posted posItIOns
1 The Anderson et al. Decision
DIrector Gruchala testIfied that a number of Intervemng events led the Mimstry to
postpone the F05 competItIOn. The first was that on March 2, 1999 the day after the
4
F05 wntten exam, GSB Vice-Chair Dlssanayake Issued hIS deCISIOn In OPSEU
(Anderson et al.) and Ministry of Finance GSB No 1677/93 That case Involved a
group gnevance by mne IndIVIduals concermng an F05 competItIOn held In mld-1993
The Board ruled that the competItIOn process was flawed. The Board concluded at p 32
as follows
It follows from the foregoIng that the competItIOn process was
sIgmficantly flawed. No personnel files were revIewed. Reference checks
were done only for the successful candIdates, and even that, only as a
matter of confirmatIOn. Thus the panel members depnved themselves of
valuable InformatIOn that was avaIlable from these sources In addItIOn,
no obJectIve assessment of the candIdates' relatIve equalIty was
undertaken. Due to the manner In WhICh the test and IntervIew were
structured and marked, a sIgmficant element of subJectIve assessment was
Involved. Consldenng that some candIdates' work performance was well
known to the panel members, and consldenng the absence of any
InfOrmatIOn from personnel files and supervIsors' reference checks, the
subJectIve decIsIOn-makIng IS lIkely to have favoured some candIdates
Indeed, the eVIdence strongly suggests that the panel took Into account
lIttle else besIdes the marks denved through thIS defectIve process
The Board concluded that as a result of the flaws, the "employer dId not properly assess
the candIdates' qualIficatIOns and abIlIty In complIance wIth the collectIve agreement." It
ordered the partIes to "meet and attempt to agree upon an acceptable remedy at the
earlIest possIble date" If no agreement was reached wIthIn 60 days, the Board would
receIve further submIssIOns on the Issue of remedy
DIrector Gruchala testIfied that the Anderson decIsIOn led the Mimstry to put the
F05 competItIOn on hold. He testIfied that It "created uncertaInty for us" not only In
lIght of ItS findIngs about the competItIOn process but also because of the order to work
5
out a remedy The Mimstry dId not know If such a remedy would Impact the number of
F05 posItIOns avaIlable
In mId-June 1999 the Umon and the Employer reached an agreement on the
remedy In the Anderson case Although the terms of that agreement are confidentIal, the
partIes agreed that It reduced the number of F05 posItIOns avaIlable In the Misslssauga
and Oshawa offices
As to the flaws In the competItIOn process IdentIfied by the Board In Anderson
the eVIdence showed that the Mimstry In late November to early December 1999 hIred a
consultant to reVIse the competItIOn process DIrector Gruchala acknowledged on cross-
eXamInatIOn, however that the Mimstry could have corrected the flaws IdentIfied In at
an earlIer date Personnel files could have been revIewed, references could have been
checked and the subJectIvIty concerns IdentIfied by the Board could have been corrected.
2. The New Class Series for Tax Auditors
In March 1999 a second Intervemng development occurred, specIfically the
advent of a new class senes for Tax AudItorS wIthIn the Mimstry of FInance The new
collectIve agreement, WhIch was sIgned on March 18 1999 contaInS a letter of
understandIng regardIng "certaIn classIficatIOn adJustments" to the Tax AudItorS wIth
new salary ranges for each posItIOn.
6
The letter of understandIng states that these adJustments "reflect adJustments to
address skIlls shortages as contemplated by SectIOn 8(1)(e) of the Pay Equity Act" and
provIdes, In pertInent part, as follows
Tax Auditors
The Employer shall develop a new Tax AudItor senes and class standards
for the posItIOns of Tax AudItorS In the Mimstry of Finance (currently they
are In the FInanCIal Officer senes, except for 4 employees In the Tax
AudItor senes, level 3)
The new ranges shall have the folloWIng mlmma and maXIma.
Min. Max % Incr over FO 1-5
Tax AudItor 1 37 595 43,313 517
Tax AudItor 2 41 900 48,314 213
Tax AudItor 3 47457 55 919 690
Tax AudItor 4 51 910 62,565 664
Tax AudItor 5 58,318 70 515 11 19
Steps wIll move by same percentages, and employees wIll remaIn at theIr
current step
The 1999 general wage Increase wIll be applIed to the above ranges
The exact tImIng of thIS IS a bIt unclear The letter of understandIng IS dated June
25 1999 but the creatIOn of the new class senes and salanes was clearly known much
earlIer and was the subJect of much dIscussIOn and concern, notably among the AM-20
Group Managers and management.
ThIS IS because the new salary levels for the T A5 posItIOn created a salary
InVerSIOn Issue In relatIOn to the AM-20s The AM-20 Group Managers, who had
supervIsed the F05s, were now beIng paid less than the TA5s
7
On Apnl 13 1999 In order to deal wIth thIS sItuatIOn, the DIrectors In the
CorporatIOns Tax Branch proposed a restructunng of the field audIt sectIOn. Under theIr
proposal, a new AM-21 management posItIOn, Semor Group Manager CT FIeld AudIt,
would be created and would supervIse the TA-Ss The AM-20 Group Managers would
generally supervIse the T A4s ThIS restructunng proposal was approved by AssIstant
Deputy Mimster Roy Lawne on Apnl21 1999
Not surpnsIngly thIS restructunng dId not SIt well wIth the AM-20 Managers
Nine AM-21 posItIOns were created and there were twenty AM-20 Group Managers The
Group Managers also obJected to the changes In the reportIng relatIOnshIps SInce the
TASs would no longer report to them, only the TA4s would report to them WhICh they
vIewed as a negatIve change In theIr status and responsIbIlItIes
Histoncally Group Managers had been promoted from the ranks of the FOSs and
the FOSs had been promoted from the ranks of the F04s ThIS was the natural
progressIOn - F04 FOS Group Manager and the Group Manager would supervIse both
FOSs and F04s The combIned effect of the new Tax AudItor salanes and the proposed
restructunng left the AM-20s at a lower salary level than the TASs and supervISIng only
the TA4s
On June 4 1999 the Group Managers filed a gnevance protestIng the Mimstry's
restructunng and theIr compensatIOn relatIve to the TASs The gnevors sought to have
the competItIOns for the AM-21 posItIOns deferred pendIng the resolutIOn of the
8
gnevance, or In the alternatIve, suggested that all unsuccessful candIdates should be
offered posItIOns as semor field audItors (TASs) wIthout competItIOn.
On August S 1999 Deputy Mimster Bryne Purchase responded to the Group
Managers' gnevance He determIned that "management had the nght to restructure the
way field audIts are conducted wIthIn the CorporatIOns Tax Branch, IncludIng the
defimtIOn of the responsIbIlItIes of managers, the assIgnment of staff to managers and the
dlstnbutIOn of work to audIt groups" He also found that there was no oblIgatIOn to
compensate managers at a level hIgher than the hIghest paid bargaInIng umt employee In
theIr orgamzatIOn. He concluded as follows
I have decIded, therefore, that the ImplementatIOn of the new reportIng
structure and the relatIOnshIps should contInue and that competItIOns for
the posItIOns of semor group manager should proceed. Any group manager
who IS not successful In that competItIOn should be consIdered In
competItIOns for semor field audItor posItIOns However because of the
terms of the CollectIve Agreement, competItIOns for these bargaInIng umt
posItIOns cannot be waived.
Your gnevance IS therefore demed.
The Managers appealed the Deputy Mimster's decIsIOn to the PublIc ServIce
Gnevance Board. On October 2, 2000 Vice-Chair John Willes declIned JunsdlctIOn and
dIsmIssed the gnevance The decIsIOn IS currently under JudIcIal reVIew
DIrector Gruchala testIfied that the creatIOn of a new class senes was undertaken
because the Mimstry dunng the first phase of the TIP program In 1998 could not recruIt
enough qualIfied personnel at the eXIstIng salary levels Under the agreement,
Incumbents In the FInanCIal Officer senes were "rolled over" Into the new Tax AudItor
9
senes at the same level In other words, an FOS became a T AS an F04 became a T A4
and so forth. DIrector Gruchala testIfied, on cross-eXamInatIOn, that there was no formal
traInIng for the FOSs, as a group regardIng theIr responsIbIlItIes as a TAS He testIfied
that traInIng was left wIth the local managers to assess skIll levels In regard to team
leadershIp and to address any shortfalls
The partIes dIspute whether In fact, the T AS posItIOn dIffers from the FOS one
DIrector Gruchala testIfied that the TAS posItIOn Involves team leadershIp responsibIlItIes
that were not reqUIred of the FOSs He testIfied that TASs are reqUIred to lead a team of
F04 audItors In the field, as opposed to reVIeWIng F04 audIts In the office before paSSIng
them on to the Group Managers, and that there IS a "much enhanced emphasIs on leadIng
an audIt team" - determInIng the work to be done, schedulIng the work and momtonng
the work. He stated that whIle the FOS posItIOn specIficatIOn states that SO% of the work
Involves "lead [ingJ a team of audItors" In fact that was rarely done He testIfied that the
SO% number was a "dramatIc overstatement of the percentage regardIng leadIng teams of
audItors" Instead, It was "very Infrequently" done He summed up the dIfference by
statIng that whIle both posItIOns Involved team leadershIp for the FOS that Involved
reVIeWIng the work of the F04s In the office and was pnmanly a consultatIve role
whereas the TA S Involves hands-on leadIng a team In the field.
The Apnl 13 1999 proposed restructunng of the CorporatIOns Tax field audIt
sectIOn developed by the dIrectors, and approved by AssIstant Depurate Mimstry Lawne,
amplIfies thIS change The proposal states, In pertInent part
10
The FOS level posItIOn specIficatIOn currently Includes team leadershIp
responsIbIlItIes WhICh, accordIng to advIce from Human Resources
Branch, must be retaIned. Due to the change In reportIng structure for
these staff, exerCIse of thIS responsIbIlIty wIll, of necessIty take on a
dIfferent form
The proposal IS to Increase the use of T A4 Field AudItorS under the
dIrectIOn of the TASs, especIally In the field, In the completIOn of audIt
files where the TAS takes the lead on an audIt and has one or more TA4s
workIng wIth hIm/her ThIS would become the pnme manner In WhICh the
TASs would exerCIse theIr team leadershIp roles ExerCIse of team
leadershIp dutIes In thIS partIcular manner has been an Infrequent
occurrence In practIce amongst all the CT field audIt offices to date
The TASs would cease to undertake techmcal reVIews of all of the
completed TA4 files, as they currently do AM20 managers, In
conJunctIOn wIth theIr local SMG 1 could, however agree to have a small
percentage ofTA4 files submItted to TASs for techmcal reVIew as deemed
appropnate or as CIrcumstances warrant. For day-to-day techmcal advIce
the AM20 manager would be the TA4's first contact pOInt.
The TASs would also have responsIbIlIty for provIdIng traInIng to new
and eXIstIng staff
The Umon dId not refute DIrector Gruchala's testImony about the dIfferent role of
the TAS and no contrary eVIdence was offered. Instead, the Umon relIed on the content
of the posItIOn specIficatIOn for the FOS and that of the T AS The FOS posItIOn
specIficatIOn clearly states that SO% of the Job Involves "lead [ing] a team of AudItorS" In
the field, IncludIng "asslst[ing] audItors In determInIng the scope of audIt coverage, and
specIfic audIt techmques to be applIed" "gIVIng advIce to the audItors on hIs/her team as
to any work to be performed, where reqUIred "reVIeWIng workIng papers prepared by
the audItors on hIs/her team to ensure proper audIt coverage" and "orgamzIng, dIrectIng,
controllIng and coordInatIng audIt staff" All of these are the type of dutIes reqUIred of a
TAS
11
A close companson of the remaInder of the FOS posItIOn specIficatIOn and the
T AS posItIOn specIficatIOn reveals a sImIlar IdentIty of other dutIes and responsIbIlItIes
Each duty and responsIbIlIty lIsted under the TAS posItIOn specIficatIOn appears In
substance If not exact wordIng, In the FOS posItIOn specIficatIOn.
The skIlls and knowledge reqUIred of an FOS and T AS as set forth on the posItIOn
specIficatIOns, IS also substantIally sImIlar Both reqUIre a thorough knowledge of
accountIng pnnclples and audItIng techmques acqUIred through completIOn of the CA,
CGA or CHA program, a thorough knowledge of the CorporatIOns Tax Act, Income Tax
Act (Canada) and Mimng Act; effectIve commumcatIOn skIlls, good Judgement, tact and
dIscretIOn to deal wIth taxpayers and theIr representatIves whIle performIng on-sIte
audIts the abIlIty to lead a team of audItors and work effectIvely as part of the team, the
abIlIty to traIn and provIde gUIdance to Jumor audItors AgaIn, whIle worded dIfferently
the skIlls and knowledge reqUIred are essentIally the same
The mInutes of the August 1999 Local Employee RelatIOns CommIttee (LERC)
for North York dISCUSS the Impact of the new orgamzatIOnal structure The mInutes, In
pertInent part, state as follows
2.3 Organizational Structure with the new AM21 position.
The Umon wanted to know what the change In orgamzatIOn wIll be once
the AM21's are hIred. Management IndIcated that the FOS's wIll report
dIrectly to an AM21 or an SMG 1 The FOS's wIll stIll be In a team
leadIng capacIty
12
The eVIdence showed that the "F05 SelectIOn Cntena" dIffered from the cntena
establIshed for the TA5 competItIOn. The F05 SelectIOn Cntena" mcluded the
followmg
AudItmg Knowledge and Expenence 25%
Tax Knowledge and Expenence 20%
Accountmg Knowledge and Expenence 20%
Research! AnalysIs/Problem Solvmg SkIlls 5%
CommumcatIOn and Interpersonal SkIlls 18%
Planmng and OrgamzatIOnal SkIlls 10%
Computer Knowledge and Expenence 2%
The TA5 competItIOn cntena, whIch was developed m December 1999 were as
follows
1 Accounting/Auditing Competence 35%
-Expert knowledge of accountmg/audItmg theory
standards and practIces
-Workmg knowledge ofmmIstry and branch polIcIes
and procedures
-AbIlIty to obtam, analyze, venfy and evaluate complex
financIal mformatIOn.
2. Tax Legislation Knowledge 30%
-Workmg knowledge of tax legIslatIOn & regulatIOns
(Ontano Corp Tax Act, Mimng Tax Act, Income
Tax Act)
-AbIlIty to research/analyze tax legIslatIOn and
Junsprudence to support audIt conclusIOns
-Workmg knowledge ofmmIstry and branch polIcIes
and procedures
3 Team Leadership Capability 20%
-AbIlIty to plan, orgamze and coordmate actIvItIes of
audIt teams accordmg to establIshed procedures and
deadlInes
13
-AbIlIty to momtor/revIew the work of audIt team
members and provIde gUIdance and coachmg to
mdIvIduals as reqUIred.
4 Interpersonal & Communication Skills 15%
-AbIlIty to commumcate clearly and clanfy techmcal
and non-techmcal mformatIOn to taxpayers,
representatIves and mternal mImstry staff
-AbIlIty to effectIvely manager mterpersonal relatIOnshIps
to ensure posItIve outcomes
DIrector Gruchala testIfied, on re-exammatIOn, that he was concerned that If the
mtervIew dId not encompass team leadershIp skIlls then the competItIOn would be
flawed. On cross-exammatIOn, he stated that he was also concerned that the mtervIewmg
panel for the F05 competItIOn, whIch consIsted of three AM-20 Group Managers, mIght
be bIased because of the salary mverSIOn problem and the proposed restructunng
DIrector Gruchala testIfied that the dIrectors wIthm the CorporatIOns Tax branch
dIscussed thIS problem m Apnl 1999 but he could not recall whether thIS Issue was
conveyed to AssIstant Deputy Mimstry Rob Lawne who made the decIsIOn to cancel the
competItIOn. He testIfied that he "may have" but he could not specIfically recollect. The
dIrectors dIscussed the possIbIlIty of changmg the mtervIew panel but were concerned
that changmg the panel mId-stream would constItute a flaw m the competItIOn process
He was not aware of any GSB cases that held that changmg the composItIOn of the
mtervIew panel would constItute a flaw At thIS tIme, Apnl 1999 none of the mtervIews
had taken place and the managers on the mtervIew panel, along wIth all the other AM-20
managers, dId not yet know how the restructunng Issues would eventually be resolved.
3 Regional Boundaries Review and Allocation of Tax Files Within the
Corporations Tax Branch.
14
Accordmg to DIrector Gruchala, a thIrd mtervemng Issue arose m the Spnng of
1999 In Apnl 1999 a proposal was ImtIated wIthm the Mimstry to establIsh new
regIOnal boundanes to facIlItate "one-stop shoppmg" for taxpayers Instead of havmg
each statute branch have Its own method of sortmg taxpayers/accounts between the
vanous RegIOnal Tax Offices, DIstnct Offices and head office, the goal of the regIOnal
boundanes project was to establIsh common boundanes for all tax statutes - retaIl sales
tax, employer health tax, corporatIOns tax and collectIOns In thIS way a taxpayer would
contact the same office for tax mformatIOn, audIt dIscussIOns and collectIOn actIvIty
regardless of the tax statute at Issue The results of thIS ImtIatIve, accordmg to DIrector
Gruchala, would Impact the resource allocatIOn, i.e manpower needs, of the vanous
RegIOnal Tax Offices It would Impact the number of TA5s needed m each locatIOn.
DIrector Gruchala testIfied that thIS project further put the TA5 competItIOn mto a state of
uncertamty because the Mimstry was no longer sure where It would wmd up needmg
employees
On cross-exammatIOn, DIrector Gruchala acknowledged that whIle thIS ImtIatIve
would Impact the locatIOn of staff, It dId not Impact the number of staff needed to do the
work overall He stated that the staff complement has remamed relatIvely constant.
Further although the proposal was approved dunng the Summer of 1999 ItS
ImplementatIOn was not fully completed m late 1999 when the F05 competItIOn was
15
cancelled, nor was It completed m February 2000 when the TA5 posItIOns were posted.
In fact, ImplementatIOn was stIll not ongomg m 2001
At around the same tIme m Apnl 1999 a reVIew was undertaken wIthm the
CorporatIOns Tax Branch to determme how to allocate the CorporatIOns Tax taxroll m
lIght of the creatIOn of two new RegIOnal Tax Offices m London and Ottawa, the hmng
of the TIP-2 staff, and the restructunng of field audIt umts due to the reclassIficatIOn of
the tax audItor senes The final recommendatIOns on thIS Issue were submItted on
October 9 1999 The report recommended some redIstnbutIOn of audIt staff between
offices, mcludmg the reductIOn of three F05s from the North York and Oshawa offices
as well as an mcrease of two m London and four m Ottawa, but the total complement
remamed the same The proposal also affected the dIstnbutIOn ofF04 staff
In mId-June 1999 two days after a settlement was reached m the Anderson
matter a telephone conference call was arranged to dISCUSS the status of the F05
competItIOn. Present dunng that call were AssIstant Deputy Mimster Roy Lawne, Human
Resources Consultant Des KIrk, DIrector Gruchala as well as Mark GnmsdItch, DIrector
of the North York RegIOnal Tax Office and Dorothy Wnght, DIrector of the MissIssauga
RegIOnal Tax Office Dunng that call, It was decIded to keep the F05 competItIOn m
abeyance DIrector Gruchala testIfied that the reasons for not proceedmg wIth the
competItIOn mvolved the restructunng Issues, a concern that the Job ad for the F05 dId
not mentIOn team leadershIp that the wntten questIOns on the March 1 1999 exammatIOn
dId not dIfferentIate between the skIll set reqUIred for the F04 and F05 posItIOns, that
16
they had not IdentIfied or artIculated what makes one person sIgmficantly better SInce It
was not sufficIent to be techmcally better SInce the focus had to be on team leadershIp
that a gnevance on these pOInts would lIkely succeed, and that the benchmark set had not
been met by any of the candIdates In Oshawa. His contemporaneous notes of the meetIng
reflect those pOInts except for the Issue of restructunng. The notes are headed "RatIOnale
for not proceedIng wIth current F05 competItIOns" On cross-eXamInatIOn, he stated that
the headIng dId not refer to why the Mimstry should cancel the competItIOn, but only not
to proceed at that tIme He testIfied that he dId not take notes of all of the dIscussIOn that
day but could not recall whIch parts were not noted.
The partIcIpants of the conference call also dIscussed that when the Mimstry was
ready to proceed wIth the competItIOn It would be lImIted to those who had applIed In the
January 1999 F05 competItIOn. DIrector Gruchala testIfied, on cross-eXamInatIOn, that
the meetIng dIscussed who would be elIgIble to apply for future competItIOns but gave no
further detaIls DIrector Mark GnmsdItch testIfied that It was decIded at that meetIng to
contInue to hold the F05 competItIOn In abeyance and that "when we proceeded, It would
only be open to those who applIed In January 1999" DIrector GnmsdItch could not
recall the reason for that determInatIOn, but he was clear that the Issue was dIscussed and
agreed upon.
DIrector GnmsdItch testIfied that they decIded to further delay the F05
competItIOn dunng the June conference call because a number of Issues remaIned
outstandIng and needed to be resolved before they could proceed. SpecIfically he
17
mentIOned the Anderson fall-out, the boundanes/resource reqUIrements and the allocatIOn
of files He was not asked about the notes of the meetIng made by DIrector Gruchala and
dId not mentIOn the Items that were lIsted there
By early November 1999 a number of the outstandIng Issues had been resolved
and DIrector GnmsdItch wanted to fill the posItIOns On November 9 1999 he wrote a
memo to AssIstant Deputy Mimster Lawne concermng the "TA5 CompetItIOns" In that
memo DIrector GnmsdItch sought dIrectIOn from the AssIstant Deputy Mimster
regardIng how to proceed In lIght of the decIsIOn made In June 1999 that, when ready the
competItIOns would proceed only wIth those who had applIed In January and the Deputy
Mimster's August 5 1999 letter to the Group Managers whIch had stated that they could
compete for semor field audItor posItIOns ThIS memo In full, reads as follows (emphasIs
In ongInal)
Roy
In early summer of thIS year as part of the dIscussIOns surroundIng the
creatIOn of the new Semor Manager Corp Tax (AM-21) posItIOns a
conference call was held wIth you, Des KIrk, Richard Gruchala, Dorothy
Wnght and myself Dunng thIS call the Issue of the TA5-Semor Corp Tax
FIeld AudItor competItIOns underway at that tIme In Oshawa, MissIssauga
and North York, was dIscussed. Dunng the dIscussIOns It was resolved
that these competItIOns would be put In abeyance pendIng resolutIOn of
such Issues as Corp Tax boundanes and resource reqUIrements In each
office a reVIew of the competItIOn approach In VIew of the recent
gnevance decIsIOn In Anderson et ai, and, development of a new selectIOn
cntena to encompass the dutIes of the TA5 At that time it was also
agreed that when we were ready to proceed the competitions would
only be open to those individuals who applied for the competitions
that were placed in abeyance.
We have now completed our reVIew of boundanes and resource
reqUIrements and determIned that we only have up to seven posItIOns
avaIlable In North York and none In the other offices
18
In the Intenm, the Corp Tax Group Managers (AM-20) gnevances
regardIng terms and condItIOns of employment was revIewed by ElIzabeth
Patterson and the Deputy Mimster's response sent to the gnevors on
August 5 1999 In hIS response the Deputy Mimster stated "I have
decided, therefore, that the implementation of the new reporting
structure and relationships should continue and that competitions for
the positions of senior group manager should proceed. Any group
manager who is not successful in that competition should be
considered in competitions for senior field auditor positions.
However, because of the terms of the Collective Agreement,
competitions for these bargaining unit positions cannot be waived."
To date we have told OPSEU that the competItIOn IS In abeyance not that
we Intend to cancel It.
There IS concern that If we proceed by InVItIng only the prevIOUS
applIcants to reapply for the competItIOn In North York the Group
Managers who were not successful In the Semor Group Manager
CompetItIOn may wnte to the Deputy Mimster statIng that we have not
followed through on hIS commItment. Conversely If we do open up the
competItIOn to others we wIll more than lIkely receIve gnevances from the
ongInal applIcants for the posItIOns complaInIng that we opened up the
competItIOn to gIve them to our managers
I have spoken to Des KIrk on thIS subJect and he IS of the OpInIOn that we
wIll get gnevance [SIC] no matter whIch way we go He belIeves opemng
It up (to Include the managers) IS defendable on the basIs that the TA5
posItIOn IS In effect a new posItIOn WIth a new selectIOn cntena and that
the competItIOn whIch we cancelled had sImIlar flaws as the Anderson et
al gnevance and management had to take steps to correct It.
Your thoughts would be apprecIated.
Mark
Cc Des KIrk
DIrector GnmsdItch explaIned that they were consIdenng runmng a new
competItIOn and he was not sure whether the Mimstry should stay wIth the ongInal pool,
as agreed to In June, or abIde by what the Deputy Mimster had said. He, personally dId
19
not have a preferred course of actIOn and made no recommendatIOn to AssIstant Deputy
Mimster Lawne Instead, he outlIned the facts for Mr Lawne's consIderatIOn. He was
concerned that If the competItIOn was not opened up they would get complaInts from the
Group Managers as well as other audItors who had not ongInally applIed.
Mr Lawne, who IS no longer wIth the Mimstry dId not testIfy at the heanng, nor
dId Human Resources Consultant Des KIrk.
On November 18 1999 DIrector GnmsdItch receIved an e-maIl from AssIstant
Deputy Mimster Lawne regardIng the "T A5 CompetItIOns" whIch stated "FYI. Please
proceed accordIngly Roy" ThIS e-maIl attached another e-maIl, dated November 17
1999 to Roy Lawne from Ed Farragher DIrector Human Resources Branch, Mimstry of
FInance whIch states
Roy
Des has dIscussed the recommended approach wIth me and I agree wIth It.
GIven the changes to the Job responsIbIlItIes and the number of opemngs
now avaIlable, we can JustIfy startIng over wIth a new competItIOn.
Ed
Based on thIS correspondence and dIrectIOn, OPSEU was advIsed at the December 15
1999 Mimstry Employee RelatIOns CommIttee (MERC) meetIng that the F05
competItIOn had been cancelled. The mInutes of that meetIng state as follows
3 CancellatIOn of Corporate Tax F05 CompetItIOn
Management advIsed that In lIght of the Anderson et al GSB Award, a
reVIew of the outstandIng competItIOn for F05 Sr CorporatIOns Tax FIeld
AudItors In vanous locatIOns that were advertIsed In January 1999 was
20
conducted and the competItIOns were put on hold. ThIS reVIew In addItIOn
to the IntroductIOn of new Tax AudItor class standards, and the reVIew of
resource reqUIrements In lIght of the regIOnal boundanes proJect, caused
management to cancel the outstandIng competItIOn. Management
IndIcated that a competItIOn for T A5 Sr CorporatIOns Tax FIeld AudItors
In selected locatIOns would be posted In the New Year
The day after the December 15 1999 MERC meetIng, DIrector GnmsdItch was
asked by an OPSEU representatIve to commumcate the cancellatIOn of the competItIOn to
affected staff because WaitIng for the MERC mInutes would take too long. On December
21 1999 a letter was Issued by Human Resources Consultant Des KIrk, as follows
ThIS IS to advIse you that the above competItIOns have been cancelled. For
your InformatIOn, It IS antIcIpated that competItIOn for Semor CorporatIOn
Tax AudItors - T A5 In selected offices wIll be advertIsed In the near
future
Pnor to thIS, penodIcally throughout 1999 the Issue of the F05 competItIOn was
dIscussed at the Local Employee RelatIOns CommIttee (LERC) In North York. The Apnl
14 1999 mInutes reflect dIscussIOn about the "F04 and F05 CompetItIOns" statIng that
"Management stated that the CT F04s competItIOns are nearly completed and that
reference checks are presently beIng done Management expects to hold the F05s
IntervIews In the near future"
The August 11 1999 meetIng of LERC also dealt wIth the F04 and F05
competItIOns The mInutes state as follows
The Umon requested a status report on these competItIOns
Management stated that the F04 competItIOn IS complete and It resulted In
the hmng of three new staff Management also IndIcated that there are
21
currently 31 F04 vacanCIes Three of these posItIOns are DR posItIOns
The next round of hmng has been delayed due to the reVIew of the class
standards by the CIvIl ServIce CommIssIOn.
The F05 competItIOns are on hold untIl the Issue of boundanes has been
resolved. Half of the competItIOn IS complete m that the wntten portIOn of
the competItIOn has been completed. The umon also raised the Issue of
flaws m the pnor competItIOns
Management stated that every effort IS bemg made to ensure that future
competItIOns follow establIshed hmng practIces
The Umon suggested that perhaps a number could be assIgned for the
wntten portIOn of any competItIOn to Improve obJectIVIty The suggested
that thIS number could be assIgned by the Human Resources Branch.
Management mdIcated that they wIll look mto thIS
Under the tOpIC "New CollectIve Agreement for Tax AudItors m MOF" the mmutes state
that "the mformatIOn was submItted to the CIvIl ServIce CommIssIOn by the due date July
31 1999 All audIt competItIOns are on hold because of thIS Once the CIvIl ServIce
CommIssIOn approves the new class standards management wIll have more answers"
The class standards for the Tax AudItor senes were approved by the CIvIl ServIce
CommIssIOn on August 13 1999
At the November 17 1999 meetmg of LERC the tOpIC of the "TA4 and TA5
CompetItIOns" was agam addressed. The mmutes state that "Management stated that the
TA4 competItIOn IS ongomg and that the TA5 competItIOn IS m abeyance at the present
tIme"
22
AccordIng to gnevor Steve Pestell, the Mimstry dId not officIally Inform hIm
about the delay In the competItIOn or Its cancellatIOn untIl the December 21 1999 letter
He stated that he dId not regularly reVIew the LERC mInutes
4 The Restructuring of the Electricity Sector
DIrectors Gruchala and GnmsdItch outlIned a final reason for the delay and
cancellatIOn of the F05 competItIOn at the heanng whIch Involves the restructunng of the
electncIty sector The January 1999 postIng for the F05 posItIOns In North York
Included three posItIOns for the audItIng of the electncIty sector whIch was slated to begIn
makIng "payment In lIeu" (PIL) of taxes It was thought, at the tIme, that addItIOnal
F05s would be needed In thIS area.
DIrector Gruchala testIfied that dunng dIscussIOns In October 1999 an Issue
about who should perform thIS work arose and he was asked to InqUIre If Canada
Customs and Revenue Agency wanted to admInIster and perform thIS work. DIrector
Gruchala stated that memos about thIS Issue went out In November 1999 and that he and
DIrector GnmsdItch met wIth managers from Canada Customs and Revenue Agency In
January 2000 In early February 2000 the federal agency decIded that It was not
Interested In admInIstenng the program DIrector Gruchala testIfied that thIS uncertaInty
also factored Into the delay/cancellatIOn of the F05 competItIOn sInce It made no sense to
proceed when they dId not know how many posItIOns they needed to fill
5. The February 2000 Competition
23
On February 22, 2000 the Mimstry posted for "up to 9" Semor CorporatIOn Tax
AudItors, TA5 In North York, seven TA5 posItIOns In London and KItchener four TA5
posItIOns In Ottawa-Carleton as well as two bIlIngual T A5 posItIOns there The
competItIOn was open to "Mimstry of FInance classIfied cIvIl servants" WIthIn a 40 k
area. A total of 84 applIcatIOns were receIved. A wntten test, whIch was substantIally
dIfferent from the March 1 1999 wntten test, was admInIstered Twenty-seven
applIcants were IntervIewed. Ten applIcants were successful Seven of the ten were
former AM-20s who had prevIOusly been F05s, one was an F04 and two were from the
AMAPCEO bargaInIng umt. None of the gnevors were successful
Decision
At Issue IS whether the Mimstry properly delayed and cancelled the January 1999
F05 (atYPIcal) competItIOn for Semor CorporatIOns Tax AudItors The Mimstry asserts
that It had four "sound and practIcal" reasons to delay and then cancel the competItIOn
and that It acted, at all tImes, In good faith
1 The Anderson et al decIsIOn and the resultIng settlement agreement.
2 The creatIOn of the new Tax AudItor class senes and standards, as set forth In the
new collectIve agreement, and the resultIng reorgamzatIOn and change In dutIes of
the Tax AudItor 5 posItIOn.
3 The Mimstry-wIde regIOnal boundanes reVIew and the reallocatIOn of tax files wIthIn
the CorporatIOns Tax Branch.
4 The restructunng of the electncIty sector
24
The pertInent collectIve agreement provIsIOn IS ArtIcle 6 PostIng and FIllIng of
VacanCIes or New PosItIOns The relevant provIsIOns Include the folloWIng
6 1 1 When a vacancy occurs In the ClassIfied ServIce for a bargaInIng umt
posItIOn or a new classIfied posItIOn IS created In the bargaInIng umt, It
shall be advertIsed for at least ten (10) workIng days pnor to the
establIshed cloSIng date
62 The notIce of vacancy shall state, where applIcable, the nature and tItle of
the posItIOn, salary qualIficatIOns reqUIred, and the hours of work
schedule Where a posItIOn IS posted wIthIn the Ontano PublIc ServIce,
the Internal notIce of vacancy shall also state the work locatIOn where the
posItIOn currently eXIsts, that the posItIOn IS represented by the Umon and
the partIcular bargaInIng umt whIch contaInS the posItIOn.
63 1 In fillIng a vacancy the Employer shall gIve pnmary consIderatIOn to
qualIficatIOns and abIlIty to perform the reqUIred dutIes Where
qualIficatIOns and abIlIty are relatIvely equal, semonty shall be the
decIdIng factor
The Junsprudence, both wIthIn the GSB and In the pnvate sector hold that once a
posItIOn IS posted, the employer may cancel It but only In lImIted cIrcumstances In the
absence of collectIve agreement language expressly permIttIng cancellatIOn, a
competItIOn may be cancelled when there are "sound and practIcal" reasons to do so
Based on the case law cIted by the partIes, thIS generally means that a genUIne mIstake
occurred so that there IS, In fact, no vacancy' or unforeseen developments beyond the
employer's control occur after the postIng, resultIng In a change In CIrcumstances such
that no true vacancy eXIsts In general, there IS no oblIgatIOn to contInue when the
employer actIng In good faith and wIth bona fide reasons, has had to reVIse ItS posItIOn.
Brown and Beatty Canadian Labour Arbitration sets forth the basIc pnncIples at
5 2520 as follows
25
ArbItrators have also recogmzed that In certaIn CIrcumstances
management may properly cancel a postIng pnor to the posItIOn or
vacancy beIng filled, but not after a candIdate has been confirmed In the
posItIOn. Thus, termInatIOn or wIthdrawal of a postIng has been permItted
In cIrcumstances where the postIng was premature In that the expected
vacancy dId not come Into beIng, or where It had been made In error
Others have held that wIthdrawal of a postIng would be permIssIble If
management bona fide determIned that the vacancy for whIch the postIng
was made no longer eXIsted. However at least one arbItrator has
expressed the VIew that except where an error has been made, or where
frustratIng or unforeseen CIrcumstances have Intervened, a Job postIng
could not be wIthdrawn sImply because management had changed ItS
mInd. On much the same reasomng, other arbItrators have held that once
the postIng procedure has been InstItuted, It must be completed through to
namIng the successful candIdate
ArbItrators, however tend to be "very cautIOus In permIttIng such cancellatIOns.
Re ChilliJ1,ack General Hospital and British Columbia Nurses Union (1995), 47 L.AC
(4th) 270 at 279 (McPhIllIp) The reason for cautIOn IS the potentIal for abuse an
unlImIted dIscretIOn to cancel a competItIOn would Involve As set forth In Re Robb
Engineering Division of Dominion Bridge Company Ltd and United Steel Workers,
Local 4122 (1978) 20 L.AC (2d) 340 347 (MacDougall)
The pnncIple that says that once a Job postIng procedure IS commenced "It
must be completed through to namIng the successful candIdate" appears to
make good sense on the face of It. The fact that If thIS were not so then
the procedure would be open to abuse IS ObVIOUS If the candIdate who
was the ObVIOUS chOIce on semonty and abIlIty for any reason, however
whImsIcal, was not pleasIng to management then the procedures could be
aborted. ThIS could thwart the Intent of the semonty and abIlIty provIsIOns
of the collectIve agreement In a gIven sItuatIOn.
The questIOn then really IS whether the employer had sufficIent cause to
termInate the procedures consIdenng ItS good faith. [T]he reason or
reasons for the termInatIOn must be sound and practIcal
26
In the Robb Engineering case the employer knew at the tIme of the postIng, that
the work to be done was gOIng to be qUIte short-lIved and agreed to the postIng under
pressure from the umon. A few days after the postIng It realIzed that a successful
candIdate would work only for one day In the new posItIOn and cancelled the
competItIOn. It argued that It there was no longer any practIcal reason for contInuIng wIth
the competItIOn. In the arbItrator's VIew the fact that the tIme Involved was shorter than
first thought "does not appear to be sufficIent reason In all the CIrcumstances hereIn to
say the employer has the nght to thwart the proceedIng that It put In motIOn wIth the Job
postIng." (p 348) There was no error and no changed CIrcumstances sInce the employer
knew or should have known the CIrcumstances about the ShIft at the tIme of the postIng.
In Marks and Ministry of Natural Resources GSB No 566/80 (Weathenll, Vice-
Chair) the Board adopted, In dicta, the "sound and practIcal" busIness reason standard
artIculated In Robb Engineering In that case, the employer posted for a posItIOn and the
gnevor applIed before the cloSIng date Another employee, a Mr GentIle was unaware
of the postIng and dId not apply The employer IntervIewed certaIn applIcants for the
posItIOn even though they dId not possess the reqUIred "graduatIOn for an approved
techmcal course In resource management." It also dId not IntervIew a number of
candIdates who met thIS qualIficatIOn, IncludIng the gnevor The employer realIzIng the
error dId not then IntervIew the gnevor or any other qualIfied applIcant. Instead, It
cancelled the competItIOn and reposted the posItIOn, at whIch tIme Mr GentIle applIed.
The only change In the new competItIOn was that the phrase" or an approved related
dIscIplIne" was added to the qualIficatIOns, a change whIch the Board found could have
27
appeared In the postIng as ongInally Issued. The employer then cancelled thIS second
competItIOn because of some concerns about the IntervIeWIng commIttee and agaIn
posted for the Job In questIOn. Once agaIn, the phrase "or an approved related dIscIplIne"
was omItted from the postIng. ThIS tIme, Mr GentIle won the competItIOn and the
gnevor who was also determIned to be qualIfied, came In second. At Issue was whether
the Mimstry properly cancelled the first competItIOn. The Board ruled at p 9
In "cancellIng" the ongInal notIce and "begInnIng agaIn" the employer
has In realIty sImply extended the tIme for makIng applIcatIOns for the Job
The vacancy we repeat, eXIsted at all tImes, and the qualIficatIOns set out
were, for all matenal purposes, unchanged. Because of the employer's
actIOns, however the tIme for makIng applIcatIOn for that Job was
extended well beyond the "establIshed cloSIng date" contemplated by the
collectIve agreement. The effect of thIS, of course, was to depnve the
gnevor of consIderatIOn of hIS applIcatIOn together wIth those of other
employees made In the same competItIOn and filed In accordance wIth the
terms of the competItIOn.
The Board added at p 11
Reference may also be made to the Robb Engineering case 20 L.AC (2nd)
340 (MacDougall) where the questIOn was said to be whether or not the
employer had sufficIent cause, actIng In good faith, to termInate the Job
postIng procedures It was said that "sound and practIcal" reasons must
eXIst. The Board mIght well be InclIned to support the employer's actIOns
In a case that met those cntena. In the Instance case, as we have IndIcated,
there was no sufficIent reason to termInate the first competItIOn. QualIfied
candIdates had applIed wIthIn the tIme lImIts, the vacancy contInued to
eXIst, and the qualIficatIOns (on the basIs of the ultImate appoIntment)
were (insofar as they are matenal) unchanged. It should be added,
however that there IS nothIng In the eVIdence to show that the employer
acted wIth delIberate bIas or sought to dISCnmInate Improperly agaInst the
gnevor
The "sound and practIcal" ratIOnale was followed by the GSB In OPSEU
(McNally Langlois) and Ministry of Transportation GSB No 1142/90 and 1143/90
(FIsher Vice-Chair) In that case a postIng to whIch the gnevors applIed was cancelled
28
because only two qualIfied candIdates applIed. The Job was subsequently reposted and
the gnevors reapplIed along wIth several new candIdates, but the gnevors were
unsuccessful The Board ruled at pp 5-6
In thIS case the only reason the Employer reran the postIng was because
of some vague Government polIcy whIch reqUIred at least 3 candIdates for
a competItIOn. However no eVIdence was led as to whether In fact some
Government polIcy actually eXIsted, ItS ratIOnale, or ItS applIcatIOn. In
these cIrcumstances, we cannot find that thIS polIcy constItuted a "sound
and practIcal" reason to rerun the competItIOn.
In other GSB cases, the Board has examIned the reasons for the cancellatIOn of a
competItIOn. In OPSEU (Magliocco) and MinistlY of Correctional Services GSB No
213/93 at p 25 (FInley Vice-Chair) the Board held that "[t]he Employer IS not restncted
by the CollectIve Agreement from cancellIng a Job competItIOn, provIded that the
cancellatIOn IS for bona fide reasons and the Board consIders that 'lack of fundIng' would
fall wIthIn that category " SImIlarly In OPSEU (Felice) and Ministry of Correctional
Services GSB No 1304/93 (Stewart, Vice-Chair), the Board determIned that the
employer acted reasonably when It cancelled a competItIOn when the fundIng for the
correctIOnal facIlIty for whIch the postIng was made was wIthdrawn. In contrast, In
Chittle and MinistlY of the Attorney General GSB No 273/80 (Venty Vice-Chair) the
Board determIned that cancellIng a restncted postIng and then repostIng It as an open one
was "Improper and unreasonable" In the Board's VIew the employer's actIOns
Improperly extended the posted cloSIng date In vIOlatIOn of then ArtIcle 4 1 of the
collectIve agreement to the detnment of the gnevor
29
Other cases cIted by the partIes have held that a postIng may be wIthdrawn by an
employer "for valId busIness reasons, provIded that It acts In good faith and IS not
motIvated by an Intent to deny any applIcant the Job opportumty Re Corner Brook
Pulp and Paper Ltd and c.E.P Local 60N 73 L.A C (4th) 1 (Oakley) at p 13 The
Board there contInued at p 13 "When consIdenng the motIvatIOn of an employer who
[wIth ] draws a postIng, arbItrators have consIdered whether or not a vacancy contInues to
eXIst after the Job postIng has been wIthdrawn." Also relevant to motIvatIOn IS whether
there was a "change In CIrcumstances between the date of the postIng and the date of the
wIthdrawal" as well as any eVIdence that the decIsIOn was based on the perceIved
qualIficatIOns of the semor applIcant. (73 LAC (4th) at p 14) In the Board's VIew
'[t]he Employer must demonstrate valId busIness reasons why a new owner/operator [the
posItIOn In questIOn] was not reqUIred." In that case, the Board found that there was no
change In CIrcumstances It also determIned that one of the reasons for wIthdrawIng the
postIng was that the employer dId not consIder the gnevor to be qualIfied for the posItIOn.
AccordIngly It ruled that the cancellatIOn of the postIng vIOlated the collectIve
agreement. See also Re Corporation of the City of Toronto and Canadian Union of
Public Employees Local 79 (1994) 42 L.AC (4th) 411 (Abbott) Re Foothills Provincial
General Hospital and Alberta Union of Provincial Employees (1999),76 L AC (4th) 371
(Moreau)
A sImIlar determInatIOn was made In Re Chil!iyt,ack General Hospital and British
Columbia Nurses Union, 47 LAC (4th) 270 (McPhIllIps) In that case, a postIng was
cancelled after the gnevor and one other candIdate had applIed. It was then reposted
30
several months later and the gnevor lost to a more semor applIcant (who had not applIed
the first tIme) He was told, at the tIme, that he was not qualIfied for the posItIOn, whIch
gave "nse to very senous reservatIOns concernIng the reason for the cancellatIOn and the
potentIal abuse of the postIng process to aVOId thIS employee USIng hIS semonty nghts "
The Board also determIned that there were no "sound and practIcal" reasons for
cancelIng the postIng. The reasons gIven for the cancellatIOn changed over tIme All of
the factors relIed upon eXIsted at the tIme of the ongInal postIng. There was no eVIdence
of any specIfic event between the postIng and the date of ItS cancellatIOn - no changed
CIrcumstances or unforeseen developments Indeed, the Board found that the posItIOn for
whIch the postIng was wIthdrawn was "not cancelled at all It was sImply delayed and
filled two months later to the senous preJudIce of thIS gnevor"
In Re International Chemical Workers, Local 798 and Union Gas Company of
Canada, Ltd (1972) 24 L.AC 159 165 (Lysyk) the Board, relYIng on Re Us. Wand
Int I Nickel Co of Canada Ltd (1965), 16 L AC 216 (Lane), held that a "gnevor has an
ObVIOUS Interest In havIng hIS nghts crystallIzed under the ongInal postIng sImply
because he may well lose out to more semor applIcants competIng for the same Job In the
future"
ApplYIng these decIsIOns to the facts In thIS case leads me to conclude that the
cancellatIOn of the January 1999 postIng, although made In good faith, was Improper
Without a doubt, 1999 was qUIte a year for the CorporatIOns Tax Branch In the Mimstry
31
of FInance one full of developments and changes But at the end of the day and for the
reasons set forth below I conclude that a number of the F05 vacanCIes whIch eXIsted at
the tIme of the January 1999 postIng contInued to eXIst, and that the changes gOIng on
dunng the year dId not JustIfy cancellatIOn of the competItIOn.
1 The Anderson et al rationale.
The first reason relIed on by the Mimstry for delaYIng and subsequently cancelIng
the January 1999 F05 competItIOn was the Impact of the Board's decIsIOn In Anderson et
al Counsel for the Employer argued that Anderson was a stunmng decIsIOn, causIng the
Mimstry to re-examIne ItS competItIOn process, a process that was not completed untIl
December 1999 She also argued that because the partIes were ordered to effect a
settlement, It created uncertaInty about the number of vacanCIes that mIght be affected by
the remedy In that case
It IS clear that the Anderson et al. decIsIOn, Issued on March 2, 1999 was a
legItImate reason for delaYIng the January 1999 F05 competItIOn, but It was not a valId
reason to cancel It In ItS entIrety The Board In Anderson ordered the partIes to meet and
attempt to agree upon an acceptable remedy wIthIn 60 days It was lIkely that any
remedy mIght Impact the number of eXIstIng F05 vacancIes, and In mId-June 1999 the
partIes entered Into a settlement agreement. Although the terms of that agreement are
confidentIal, the settlement Impacted the number of vacanCIes avaIlable In MissIssauga
and Oshawa. The settlement In Anderson et al was a valId basIs to cancel the
competItIOn for those affected positions Those vacanCIes, after the settlement, no longer
32
eXIsted. The Anderson decIsIOn and the resultIng settlement agreement was a "change In
cIrcumstances" after the ongInal postIng and constItuted a "sound and practIcal" busIness
reason for not contInuIng the competItIOn as It relates to the affected posItIOns
But neIther the settlement nor the decIsIOn Itself constItute a valId reason to cancel
the competItIOn In ItS entIrety ThIS IS because the settlement dId not affect all of the
vacanCIes posted In January 1999 None of the North York posItIOns were Impacted.
Those vacanCIes contInued to eXIst after the Anderson settlement.
Insofar as the Anderson decIsIOn Itself IS concerned, the eVIdence of DIrector
Gruchala was that the flaws IdentIfied there could have been corrected and I agree wIth
that assessment. Clearly personnel files could have been revIewed, references could have
been checked and the subJectIvIty concerns IdentIfied by the Board could have been
corrected. In addItIOn, relatIvely equalIty could have been properly taken Into account.
I also note that the Anderson decIsIOn dId not result In the cancellatIOn of the
January 1999 F04 competItIOns The reason why It caused the cancellatIOn of the F05
competItIOn, but not the F04 competItIOns, was not explaIned.
I also conclude that the flaws IdentIfied In Anderson dId not Irrevocably taInt the
January 1999 competItIOn as suggested In the November 9 1999 memo The procedure
used In Anderson was dIfferent than the procedure followed In the January 1999 F05
competItIOn. In Anderson the wntten test score plus the oral IntervIew score were
33
combIned and then dIvIded by 3 (for the number on the IntervIew panel) to rank the
candIdates The wntten test formed part of the final score and rankIng. In the January
1999 F05 competItIOn, accordIng to DIrector Gruchala, the wntten test was used solely
as a screemng devIce to test for techmcal knowledge and competence a basIc prereqUIsIte
of both the F05/TA5 posItIOn. There was no eVIdence that the wntten test would be
consIdered as part of the rankIng process The wntten test, moreover appears to have
tested techmcal knowledge only and no other factors There was also no eVIdence that
negatIve markIng was employed In the wntten test.
In addItIOn, the subJ ectIvIty concern of the Board In Anderson centered on the fact
that the three-member IntervIew panel was famIlIar wIth seven of the mne successful
applIcants That fact, combIned wIth the fact that the IntervIew panel had not revIewed
the applIcants' personnel file or references, caused the Board to be concerned about
potentIal bIas In sconng the wntten test and oral IntervIew There was no eVIdence that
such a flaw eXIsted In the January 1999 F05 competItIOn. Even If It dId, reVIew of the
personnel files and reference checks would largely have allevIated the concern.
The eVIdence shows that the Mimstry dId not hIre a consultant to reVIew the
competItIOn process In lIght of Anderson et al. untIl late November 1999 It seems
possIble that such a reVIew could have been done earlIer In the year
At the arbItratIOn heanng, DIrector Gruchala testIfied that the dIrectors In the
CorporatIOns Tax Branch were also concerned that the IntervIew panel establIshed for the
34
January 1999 F05 competItIOn mIght be bIased because, wIth the proposed restructunng,
many of the Group Managers wanted the TA5 Jobs themselves He testIfied that the
dIrectors dIscussed the possIbIlIty of changIng the panel but were concerned that
changIng It mId-stream would constItute a flaw In the competItIOn process
In my VIew the potentIal bIas of the panel mIght have been a legItImate concern
although, at the tIme, late March to early Apnl 1999 the restructunng had not yet been
proposed. The Mimstry's response to the salary InVerSIOn Issue mIght sImply have been
to pay the AM-20s more and leave the eXIstIng structure alone But even assumIng the
Group Managers wanted the TA5 Job there IS no eVIdence that the dIrectors raised thIS
concern wIth AssIstant Deputy Mimster Lawne In Apnl when the Issue was dIscussed
among the dIrectors, or at any tIme thereafter There IS no eVIdence that It factored Into
the decIsIOn by AssIstant Deputy Mimster Lawne to cancel the competItIOn. There IS
nothIng In the documentatIOn submItted at the heanng that IndIcates that thIS concern was
consIdered at all
Further the case law IndIcates that an IntervIew panel can be changed dunng a
competItIOn. In OPSEU (Foster) and Ministry of Natural Resources GSB No 665/88
(Venty Vice-Chair) a new posItIOn was created and posted and thIrty-one applIcants
applIed IncludIng the gnevor A wntten test was gIven and those wIth the top five scores
were IntervIewed. The gnevor was selected and hIS name forwarded to the RegIOnal
DIrector for approval Upon InVestIgatIOn, the RegIOnal DIrector concluded that the
selectIOn process was flawed and had to be set aSIde He was concerned about "the fact
35
that a number of qualIfied applIcants had not been granted an IntervIew and that there
was InSUfficIent emphaSIS on the planmng focus of the Job" The RegIOnal DIrector
appoInted a second selectIOn commIttee to reVIew the applIcatIOns and to "conduct a set
of IntervIews based on qualIficatIOns for the posItIOn." ThIS tIme, 14 applIcants were
IntervIewed and thIS tIme the gnevor placed fourth. There was no eVIdence that the
employer set aSIde the first panel's results In order to dISCnmInate agaInst the gnevor In
the Board's VIew the RegIOnal DIrector properly determIned "that a number of
apparently qualIfied candIdates should have been IntervIewed and were arbItranly and
wIthout reason demed that nght" and that he "properly Intervened to complete the
process In a reasonable manner"
AccordIngly changIng an IntervIew panel dunng a competItIOn IS not necessanly
a flaw and may In a gIven set of cIrcumstances, be reqUIred to ensure a proper
competItIOn.
FInally and thIS applIes to all of the other reasons raised by the Mimstry as well,
the Mimstry had decIded In mId-June 1999 that the Anderson et al decIsIOn was a reason
to postpone the competItIOn but not cancel It. The November 9 1999 memo of DIrector
GnmsdItch clearly states that dunng the June 1999 conference call, It was decIded to put
the F05 competItIOn In abeyance "pendIng resolutIOn of such Issues as Corp Tax
boundanes and resource reqUIrements In each office, a reVIew of the competItIOn
approach In VIew of a recent gnevance decIsIOn In Anderson et al and, development of
new selectIOn cntena to encompass the dutIes of the TA 5 At that tIme It was also
36
agreed that when we were ready to proceed the competItIOns would only be open to those
IndIVIduals who applIed for the competItIOns that were placed In abeyance"
ThIS memo clearly IndIcates that Anderson et al and the Mimstry's reVIew of ItS
competItIOn approach were vIewed as reasons to put the F05 competItIOn on hold, but
not to cancel It entIrely Thus, by mId-June, more than two months after the decIsIOn had
been released and after the settlement agreement had been reached, Anderson et al was
not perceIved by the Mimstry as a reason to cancel the competItIOn.
For these reasons, I conclude that the Anderson et al decIsIOn was a valId reason
to delay the January 1999 F05 postIng untIl mId-June 1999 and to cancel the postIng
Insofar as the posItIOns whIch were no longer vacant after the settlement agreement In
that case was reached. It was not, however a "sound and practIcal" reason to cancel the
competItIOn In ItS entIrety
2. The creation of the new Tax Auditor class series and the resulting changes in the
TA5 duties.
In my VIew thIS Issue IS the most dIfficult one to assess It IS also cntIcal because
If the new T A5 posItIOn IS dIfferent than the F05 one, then the "vacancIes" whIch were
posted In January 1999 no longer eXIsted and cancellatIOn of the competItIOn would be
proper As noted prevIOusly the case law permIts an employer to cancel a competItIOn
when changed CIrcumstances result In the elImInatIOn of the vacancy for whIch the
postIng was made
37
The Mimstry contends that the TA5 Job IS dIfferent than the F05 one, InvolvIng
substantIally more team leadershIp skIlls, and that It IS therefore fundamentally a new and
dIfferent Job I have no doubt that the restructunng of the tax audIt sectIOn, In lIght of the
creatIOn of the new tax audItor class senes, was bona fide The TA5s were to act In
sIgmficantly more of a team leader role In the field Although thIS work had been done by
the F05s, It had been done "relatIvely Infrequently" and far less than the 50% set forth In
the posItIOn specIficatIOn for the F05 The eVIdence of DIrector Gruchala to thIS effect
was not refuted
But the questIOn remaInS whether these new responsIbIlItIes lead to the conclusIOn
that It was, In fact, a dIfferent Job The letter of understandIng contaIned In the collectIve
agreement refers to the change as a "classIficatIOn adJustment" due to skIlls shortages
DIrector Gruchala testIfied that the new class senes was sought because the Mimstry
expenenced dIfficulty recruItIng qualIfied employees dunng the TIP-l phase at the salary
levels offered. To that end, the partIes agreed that the Employer would "develop a new
Tax AudItor senes and class standards for the posItIOns of Tax AudItors In the Mimstry
of FInance (currently they are In the FInanCIal Officer senes )" and substantIally raised
the level of pay It further provIded that "[s]teps wIll move by the same percentages, and
employees wIll remaIn at theIr present step"
Thus the partIes, through the collectIve agreement, treat the change as a
"classIficatIOn adJustment" for the "posItIOns of Tax AudItors In the Mimstry of
FInance " Employees In the FOl through F05 senes were reclassIfied as TAls through
38
TA5s TheIr FO posItIOns were not elImInated. Nor were any TA vacanCIes created by
thIS The employees In the FInanCIal Officer (atYPIcal) senes sImply had theIr posItIOns
reclassIfied and theIr pay was substantIally enhanced.
The eVIdence shows, moreover that team leadershIp was a part of the F05 Job
WhIle It may have more often Involved a reVIew of F04 work, rather than leadIng a team
In the fi el d, team I eadershI p of the exact type reqUIred of a T A5 - I eadIng a team audIt In
the field - was clearly Included In the F05 posItIOn specIficatIOn and was, on occaSIOn,
done The dIfference IS one of degree and emphasIs, It IS not a wholly dIfferent Job As
set forth In the Apnl 13 1999 proposal regardIng the restructunng, exerCIse of team
leadershIp responsIbIlItIes would "take on a dIfferent form"
A reVIew of the TA5 posItIOn specIficatIOn and the F05 posItIOn specIficatIOn
further shows that the skIlls and knowledge reqUIred are substantIally sImIlar The fact
that there was no specIfic traInIng for team leadershIp when the changeover was made
also IndIcates that the skIlls and knowledge are essentIally the same WhIle DIrector
Gruchala testIfied that traInIng was left to local management, no eVIdence of addItIOnal
traInIng at the local level was provIded. If team leadershIp skIlls were a completely new
skIll set, as the Mimstry suggests, one would expect traInIng In thIS area.
Further the August 11 1999 LERC mInutes state In response to the Umon's
questIOns about the role of the F05s In the new orgamzatIOnal structure, that "[t]he F05's
39
wIll stIll be In a team leadIng capacIty" The use of the word "stIll" IndIcates that a team
leadershIp role eXIsted before and was part of the Job
The Mimstry moreover In numerous documents, equated the F05s and TA5s and
used the terms Interchangeably In the Apnl 13 1999 memo regardIng the restructunng
of the CT field audIt sectIOn, one of the charts refers to the complement of "F05s/TA5s"
and "F04s/T A4s" In each office The LERC mInutes, as well as the November 9 1999
memo from DIrector GnmsdItch, refers to the F05 competItIOn as the "T A5"
competItIOn. The October 9 1999 report on the dIstnbutIOn of corporatIOns tax field
audIts refer to "F05" and "F04" posItIOns, well after the tIme when the changeover to the
T A classIficatIOn had taken place
Dunng the mId-June 1999 conference call wIth ADM Lawne, DIrector Gruchala
testIfied that they dIscussed that the F05 Job ad dId not mentIOn team leadershIp and that
the wntten eXamInatIOn dId not dIfferentIate between the skIlls of an F04 and F05
because It dealt wIth techmcal knowledge, not team leadershIp These were lIsted as some
of the reasons "for not proceedIng wIth the current F05 competItIOn" In DIrector
Gruchala's notes There was concern that a gnevance on these pOInts mIght be
successful DIrector Gruchala also testIfied that he was concerned that If the IntervIew dId
not Include questIOns about team leadershIp then the competItIOn would be flawed.
DespIte these concerns, the decIsIOn that was made In mId-June 1999 was to
postpone the January 1999 not cancel It. The decIsIOn was also made, as noted
40
prevIOusly that when the Mimstry was ready to proceed, the competItIOn would only be
open to those IndIVIduals who applIed for the competItIOns that were placed In abeyance
The November 9 1999 memo underscores that "development of new selectIOn cntena to
encompass the dutIes of the TA5" was part of the dIscussIOn and ratIOnale to place the
January 1999 competItIOn In abeyance, not cancel It. Therefore, In the Mimstry's own
assessment In June 1999 the addItIOnal dutIes reqUIred of a TA5 dId not reqUIre
cancellatIOn of the competItIOn.
Further the concerns IdentIfied In June 1999 could have been addressed. Even
though the F05 Job ad dId not emphasIze team leadershIp It dId mentIOn "orgamzatIOnal
and leadershIp skIlls" and the posItIOn specIficatIOn clearly and qUIte predomInantly
Included team leadershIp responsIbIlItIes AccordIngly the IntervIew could have - and
should have - Included team leadershIp questIOns The selectIOn cntena could have been
amended to reflect team leadershIp skIlls SInce they were clearly part of the eXIstIng F05
posItIOn specIficatIOn. As set forth In OPSEU (Fostel) and MinistlY of Natural
Resources supra, the Board approved the creatIOn of a second selectIOn commIttee to
conduct a set of IntervIews based on the qualIficatIOns of the Job whIch Included a
planmng focus that had not been taken Into account In the ongInal IntervIew Here the
fact that the IntervIews had not yet taken place made thIS refocus entIrely possIble and
appropnate
AccordIngly for the reasons set forth above, I conclude that the creatIOn of the
new Tax AudItor classIficatIOn, the resultIng reorgamzatIOn of the corporatIOns tax field
41
audIt sectIOn and change In responsIbIlItIes of the F05 posItIOn dId not elImInate the
"vacancIes" whIch had been posted In January 1999 It changed theIr classIficatIOn and
level of pay and It changed theIr responsIbIlItIes In terms of the emphasIs on team
leadershIp but It dId not elImInate the posItIOns Nor dId It reqUIre a matenal change In
qualIficatIOns There was stIll an ongoIng need for F05/TA5 employees In the North
York RegIOnal Tax Office
Consequently whIle the change In classIficatIOn and dutIes was a new
development - although perhaps not an wholly unforeseen one - It dId not result In the
elImInatIOn of the posItIOns whIch had been posted In January 1999 Nor In my VIew
dId the change In dutIes result In a matenal change In the reqUIred qualIficatIOns or skIlls
Team leadershIp was part and parcel of the F05 Job and, as set forth In the August 1999
LERC mInutes, the F05s "wIll stIll be In a team leadIng capacIty" under the revIsed
orgamzatIOnal structure AccordIngly these changes do not JustIfy the cancellatIOn of the
January 1999 F05 competItIOn.
3 Regional Boundaries - Ministry-wide and within the Corporations Tax Branch
The thIrd reason that the Mimstry cItes to support the cancellatIOn of the F05
competItIOn was the Mimstry-wIde regIOnal boundanes reVIew as well as the reVIew of
tax file boundanes wIthIn the CorporatIOns Tax Branch.
The reVIew of tax files wIthIn the CorporatIOns Tax Branch was ImtIated In the
Spnng of 1999 and was completed by early November ThIS IS eVIdent from the
42
November 9 1999 memo whIch states "We have now completed our reVIew of
boundanes and resource reqUIrements and determIned that we only have up to seven
posItIOns avaIlable In North York and none In the other offices" AccordIngly by early
November 1999 the reVIew of boundanes and resource reqUIrements was no longer an
unknown factor At that pOInt, It was no longer a reason to delay the competItIOn and It
was not a reason to cancel It, except to the extent that It elImInated a posted posItIOn.
In regard to the Mimstry-wIde reVIew of regIOnal boundanes, that process was
approved dunng the summer of 1999 but It was not completed In 1999 Nor was It
completed In February 2000 when the TA5 posItIOns were posted. In fact, at the tIme of
the heanng, the process was stIll not entIrely complete Under these cIrcumstances, the
regIOnal boundanes proJect cannot JustIfy the Mimstry's cancellatIOn of the F05
competItIOn.
4 The restructuring of the electricity sector
The eVIdence showed that the Mimstry's uncertaInty about the number of
employees needed to handle the restructunng of the electncIty sector and the audItIng of
theIr PIL payments dId not take place untIl October 1999 It was not untIl October 1999
that the Issue of who would handle thIS work - the federal government or the proVInce -
was raised. Although thIS JunsdIctIOnalIssue dId lead to uncertaInty about the number of
posItIOns whIch needed to be filled, thIS reason was never cIted as a reason for the
cancellatIOn of the F05 competItIOn untIl after-the-fact. In none of the e-maIls that went
to ADM Lawne or that he sent to DIrector GnmsdItch was the Issue raised. Nor was It
43
relayed to the Umon at the December 15 1999 MERC meetIng In terms of the reasons
for the cancellatIOn of the competItIOn. There was no eVIdence that thIS matter was
dIscussed wIth ADM Lawne In terms of the cancellatIOn of the F05 competItIOn or that It
formed any part of the basIs of hIS decIsIOn.
AccordIngly because thIS factor was not relIed upon to cancel the competItIOn, It
cannot be relIed upon to JustIfy that decIsIOn.
5. The Deputy Minister's Commitment to the AM-20s.
The Umon suggests that the real reason that the F05 competItIOn was cancelled
was because the Deputy Mimster had assured the AM-20s that "[a]ny group manager
who IS not successful In that [AM-21] competItIOn should be consIdered In competItIOns
for semor field audItor posItIOns" The eVIdence presented suggests that thIS commItment
was a factor In the decIsIOn to cancel the competItIOn.
The November 9 1999 memo to ADM Lawne reveals that the Mimstry was faced
wIth qUIte a dIlemma. It truly was In a "no-wIn" sItuatIOn In whIch eIther ItS Group
Managers or the ongInal applIcants would be unhappy and would lIkely gneve The
Mimstry had ImtIated an F05 Job competItIOn that had been held In abeyance for about
ten months pendIng resolutIOn of a number of Issues - the corporatIOns tax boundanes
and resource reqUIrements In each office a reVIew of the competItIOn approach In VIew of
Anderson et al and development of new selectIOn cntena to encompass the dutIes of the
TA5 In June 1999 It had been decIded that when the Mimstry was "ready to proceed the
44
competItIOns would only be open to those IndIVIduals who applIed for the competItIOns
that were placed In abeyance"
In the Intenm, however on June 4 1999 the Group Managers had gneved the
Mimstry's restructunng and sought to have the AM-21 competItIOns held In abeyance
and/or to have the unsuccessful Group Managers placed dIrectly Into the TA5 posItIOns
wIthout competItIOn. On August 5 1999 the Deputy Mimster demed the gnevance and
demed the request that the Group Managers be placed Into the T A5 posItIOns wIthout
competItIOn. He also stated "Any group manager who IS not successful In that
competItIOn should be consIdered In competItIOns for semor field audItor posItIOns"
The November 9 1999 memo pOInts out these two conflIctIng posItIOns to ADM
Lawne and seeks advIce on how to proceed. The memo contInues
To date we have told OPSEU that the competItIOn IS In abeyance not that
we Intend to cancel It.
There IS concern that If we proceed by InVItIng only the prevIOUS
applIcants to apply for the competItIOn In North York the Group Managers
who were not successful In the semor Group Manager competItIOn may
wnte to the Deputy Mimster statIng that we have not followed through on
hIS commItment. Conversely If we do open up the competItIOn to others
we wIll more than lIkely receIve gnevances from the ongInal applIcants
for the posItIOns complaInIng that we opened up the competItIOn to gIve
them to our managers
I have spoken to Des KIrk on thIS subJect and he IS of the OpInIOn that we
wIll get gnevance[s] no matter whIch way we go He belIeves opemng It
up (to Include the managers) IS defendable on the basIs that the TA5
posItIOn IS In effect a new posItIOn WIth a new selectIOn cntena and that
the competItIOn whIch we cancelled had sImIlar flaws as the Anderson et
al gnevance and management had to take steps to correct It.
Your thoughts would be apprecIated.
45
On November 18 1999 ADM Lawne responded to DIrector GnmsdItch,
dIrectIng hIm to "proceed accordIngly" and attached a November 17 1999 e-maIl from
Ed Farragher statIng that he agrees wIth the approach recommended by Des KIrk and that
"[g]Iven the changes to the Job responsIbIlItIes and the number of opemngs now
avaIlable, we can JustIfy startIng over wIth a new competItIOn."
ThIS eVIdence suggests that a decIdIng factor In cancelIng the F05 competItIOns
(and thereby opemng It up to the managers) was the commItment made to the Group
Managers by the Deputy Mimster All of the other Issues - the regIOnal boundanes and
resource reqUIrements, Anderson et al and the TA5 selectIOn cntena - had been
consIdered In June and had not led to cancellatIOn of the competItIOn. The only new
factor raised In November 1999 was the commItment made to the Group Managers The
Mimstry could have opted, as It ongInally decIded In June 1999 to proceed only wIth
those IndIVIduals who applIed for the competItIOns that were placed In abeyance It chose
not to do so and felt that the decIsIOn to cancel the ongInal competItIOn was "defendable"
and that startIng over could be "JustIfied"
There IS no eVIdence to suggest, and the Umon does not allege, that the Mimstry
made thIS decIsIOn In bad faith to thwart the ongInal applIcants Its goal may well have
been, as It asserts, to be fair to all of ItS employees - the ongInal applIcants, other F04s
who may not have applIed and the Group Managers Indeed, I specIfically find that
DIrector Gruchala and DIrector GnmsdItch, both of whom testIfied fully and candIdly
46
acted In good faith at all tImes But the result of the Mimstry's decIsIOn to cancel the
competItIOn and start over was to senously preJudIce the nghts of the gnevors That IS
because the competItIOn was now open to a group of very hIghly qualIfied managers who
had prevIOusly held the F05 posItIOn and had managed both F05 and F04 employees
None of theses managers had applIed In January 1999 It IS not at all surpnSIng that
seven of the ten TA5 posItIOns were awarded to Group Managers
The resultIng sItuatIOn IS sImIlar to that In Marks and Ministry of Natural
Resources supra, where the Board ruled at p 9
In "cancellIng" the ongInal notIce and "begInmng agaIn" the employer
has In realIty sImply extended the tIme for makIng applIcatIOns for the Job
The vacancy we repeat, eXIsted at all tImes, and the qualIficatIOns set out
were, for all matenal purposes, unchanged. Because of the employer's
actIOns, however the tIme for makIng applIcatIOn for that Job was
extended well beyond the "establIshed cloSIng date" contemplated by the
collectIve agreement. The effect of thIS, of course, was to depnve the
gnevor of consIderatIOn of hIS applIcatIOn together wIth those of other
employees made In the same competItIOn and filed In accordance wIth the
terms of the competItIOn.
In sum, although 1999 was a year full of changIng CIrcumstances and
developments wIthIn the CorporatIOns Tax Branch of the Mimstry of FInance, the
January 1999 postIngs for Semor CorporatIOns Tax AudItor contInued to eXIst, at least In
the North York RegIOnal Tax Office The four reasons cIted by the Mimstry to JustIfy the
cancellatIOn - (1) the Anderson et al decIsIOn and settlement; (2) the new T A class senes
and standards as well as the resultIng reorgamzatIOn and change In dutIes of the T A5
posItIOn, (3) the RegIOnal Boundanes and resource allocatIOn reVIew and (4) the
restructunng of the electncIty sector - dId not constItute "sound and practIcal" reasons to
47
cancel the competItIOn In Its entIrety Some were valId reasons to delay the competItIOn
and to cancel It Insofar as posItIOns ongInally posted were elImInated. But for all of the
posItIOns that remaIned - specIfically the seven In North York - the competItIOn should
not have been cancelled. The Mimstry vIOlated the ArtIcle 6 nghts of the gnevors when
It cancelled the competItIOn and reposted for the same posItIOns In February 2000
Remedy
When a vIOlatIOn has been found, the goal IS to put the gnevors, to the extent
possIble, In the same posItIOn that they would have been In had theIr nghts under the
collectIve agreement not been vIOlated.
The normal remedy In a case lIke thIS IS to declare the second competItIOn, the
February 2000 one, to be a nullIty and to order the Employer to proceed wIth the ongInal
competItIOn. My concern about that IS the potentIal dIsruptIOn such an order mIght have
on the operatIons of the North York RegIonal Tax Offi ce
DependIng on eXIstIng and upcomIng T A5 vacanCIes, an alternatIve mIght be to
proceed wIth the January 1999 competItIOn and have the seven successful candIdates fill
the next seven TA5 vacanCIes, WIth a monetary top-up untIl such tIme as they are able to
assume such posItIOns The number seven relates to the number of F05 posItIOns
remaInIng In North York as set out In the November 9 1999 memo
48
There IS also an Issue of back pay for the seven successful candIdates from the
tIme the TA5 posItIOns were filled from the February 2000 competItIOn untIl now
Although the Mimstry asked for a specIfic order rather than a dIrectIOn to have
the partIes seek out a settlement, the partIes may be able to desIgn a remedy whIch IS
satIsfactory and less dIsruptIve to the Mimstry's operatIOns For example, there may be
T A5 vacanCIes In other offices whIch a successful candIdate mIght prefer AccordIngly
the Board dIrects the partIes to meet and attempt to agree upon an acceptable remedy at
the earlIest possIble date If no agreement IS reached wIthIn 60 days from the date of thIS
Award, the Board wIll reconvene at the request of any of the partIes to receIve further
submIssIOns on remedy
The Board wIll remaIn seIzed for that purpose
Conclusion
1 For all of the reasons set forth above, the Board concludes that the gnevors' nghts
under ArtIcle 6 were vIOlated when the Mimstry cancelled the January 1999 F05
competItIOn In ItS entIrety Although the reasons relIed upon by the Mimstry except
for the restructunng of the electncIty sector JustIfied a delay In the competItIOn as
well as cancellatIOn of the competItIOn Insofar as the F05 posItIOns whIch were
elImInated by the settlement In Anderson et al. and the reallocatIOn of tax files, they
dId not constItute "sound and practIcal" reasons to cancel the competItIOn In ItS
entIrety DespIte all of the changes that occurred In the CorporatIOns Tax Branch In
1999 seven (7) F05/TA5 posItIOns remaIned In the North York RegIOnal Tax Office
2 The Board dIrects the partIes to meet and attempt to agree upon an acceptable
remedy If no agreement IS reached wIthIn 60 days from the date of thIS Award, the
Board wIll reconvene at the request of any of the partIes to receIve further
submIssIOns on remedy
3 The Board remaInS seIzed for that purpose
49
Dated at Toronto thIS 26th day of July 2001
H ' cf:hnmGc
RandI H. Abramsky Vice-Chair
50