HomeMy WebLinkAbout2001-0562.Guelph.04-01-29 Decision
Crown Employees Commission de ~~
Grievance Settlement reglement des griefs
Board des employes de la
Couronne
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Suite 600 Bureau 600 Ontario
180 Dundas Sl. West 180 rue Dundas Ouest
Toronto Ontario M5G 1Z8 Toronto (Ontario) M5G 1Z8
Tel. (416) 326-1388 Tel. (416) 326-1388
Fax (416) 326-1396 Telec. (416) 326-1396
GSB# 2001-0562
UNION# 01C403
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
BETWEEN
Ontano PublIc ServIce Employees Umon
(Guelph) Grievor
- and -
The Crown III RIght of Ontano
(Mimstry of TransportatIOn) Employer
BEFORE Damel HarrIs Vice-Chair
FOR THE UNION Peggy SmIth
ElIot, SmIth
BarrIsters and SOlICItorS
FOR THE EMPLOYER Carol Ann Witt
Counsel
Management Board Secretanat
HEARING June 10 & 11 October 22 & 28 November
5 & 25 2002 Apnl 1 & 8 2003
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DeCISIon
ThIS IS a dIscharge gnevance Pauelette Guelph's employment as a "hot-lIne operator" wIth the
Mimstry of TransportatIOn (hereafter "the Mimstry") was termInated on June 22, 2001 She had
been an employee of the Mimstry for approxImately 22 years The letter of termInatIOn was
sIgned by Morah Fenmng and reads as follows
Dear Ms Guelph.
On Wednesda, Ma, 2nd 2001 you were suspended wIth pa, and wIthout loss of credIts to allow
Management to carn out a complete mvestIgatIOn wIth regard to a possible conflIct of mterest
and mIsuse of govermnent propert,
ThIS mvestIgatIOn concluded that you engaged m extensIve outsIde actIvItIes whIch brought you
mto a posItIOn of conflIct of mterest and contravened the Pubhc ServIce Act, RegulatIOn 977
SectIOn 15(1) (2) and (3) You had an obhgatIOn to dIsclose your sItuatIOn to the Deput,
Mimster and faIled to do so The failure constItutes a VIOlatIOn of the ConflIct ofInterest
gUIdehnes and a breach of pubhc trust.
I have reVIewed the report of the mvestIgatIOn and have determmed that there IS Just cause for
dIsmIssal. Therefore b, the authont, delegated to me b, the Deput, Mimster under sectIOn 23
of the Pubhc ServIce Act, you are dIsmIssed effectIve Immedmteh
You have the nght to file a gnevance m accordance wIth the CollectIve Agreement.
Smcereh
The Mimstry first became concerned about the gnevor's actIvItIes outsIde of the workplace as a
result of charges made to a Mimstry credIt card Issued to the gnevor The Shared ServIces
Bureau (hereafter SSB) sent a confidentIal memorandum to the gnevor on January 30 2001 It
reads as follows
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Re Amencan Express Corporate Card Account
The AMEX monthh accounts reports dated Ian 10 2001 mdIcate that your account IS past due
exceedmg 60 (SIxt,) days
The outstandmg balance for thIS penod IS categonzed as follows
Total New Charges Payments
Due 90 Days+ 60 Days 30 Days + Other Debits past 30 Days
$12,941 02 2, 107.58 5953 71 487973
Refer to Mimstn DIrectIve (Corporate ServIces Finance B-I0) dated 1995 0421 whIch states
your responsibIhtIes as a corporate cardholder
Please take appropnate actIOn to settle the account. If there IS a dIscrepanc, WIth your last
statement contact Amencan Express at 1-800-568-2639
Thank you for your help m thIS matter
That memorandum was copIed to Tim Ferguson. He was the Program Manager of LICenSIng
ServIces for the Mimstry Upon receIpt of hIS copy he dIscussed the matter wIth the gnevor's
ImmedIate supervIsor LInda Bethune They also dIscussed the gnevor's recent absenteeIsm and
personal cell phone use whIle at work. Mr Ferguson Instructed Ms Bethune to dISCUSS the
Amex charges wIth the gnevor and cancel the card. He ImtIated a Waiver of lIabIlIty for the
outstandIng amount wIth SSB He subsequently obtaIned a detaIled lIst of the expenses charged
to the card. When Mr Ferguson revIewed the detaIls of the credIt card charges he contacted
Alan TaIt, the Manager of Internal AudIt ServIces The concerns raised wIth Mr TaIt were the
use of her personal cell phone on Mimstry tIme, the Amex charges, absenteeIsm and the general
SuspICIOn that the gnevor was operatIng a busIness USIng Mimstry tIme and resources The
eVIdence at the heanng clearly establIshes that the gnevor was operatIng a retaIl store In
downtown KIngston throughout thIS penod, and pnor
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The gnevor was off work for medIcal reasons from about February 21 2001 SeemIngly she
knew nothIng of the Mimstry's nascent InVestIgatIOns at that tIme but she was In receIpt of the
SSB memo of January 30 2001 regardIng the Amex arrears Ms Guelph confirmed In her
eVIdence that she knew of the Mimstry's concerns WhIle off sIck she attended at the Mimstry
offices to provIde Ms Bethune wIth a medIcal note and to fill out her tIme sheets Ms Bethune
asked Ms Guelph to turn In her Amex card. She replIed that It had already been destroyed.
Although Ms Bethune dId not explaIn why she wanted the card returned, Ms Guelph testIfied
that she knew that the Mimstry was concerned SInce she had receIved a couple of letters askIng
her to pay the outstandIng balance She said In her eVIdence that the balance OWIng could have
been In the thousands and consIsted of a mIxture of personal and busIness charges
Ms Guelph first learned formally of the Mimstry's concerns by letter dated Apnl 30 2001 She
was put on notIce of a "suspected conflIct of Interest" and Instructed to attend a meetIng wIth
Mimstry InVestIgators on May 3 2001 She was warned that she mIght be dIsmIssed. She had
not been suspended pnor to Apnl 30 2001 because she had been off sIck and had also asked for
a leave of absence to commence May 1 2001 Ms Guelph testIfied that she attended a meetIng
on May 1 2001 to dISCUSS the requested leave of absence At that meetIng she learned that It
would be approved on the condItIOn that she remaIn avaIlable for the May 3 meetIng and any
other meetIngs or dIscussIOns reqUIred. She also testIfied that If she had to be avaIlable for such
meetIngs she mIght Just as well return to work and so advIsed Ms Bethune and Mr Ferguson. In
the result, she was suspended wIth pay pendIng InVestIgatIOn effectIve May 2,2001 that beIng
her first scheduled workday folloWIng her sIck leave
Ms Guelph dId attend the May 3 2001 InVestIgatIOn meetIng WIth a Mr DavId Dell, the
InVestIgator Also In attendance were BettIna Toemg, audItor and Parveez Maqbool the Local
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Umon PresIdent. Ms Guelph testIfied that she felt qUIte comfortable at the meetIng. She said It
was, "very laid back" She also testIfied that she was not able to fully express herself because
she was not thInkIng straight havIng Just come off of a stress leave On May 14 2001 she
provIded a lengthy wntten response to Mr Dell's allegatIOns
The InVestIgator subsequently prepared a report whIch was presented to Mr Ferguson on June 4
2001 Mr Ferguson dIscussed It WIth Jane Albnght, the Employer RelatIOns officer Jane
GIbson, the Human Resources Consultant, LInda Bethune, the Manager of ClIent ServIces and
wIth Alan TaIt and DavId Dell, the InVestIgators He recommended to Morah Phenmng that Ms
Guelph be dIsmIssed.
A further meetIng wIth the gnevor was held on June 11 2001 The NotIce of that meetIng reads
as follows
ThIS IS to advIse that a meetmg has been scheduled for 11 00 a.m. on June 11 2001 m Boardroom
#4 located m the Conference Buildmg at 355 Counter Street, Kmgston, Ontano K7L 5A3
The purpose of thIS meetmg IS to dISCUSS the facts and CIrcumstances mvolvmg a potentIal
conflIct of mterest wIth your dutIes as a pubhc servant.
As dIscIphne ma, result from thIS meetmg, you ma, be accompanIed b, an OPSEU
representatIve of your choosmg If you or an OPSEU representatIve do not attend, proceedmgs
wIll take place and you wIll not be entItle to mput at a future date
That meetIng was attended by Mr Ferguson, LInda Bethune, Sharon Gibson, Paulette Guelph
and Parveez Maqbool Mr Ferguson revIewed the Mimstry's concerns, whIch fell under the
folloWIng headIngs
- workIng at her retaIl store whIle on paid, short-term sIck benefits and knowIngly
vIOlatIng conflIct of Interest gUIdelInes,
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- mIsuse of the Mimstry Amex card,
- mIsuse of Mimstry telephone
- mIsuse ofMimstry computers
Ms Guelph was gIven an opportumty to answer these allegatIOns but made no response As a
result, the gnevor's employment was termInated as set out above
The foregoIng narratIve broadly sketches out the uncontradIcted facts ThIS was a lengthy
heanng, takIng eIght days, stretchIng over mne months The eVIdence Includes viva voce
testImony dozens of documents and vIdeo tape surveIllance eVIdence I wIll refer to further and
other eVIdence as reqUIred to IllumInate my reasons for decIsIOn However I have carefully
consIdered all of the eVIdence and the submIssIOns of the partIes regardIng the eVIdence and the
applIcable Junsprudence and conclude that the dIscharge must be upheld.
FIrst and foremost, the gnevor used the Mimstry' s Corporate Amex credIt card to her retaIl
busIness's advantage There IS no dIspute that dunng the penod In questIOn she had no cause to
charge any expense to the Mimstry All of the charges were for her benefit eIther personally or
In her capacIty as the propnetor of her retaIl store known as "Trendsetters" Much of the
gnevor's JustIficatIOn for her actIOns IS that she dId not know she was dOIng anythIng wrong.
She was seemIngly of the VIew that any purchase on the Corporate Amex card was allowed,
provIded the bIlls were paid. The gnevor faIled even that standard. She dId not pay the charges
as they fell due, and It was her unpaid Amex bIlls that tnggered the InVestIgatIOns that led to her
dIsmIssal She testIfied that as of the date of gIVIng her eVIdence the Amex bIll stIll remaIned
unpaid. It must be apprecIated that the charges at Issue are not IncIdental The outstandIng
balance that provoked Mr Ferguson was close to $13 00000 $8000 of whIch was greater than
thIrty days overdue The gnevor admItted In her eVIdence that she used the Mimstry Amex card
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to purchase Inventory from "Yellow Rose" "FashIOn Wigs" and "lB Imports" From
December 2000 to February 2001 those purchases totaled some $3200 00 In her eVIdence the
gnevor qUIbbled about purchases from "DIscount Beauty SupplIes" She admItted to bUYIng
some Items for the store but said she also bought some Items for her personal use The total of
purchases from DIscount Beauty SupplIes was $2140 45 There are many other purchases from
many other supplIers that appear to be busIness purchases In any event, Ms Guelph admIts to
USIng the Mimstry Amex card to finance her retaIl store's Inventory
Next, the surveIllance eVIdence establIshes that Ms Guelph worked at her store on March 19 20
and 21 2001 beIng days for whIch she receIved short-term sIck benefits Even acceptIng the
submIssIOns made on her behalf that such work was not InCOnsIstent WIth a "stress" leave, one
cannot but consIder that the short-term sIck leave plan was an advantageous contnbutIOn to her
busIness undertakIng denved from her employment and was used as such. The Umon argued that
the work undertaken at the store was consIstent WIth her medIcal restnctIOns However there IS
no medIcal eVIdence as to the nature or extent of her Illness such as would permIt the drawIng of
such a conclusIOn. The physIcIans' reports filed as exhIbIts are vague In that regard.
Next, her use of the Mimstry's telephone system IS abuse on any scale It was submItted on her
behalf that any non-employment related telephone calls were only ever made on her lunch or
relIef breaks Mr DavId Dell, the InvestIgator was cross-examIned regardIng the gnevor's non-
Mimstry telephone usage By hIS estImate the gnevor made 75 5 hours of non-Mimstry calls
over a sIx-month penod. Although some of that estImate may be questIOnable, even so over that
penod the gnevor seemIngly took no lunch and vIrtually no relIef breaks At the same tIme, she
complaIned of stress, fatIgue and headaches from performIng the dutIes of her posItIOn. It IS
appropnate here to explaIn her dutIes
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The gnevor was a telephone hot-lIne operator for the Mimstry She took calls from the vanous
lIcensIng offices, provInce-wIde If an unusual sItuatIOn presented Itself In a lIcensIng office,
eIther vehIcle lIcense related, or dnver lIcense related, field staff would call the hot-lIne for
assIstance There IS often a queue of calls Without doubt the gnevor was paid to spend the
maJonty of her tIme answenng telephone enqumes That IS, reCeIVIng rather than placIng calls
To have spent almost every break and lunch penod on the telephone In aid of mIndIng her retaIl
store must have Interfered wIth the performance of her regular dutIes On her own account she
depnved herself of any apprecIable respIte dunng the workday for months on end, whIch surely
would have contnbuted to her professed need to take tIme off sIck, due to stress Further a large
proportIOn of the calls at Issue were to the supplIers whIch show up on the Amex credIt card
statement. Those calls were predomInantly long dIstance calls AccordIngly the gnevor clearly
denved an advantage from her employment as a publIc servant to her busIness, In the form of
sIgmficant and sustaIned telephone usage
FInally the InVestIgatIOn revealed non-Mimstry use of computer resources A number of
documents on her computer appear to be busIness related. The gnevor's explanatIOn was that the
documents were assIgnments from vanous courses she had taken wIth Mimstry approval It may
well be that some of those documents were for course assIgnments However It IS clear that
some of them were for her busIness In some measure the number of documents and the
apparent pnvate busIness use of the computer IS de minimis However the use of the computer
cannot be seen In IsolatIOn from the other transgressIOns set out above Taken as a whole, the
gnevor made sIgmficant and contInued use of Mimstry resources to operate her busIness
undertakIng.
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A submIssIOn made on behalf of the gnevor was that the letter of termInatIOn cIted an
InapplIcable conflIct of Interest regulatIOn. The then current regulatIOn was Reg 435/97 amended
by Reg 480/00 The letter of termInatIOn referred to RRO 1990 Reg 977 The employer urged
me to Ignore thIS clencal error The umon said that the newer regulatIOn IS more onerous and
that the earlIer regulatIOn would not catch the facts of thIS case The relevant provIsIOns are as
follows
1 Reg 435/97
9 A pubhc servant shall not become employed b, or engage m a busmess or undertakmg
outSIde hIS or her employment m the servIce of the Crown m an, of the followmg
CIrcumstances
1 If the pubhc servant s pnvate mterests m connectIOn wIth the employment or
undertakmg could conflIct WIth hIS or her dutIes to the Crown
2 If the employment or undertakmg would mterfere wIth the pubhc servant s abIht, to
perform hIS of her dutIes to the Crown.
3 If the employment IS m a professIOnal capacIt, and IS likeh to mfluence or
detnmentalh affect the pubhc servant s abIht, to perform hIS or her dutIes to the
Crown.
4 If the employment would constItute full-tIme employment for another person. ThIS
paragraph does not apph wIth respect to a pubhc servant who IS employed part-tIme
b, the Crown or IS on a leave of absence (as defined m subsectIOn 70 (1) of
RegulatIOn 977 of the ReVIsed RegulatIOns of Ontano 1990) or a secondment.
5 If m connectIOn WIth the employment or undertakmg, an, person would denve an
advantage from the pubhc servant s employment as a pubhc servant.
6 If government premIses, eqUIpment or supphes are used m the employment or
undertakmg o Reg 435/97 s 9
R.R.O 1990 Reg 977
15 - (1) A pubhc servant shall not engage m an, outSIde work or busmess undertakmg
(a) that mterferes wIth the performance of hIS or her dutIes as a pubhc
servant;
(b) m whIch he or she had an advantage denved from hIS or her employment
as a pubhc servant;
(c) m whIch hIS or her work would otherwIse constItute full-tIme
employment for another person, or
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(d) m a professIOnal capacIt, that wIll, or IS likeh to mfluence affect the
carrymg out of hIS or her dutIes as a pubhc servant.
(2) A pubhc servant who consIders that he or she could be mvolved m a conflIct
of mterest, m that he or she mIght denve personal benefit from a matter whIch m
the course of hIS or her dutIes as a pubhc servant he or she IS m a posItIOn to
mfluence shall dIsclose the sItuatIOn to hIS or her depun mmIster agenc, head
or mmIster as the case ma, be and shall abIde b, the advIce gIven.
(3) A pubhc servant who consIders that he or she could be m a posItIOn of
conflIct WIth the mterests of the Crown ansmg from an, of hIS or her outsIde
actIvItIes shall dIsclose the sItuatIOn to hIS or her depun mmIster agenc, head or
mImster as the case ma, be and shall abIde b, the advIce gIven.
(4) ContraventIOn of an, of the provIsIOns of subsectIOn (1) or dIsregard of
subsectIOn (2) or (3) ma, be consIdered as cause for dIsmIssal
It IS sectIOn 9 (6) of the new regulatIOn that more firmly catches the gnevor's conduct.
Undoubtedly the gnevor breached that subsectIOn. In any event, a fair readIng of 0 Reg 977
also prohIbItS the conduct of the gnevor To the extent that the employer's reasons for dIscharge
are confined to the letter of dIscharge and ItS InCorporatIOn of Reg. 977 15 (1) (2) & (3), the
gnevor's dIscharge IS none the less a reasonable response to the facts at hand pursuant to s 15
(4)
On her own eVIdence, the gnevor's actIvItIes Interfered wIth the performance of her dutIes FIrst,
and as set out above, she said that she suffered debIlItatIng stress from her Job answenng
telephone calls Her self-demal of breaks In order to engage In more telephone calls could only
have exacerbated those complaInts, contrary to s 15 (1) (a) Second, there can be no doubt that
the gnevor engaged In her retaIl busIness on the basIs of advantages denved from the Mimstry
contrary to s 15 (1) (b) She financed Inventory USIng the Mimstry's credIt card. She used the
Mimstry's telephone system and long-dIstance callIng facIlItIes to place calls to her supplIers
She was able to spend tIme at the store whIle drawIng sIck pay and made some small use of the
Mimstry's computers for retaIl busIness purposes Largely the gnevor's explanatIOn IS that she
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dId not know It was wrong to run her store on the Mimstry's back. I am not persuaded of thIS
These CIrcumstances dIsclose such a blatant and contmumg mIsuse of Mimstry resources that the
gnevor knew or ought to have known that she was engaged m a busmess undertakmg m whIch
she had an advantage denved from her employment as a publIc servant.
Much was made m the eVIdence of the gnevor' s oblIgatIOn to obtam a conflIct of mterest rulIng
and of whIch regulatIOn was applIcable There IS also a conflIct m the eVIdence regardmg
whether she was specIfically told to obtam a rulIng. Suffice It to say that the gnevor was of the
VIew that there was no need to obtam a rulIng. She had done so m the past regardmg a dIfferent
busmess venture and concluded on her own, from that pnor expenence that there was no
conflIct. The salIent pomt to be denved from that eVIdence IS that the gnevor certamly knew
from first hand expenence, what the earlIer regulatIOn forbade and that a rulIng was reqUIred.
Further although the mmdmg of a retaIl fashIOn store IS not on ItS face m conflIct WIth the
Mimstry's telephone hot-lIne actIvItIes, I should thmk that a request for a rulIng that mcluded a
proposal to use Mimstry resources as they were used here would draw a predIctably negatIve
response She knew that she should obtam a rulIng and faIled to do so contrary to s 15 (3)
Applymg eIther regulatIOn to the gnevor's conduct leads to the same result. The umon' s relIance
on restnctmg the employer to the arguably more lement, earlIer regulatIOn does not assIst the
gnevor
Fmally the gnevor's wntten response of May 14 2001 offered to provIde further mformatIOn
and documentatIOn to support the gnevor's explanatIOns for her conduct. The umon argued that
the employer dId not take the gnevor up on those offers The opportumty to provIde such
explanatIOns and supportmg matenal also presented Itself to the gnevor at the heanng before thIS
Board and was not dIscharged sufficIently to explam m a satIsfactory way the gnevor's vanous
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behavIOrs Notably the letter IS sIlent on the Issue of the credIt card charges At the tIme of the
heanng, the charges remaIned outstandIng and no credIble JustIficatIOn was or could be gIven for
treatIng the Mimstry's credIt card as a lIne of credIt for the gnevor's retaIl store AccordIngly
there IS no basIs for Interfenng wIth the employer's decIsIOn to dIscharge the gnevor
In all of the cIrcumstances, the dIscharge IS upheld.
DATED at Toronto thIS 29th day of January 2004
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