HomeMy WebLinkAbout2005-1927.Rodrigues.07-04-24 Decision
Crown Employees
Grievance Settlement
Board
Suite 600
180 Dundas Sl. West
Toronto, Ontario M5G 1Z8
Tel. (416) 326-1388
Fax (416) 326-1396
Commission de
reglement des griefs
des employes de la
Couronne
Bureau 600
180, rue Dundas Ouest
Toronto (Ontario) M5G 1Z8
Tel. : (416) 326-1388
Telec. : (416) 326-1396
Nj
~
Ontario
GSB# 2005-1927,2005-1928
UNION# 2005-0528-0002, 2005-0528-0003
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
BETWEEN
BEFORE
FOR THE UNION
FOR THE EMPLOYER
WRITTEN
SUBMISSIONS
Before
THE GRIEVANCE SETTLEMENT BOARD
Ontario Public Service Employees Union
(Rodrigues)
- and -
The Crown in Right of Ontario
(Ministry of Labour)
Richard Brown
Gavin Leeb
Barrister and Solicitor
Sean Kearney
Senior Counsel
Ministry of Government Services
April 10 & 16,2007.
Union
Employer
Vice-Chair
2
Decision
This decision supplements an earlier one holding the grievor had been discharged without just
cause. In closing argument, employer counsel contended reinstatement should be denied and the
remedy limited to damages. This was the first occasion when the employer suggested the grievor
should not be reinstated, even if there was no just cause for dismissal. Counsel for the union
responded to this argument by contending the employer is barred from raising it at the end of the
hearing. This procedural issue was addressed subsequently in written submissions.
I have now reviewed the evidence upon which the employer relies in opposing
reinstatement. This review has led me to conclude the remedy ought not to be limited to
damages. Having concluded the grievor should be reinstated, even if the employer is not barred
from opposing this remedy, I need not decide whether such a bar exists. My reasons for
reinstating the grievor are set out below.
I
Reinstatement is the remedy normally awarded by arbitrators to employees dismissed without
just cause. Damages in lieu of reinstatement have been awarded only in exceptional
circumstances. The exceptional nature of a monetary relief has long been recognized by
arbitrators: see, for example, Tenant Hotline and Peters and Gittens (1983), 10 L.AC. (3d) 130
(McDowell). The arbitral practice of granting reinstatement, except in extraordinary situations,
was noted with approval by the Supreme Court of Canada in Alberta Union of Public Employees
v. Lethbridge Community College, [2004] 1 S.C.R. 727. Upholding an award denying
reinstatement, Iacobucci 1. wrote:
The parties and the Court of Appeal cite a number of decisions where jurisdiction to
substitute an award of damages in lieu of reinstatement was exercised in what have been
termed "exceptional" or "extraordinary circumstances" ...
On balance, the board's comments reflect concerns about the continued viability
of the employment relationship, and fall squarely within the ambit of exceptional
circumstances as reflected in the arbitral decisions noted above. (pages 755 and 756)
Counsel cited two decisions of the Grievance Settlement Board affirming these general remedial
principles: Liquor Control Board of Ontario and Ontario Liquor Control Boards Employees
Union (Massa), GSB No. 2033/97, dated Feb. 15,2000 (Abramsky); Ministry of Natural
3
Resources and Ontario Public Service Employees Union (Wickett), GSB No. 20011-0542
(Petryshen).
The prevalence of reinstatement as a remedy for unjust dismissal is based upon the nature
of the employment relationship under a collective agreement. The point is best made by
comparing this relationship to a simple contract for the sale of a specific quantity of fungible
goods at a fixed price. Non-delivery by the seller is remedied in the courts by awarding the buyer
damages equal to the cost of obtaining replacements plus any associated losses. Compensation so
computed puts the buyer in the position it would have occupied had the contract been carried out.
Damages are much less able to accomplish this remedial objective in a case of unjust dismissal,
as I explained some years ago in a paper entitled "Contract Remedies in a Planned Economy:
Labour Arbitration Leads the Way", published in Swan, 1. and Reiter, B., Studies in Contract.
Toronto: Butterworths (1979).
Lost wages and other monetary benefits cannot be computed with any degree of
precision, largely because of uncertainty about how long the grievor would have continued to be
employed, but for the unjust dismissal, and uncertainty about what alternative work he or she
will be able to find and retain during this period:
Management may not fire without just cause but may layoff, in accordance with
seniority, to reduce the workforce. The employee is free to quit. ... Should a prediction
be made as to whether, at some future time, the employee might have been properly
terminated or might have quit? Labour market imperfections may leave the worker
unemployed for a substantial period of time. Should an attempt be made to predict when
another j ob will be found. If the employee finds work at a lower rate of remuneration,
ought a claim for the differential to be allowed? ("Contract Remedies.. .", supra, at 103)
The calculation of compensation for unjust dismissal is further complicated by the
difficulty of valuing seniority rights:
A discharged employee loses seniority rights as well as wages. These invaluable rights
entitle the employee to vacations and other benefits, to preference when promotions are
made and protection against layoffs. ("Contract Remedies.. .", supra, at 103)
The computation of damages is further frustrated by the non-monetary rewards of
employment:
Self-respect and life style are closely related to employment. ... The courts have recently
recognized that these interests are deserving of protection and have awarded damages for
injury to them. Obviously, the loss cannot be measured readily and no sound basis has
been offered for the amounts awarded. ("Contract Remedies...", supra, at 1 03)
4
Since this comment was written, the Supreme Court of Canada, in Reference re Public Service
Employees Relations Act (Alberta), [1987] 1 S.C.R. 313, has acknowledged "a person's
employment is an essential component of his or her sense of identity, self-worth and emotional
well-being." The intractable problem posed by attempting to place a monetary value on these
attributes of any job is self-evident.
All of the difficulties inherent in attempting to fashion adequate monetary compensation
for unjust dismissal are avoided by reinstating the aggrieved employee instead. That is why
reinstatement is the normal remedy.
II
Employer counsel relies upon four decisions awarding damages in lieu of reinstatement. Brinks
Canada Ltd and Newfoundland Association of Public Employees (1999),77 L.AC. (4th) 260
(Fagan); DehavillandInc. and CAW Canada (1999),83 L.AC. (4th) 157 (Rayner); Liquor
Control Board of Ontario and Ontario Liquor Control Boards Employees Union (Massa), GSB
No. 2033/97, dated Feb. 15,2000 (Abramsky); and Vancouver Island Health Authority and
British Columbia Nurses Union (2006), 10 L.A C. (4th) 231 (Hope).
In Brinks Canada, the grievors worked as money custodians. A fellow employee had
misappropriated funds and they were less than candid when questioned about what had
happened. Arbitrator Fagan concluded there was cause for discipline but that discharge was not
warranted. He awarded damages in lieu of reinstatement, because the grievors "expressed strong
emotions of anger" about their treatment by management, and because "the highest of ethical
standards were required" in handling customers' cash. I note the utility of this decision as a
precedent is somewhat diminished because it contains no indication the arbitrator recognized that
damages are an exceptional remedy.
The extraordinary nature of monetary relief was recognized in all of the other cases cited.
In Dehavilland, Professor Rayner wrote:
The cases referred to cite several factors that are relevant to the decision to award
compensation in lieu of compensation. In no particular order those factors are:
1.
The refusal of coworkers to work with the grievor.
2.
Lack of trust between the grievor and the employer.
3.
The inability or refusal of the grievor to accept responsibility for any
wrongdoing.
5
4.
The demeanour and attitude of the grievor at the hearing.
5.
Animosity on the part of the grievor towards management or coworkers.
6.
The risk of a "poisoned" atmosphere in the work place.
Many of these factors, but not all, exist in the present case. The demeanour and
the attitude of the grievor at the hearing was particularly revealing. As I stated in my
earlier award dealing with the merits of the grievor's discipline:
It became obvious as soon as the case began that the hearing would be difficult
for several reasons, but primarily the attitude of the grievor. Simply put he does
not trust the Company or its officials and does not trust the Union. He would
have preferred independent counsel but said that he could not afford one. He
objected to Mr. Gray, the plant chairperson, as his representative and Mr. Gray
withdrew in favour of Mr. Murphy. The grievor also threatened to leave the
hearing several times. .... Finally at one point in the hearing the grievor said
something in the general direction of either Mr. Gray or Mr. Skipper which
sounded like a vague threat.
There is no doubt that the grievor distrusts management because of what he perceives to
be its reaction to his complaints about procedure to senior Company officials and outside
agencies. There is also no doubt that the grievor does not accept any responsibility for
any improper behavior. He referred to an earlier string of progressive discipline as
"bogus" and as part of an ongoing vendetta by Mr. Kehoe, a manager, assisted by other
supervisors and officials in the human resources department, to get him. He claimed that
there was such a conspiracy because the grievor is what is colloquially known as a
"whistle blower". . .
In short, the grievor was denied reinstatement because he disrupted the hearing with threatening
behavior, never accepted any responsibility for wrongdoing, and contended he was the victim of
a conspIracy.
The reasons why reinstatement was denied in Massa were much the same. The grievor
was dismissed as a result of a conversation with officials at the Ministry of Labour during which
he named three fellow employees and a manager and then said: "I want to kill 'em." Arbitrator
Abramsky decided discharge was an excessive penalty, because psychiatric evidence indicated
the grievor did not intend to harm anyone, and because he was a long-service employee.
Declining to reinstate him, the arbitrator wrote:
[T]he grievor accepts no responsibility for his actions. He was in what can only be
described as a state of denial, blaming everyone else for his discipline and discharge. ...
In his view, the others were "out to get him"...
He clearly harbors great animosity and was disparaging toward management and
a number of co-workers. . . . He also mentioned other employees who refused to work
6
with him... The grievor also demonstrated a lack of candor about what occurred as the
inconsistencies in his testimony reveal. (pages 71 and 72)
In Vancouver Island Health Authority, a nurse was dismissed for repeatedly not
following standard nursing practices. Arbitrator Hope concluded discharge was unwarranted
because the employer had failed to take appropriate corrective action. The grievor did not want
to return to her former position and the arbitrator concluded the employer could not reasonably
be expected to offer another assignment. In this setting, he declined to reinstate the grievor,
noting her relationship with her supervisor and workmates was "dysfunctional" to the point
where a number of the latter had refused shifts rather work with her.
III
The facts here are very different than those in the cited cases where the remedy was limited to
damages by an arbitrator who acknowledged the exceptional nature of this sort of relief. Ms.
Rodrigues is seeking to return to her former position, not requesting some other assignment.
There were no threats of violence and no disruptive behavior at the hearing. Nothing in the
evidence suggests the grievor experienced any difficulty with other employees. She does not
deny all responsibility for wrongdoing. In particular, she expressed remorse for not following
proper procedures and apologized for accusing her manager of discrimination, albeit belatedly
while testifying. She accepted some responsibility for not meeting performance targets; and I
concluded the employer had failed to prove that some of this shortfall was not attributable to
approved absences. Considering all of the evidence, I am not persuaded the prospect of a viable
employment relationship is so remote that reinstatement should be denied.
7
IV
The employer is directed to reinstate Ms. Rodrigues and to amend her record to reflect a
suspension of twenty days, the longest suspension the employer is allowed to impose under the
Public Service Act. The time elapsed since termination far exceeds twenty days. Nonetheless,
this is one of those rare cases where there should be no compensation for lost wages and benefits.
Such compensation is denied because the grievor was seriously derelict in the performance of her
duties over a prolonged period, even though her deficiencies were brought to her attention on
numerous occaSIOns.
Dated at Toronto the 24th day of April 2007