HomeMy WebLinkAbout2001-1700.Ashley et al.03-11-05 Decision
Crown Employees Commission de ~~
Grievance Settlement reglement des griefs
Board des employes de la
Couronne
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GSB# 2001-1700 2002-1235 2002-1740 2002-1745 2002-2397
UNION# 02B146 02B779 02B781 02B780 2002-0323-0016
2002-0323-0017 2002-0101-0025 2000-0101-0007 2000-0101-0009 2000-0101-0008
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
BETWEEN
Ontano PublIc ServIce Employees Umon
(Ashley et al) Grievor
- and -
The Crown In RIght of Ontano
(Mimstry ofCommumty FamIly and ChIldren's ServIces) Employer
BEFORE RandI H. Abramsky Vice-Chair
FOR THE UNION Tim Hanmgan
Ryder Wnght Blair & Doyle
BarrIsters and SOlICItorS
FOR THE EMPLOYER DavId Strang
ActIng AssocIate DIrector
Management Board Secretanat
HEARING October 8 2003
2
AWARD
The IndIVIdual and group gnevances In thIS matter allege that the Employer faIled to
Inform employees about theIr opportumty to "buy-back" servIce for whIch no pensIOn
contnbutIOns had been made dunng the 1989-1991 "buy-back" WIndow or the WIndow
applIcable to the penod sought to be purchased. They further allege that the Employer provIded
Incorrect InfOrmatIOn to employees In addItIOn, It IS alleged that one employee's applIcatIOn to
buy back servIce was mIshandled. The Employer has moved to dIsmIss all of the gnevances on
the basIs that Board IS wIthout JunsdIctIOn to decIde what, In ItS submISSIOn, IS a penSIOn matter
not governed by the collectIve agreement. All other prelImInary Issues that could be raised were
reserved by counsel
Facts
The statutory framework for penSIOns for employees In the Ontano publIc servIce started
In 1920 under the Public Service Act In 1959 a separate statute was enacted, the Public Service
Superannuation Act, wIth employee penSIOns admInIstered by the Crown, through a Board. The
next change took place In 1989 wIth the passage of the Public Service Pension Act R. S 0 1990
c.P 48 effectIve January 1 1990
The Public Service Pension Act moved control of the publIc servIce penSIOn plan (for
both OPSEU members and non-OPSEU employees) out of the control of the Crown to a Board
of Trustees There was also a change to full-fundIng of the plan and a change In the buy-back
provIsIOns, under whIch an employee could "buy-back" penSIOn credIts and make contnbutIOns
for penods of servIce for whIch no pensIOn contnbutIOns had been made PrevIOusly employees
3
could buy back penSIOn credIts at any tIme Under the new statute, there was a two-year lImIt.
The penod of Decemberl989 to December 1991 was desIgnated as the "buy back WIndow"
under the new legIslatIOn. A number of the gnevances allege that employees were not Informed
about the possIbIlIty of theIr bUYIng back theIr servIce dunng thIS penod of tIme or were gIven
Incorrect InformatIOn about the cost of theIr buy -back, the methods of paYIng for the buy -back or
the benefit of dOIng so
The Public Service Pension Act also allowed the creatIOn of a separate penSIOn plan for a
class or classes of persons who were members of the PublIc ServIce PensIOn Plan. Under thIS
provIsIOn, the government of Ontano and OPSEU agreed to establIsh a separate penSIOn plan for
OPSEU members, to be funded, In part, by a transfer of assets from the PublIc ServIce PensIOn
Fund. To accomplIsh thIS, Ontano and OPSEU entered Into a SponsorshIp Agreement on Apnl
18 1994 to establIsh the OPSEU PenSIOn Plan, effectIve January 1 1993 EnablIng legIslatIOn,
the OSPEU Pension Act, 1994 then created the OPSEU PenSIOn Trust to JOIntly admInIster the
OPSEU PenSIOn Plan. The SponsorshIp Agreement provIded an enforcement sectIOn, SectIOn
65 whIch states "Any dIspute wIth respect to the InterpretatIOn or applIcatIOn of thIS agreement
or the terms of any other agreement or document that the Sponsors must execute pursuant to thIS
agreement, may be referred by eIther Sponsor to final and bIndIng arbItratIOn."
Both partIes recogmzed that the preCIse amount to be transferred depended on the partIes
havIng accurate data relatIng to plan members They were also aware, at the tIme of the
SponsorshIp Agreement, that some of the data relatIng to plan members was Inaccurate
AccordIngly the partIes agreed that the government of Ontano would undertake a data
punficatIOn project to correct InaccuracIes In plan member data, and agreed that the ImtIal asset
4
transfer would be subJect to a punficatIOn adJustment folloWIng completIOn of the proJect whIch
began In 1994
On July 28 2000 OPSEU Invoked SectIOn 65 of the SponsorshIp Agreement to refer
certaIn matters In dIspute to bIndIng arbItratIOn. On Apnl 21 2001 the partIes settled theIr
dIspute The settlement, among other thIngs, set out pnncIples In relatIOn to members who had
over-contnbuted to the plan and who had under-contnbuted, and for the adJustment of servIce
credIts as dIsclosed by the data punficatIOn proJect. The settlement also provIded for the
arbItratIOn of factual dIsputes as follows
12 Members who are affected by the ProJect may refer any dIspute ansIng to
expedIted arbItratIOn, on such terms as are agreed by the PartIes or
determIned by the ArbItratIOn Board consIstIng of George Adams, QC Chns
DassIOS and John Solursh.
OPSEU agreed "to wIthdraw all gnevances anSIng from the ProJect, subJect to ItS nght, under
paragraph 12 of these Minutes of Settlement, to expedIted arbItratIOn for factual dIsputes ansIng
from the ProJ ect." The same board of arbItratIOn remaIned "seIzed of thIS dIspute, and all
matters anSIng from the InterpretatIOn or ImplementatIOn of these Minutes of Settlement."
The OPSEU PensIOn Trust maIntaInS a number of standIng commIttees, IncludIng an
AdJudIcatIOn Panel AccordIng to the 2002 Annual Report of the OPSEU PenSIOn Trust, the
AdJudIcatIOn Panel "gIves plan members and penSIOners access to an ImpartIal reVIew process In
the event of dIsputes concernIng OPTrust's decIsIOns on elIgIbIlIty benefit entItlements or other
pensIOn-related nghts under the OPSEU PenSIOn Plan."
UntIl 1993 the Crown Employees Collective Bargaining Act R.S 0 1990 C 50 sectIOn
18( 1 )(b) made "superannuatIOn" an exclusIve functIOn of the employer to manage and provIded
5
that "such matters wIll not be the subJect of collectIve bargaInIng nor come wIthIn the
JunsdIctIOn of a board." In 1993 CECBA was amended and penSIOns became a subJ ect of
collectIve bargaInIng. The SponsorshIp Agreement, sIgned on Apnl 18 1994 provIdes, wIth
some exceptIOns, that the sponsors (the government of Ontano and OPSEU) "may collectIvely
bargaIn wIth respect to the Plan and may amend thIS agreement, the Trust Agreement, the Plan or
any Plan documents "
The current collectIve agreement (January 1 2002 to December 31 2004) contaInS a
number of provIsIOns related to penSIOns AppendIx 20 dated September 13 2002, outlInes four
"understandIngs regardIng penSIOn matters" IncludIng the folloWIng
2 It IS understood that, whIle penSIOn Issues are bargaInable, the SponsorshIp Agreement, the
PenSIOn Plan, the Trust Agreement and any other ancIllary documents concernIng the
PenSIOn Plan do not form part of the CollectIve Agreement.
Other references to the penSIOn plan whIch appear In both the pnor and current collectIve
agreement Include
- AppendIx 11 IS a letter sIgned by KevIn Wilson on behalf of the Employer whIch provIdes
that dunng the term of the collectIve agreement, "It IS not the IntentIOn of the Employer to
amend the OPSEU PenSIOn Plan or any related documents Where the Employer wIshes to
do so It wIll negotIate any changes wIth the UnIon."
- AppendIx 17 extends Factor 80 to December 31 2004 for employees who are declared
surplus pnor to that date It reqUIres the Plan sponsors to amend the OPSEU PenSIOn plan
accordIngly
- AppendIx 18, whIch Involves transfer agreements between the employer and a reCeIVIng
employer reqUIres OPSEU and the Crown to amend the OPSEU PenSIOn Plan to provIde for
6
contInued membershIp In the Plan of former publIc servants for employment wIth an
employer who IS not the Crown or a Crown agency In certaIn CIrcumstances
- AppendIx 9, paragraphs 2(a), (b) 3 and 4 deal wIth pensIOn Issues for employees who have
been declared surplus due to restructunng.
Positions of the Parties
A. Employer
The Employer submIts that the Board has no JunsdIctIOn over the Instant gnevances In
ItS VIew all of the gnevances appear to be makIng claims that relate to theIr faIlure to take
advantage of a buy-back opportumty endIng In 1991 SInce that was a tIme when penSIOns were
not the subJect of collectIve bargaInIng and were not Included In the collectIve agreement, the
Employer contends that the gnevors' claims do not anse out of or In connectIOn wIth the
collectIve agreement and are not wIthIn the Board's JunsdIctIOn. Even after 1993 when
penSIOns became a subJect of collectIve bargaInIng, penSIOns were not Included as part of the
collectIve agreement. The Employer therefore submIts that Issues regardIng penSIOn credIts are
outsIde the collectIve agreement and outsIde the JunsdIctIOn of the Board.
Instead, the Employer contends that the partIes have provIded alternatIve enforcement
mechamsms - In the SponsorshIp Agreement, In the Settlement Agreement and wIthIn the
OPSEU PenSIOn Trust. The Employer submIts that those forums are to be utIlIzed, not the
Gnevance Settlement Board. It asserts that a specIalIzed expertIse IS reqUIred to determIne
penSIOn Issues and that the partIes' have taIlored theIr dIspute-resolutIOn processes accordIngly
It submIts that the processes developed by the partIes for the resolutIOn of penSIOn dIsputes
should be respected.
7
In the Employer's VIew AppendIx 20 restated the partIes' mutual understandIng that the
OPSEU PenSIOn Plan was not part of the collectIve agreement. It was added due to dicta In
OPSEU Local 439 and Ott([l1,a Health Care Group [2001] OJ No 446 (Ont. DIV Ct.), In
whIch JustIce Cosgrove stated that the OPSEU PenSIOn Trust IS "Incorporated and closely
Integrated wIth the collectIve agreement."
In support of ItS motIOn to dIsmISS, the Employer cItes to the folloWIng cases. OPSEU
(Brummel) and Ministry of Health (1992), GSB No 1584/91 (KIrkwood) OPSEU (Ball) and
MinistlY of Municipal Affairs and Housing (1999), GSB No 2444/94 (DIssanayake) London
Life Insurance Company v Dubreuil Brothers Employees Assoociation, a Division of IW A
Canada, Local 2693 et al [2000] 49 O.R. (3d) 766 (Ont. Ct. App.) Re Dawn Foods Canada and
Grain Services Union and UFCW Local 343 P-2 (2002), 108 L AC (4th) 51 (Hood)
B. Union
The Umon first submIts that all of the gnevances pre-date AppendIx 20 It therefore
contends that what IS at Issue IS the status of penSIOn Issues pnor to AppendIx 20 Although It
agrees that the DIvIsIOnal Court raised the Issue of whether the OPSEU PenSIOn Plan was
Incorporated Into the collectIve agreement on ItS own, It contends that It IS stIll a decISIOn of the
Court that the OPSEU PenSIOn Plan IS Incorporated Into the collectIve agreement. Therefore, It
argues that pnor to the adoptIOn of AppendIx 20 on September 13 2002 - dIsputes concernIng
pensIOn matters are subJect to bIndIng arbItratIOn before the Gnevance Settlement Board.
In the Umon's VIew the fact that CECBA, untIl 1993 made "superannuatIOn" an exclusIve
management nght does not control the matter CItIng OPSEU (Bousquet) and Ministry of
Natural Resources (1991), GSB No 541/90 et al (Gorsky) the Umon argued that management's
8
actIOns are stIll subJect to reVIew for good faith and reasonableness It asserts that SInce wages
(includIng benefits and pensIOn) are part of the bargaIn for provIdIng servIces to the Employer
there IS a lInk wIth the collectIve agreement whIch reqUIres the Employer to act reasonably and
In good faith.
In thIS case, the Umon argues that the Employer acted unreasonably In gIVIng employees
InfOrmatIOn wIthout ensunng ItS accuracy or faIlIng to gIve InformatIOn. It asserts that the
Employer's conduct amounts to a neglIgent mIsrepresentatIOn, CItIng Imperial Tobacco Canada
Ltd and Bakery Confectionery Tobacco Workers and Grain Millers International Union, Local
323T (Mcllwraith Grievance) [2001] O.L.A.A. No 725 (Carter) and Spinks v Canada
(CA.) [1996] 2 F C 563 (Fed. Ct. App) In ItS submIssIOn, neglIgent mIsrepresentatIOn
establIshes that the Employer faIled to act In good faith as reqUIred In OPSEU (Bousquet) supra
CItIng Weber v Ontario Hydro [1995] 2 S C.R. 929 (S C C) the Umon argues that a board
of arbItratIOn has exclusIve JunsdIctIOn where the dIspute expressly or InferentIally anses out of
the collectIve agreement. In thIS case the Umon submIts, by vIrtue of the DIvIsIOnal Court's
decIsIOn In OPSEU Local 439 v Royal Ott([l1,a Health Care Group supra, the matter expressly
anses out of the collectIve agreement.
C. Employer Reply
The Employer asserts that the DIvIsIOnal Court's decIsIOn In OPSEU Local 439 and Royal
Ott([l1,a Health Care Group supra, IS dIstIngUIshable because that matter Involved an
InterpretatIOn of AppendIx 9 and 18 and therefore dId anse out of the collectIve agreement. It
contrasts the Instant dIspute about penSIOn credIts under the OPSEU PenSIOn Trust whIch IS a
matter of penSIOn law
9
The Employer submIts that the gnevances here are an attempt to get around the pnor
settlement (wIth Its Internal dIspute process) as well as the dIspute resolutIOn processes of the
OPSEU PenSIOn Trust. It suggests that If employees can gneve such matters to the GSB whIch
wIll then Impact the Integnty of the penSIOn plan, It would sIgmficantly Impenl the financIal
Integnty of the plan. AgaIn, It submIts that the Intent of the partIes was never to Include penSIOn
dIsputes under the JunsdIcIton of the GSB and AppendIx 20 sImply reaffirms that pnncIple
Decision
Under the Crown Employees Collective Bargaining Act to be arbItrable before thIS
Board, a dIspute between the partIes must be a dIfference between them "nsIng from the
InterpretatIOn, applIcatIOn, admInIstratIOn or alleged contraventIon of the [collectIve]
agreement." The same language appears In SectIOn 45(1) of the Ontano Labour Relations Act
whIch was consIdered In Weber v Ontario Hydro supra
In OPSEU (Ball) and Ministry of Municipal Affairs and Housing supra the gnevor
claimed that the Mimstry mIsled hIm Into takIng early retIrement by faIlIng to advIse hIm that the
Ontano PenSIOn Board's AdJudIcatIOn CommIttee had made a decIsIOn to remove the maXImum
servIce credIt cap of 35 years The gnevor who was 53 at the tIme of hIS retIrement and had
more than 35 years of servIce, testIfied that "[h]ad he been aware that the cap had been removed,
he would have worked at least tIll he was 60 years old and assessed the sItuatIOn at the tIme"
The Umon In that case conceded that It was not claimIng that the employer had vIOlated
any partIcular provIsIOn of the collectIve agreement, but argued that the "Board should Infer
from the collectIve agreement that the employer owed a duty of care to provIde InformatIOn
10
regardIng penSIOn entItlement." (p 8) It asserted that the employer had commItted a tort -
specIfically neglIgence - and that the Board's JunsdIctIOn flowed from the fact that the collectIve
agreement provIdes for employment benefits, even though It makes no reference to penSIOns
Vice-Chair DIssanyake dIsagreed. He concluded, at p 11
There IS no provIsIOn In the collectIve agreement between these partIes, whIch
make benefits under the Ontano PublIc ServIce PensIOn Plan part of It. On the
contrary the benefits and the penSIOn plan are governed by specIfic legIslatIOn,
the PublIc ServIce PensIOn Act and regulatIOns thereunder
The only assertIOn the umon made was that the collectIve agreement deals wIth
"employment benefits" ThIS In the Board's VIew does not bnng the present
dIspute wIthIn the purvIew of the collectIve agreement. The collectIve agreement
deals wIth specIfic employment benefits PenSIOns are not one of the benefits
dealt wIth There IS nothIng In thIS collectIve agreement whIch makes the
PenSIOn Plan or the benefits thereunder part of It or related to It.
AccordIngly the Board found that the "gnevance IS not arbItrable" and dIsmIssed the gnevance
In the Instant matter the Umon also does not assert that the Employer vIOlated a specIfic
provIsIOn In the collectIve agreement. Instead, It relIes on the decIsIOn of the DIvIsIOnal Court In
OPSEU Local 439 and Royal Ott([l1,a Health Care Group supra, to assert that the Ontano
PenSIOn Trust IS, contrary to the conclusIOn reached In the Ball case, Incorporated Into the
collectIve agreement.
Although there IS certaInly language In the oral decIsIOn of JustIce Cosgrove to that
effect, the decIsIOn of JustIce O'Leary appears to be more lImIted. He concluded, at paragraphs
28-29 "that the complaInts agaInst the Crown In thIS applIcatIOn anse out of the collectIve
agreement. So far as the complaInt based on AppendIx 9 and AppendIx 18 of the collectIve
11
agreement IS concerned, such must be dealt wIth by the arbItratIOn process contaIned In the
collectIve agreement." That conclusIOn IS fully consIstent WIth the Board's Junsprudence The
broader pronouncement of JustIce Cosgrove that "the O.P T IS Incorporated and closely
Integrated wIth the collectIve agreement " IS, In my vIew dIcta. Consequently I do not
conclude that the decIsIOn In OPSEU Local 439 and Royal Ott([l1,a Health Care Group supra,
reqUIres a conclusIOn that all penSIOn matters are Incorporated Into the collectIve agreement.
Further the provIsIOns of the collectIve agreement whIch mentIOn pensIOn benefits
(AppendIces 9 11 17 and 18) do not Incorporate the penSIOn plan, In ItS entIrety Into the
collectIve agreement. In London Life Insurance Company v Dubreuil Brothers Employees
Association, a Division of IWA Canada Local 2693 et al. supra, the Ontano Court of Appeal
endorsed the tradItIOnal method used by arbItrators of decIdIng the arbItrabIlIty of benefit
entItlement claims That method Involves determInIng Into whIch of four categones the
language of the partIcular collectIve agreement falls The four categones, as first IdentIfied In
Brown and Beatty Canadian Labour Arbitration 3rd Ed. (1988) are as follows
(1) where the collectIve agreement does not set out the benefit sought to be enforced, the claim IS
InarbItrable
(2) where the collectIve agreement stIpulates that the employer IS oblIged to provIde certaIn
medIcal or sIck-pay benefits, but does not Incorporate the plan Into the agreement or make
specIfic reference to It, the claim IS arbItrable
(3) where the collectIve agreement only oblIges the employer to pay the premIUms assocIated
wIth an Insurance plan, the claim IS InarbItrable and
(4) where the Insurance polIcy IS Incorporated Into the collectIve agreement, the claim IS
arbItrable
In my VIew WIth certaIn lImIted exceptIOns, the collectIve agreement In thIS case falls under
category 1 - the collectIve agreement does not set out the benefit sought to be enforced. Nor
does It fall under category 4
12
AppendIx 20 reconfirms the conclusIOn reached by the Board In Bell, supra that penSIOn
benefits and the penSIOn plan are governed by specIfic legIslatIOn and do not fall wIthIn the
purvIew of the collectIve agreement. In AppendIx 20 the partIes uneqUIvocally state that "whIle
penSIOn Issues are bargaInable, the SponsorshIp Agreement, the PenSIOn Plan, the Trust
Agreement, and any other ancIllary documents concermng the PenSIOn Plan do not form part of
the CollectIve Agreement." The clear purpose of thIS provIsIOn was to aVOId the dicta contaIned
In OPSEU Local 439 and Royal Ott([l1,a Health Care Group
Counsel for the Umon argued that all of the gnevances pre-date the InclUSIOn of
AppendIx 20 GIven the conclusIOn of the Board In Bell, supra, as well as In a January 1993
decIsIOn of the Board In OPSEU (Brummell) and Ministry of Health, supra, that fact IS not
matenal In Brummell the Board dIsmIssed a gnevance by an employee whIch alleged that he
accepted a posItIOn In the publIc servIce based on representatIOns by the Employer that he could
transfer hIS pensIOn credIts from CanadIan NatIOnal RaIlway to the Ontano publIc servIce
pensIOn. In fact, the transfer could not be done wIthout the gnevor paYIng $58000 The Board
dIsmIssed the gnevance at p 18 because "the claim that the Umon makes IS not based upon any
vIOlatIOn of the collectIve agreement but IS rather an attempt to enforce a representatIOn that falls
outsIde of the collectIve agreement and falls wIthIn the exclusIve nghts of the Employer"
Consequently AppendIx 20 does not represent a change In the status of penSIOn matters before
the GSB but a re-confirmatIOn of the conclusIOns reached earlIer by the Board.
As noted above, for a dIspute to be arbItrable before thIS Board, It must Involve a
dIfference between the partIes "ansIng from the InterpretatIOn, applIcatIOn, admInIstratIOn or
alleged contraventIOn of the [collectIve] agreement." Under the analysIs set forth In Weber v
13
Ontario Hydro supra, an arbItrator has exclusIve JunsdIctIOn when the dIspute, In ItS essentIal
character anses from the InterpretatIOn, applIcatIOn, admInIstratIOn or vIOlatIOn of the collectIve
agreement.
As cIted In London Life Insurance Company supra at para. 21 the Supreme Court of
Canada elaborated on the Weber approach to determInIng arbItrabIlIty In Regina Polic Assn. Inc
v Regina (City) Board of Police Commissioners 2000 SCC 13 183 D.L.R. (4th) 14 at para. 25
To determIne whether a dIspute anses out of the collectIve agreement, we must
therefore consIder two elements the nature of the dIspute and the ambIt of the
collectIve agreement. In consIdenng the nature of the dIspute, the goal IS to
determIne ItS essentIal character ThIS determInatIOn must proceed on the basIs of
the facts surroundIng the dIspute between the partIes, and not on the basIs of how
the legal Issues may be framed see Weber supra, at para.43 SImply the
decIsIOn-maker must determIne whether havIng examIned the factual context of
the dIspute ItS essentIal character concerns a subJect-matter that IS covered by the
collectIve agreement. Upon determInIng the essentIal character of the dIspute, the
decIsIOn-maker must examIne the provIsIOns of the collectIve agreement to
determIne whether It contemplates such factual sItuatIOns It IS clear that the
collectIve agreement need not provIde for the subJect-matter of the dIspute
explIcItly If the essentIal character of the dIspute anses eIther explIcItly or
ImplIcItly from the InterpretatIOn, applIcatIOn, admInIstratIOn or vIOlatIOn of the
collectIve agreement, the dIspute IS WIthIn the sole JunsdIctIOn of an arbItrator to
decIde
In thIS case the "essentIal character" of the dIspute Involves the employees' nght to make
Informed decIsIOns concernIng the "buy-back" of penSIOn credIts whIch eXIsted from 1989 to
1991 The employees' nghts concernIng that "buy-back" optIOn are governed by the Public
Service Pension Act and, through the data punficatIOn proJect, the SponsorshIp Agreement and
the 2001 Settlement Agreement. They are not governed by the collectIve agreement. The
Employer IS governed by the Act and IS a party to the SponsorshIp Agreement and the Settlement
Agreement. There IS an Independent dIspute resolutIOn process contaIned In those agreements
Because pensIOn benefits and the penSIOn plan, IncludIng the "buy back" of penSIOn credIts, do
not Involve matters anSIng under the collectIve agreement, the Board has no JunsdIctIOn over
14
such matters As set forth In Weber v Ontario Hydro supra at para.52 "The fact that the
partIes are employer and employee may not be determInatIve SImIlarly the place of the conduct
gIVIng nse to the dIspute may not be conclusIve matters anSIng from the collectIve agreement
may occur off the workplace and conversely not everythIng that happens on the workplace may
anse from the collectIve agreement "
The decIsIOn In OPSEU (Bousquet) supra, does not assIst the Umon. The Board In that
case dId not adopt a general duty of good faith and reasonableness In the exerCIse of management
nghts At Issue was management's demal of a traInIng and development opportumty to an
employee, allegedly because he was a francophone The Employer argued that SInce traInIng and
development was a functIOn reserved to management under SectIOn 18(1) of CECBA, the Board
had no JunsdIctIOn to hear the gnevance The Board determIned, at p 67 that "the Gnevor has
no statutory nght to gneve because he has been demed a traInIng and development opportumty
Here, the nght to raise the subJects of traInIng and development by way of a gnevance has
been restncted by means of a clear IndIcatIOn on the part of the LegIslature"
Nevertheless, the Board also concluded that the employer dId not have "carte blanche to
do what It wIshes under the purported exerCIse of an exclusIve management functIOn wIth respect
to traInIng and development." (p 58) Instead, the Board had the nght to reVIew the employer's
exerCIse of ItS dIscretIOn for good faith and reasonableness because developmental opportumtIes
Impacted an employee's abIlIty to compete In Job competItIOns under then ArtIcle 4 of the
collectIve agreement. The Board held at p 35 "[T]he sIgmficant fact reqUIred to place a
lImItatIOn on the unfettered exerCIse of a management nght IS the eXIstence of a provIsIOn In the
collectIve agreement whIch would eIther be negated or unduly lImIted by a partIcular applIcatIOn
of such nght." Consequently under Bousquet, supra, the JunsdIctIOn of the Board to reVIew the
15
Employer's exerCIse of a nght reserved to management IS denvatIve - It depends on the
eXIstence of a provIsIOn In the collectIve agreement whIch mIght be adversely affected by
management's actIOn.
ApplYIng that holdIng to the facts of thIS case, the Board's JunsdIctIOn cannot be based
solely on the Board's exerCIse of ItS dIscretIOn In regard to "superannuatIOn." There must be
some provIsIOn In the collectIve agreement whIch could be eIther negated or lImIted by the
Employer's actIOns In regard to "superannuatIOn." For the reasons set forth above, there IS no
collectIve agreement provIsIOn whIch deals wIth the "buy-back" Issue or whIch Incorporates,
generally the penSIOn plan. AccordIngly there IS no basIs for the Board to assert JunsdIctIOn
over the Employer's alleged conduct In regard to what It Said (or dId not say) or dId regardIng the
buy-back optIOns of employees under the Bousquet decIsIOn.
Nor IS the decIsIOn In Imperial Tobacco Canada Ltd v Bakery Confectionery Tobacco
Workers and Grain Millers International Union, Local 323T (McIllyt,raith Grievance) supra, of
assIstance The decIsIOn In Imperial Tobacco Canada Ltd supra, appears to have Imposed a
duty of care that qualIfies management's dIscretIOn to manage ItS busIness under the partIes'
management nghts clause Based on an establIshed practIce of formally adVISIng employees of
theIr pensIOn nghts dunng the penod that employees are elIgIble to JOIn the plan, the arbItrator
ruled that management had a duty to make sure that the gnevor was aware of hIS nghts to JOIn
the plan when he first became elIgIble
ThIS decIsIOn, In my VIew IS not consIstent WIth eIther OPSEU (Bell) supra, or OPSEU
(Bousquet) supra In Bell the Board specIfically reJected the Umon's contentIOn that the
Employer had an Independent duty of care to provIde InformatIOn regardIng penSIOn entItlement.
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In Bousquet, supra the Board determIned that there IS no general reqUIrement of good faith and
reasonableness In the exerCIse of nghts reserved to management, unless It Impacts a nght
contaIned In the collectIve agreement. As a Vice-Chair of a sIngle board, I am reqUIred to follow
these GSB decIsIOns, absent compellIng CIrcumstances Amalgamated Transit Union (Blake)
and Toronto Area Transit Operating Authority GSB No 1276/87 (ShIme)
AccordIngly for all of the reasons set forth above, I conclude that the "essentIal
character" of the matters In dIspute does not anse out of the collectIve agreement. ThIS decIsIOn
IS not meant to mImmIze the sIgmficance of the underlYIng Issues to the gnevors The Issues
raised are clearly of great sIgmficance to the IndIVIduals Involved - as they are to the Employer
and the OPSEU PenSIOn Trust. Unfortunately because the Issues do not anse under the
collectIve agreement, they are not matters whIch thIS Board may address AccordIngly I
conclude that the gnevances are not arbItrable and must be dIsmIssed.
Issued at Toronto thIS 5th day of November 2003
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