HomeMy WebLinkAbout2016-1433.McCurdy.17-11-14 Decision
Crown Employees
Grievance Settlement
Board
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180 Dundas St. West
Toronto, Ontario M5G 1Z8
Tel. (416) 326-1388
Fax (416) 326-1396
Commission de
règlement des griefs
des employés de la
Couronne
Bureau 600
180, rue Dundas Ouest
Toronto (Ontario) M5G 1Z8
Tél. : (416) 326-1388
Téléc. : (416) 326-1396
GSB#2016-1433
UNION# G-47-14-BOE
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
BETWEEN
Amalgamated Transit Union - Local 1587
(McCurdy) Union
- and -
The Crown in Right of Ontario
(Metrolinx - GO Transit) Employer
BEFORE Randi H. Abramsky Arbitrator
FOR THE UNION Dean Ardron
Ursel Phillips Fellows Hopkinson LLP
Counsel
FOR THE EMPLOYER Daniel Fogel
Hicks Morley Hamilton Stewart Storie LLP
Counsel
HEARINGS January 30, 2017 and October 17, 2017
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DECISION
[1] The Employer has raised a preliminary objection to the jurisdiction of the Grievance
Settlement Board (“GSB” or “Board”) to hear this grievance which contests the termination
of the Grievor, Raymond McCurdy, who was a probationary employee at the time of his
dismissal. The Union opposes that motion, and asserts that the Board has jurisdiction to
determine if the Employer’s action was arbitrary, discriminatory or in bad faith.
Facts
[2] No viva voce evidence was called. A number of documents were admitted into the
record for the purposes of this motion. Those documents, and other facts provided at the
hearing, are the basis of the facts set out below.
1. The Grievor commenced employment with the GO Transit on or about March 2014 as
a Bus Driver.
2. The Grievor received a commendation from his supervisor on or about June 24, 2014
for presenting himself well, being on time, prepared, performing his circle checks and
being polite.
3. On or about July 15, 2014 the Grievor’s vehicle was burglarized in front of his home.
Shortly thereafter, the Grievor engaged in a verbal discussion with the perpetrator. During
the course of the verbal discussion, the Grievor was physically attacked by the perpetrator
and was forced to defend himself. As a result of the physical interaction, in which the
Grievor defended himself, the perpetrator sustained injuries which resulted in his death.
4. On or about July 16, 2014, the Grievor was charged with manslaughter pursuant to the
Criminal Code of Canada. The charges against the Grievor were reported by GTA press
outlets, including reference to his Employer as “GO”.
5. On or about July 21, 2014, the Employer discharged the Grievor as it had:
…deemed you are not currently suitable for the role of bus driver.
At the time of his dismissal, the Grievor was a probationary employee.
6. On July 29, 2016, the Union filed a grievance on Mr. McCurdy’s behalf, alleging that
his discharge “is without just cause, arbitrary and in bad faith.” The grievance refers to
Articles 4.4, 6.1 and 7.2 of the collective agreement “and all other articles, acts or Codes
of the Collective Agreement or statutory provisions which are relevant.” However, there
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is no allegation that the Grievor’s termination violates any statute or law, including the
Ontario Human Rights Code.
7. On or about July 29, 2016 the Grievor was found not guilty of manslaughter following
a jury trial. The Grievor received a conditional discharge for an associated assault charge.
As of January 2018 the Grievor will have no criminal record.
8. The Employer, on January 12, 2017, in response to the Union’s request for particulars
with respect to the discharge of the Grievor wrote: “…Mr. McCurdy was terminated for
engaging in a violent altercation which resulted in death, criminal charges and media
attention. It is the Employer’s position that any of these factors justified termination.”
9. The language contained in Article 4.4(1) has been, with the exception of one change
in 1986, in the parties’ collective agreements since at least 1981. The original language
read as follows:
Article 4.4(1) It is recognized that a period of probation is a period during which the
Employer has the right to assess an employee to determine whether such employee
is, in the sole opinion of the Employer, acceptable for employment. It is therefore
recognized and agreed that probationary employees may be released or dismissed
at the sole discretion of the Employer during the probationary period and that such
release or dismissal shall be deemed to be for just cause. Any probationary
employee who is released or dismissed shall not be entitled to file a grievance.
10. In 1986, there was an amendment to this provision – the addition of the words
“absolute and” to the second sentence, which now reads: “It is therefore recognized and
agreed that probationary employees may be released or dismissed at the absolute and
sole discretion of the Employer during the probationary period and that such release or
dismissal shall be deemed to be for just cause.” The rest of the provision was not
changed.
11. There have been no GSB decisions between the parties concerning probationary
employee dismissals.
There are several relevant provisions in the parties’ collective agreement:
ARTICLE 1 – PURPOSE
1.1 The general purpose of this agreement between the Employer and the Union is to
establish and maintain orderly and harmonious collective bargaining relations at the
bargaining table and at the work place; to provide a procedure for the prompt and
equitable disposition of grievances; to assist and promote the proper and efficient
operation of the Employer’s business in serving the public interest.
…
ARTICLE 4 – GRIEVANCE PROCEDURE
…
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4.4(1) (emphasis added)
It is recognized that a period of probation is a period during which the Employer has the
right to assess an employee to determine whether such employee is, in the sole opinion
of the Employer, acceptable for employment. It is therefore recognized and agreed that
probationary employees may be released or dismissed at the absolute and sole discretion
of the Employer during the probationary period and that such release or dismissal shall
be deemed to be for just cause. Any probationary employee who is released or dismissed
shall not be entitled to file a grievance.
4.4(2) Any employee, other than a probationary employee, who is dismissed, shall be
entitled to file a grievance at Step 2 of the grievance procedure….
…
4.9 The Grievance Settlement Board or the arbitrator shall not have any jurisdiction to
alter or amend in any way the provisions of this agreement; to substitute any new
provisions in lieu thereof, to give any decision inconsistent with or contrary to the terms
and conditions of this agreement; or in any way to modify, add to or delete from any
provision of this agreement. …
ARTICLE 6 – MANAGEMENT RIGHTS
6.1 Except as otherwise abridged by specific provisions in this agreement, the Union
acknowledges that the Employer shall be entitled to exercise all the usual rights and
functions of management, which rights include, but are not limited to, the right to
…discipline and discharge employees (provided that a claim that an employee with
seniority has been disciplined or discharged without just cause may be the subject of a
grievance and dealt with as provided for in this agreement)…… [to] make and apply
reasonable rules and regulations to be observed by employees…
ARTICLE 7 – SENIORITY
…
7.2(b) Probationary employees will have no seniority rights during this period. After
completion of the probationary period, an employee’s seniority shall date back to the date
of his last hiring and shall be determined as specified in this Article.
ARTICLE 8 – POSTING AND FILLING OF VACANCIES
8.1(1) … Probationary employees may, at the sole discretion of the Employer, be
considered for another position outside their classification after the signing date of this
agreement. … The opinion of the Employer shall not be exercised in an arbitrary or
discriminatory manner.
…
8.1(10) Internal Job Posting Procedure
The Employer shall consider all applicants from the bargaining unit before considering
external applicants and will only consider external applicants if in the reasonable opinion
of the Employer there is no applicant from the bargaining unit who possesses the
necessary skill, ability and qualifications to perform the work in question.
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…
The opinion of the Employer hereunder shall not be exercised in an arbitrary or
discriminatory manner.
ARTICLE 11- HEALTH AND SAFTEY
…
11.13
(4) The incumbents hereto adopt these guidelines in good faith and agree to promote and
assist the Joint Health and Safety Committee whenever and wherever possible.
LETTER OF AGREEMENT #5
Re: Article 20.2 - Rest Periods
1. The parties agree to refer the issue of rest periods … to a Joint Committee for its review
and determination.
…
8. The parties shall meet and negotiate in good faith and attempt to resolve the issue. …
Positions of the Parties
The Employer
[3] The Employer asserts that in this collective agreement, the parties clearly and
unequivocally gave the Employer the “absolute and sole discretion” to release a
probationary employee, and precluded the Union from being able to challenge that
decision through the grievance procedure. It asserts that this Board should give full effect
to the language negotiated by the parties, which, in plain and clear language, precludes
the Grievor and Union from contesting the Grievor’s dismissal as a probationary
employee. It submits that under basic principles of contract interpretation, the parties
words should be given their “normal and ordinary meaning” notwithstanding that the result
may be unfair or oppressive, citing Brown and Beatty, Canadian Labour Arbitration, at
4:2110 and 4:2120.
[4] The Employer asserts that the parties are sophisticated bargainers, and when they
wanted to provide that a decision of the Employer may not be exercised in an arbitrary or
discriminatory manner or had to be in “good faith”, they specifically included such
language, citing Articles 8.1(10 and 8.1(10) as well as Article 11 and Letter of Agreement
#5. It submits that the absence of such a requirement in Article 4.4(1) is significant and
demonstrates the parties’ intent that the Employer’s “absolute and sole” discretion is not
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subject to review on that basis. It further submits that “sole discretion” language has
existed since 1981 and was strengthened in 1986, with the addition of “absolute” to “sole
discretion”. It argues that the Union had many opportunities over the years to change that
language and impose standards such as “arbitrary, discriminatory or in bad faith” but did
not. Although no party presented evidence concerning the 1986 negotiations, the
Employer asserts that it may be assumed that the parties’ made a trade-off in bargaining
to add the word “absolute” into Article 4.4(1). In its view, the word was most probably not
included “for free.”
[5] The Employer submits that the addition of the word “absolute” has meaning.
Whereas “sole discretion” means the Employer’s discretion, the addition of the word
“absolute” means that the Employer has complete, unlimited, unfettered, unqualified and
total discretion. The one exception, the Employer notes, under Section 48(12)(j) of the
Labour Relations Act and the decision of the Supreme Court of Canada in Re District of
Parry Sound Social Services Administration Board and OPSEU, Local 324, 2003 SCC
42, is where a probationary employee alleges that his discharge violates an employment-
related statute. An arbitration board clearly has jurisdiction to hear that claim. That,
however, is not the case here as no such allegation was raised.
[6] The Employer also relies on the words in Article 4.4(1) that “such release or
dismissal shall be deemed to be for just cause.” It asserts that this language is not
common, and appears in none of the cases cited by either party. In its view, this provision
forecloses any question of arbitrability because the Employer’s decision “shall be deemed
to be for just cause.” It asserts that it is not possible for a decision to be “arbitrary,
discriminatory or in bad faith” yet be for “just cause.” To entertain such a claim, or decide
that the Employer’s decision was arbitrary would improperly nullify this negotiated
language. Such a decision, it submits, would also be contrary to Article 4(9) as
inconsistent with the parties’ collective agreement.
[7] The Employer also argues that other provisions in the collective agreement support
the conclusion that probationary employees may not grieve their dismissal. It refers to
Article 4.4(2), Article 6.1, Management Rights, and Article 7.2(1). These provisions, it
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submits, consistently preclude a probationary employee from using the grievance
procedure to contest their dismissal.
[8] In the Employer’s view, in light of the clear language in the parties’ agreement,
there is no basis to imply an obligation not to exercise its discretion in an arbitrary,
discriminatory or bad faith manner. Such an obligation, it asserts, must have a “hook” in
the collective agreement. It asserts that there is none – not in the purpose clause or
anywhere else. This is especially so here, it maintains, because the parties negotiated
such specific language concerning probationary dismissals. It submits that the specific
provisions in regard to probationary employees overrides any general implied obligation.
[9] In support of its position, the Employer refers to the following cases: Re U.S. Steel
– Hamilton Works and United Steelworkers, Local 1005 (2012), 224 L.A.C. (4th) 150, 2012
CarswellOnt 11391 (Tacon); Re Ontario (Alcohol and Gaming Commission) and OPSEU
(Harris), 2001 CarswellOnt 6443 (Whitaker); Re District of Parry Sound Welfare
Administration Board and OPSEU, Local 324, 1999 CarswellOnt 1782 (Knopf); Re
Markham Hydro Electric Commission and I.B.E.W., Local 636, 1992 CarswellOnt
6624(Knopf); Re Ontario Teachers’ Pension Plan Board and OPSEU (Tran)(1997), 65
L.A.C. (4th) 138, 1997 CarswellOnt 5660 (Davie); Re U.S. Steel Canada- Lake Erie Works
and United Steelworkers, Local 8782 (2012), 223 L.A.C. (4th) 380, 2012 CarswellOnt
11194(Barrett); Re Corporation of the City of Toronto and Metropolitan Civic Employees
Union, Local 43, 1986 CarswellOnt 1855 (On. Div.Ct.); Re Branford (City) and A.T.LU,
Local 685 (Minshall) (2011), 211 L.A.C. (4th) 257, 2011 CarswellOnt 7426 (Rayner).
[10] In terms of the cases cited by the Union, the Employer asserts that they are
distinguishable on the language in the collective agreement.
The Union
[11] Despite the wording of Article 4.4(1) of the parties’ agreement, the Union asserts
that there is an implied obligation that the Employer’s decision to dismiss a probationary
employee must not be arbitrary, discriminatory or in bad faith. Referring to Brown and
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Beatty, Canadian Labour Arbitration at Section 7:5020, it asserts that “[a]lthough in some
early cases arbitrators ruled that it was within the sole discretion of the company whether
to retain or discharge a probationary employee, it is now accepted that an employer
cannot act in ways that are unlawful, or arbitrary, discriminatory, or in bad faith.”
[12] The Union contends that the implied obligation on the Employer to exercise its
discretion in a way that is not arbitrary, discriminatory or in bad faith rests on two bases
– the Article 1.1 purpose clause of the parties’ collective agreement and the view,
recognized in the case law, that parties’ would not have intended that the Employer’s
discretion be exercised in an arbitrary, discriminatory or bad faith manner.
[13] In the Union’s submission, Article 1.1 suggests that the parties are to act above-
board, and in a fair and equitable manner – at the bargaining table, at the work place and
in the disposition of grievances. It submits that this creates an implied obligation that the
Employer cannot act in an arbitrary or discriminatory manner or in bad faith. It also points
to Article 6.1, Management Rights, which permit the Employer to “make and apply
reasonable rules and regulations…”, to assert that the Employer must act reasonably. It
submits that under an implied obligation to act reasonably, an employer may not act
arbitrarily, discriminatorily or in bad faith, even where it has unfettered discretion.
[14] The Union also submits that, under the relevant case law, the obligation not to act
in an arbitrary, discriminatory or in bad faith manner arises from the simple proposition
that no parties would agree that discretion may be exercised arbitrarily, discriminatorily or
in bad faith. It relies on Re Toronto Transit Commission and A.T.U., Local 113 (Spracklin
Grievance) (1999), 82 L.A.C. (4th) 335 (Harris), at par. 16, for the proposition that there is
an obligation on an employer not to act in bad faith in discharging a probationary
employee irrespective of the degree of protection that is afforded such an employee by
the collective agreement.
[15] That decision, in turn, relies on Re Brampton Hydro Electric Commission v.
C.A.W., Local 1285, 15 O.R. (3d) 773 (Ont. Div. Ct, 1993), also relied upon by the Union.
In that case, the Court upheld the arbitrator’s jurisdiction to hear the grievance of a
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probationary employee on two bases – an implied obligation based on Article 1.01 of the
collective agreement which stated: “Both parties recognize a duty to cooperate in good
faith, individually and collectively, for the advancement of these purposes.” It also
viewed the obligation to flow generally, stating:
2. It will be said: “If the parties had intended that type of implied article to govern
their conduct, it would have been stated so explicitly in the collective agreement.” It
seems to me that the answer to that argument is found in the mere asking of this
rhetorical question: “Can you imagine any party, while negotiating a collective
agreement, bargaining to include an article: ‘the parties shall have the right, at all
times and in all circumstances, to act in bad faith and/or an arbitrary manner and/or
discriminatory way?’
[16] The Union also relies on Re Blue Door Shelters and SEIU, Local 1,(2013), 239
L.A.C. (4th) 260, 2013 CarswellOnt 16627 (Harris) and Re UNITE-HERE, Ontario
Council Local 23247 and Canadian Niagara Hotels Inc., 2008 CarswellOnt
10177(Howe). It submits that this implied obligation is now “well-settled law” which the
Employer is asking this Board to disregard.
[17] The Union further submits that this implied obligation has been recognized by
the GSB in Re C.U.P.E., Local 1750 (Fenwick) and Workplace Safety & Insurance
Board, GSB No. 2010-0839 (Dissanayake, 2013); Re C.U.P.E., Local 1750 (Devera)
and Workplace Safety & Insurance Board, GSB No. 2007-0352 (Briggs, 2010), and Re
AMAPCEO (Bokhari) and Ministry of Economic Development, Employment and
Infrastructure, GSB No. 2010-2873 et al. (Dissanayake, 2015). It submits that under
the principle that the GSB is “one board”, the conclusions of these cases are binding
upon me, Re E. Blake et al. and Amalgamated Transit Union, GSB No. 1276/87 et al.
(Shime, 1988).
[18] The Union acknowledges that the standard is not a “just cause” standard, but
rather a lesser standard of “arbitrary, discriminatory or in bad faith.” It submits, however,
that it has the right to make that argument and present its evidence. It submits that the
GSB should not create a situation where the Employer’s decision in such cases is entirely
unchecked and unreviewable.
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[19] The Union disagrees that the language in this collective agreement is “stronger”
than in the cases it cites, arguing that they are all “shades of black but still black.” All of
the cases, it submits, involve language purporting to give the Employer unfettered
discretion. In its view, such language is not enough. Nor, it submits, does the language
“shall be deemed to be for just cause” change the result. It submits that provision is part
of the Employer’s “unfettered discretion” and does not mean that the decision may be
arbitrary, discriminatory or made in bad faith. It submits that the obligation not to act in an
arbitrary, discriminatory manner or in bad faith is a narrow, but important, exception to the
Employer’s right to dismiss probationary employees.
[20] The Union also relies on Re Canadian Forest Products Ltd. v. Pulp, Paper and
Woodworkers of Canada, Local 25 (Aken Grievance) (2002), 108 L.A.C. (4th) 399
(McPhillips); Re Hydro-Electric Commission of the City of Hamilton and I.B.E.W., Local
138 (198), 13 L.A.C. (3d) 205 (Devlin); Re C.U.P.E., Local 1750 (Carito) and Workplace
Safety & Insurance Board, GSB No. 2011-3385 (Brown): Re McRae Waste Management
and I.U.O.E., Local 115 (1998), 71 L.A.C. (4th) 197 (Sanderson); Re Fisher Scientific and
U.F.C.W., Local 1000a, 1990 CarswellOnt 4203 (Brunner); Re Pacific Western Airlines
Ltd. and C.A.L.F.A., 1981 CarswellNat 601 (Sychuck).
Reasons for Decision
[21] In deciding the Employer’s motion, the Board must interpret the parties’ collective
agreement and determine whether the parties’ intended to permit the dismissal of a
probationary employees to be challenged on the basis that the dismissal decision was
arbitrary, discriminatory or in bad faith. Based on the words in the collective agreement,
I am persuaded that such an intention has not been established. My conclusion is based
on the language used by the parties, considering not only the directly pertinent sections
but the collective agreement as a whole.
[22] Basic principles of contract interpretation place prime importance on the words
used by the parties because it is presumed that the parties mean what they say in a
collective agreement. Here, the parties are sophisticated and their bargaining relationship
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is long-standing. In regard to probationary employees, Article 4.4(1) contains definitive
language, giving the employer the right to assess an employee’s acceptability in their
“sole opinion.” The parties “recognized and agreed” that probationary employees may be
released or dismissed “at the absolute and sole discretion of the Employer during the
probationary period” and “that such release or dismissal shall be deemed for just cause.”
The parties further agreed that “[a]ny probationary employee who is released or
dismissed shall not be entitled to file a grievance.”
[23] In several other places in the collective agreement, the parties reaffirm that
probationary employees may not grieve their dismissal – Article 4.4(2) says “[a]ny
employee, other than a probationary employee, who is dismissed, shall be entitled to file
a grievance…” Article 6.1, Management Rights, gives the Employer the right to discipline
and discharge employees “(provided that a claim that an employee with seniority has
been disciplined or discharged without just cause may be the subject of a grievance...)”
and Article 7.2(1)(b), Seniority, says “Probationary employees will have no seniority rights
during this period.” These provisions reiterate that probationary employees may not utilize
the grievance procedure to contest their dismissal.
[24] The collective agreement further provides, in some situations, that where the
Employer has discretion, even “sole discretion” it must not be exercised in “an arbitrary
or discriminatory manner” – Article 8, or where “good faith” is required – Article and Letter
of Understanding #5. The provisions of the collective agreement are properly read
together as a whole and the absence of such requirements in Article 4.4(1) must be given
significance.
[25] In Re Ontario (Alcohol and Gaming Commission of Ontario) and OPSEU, supra,
then Arbitrator Whitaker addressed a similar issue. There the collective agreement
stated: “The Employer may dismiss a probationary employee for any reason in its sole
discretion and probationary employees shall not have any recourse to the grievance or
arbitration procedure.” The Union asserted that while the grievor, under this language,
was not entitled to grieve his discharge on a “just cause” standard, the union might
advance a grievance on the basis that the employer exercised its discretion in a manner
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which is unfair, arbitrary, unreasonable or discriminatory – which he described as a
“lesser standard than just cause.” He rejected that assertion based on the language “for
any reason” as follows, at par. 18:
Even if one assumes that the term “sole discretion” may imply a review on a lesser
standard, what is the meaning of the phrase “for any reason”? It is a principle of
collective agreement interpretation that parties are assumed not to intend language
to be redundant. This means that the phrase “for any reason” must be read to mean
something other than simply the same thing as “sole discretion”, otherwise there
would be no purpose in including it in addition to that phrase. The formula “for any
reason” must be given its plain meaning which is quite simply “for any reason.” The
word “any” which defines the boundaries of the category of permissible “reasons” for
the exercise of the employer’s sole discretion “is unlimited.” “Any” means that all
reasons fall within the category of reasons which lie behind the employer’s exercise
of its sole discretion… Aside from “reasons” which might be in breach of a statute…
how can it be said that any “reason” whether unfair, unreasonable, arbitrary or
discriminatory is not a “reason.”
“Any reason”, he concluded at par. 19, did not exclude “reasons which might be unfair,
unreasonable, arbitrary or discriminatory.”
[26] In this case, the parties have agreed that the Employer has the “absolute and sole
discretion” to release or dismiss a probationary employee. The word “absolute” was
added by the parties in 1986. It therefore must be given meaning. I agree with counsel
for the Employer that “absolute” modifies “sole discretion” and means complete, unlimited,
unrestricted, or total, and that the Employer’s decision may not be challenged on any
basis. The Law Dictionary, based on Black’s Law Dictionary, Online Legal Dictionary, 2nd
Edition, defines “absolute” to mean “something that is unconditional, final, complete and
without any restrictions or conditions”. (emphasis added).
[27] I also find that that the clause “and that such release or dismissal shall be deemed
to be for just cause” must be given meaning. If the Union’s argument is accepted – that
a probationary dismissal may be challenged through arbitration on the basis that the
Employer exercised its “absolute and sole discretion” in an arbitrary or discriminatory
fashion, or in bad faith, - the words “such release or dismissal shall be deemed to be for
just cause” are rendered meaningless. The principles of contract interpretation favour a
reading of the collective agreement that gives effect to all the provisions in the collective
agreement, as previously noted. These words are unusual. They are not found in any of
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the decisions cited by the parties. Their intention could not be clearer. The parties agreed
that whatever the reason may be for the employer’s decision the “release or dismissal
shall be deemed to be for just cause.” It therefore cannot be that a probationary employee
may challenge his or her dismissal as being arbitrary, discriminatory or in bad faith when
the parties have agreed that the dismissal is “deemed to be for just cause.” Just cause
is clearly a higher standard than arbitrary, discriminatory or in bad faith.
[28] It should be noted that there is nothing unlawful about such an agreement. There
is no allegation here that the Employer’s decision violated any statute. Both parties
recognize that under Re District of Parry Sound Social Services Administration Board,
supra and Section 48(j)(12) of the Labour Relations Act, the parties’ may not contract out
of their obligations under employment-related statutes and that such statutes form a part
of the collective agreement. The word “discriminatory” in the words “arbitrary,
discriminatory or in bad faith” is not the same as discrimination under the Human Rights
Code. It refers to non-Code based discrimination in the nature of not treating employees
consistently, but not discrimination on a prohibited basis.
[29] Moreover, the cases recognize that parties may choose to limit or preclude the
arbitration of probationary employee dismissals. As recognized by Arbitrator Knopf in Re
Markham Hydro Electric Commission, supra at par. 17: “It is easy to see why parties
would bargain to restrict access to arbitrations to probationary employees.” The parties
did so here, in particularly explicit terms.
[30] The Union asserts, however, that despite this contractual language, there is an
implied obligation on the Employer not to exercise its discretion in an arbitrary,
discriminatory or bad faith manner. It submits that this implied obligation is well-settled in
the arbitral jurisprudence, irrespective of provisions which give an employer unfettered
discretion in regard to probationary employees. Re Toronto Transit Commission, supra;
Re UNITE HERE Ontario Council, Local 2347 and Canadian Niagara Hotels Inc., supra;
Re Blue Door Shelters, supra.
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[31] In my view, any such implied obligation must be based on the terms of the parties’
collective agreement. This view is supported by the decisions in Re Ontario (Alcohol and
Gaming Commission), supra at par. 21; Re District of Parry Sound Welfare Administration
Board and OPSEU, 1999 CarswellOnt 1782 (Knopf), at par. 16; Re Markham Hydro
Electric Commission, supra at par. 12. The Union relies on the purpose clause in the
parties’ collective agreement to argue that an implied obligation should be inferred. That
provision states:
The general purpose of this agreement between the Employer and the Union is to
establish and maintain orderly and harmonious collective bargaining relations at the
bargaining table and at the work place, to provide a procedure for the prompt and
equitable disposition of grievances, to assist and promote the proper and efficient
operation of the Employer’s business in serving the public interest.
[32] This argument, however, was rejected by Arbitrator Knopf in Re District of Parry
Sound, 1999 CarswellOnt 1782, at par. 17. The purpose clause there, like here,
committed the parties to the “prompt and equitable disposition of grievances” yet the
parties there, like here, also excluded the discharge of a probationary employee from the
grievance procedure. The arbitrator stated: “If there is any obligation to apply this
collective agreement in an equitable or good faith manner, this collective agreement has
been negotiated not to extend that duty or obligation to probationary employees.” The
same is true here.
[33] Furthermore, I am unable to find an implied obligation based on the Employer’s
obligation to make and apply “reasonable rules and regulations”, as set out in the
Management’s Rights provision. It simply does not follow that the obligation to make and
apply reasonable rules and regulations creates an obligation not to exercise
management’s “absolute and sole discretion” in regard to the release of probationary
employees in an arbitrary, discriminatory or in bad faith manner.
[34] However, even if I am wrong and, as a matter of law, there is an implied obligation
not to dismiss a probationary employee for an arbitrary or discriminatory reason, or in bad
faith, it is my conclusion that this implied obligation has been overridden in this instance
by Article 4.4(1). The Union recognizes that this implied obligation may be overridden by
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contractual language, but submits that the type of words set out by the Ontario Divisional
Court in Re Brampton Hydro Electric Commission, supra, would be required. With
respect, I do not agree. The parties here did not phrase it in the manner outlined in Re
Brampton Hydro Electric Commission, supra. They did so in a more positive manner –
they determined that any release or dismissal “shall be deemed to be for just cause.” As
noted above, this means that the dismissal of a probationary employee, no matter the
reason, “shall be deemed to be for just cause.” This is similar to the “any reason”
language reviewed in Re Ontario (Alcohol and Gaming Commission), supra. The parties’
explicit agreement overrides any implied obligation that may be inferred. This clear
language would be rendered a nullity if a probationary employee were permitted to assert
a claim that their dismissal was arbitrary, discriminatory or in bad faith. Such a claim
cannot exist in the context of the explicit agreement that probationary dismissals “shall be
deemed to be for just cause.”
[35] To rule otherwise would offend Article 4.9 of the parties’ collective agreement in
that it would “give [a] decision inconsistent with or contrary to the terms and conditions of
this agreement…”
[36] Consequently, based on the language in the parties’ collective agreement, there
is no jurisdiction for the Board to hear this grievance. As Arbitrator Knopf stated in her
decision in Re District of Parry Sound, supra at par. 13: “The deal the parties make in
collective bargaining is their choice to craft. The wisdom or propriety of their arrangement
is not a subject area of any concern to a board of arbitration….”
[37] In so ruling, I find nothing inconsistent with the GSB jurisprudence cited to me.
The collective agreements in Re Canadian Union of Public Employees, Local 1750
(Fenwick), supra, Re Canadian Union of Public Employees, Local 1750 (Devera) and Re
Canadian Union of Public Employees’, Local 1750 (Carito), supra, all contain a collective
agreement provision that provided probationary employees the right to grieve their
dismissals based on an assertion that the termination was in “bad faith, arbitrarily, or for
reasons that are discriminatory or contrary to legislation.” The case of Re Association of
Management, Administrative and Professional Crown Employees of Ontario (Bokhuri),
- 16 -
supra, involved the exercise of a management right relating to surplussing. This case
is the first time that this Board has addressed the interpretation of Article 4.4(1) in the
parties’ collective agreement, even though the language has been in existence since at
least 1981. Despite a search by both parties, no GSB decision involving it, or the issue of
probationary release under this collective agreement provision, was found. Consequently
and in light of the basis of my decision – based on the specific wording of the parties’
agreement - no issue concerning the Blake “one Board” principle arises.
Conclusion:
[38] For the reasons expressed above, I am persuaded that the Employer’s motion
must succeed. The grievance is dismissed.
Issued in Toronto this 14th day of November, 2017.
___________________________
Randi H. Abramsky, Arbitrator