HomeMy WebLinkAbout2000-1185.Palotta.01-08-17 Decision
~~~ o@~o EMPLOYES DE LA COURONNE
_QJ_L i~~i~~~i~T DE L "ONTARIO
COMMISSION DE
REGLEMENT
"IIIl__1I'" BOARD DES GRIEFS
Ontario
180 DUNDAS STREET WEST SUITE 600 TORONTO ON M5G 128 TELEPHONElTELEPHONE. (416) 326-1388
180 RUE DUNDAS OUEST BUREAU 600 TORONTO (ON) M5G 128 FACSIMILE/TELECOPIE. (416) 326-1396
GSB#1185/00
UNION#OLB396/00
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
BETWEEN
Ontario Liquor Boards Employees' Union
(Pallotta)
Grievor
-and-
The Crown In Right of Ontario
(Liquor Control Board of Ontario)
Employer
BEFORE Nlmal V Dlssanayake Vice-Chair
FOR THE GRIEVOR Craig Flood
Counsel
Koskie Minsky
Barristers & Solicitors
FOR THE EMPLOYER Alison Renton
Counsel
Ontario Liquor Control Board
HEARING July 18, 2001
DECISION
The grlevor, Mr Michael Pallotta employed by the employer as a full-time Customer
Service Representative In a grievance dated September 27,2000, he has grieved that the
employer contravened article 6 15 of the collective agreement by refusing to pay him a shift
prem lum for the hours he worked between 6 00 P m to 9 30 P m on August 7 2000
The union called the grlevor and established the following facts, which are essentially
undisputed August 7, 2000 was the CIVIC Holiday, a paid holiday under the collective
agreement. DUring the week In question, Including August 7, the grlevor worked a shift
from 1 00 P m to 9' 30 P m On August ih, the CIVIC Holiday, the grlevor voluntarily opted
to, and did the 1 00 P m to 930 shift. For that Shift, he received 8 hours pay at his regular
rate for the paid holiday and two times his regular rate as per article 7 4 for working on the
holiday, for a total of three times his regular rate In addition, he received $10 00 as acting
pay under article 6 12( a) because on that shift he filled In for the store manager The union
has no Issue with the foregoing payments However, the union claims that article 6 15(a)
also entitled the grlevor to receive a shift premium for "all hours worked between 600 pm
and 7 00 am" Since he had worked between 6 00 pm and 9'30 pm on the day In
question, the union claims on behalf of the grlevor, the amount of $3 50 (plus Interest)
being the applicable shift premium for those hours, calculated at $1 00 per hour
The employer's primary position IS that the reference In article 6 15(a) to "all hours"
IS ambiguous and must be read In the context of other provIsions In the agreement. In the
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employer's view "hours worked" on a paid holiday are not "normal hours", as defined In
article 6 2 (a) Therefore the shift premium provIsion had no application While It paid the
grlevor a shift prem lum for the hours worked between 6 00 P m and 9' 30 P m on the other
days of the week In question, It was not prepared to pay a shift premium for the same hours
worked on the paid holiday, because they were not "normal" hours
After the grlevor had testified, the employer Indicated ItS Intention to rely on extrinSIC
eVidence In support of ItS Interpretation of the collective agreement. Counsel submitted that
the employer Intended to establish that there IS a patent and/or latent ambiguity In the
collective agreement, and that I ought to hear ItS eVidence as to past practice before
determining whether or not such ambiguity eXisted, and that If It IS found to eXist, I should
use that eVidence as an aid to Interpret the collective agreement. Additionally, the
employer Indicated that It would establish through eVidence of negotiating history and/or
past practice, that the union had made representations to ItS detriment as would constitute
estoppel Counsel urged me to receive that eVidence before determining the grievance
She relied on the following LCBO cases, Re Costa, 2286/97 (Brown), Re Sheridan et ai,
2299/93 etc (Briggs), Re Elford/Sabourin, 814/92, 815/92 (Kaplan), Re Dicker, 564/91
(Dlssanayake) and Re Kruczal, 1359/93 (Briggs) as examples where the Board had
received extrinSIC eVidence Reliance was also placed on Re Noranda Metal Industries
Ltd., (1983) 44 0 R. (2d) 529 (Ont. C A) where It was held, Inter alia, that an arbitrator was
entitled to resort to extrinSIC eVidence to determine whether there was any latent ambiguity
In a provIsion of the collective agreement or In ItS application to the particular facts
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Counsel for the union submitted that I should refuse to hear any extrinSIC eVidence
and find that there IS no ambiguity of any kind In the relevant provIsions of the collective
agreement. It was contended that the employer had failed to show how the proposed
eVidence will establish a patent or latent ambiguity Counsel argued that despite section 48
(12)(f) of the Labour Relations Act, which allows the Board "to accept oral or written
eVidence as the Board, In ItS discretion considers proper, whether admissible In a
court of law or not", that does not permit the Board to act upon eVidence which has no
cogency at law, and further that difficulty In Interpretation or arguablllty of different
Interpretations IS not the same as ambiguity See, Re Government of the Province of
Alberta, (2000) 90 LAC (4th) 381 (Price) and the cases cited therein Counsel
emphasized that permitting the proposed extrinSIC eVidence, particularly that relating to
negotiating history, will turn this proceeding Into a multi-day hearing While not disputing
that the Board has the authority to receive extrinSIC eVidence and further that It IS not
uncommon for arbitrators to hear extrinSIC eVidence before deciding whether an ambiguity
eXists, counsel urged me to disallow that eVidence In this case
The parties framed the following Issues for determination
(1 ) Is there an ambiguity, patent or latent, as would Justify the admission of
eVidence relating to past practice and negotiating history?
(2) Is eVidence relating to negotiating history and past practice admissible for the
purpose of establishing an estoppel against the union?
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Shift premiums are governed by article 6 15(a) which reads
615(a) An employee shall receive a shift premium of one
dollar ($1 00) per hour for all hours worked between
600 pm and 7 00 a m Where more than fifty percent
(50%) of the hours, Inclusive of lunch and rest periods,
fall within this period the premium shall be paid for all
hours worked
(b) Shift premium shall not be considered as part of an
employee's basIc hourly rate
Patent ambiguity IS ambiguity on the face of the language of the document to be
Interpreted Therefore, by ItS very nature, one can decide whether or not a patent
ambiguity eXists by examining the document Itself Article 6 15(a) cannot be any clearer It
states that "an employee shall receive a shift premium for all hours worked between 6 00
pm and 700 a.m" I find nothing In article 6 15(a) or any other provIsion of the agreement
which In any way qualifies or restricts that clear statement. Therefore, I find that there IS no
patent ambiguity In the collective agreement.
However, the employer has also claimed that there IS a latent ambiguity A latent
ambiguity IS an ambiguity, not on the face of the document, but In ItS application to a
particular set of facts For example, "X contracts to sell "my dinky toy" to Y for $ 5,000"
On the face of the contract there IS no ambiguity X IS to sell his dinky toy However,
extrinSIC eVidence will show that X had no dinky toy and that he habitually referred to his
1980 VW Beetle as his "dinky toy" ExtrinsIc eVidence will disclose a latent ambiguity In
what otherwise appears to be a clear provIsion It IS now well established that an arbitrator
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may admit extrinSIC eVidence to disclose as well as resolve a latent ambiguity In a collective
agreement. See R. v. Barber, (1968) 20 R. 245 (Ont. C.A) And Leitch Gold Mines Ltd. v.
Texas Gulf Sulphur Co. (Incorporated), (1969) 1 0 R 469 (Ont. H C J )
In contrast to a case of a patent ambiguity, It IS often the case that It IS the extrinSIC
eVidence Itself that creates or discloses a latent ambiguity Besides, the employer has also
raised an estoppel argument on the basIs of representations allegedly made by the union
through acquiescence In past practice or by conduct dUring negotiations It IS not possible
to determine the estoppel Issue without hearing the eVidence that the employer claims
created the estoppel In a recent decIsion In Re Greater Nlaqara Transit Commission,
award dated April 3, 2001 (Dlssanayake) Unreported, at pp 5-6, I made the following
observation relating to latent ambiguity'
While there IS no unanimity on the Issue, the JUrisprudence Indicates
that the maJority of arbitrators receive extrinSIC eVidence before determining
whether or not a latent ambiguity eXists as would Justify ItS admission This IS
not surprising, because as the courts have held, one of the purposes for which
extrinSIC eVidence may be tendered IS to disclose a latent ambiguity Thus,
Brown and Beatty, Canadian Labour Arbitration, (supra) at p 3-72 summarizes
as follows
Many arbitrators have concluded that extrinSIC eVidence should
be received and that the ruling as to admissibility should be
reserved or that the eVidence should be received and the board
of arbitration reserve to Itself the right to determine what, If any,
of the extrinSIC eVidence would be used to assist In the
Interpretation of the sections In dispute This IS particularly true
where the alleqed amblqulty IS latent. and extrinSIC eVidence IS
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tendered to disclose as well as to resolve It. Other arbitrators,
however, have refused to hear the extrinSIC eVidence until they
have decided whether there IS an ambiguity A middle course
pursued by another arbitrator Involves hearing the eVidence until
It becomes clear that It IS appropriate to rule on the question of
ambiguity (EmphasIs added)
In the present case, It IS the employer's position that extrinSIC eVidence will disclose
a latent ambiguity and/or establish an estoppel against the union The union's obJection to
receiving that eVidence IS primarily on the ground that It will result In a protracted multi-day
hearing The Board must be fair and sensitive to the concerns of both parties On the one
hand, the employer IS offering extrinSIC eVidence, which It claims will have the result of
establishing or creating a latent ambiguity and/or estoppel It IS not fair to determ Ine
whether the result eXisted, without first hearing the eVidence which allegedly leads to that
result. On the other hand, the union's concerns are also valid The Board ought not launch
a potentially protracted hearing without satisfYing Itself first that there IS good reason for
dOing so The employer has not specified what extrinSIC eVidence It IS proposing to lead
and how that eVidence creates or discloses a latent ambiguity or an estoppel Merely
because the employer "raises" a latent ambiguity and/or "an estoppel" that IS not by Itself
Justification for hearing potentially lengthy eVidence The Board must be satisfied that there
IS some cogent eVidence, which If established, has the potential of establishing a latent
ambiguity and/or an estoppel With that obJective, the Board directs as follows
(a) The Board determines that there IS no patent ambiguity In the collective
agreement provIsion relating to shift premium The Board will not therefore hear extrinSIC
eVidence on that basIs
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(b) The employer IS directed to provide to the union detailed particulars relating to all
of the facts It proposes to establish through extrinSIC eVidence, relating to past practice
and/or negotiating hiStOry, to disclose a latent ambiguity and/or to establish an estoppel
These particulars are to be provided to the union no later than September 14, 2001 I shall
hear subm Isslons as to whether the particulars, assum Ing they are capable of proof through
eVidence, form a sufficient basIs to create or disclose a latent ambiguity and/or an estoppel
On the basIs of those submissions the Board will decide whether or not It will hear any
extrinSIC eVidence
The matter IS referred to the Registrar for fixing of a hearing date subsequent to
September 14, 2001
Dated at Toronto, this 1 ih day of August, 2001
......
Nlmal V Dlssanayake, Vice-Chair
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