HomeMy WebLinkAbout2009-1147.Johnston.10-01-08 Decision
Commission de Commission de
Crown Employeess
Grievance Grievance
règlement des griefs règlement des griefs
Settlement Board Settlement Board
des employés de la des employés de la
Couronne Couronne
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GSB#2009-1147 GSB#2009-1147
UNION#UNION#2007-0640-00022007-0640-0002
IN THE MATTER OF AN ARBITRATION IN THE MATTER OF AN ARBITRATION
UUnnddeerr
THE CROWN EMPLOYEES COLLECTHE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT TIVE BARGAINING ACT
BBeeffoorree
THE GRIEVANCE SETTLEMENT BOARD THE GRIEVANCE SETTLEMENT BOARD
BETWEENBETWEEN
Ontario Public Service Employees Union
èÏÔÎÏ
(Johnston)
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The Crown in Right of Ontario
(Ministry of Attorney General)
Employer
BEFORENimal Dissanayake Vice-Chair
FOR THE UNIONRichard Blair
Ryder Wright Blair & Holmes LLP
Barristers and Solicitors
FOR THE EMPLOYERFelix Lau
Ministry of Government Services
Counsel
HEARINGDecember 10, 2009.
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Interim Decision
[1] The Board is seized with the discharge grievance dated June 8, 2007, filed by Ms.
Denise Johnston. It was referred to arbitration on July 14, 2009. The parties are in
disagreement as to whether or not the Board has jurisdiction under s. 48(16) of the
Labour Relations Act to extend the time limits specified in the collective agreement for
referral to arbitration. The parties agreed to obtain a ruling on that jurisdictional issue,
and this interim decision deals solely with that issue. Without prejudice to its right to
take a contrary position should the Board find in favour of the employer, the union
agreed that for purposes of determining the jurisdictional issue only, I may assume that
the grievance had been referred to arbitration outside the time limit specified in article
22.4 of the collective agreement.
[2] The parties referred to the following authorities:
Service Employees International Union, Local 204 v. Leisureworld Nursing
Homes Ltd. [1997] O.J. No. 1469, Ont. Div. Ct. April 17, 1997; O.J. No. 4815
Affirmed Ont. Ct. of Appeal, December 1, 1997; Ajax Precision Manufacturing
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(Triton Division) and U.S.W.A., Local 9042 (Borscevski), [1999] 85 L.A.C. (4)
280 (Shime); OPSEU (Cherry) and The Crown in Right of Ontario (Ministry of
Finance), (January 16, 2003), GSB #0626/01 (Gray);OPSEU (Seager) and The
Crown in Right of Ontario (Ministry of Community, Family and Children?s
Services), (April 30, 2003), GSB # 1999-1841 (Mikus);James Bay General
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Hospital v. Public Service Alliance of Canada (2003) 126 L.A.C. (4 ) 12 (Ont.
Div. Ct);Ontario Public Service Employees Union v. Ontario (Ministry of
Community Safety and Correctional Services) (Duffy Grievance) (January 17,
2008) GSB # 2007-2737 etc. (Keller);Amalgamated Transit Union (Blake et al)
and The Crown in Right of Ontario (Toronto Area Transit Operating Authority)
GSB No. 1276/87, May 3, 1988 (Shime); Columbian Chemicals Canada Ltd. v.
Teamsters, Local 89 (Webb Grievance), [2005] O.L.A.A. No. 184 (Kaplan);Hotel
Dieu Hospital v. Ontario Public Service Employees Union, Local 469 (Kirby
Grievance), [2004] O.L.A.A. No. 891 (Leighton); Kingston Whig-Standard v.
Communication Workers of America, Local 30204 [2002] O.L.A.A. No. 39
(Simmons);Surex Community Services v. Ontario Public Service Employees
Union, Local 5102 (Wisdom Grievance), [2009] O.L.A.A. No. 81 (Stephens)
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[3] Article 22 of the collective agreement is titled ?Grievance Procedure?, and includes
the following provisions:
22.1 It is the intent of this Agreement to adjust as quickly as possible any
complaints or differences between the parties arising from the
interpretation, application, administration or alleged contravention of
this agreement, including any question as to whether a matter is
arbitrable.
STAGE ONE
22.2.1 It is the mutual desire of the parties that complaints of employees be
adjusted as quickly as possible and it is understood that if an employee
has a complaint, the employee shall meet, where practical, and discuss it
with the employee?s immediate supervisor within thirty (30) days after
the circumstances giving rise to the complaint have occurred to have
come or ought reasonably to have come to the attention of the employee
in order to give the immediate supervisor an opportunity of adjusting the
complaint.
22.2.2 If any complaint or difference is not satisfactorily settled by the
supervisor within seven (7) days of the discussion and/or meeting, it
may be processed within an additional ten (10) days in the following
manner:
STAGE TWO
22.3.1 If the complaint or difference is not resolved under Stage One, the
employee may file a grievance, in writing, through the Union, with their
immediate supervisor who will in turn forward the grievance to the
senior human resources representative for the ministry or his or her
designee.
22.3.2 The senior human resources representative or his or her designee shall
hold a meeting with the employee within fifteen (15) days of the receipt
of the grievance and shall give the grievor his or her decision in writing
within seven (7) days of the meeting with a copy to the Union steward.
22.4 If the grievor is not satisfied with the decision of the senior human
resources representative or his or her designee or if he or she does not
receive the decision within the specified time, the grievor may apply,
through the Union, to the Grievance Settlement Board (GSB) for a
hearing of the grievance within fifteen (15) days of the date he or she
received the decision or within fifteen (15) days of the specified time
limit for receiving the decision.
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22.14.1 Where a grievance is not processed within the time allowed or has not
been processed by the employee or the Union within the time prescribed
it shall be deemed to have been withdrawn.
[4] Section 48(16) of the Labour Relations Act provides:
48(16) Except where a collective agreement states that this subsection does not
apply, an arbitrator or arbitration board may extend the time for the
taking of any step in the grievance procedure under a collective
agreement, despite the expiration of the time, where an arbitrator or
arbitration board is satisfied that there are reasonable grounds for the
extension and that the opposite party will not be substantially prejudiced
by the extension.
[5] An often cited authority on the scope of s. 48(16) is Re Leisureworld (supra). The
Divisional Court, following a review of certain amendments s.48(6) had undergone,
stated at p. 201-202:
The jurisdiction to grant relief from time limitations with respect to
grievances cannot and should not be interpreted to also grant relief from
the time limits for referral to arbitration. Section 48(16) is clear and
unambiguous. To conclude otherwise would mean that the deletion of
the words ?or arbitration? from the 1992 legislation had no effect
whatsoever. The words in the statute must be given their clear meaning.
The Board had no jurisdiction to extend the time limit for referral to
arbitration.
The Ontario Court of Appeal in dismissing an appeal, wrote as follows in its endorsement:
It is clear from the context afforded by several provisions in the Labour
Relations Act that the legislation has intentionally drawn the distinction
between ?grievance procedure? and ?arbitration procedure? and,
accordingly, in our view did not intend to include steps in arbitration
procedure in s. 48(16). The appeal is dismissed with costs.
[6] The reasoning and interpretation of s. 48(16) in Re Leisureworld has been followed and
applied in numerous subsequent arbitration awards as standing for the proposition that s.
48(16) only provides an arbitrator the jurisdiction to extend time limits set out in a
collective agreement with respect to the grievance procedure, and that it does not include
the jurisdiction to extend time limits for referral to arbitration. For example see,
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Rainycrest Home for the Aged and C.U.P.E., Local 65 (1996) 57 L.A.C. (4) 75
(Bendel); Waterloo (Family and Children?s Services) and O.P.S.E.U. (1997) 66 L.A.C.
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th
(4) 294 (Kaplan); Toronto Board of Education and C.U.P.E., Local 3111 (1997) 67
th
L.A.C. (4) 144 (Joachim); Dominion Castings Limited and U.S.W.A., Local 9392
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) 416 (Roberts); Hotel-Dieu Grace Hospital and C.A.W., Local
(1997) 67 L.A.C. (4
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2458 (2002) L.A.C. (4) (Knopf).
[7]Leisureworld has also been applied by the Grievance Settlement Board in interpreting
the collective agreement between these parties. In Re Cherry, (supra) at para. 16, Vice-
Chair Gray concluded:
The collective agreement gives the GSB no power to extend the
collective agreement?s time limit for referring this grievance to
arbitration. The union does not suggest that the Crown Employees
Collective Bargaining Act, or any of the provisions of the Labour
Relations Act that are incorporated therein by reference, gives the GSB
the power to extend that time limit. Indeed, the union was unable to
identify any basis on which I could conclude, despite the delay in
referring it to arbitration, that this grievance is arbitrable.
In Re Seager, (supra) Vice-Chair Mikus at p.11 concluded that the 1995 amendment to s.
48(16) was ?a deliberate change to the Act to make it clear that there was to be no relief
for a failure to meet the time requirements for referring a grievance to arbitration. The
court decision in Leisureworld confirms that.?
[8] Employer counsel submitted that Re Seager is dispositive of the issue before me. He
submitted that the Board in that case considered the identical collective agreement
language and the identically worded s. 48(16) of the Labour Relations Act. It made a
clear pronouncement that s. 48(16) does not provide the Board the jurisdiction to extend
time limits in article 22.4 for referral to arbitration. He submitted that Re Blake, (supra)
mandates that I follow Re Seager. In his view, given the Seager decision, it would be
inappropriate for me to consider Re Ajax Precision and Re James Bay General Hospital.
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[9] Union counsel argued that I should not follow Re Seager, and that the Blake principle
has no application in the particular circumstances. While union counsel offered alternate
Blake principle, I need consider only one. Counsel argued
reasons for not applying the
that both Re Seager and Re Cherry, pre-dated the decision of the Ontario Divisional
Court in Re James Bay General Hospital (supra). The Board therefore did not have the
benefit of the guidance of the court which had refined the law that had existed under Re
Leisureworld. Counsel submitted that in these circumstances the Blake principle does
not apply and that I should consider the court decision in Re James Bay General
Hospital, without simply following the outdated Board case law.
[10] Both counsel advised me that their research did not turn up any decision of this Board on
this subject, which post-dated Re James Bay General Hospital. The courts have held,
and it is now accepted, that when interpreting the Labour Relations Act to determine
jurisdiction, the Board is required to be correct. See, Re Leisureworld (Div. Ct at para.
8). The Court in Re James Bay General Hospital has provided an interpretation of s.
48(16) which clarifies and refines the law that had evolved following Re Leisureworld.
This Board did not have an opportunity, in Re Cherry or in Re Seager, to consider the
ramifications of this refined interpretation of s. 48(16) on the language in the collective
agreement between these parties. In the circumstances, it is incumbent upon me to do
so. I agree with union counsel that the Blake principle does not prevent this Board from
considering a matter that has not been previously considered and decided by the Board.
See,Re Duffy, 2007-2737 etc. (Keller).
[11] The appropriate starting point for that consideration is Re Ajax Precision (supra). At
paragraphs 3-5, arbitrator Shime discussed the applicable collective agreement
provisions and facts as follows:
3. Since this was a discharge case, the grievance procedure commenced at
Step 2 of the grievance procedure pursuant to Article 10.02. Under Article
9.04 of the grievance procedure a Step 2 meeting was held and the
Company replied to the Union within five (5) working days of the meeting
and accordingly complied with the provisions of the grievance procedure.
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4. Step 3 of the grievance procedure provides that ?the party having carriage
of the grievance may request arbitration of the grievance by giving notice
in writing to the other party within fifteen (15) working days from the
delivery of the decision at Step #2?.The grievance was denied at Step 2
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on May 27, 1999, and arbitration was requested by a letter to the
st
Company on July 1, 1999, which was 41 calendar days and 25 working
days after the grievance had been denied by the Company at Step 2. This
notice was outside the prescribed time limits.
5. Article 9.09 provides that if the time limits are not followed the matter
shall be deemed to have been abandoned and both parties are in
agreement, that by deeming the matter to have been abandoned, the parties
have rendered the time limits to be mandatory. Accordingly, the only
recourse for the Union to extend the time limits is the Labour Relations
Act, 1995, S.O. 1995, c.1, Sch. A, Section 48(16). . . .
Following a review of the Divisional Court and Court of Appeal decisions in
Leisureworld, at paragraph 10 arbitrator Shime wrote:
10. Based on the particular language of that Collective Agreement and the
decision of the majority of the Board of Arbitration, both the Divisional
Court and the Court of Appeal, in the Leisureworld Nursing Homes case,
found that the referral to arbitration was part of the arbitration procedure
and the board of arbitration did not have jurisdiction to extend the time
limits. However, that decision of the Court, in my view, does not stand
for the proposition that the reference to arbitration in every collective
agreement is part of the arbitration procedure.Each collective agreement
must be considered and a determination made based on the particular
language and construction of the agreement.
Then at paragraphs 11-15, the arbitrator observed as follows about the collective
agreement before him:
11. In my view, the construction of the instant Collective Agreement differs
markedly from the Collective Agreement in the Leisureworld case. First,
and most prominently, as argued by the Union, Article 9.01 provides in part:
9.01 Whenever the term ?grievance procedure? is used in this Agreement it
shall be considered as including the arbitration procedure.
12. The parties have in effect deemed the arbitration procedure to be part of the
grievance procedure and accordingly, if this Collective Agreement is read in
light of the statute then a board of arbitration has the power to extend the
time limits in the arbitration procedure simply because it is part of and falls
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under the umbrella of the grievance procedure as determined and as deemed
by the parties.
13. Second, this Collective Agreement is constructed differently from the
Collective Agreement in the Leisureworld Nursing Homes case, because the
request for arbitration is part of step 3 in the grievance procedure. Article
9.04 of the grievance procedure provides that the employees? written
grievance shall be processed as follows: and then sets out Step1, Step 2 and
Step 3. Thus Step 3 and the included request for arbitration is part of the
processing of the grievance referred to in Article 9.04. There is not such a
clear demarcation between the grievance and arbitration procedures in this
agreement as there was in the Leisureworld Nursing Homes case.
14. Also, the reference to arbitration is interwoven with the grievance procedure
in this Collective Agreement and has certain ramifications within the
grievance procedure. Under Step 3 if a request for arbitration is not given
within the fifteen working day period, the decision at Step 2 is final and
binding upon both parties. The failure to request arbitration under Step 3 has
the effect of confirming the decision given at Step 2 of the grievance
procedure. A decision that is final and binding may have important future
implications for the parties in the event that a similar matter may arise. In
particular, Article 9.07 has the effect of finalizing a decision in Step 2 of the
grievance procedure and ousting any further grievance about the matter in
dispute. To repeat, that Article provides as follows:
9.07 A grievance which has been disposed of pursuant to the grievance
provisions of this agreement shall not again be made the subject matter
of a grievance.
15. Thus there are consequences within the grievance procedure, and to the
future relations between the parties, where the matter is not referred to
arbitration, which, in my view, make the reference to arbitration a vital part
of the grievance procedure because, as well as referring the matter to
arbitration, the referral has an impact on the grievance procedure which
prevents issues raised in the grievance and the grievance procedure from both
being finalized and also being ousted in a future grievance. The referral to
arbitration in this agreement is inextricably interwoven with the grievance
procedure and is therefore part of the grievance procedure. In these
circumstances and based on the particular construction of this agreement, a
board of arbitration is not precluded from extending the time limits for
arbitration.
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[12] In Re James Bay General Hospital, (2003) 126 L.A.C. (4) 1, arbitrator
Devlin was faced with the following collective agreement language:
Article 7 ? Grievance and Arbitration Procedure
7.03 Step 1
An employee may submit a grievance in writing to the Director or
designate within fourteen calendar days from the date the grievor became
aware, or ought to have reasonable (sic) become aware of the
circumstances giving rise to the grievance. The grievance shall clearly
state the nature of the grievance, the provisions of the Collective
Agreement alleged to have been violated, the remedy sought, and shall be
signed by an authorized Union representative. Where requested by the
grievor at the time of the submission of the grievance, a meeting shall be
held between the Director and the grievor no later than seven calendar
days after such request. The grievor may be accompanied by a steward, if
the employee wishes. Within nine calendar days of receipt of the
grievance, or the holding of the meeting, the Director or designate shall
reply in writing.
7.04 Step 2
Failing satisfactory settlement at Step 1, the grievor may submit the
grievance to the Executive Director or his designate within fourteen
calendar days from the date of receipt of the reply to the grievance from
Step 1. Where requested by the grievor at the time of the submission of
the grievance, a meeting shall be held between the Executive Director and
the grievor no later than seven calendar days after such request. The
grievor may be accompanied by a union representative, if the employee
wishes. Within nine calendar days of receipt of the grievance or the
holding of the meeting, the Executive Director or designate shall reply in
writing.
7.05 Step 3
Failing satisfactory settlement at Step 2, the grievance may be referred to
arbitration as hereinafter set out, provided such referral is made within 21
calendar days of the answer at Step 2. Where such referral is not made
within the time limits, it shall be deemed to be abandoned.
The foregoing provisions were followed by a heading ?Arbitration Procedure?, which
outlined the procedures to be followed after the referral to arbitration.
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[13] Arbitrator Devlin cited with approval the reasoning in Re Ajax Precision, particularly
the finding that the Divisional Court decision in Re Leisureworld ?does not stand for the
proposition that an arbitrator is without jurisdiction to grant an extension of time for the
referral to arbitration, regardless of the provisions of the collective agreement.? In
concluding that the particular language gave her that jurisdiction, arbitrator Devlin
reasoned at p. 13 as follows:
There is admittedly no provision in the collective agreement in this case
similar to that in the agreement before Arbitrator Shime, specifying that
the term ?grievance procedure? includes the arbitration procedure.
Nevertheless, in the collective agreement before me, step 3 of the
grievance procedure constitutes the referral to arbitration. Moreover,
although the form of the referral to arbitration is dealt with in Article
7.11, the time limit for that referral, in respect of which the Alliance
seeks an extension in this case, clearly appears as step 3 of the grievance
procedure.
Accordingly, as section 48(16) of the Labour Relations Act provides that
an Arbitrator ?may extend the time for the taking of any step in the
grievance procedure?, I find that under this collective agreement, I have
jurisdiction to extend the time limit as step 3 of the grievance procedure,
which is the referral to arbitration.
[14] In dismissing the application for judicial review of arbitrator Devlin?s award, the
unanimous Divisional Court concluded at paragraph 14-18 as follows:
14. We conclude that the arbitrator in the facts of this case was correct that
she had jurisdiction pursuant to s. 48(16) of the Labour Relations Act to
extend the time in Step 3 of the grievance procedure to refer the matter
to arbitration. Section 48(16) provides the arbitrator with the discretion
to ?extend the time for the taking of any step in the grievance procedure
under a collective agreement?. There were reasonable grounds for the
extension, and the Hospital will not be substantially prejudiced by this
extension.
15. If the referral to arbitration is by the terms of the collective agreement
specifically included as a ?step? in, and part of the grievance procedure,
then there is jurisdiction for the arbitrator to extend time pursuant to s.
48(16) of the Labour Relations Act. If, however, by the terms of the
collective agreement, the grievance procedure is distinct from the
referral to arbitration, then no such jurisdiction exists.
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16. In this case, the defined grievance procedures and referral to arbitration,
by the terms of the collective agreement, are inextricably intertwined. It
may well be that parties structured their collective agreement as they did
to avoid the strict application of the Leisureworld ruling. We note that
the governing collective agreement in this case came into effect in
March 2000, after the Leisureworld decision.
17. Although there is a qualitative difference between grievance and
arbitration, in this case, the parties, by the terms of the collective
agreement, agreed to a grievance procedure which specifically included
the referral to arbitration in Step 3. Leisureworld is distinguishable, and
the reasoning of Arbitrator Shime in Ajax Precision is helpful.
18. For these reasons, the appeal is dismissed.
[15] The next task in the present case is to consider the implications of the court?s decision in
Re James Bay General Hospital, in light of the particular collective agreement language
before me. Counsel for the employer took the position that the only circumstance in
which the Board may take jurisdiction pursuant to Re James General Bay Hospital, is
where the collective agreement sets out referral to arbitration ?as a separate enumerated
step in the grievance procedure?. He relied on Re Columbian Chemicals (supra), Re
Hotel Dieu Hospital (supra) and Re Surex Community Services (supra), all of which
post date the Divisional Court decision in James Bay General Hospital, as supporting
that proposition.
[16] In Re Columbian Chemicals, arbitrator Kaplan, in upholding the employer?s objection to
jurisdiction, wrote as follows at paragraphs 20-21:
20. In the collective agreement before us, it is my view that there is a clear
delineation between the grievance procedure and the arbitration process,
notwithstanding the fact that the two former provisions were merged into
one, and the heading of the Arbitration provision was removed. In the
instant collective agreement, the grievance procedure involves a number
of clearly set-out steps. The arbitration process, while contained within
the same provision, involves none of those steps but, rather, a specific
and separate referral to arbitration within negotiated mandatory time
lines. As noted in Kingston Whig-Standard v. Communication Workers
of America, Local 30204 [2002] OLAAA No. 39 (Simmons), ?the mere
co-mingling of two procedures is not sufficient to form one procedure?
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(at para. 17). Moreover, in the judicial review of the James Bay General
Hospital award, the Divisional Court stated:
If the referral to arbitration is by the terms of the collective agreement
specifically included as a ?step? in, and part of the grievance procedure,
then there is jurisdiction for the arbitrator to extend time pursuant to s.
48(16) of the Labour Relation Act, 1995. If, however, by the terms of
the collective agreement, the grievance procedure is distinct from the
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referral to arbitration, then no such jurisdiction exists? (126 L.A.C. (4)
Div. Ct. 12 at para. 15).
21. In this case, as noted above, the grievance procedure includes steps.
There are no steps in the arbitration referral, and the two processes, by
any fair interpretation, must be considered separate and apart.
[17] In Re Hotel Dieu Hospital (supra), arbitrator Leighton reviewed the relevant
jurisprudence, including James Bay General Hospital, and wrote as follows:
21. While the Divisional Court?s decision in James Bay General Hospital
seems to suggest that if language providing the timeline for referral to
arbitration is found under the grievance procedure article then arbitrators
do have the jurisdiction under Section 48(16) of the Act to extend the
time limits, it is hard to reconcile this with Leisureworld. The Divisional
Court in Leisureworld held:
Although the referral to arbitration is found in the grievance
procedure in this collective agreement, its placement in that article
following what the parties have titled the steps of the grievance
procedure reinforces the plain meaning of the words that the referral
to arbitration is not part of the grievance procedure but rather is the
initial step in the arbitration procedure.
22. Although the court in James Bay General distinguished Leisureworld, it
would seem that the only real difference in the collective agreements of
Leisureworld and James Bay General Hospital is that in James Bay
General Hospital the referral to arbitration was found specifically as part
of Step 3 of the grievance procedure, whereas in Leisureworld and in the
case before me, it is not found in Step 3. In Leisureworld and the
collective agreement before me the grievance procedure sets out Step 1
and Step 2, and then in a separate provision but still under the grievance
procedure article, states the timelines for the referral to arbitration. The
result of these two divergent lines of cases means that if the subheading
Step 3 is included before the article for referral to arbitration, then
arbitrators have the jurisdiction to extend the time limit, if appropriate.
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But without it, we remain bound by the higher precedent that has denied
our discretion.
. . .
24. Having carefully considered the submissions of the parties, I have
decided that the language in the collective agreement before me is
substantially the same as the language before the courts in
Leisureworld. Thus I am bound by it. The employer?s objection must
be upheld, and the grievance dismissed.
[18] In Re Surex Community Services, (supra) arbitrator Stephens concluded as follows at
paragraphs 14-15:
14. Having placed the cases in context, the question becomes how to apply
them to the collective agreement language before me. In my view, the
time limits set out in the collective agreement are mandatory, and
indeed, the union did not contest this fact. I also note the structure of the
language before me is almost identical to that in re Leisureworld, in that
the time limit for referral to arbitration is found in the article entitled
?Grievance Procedure? but it is contained in a separate sub-section of
the article. There is no clear statement that the arbitration procedure is
part of the grievance procedure, as was present in Re Ajax Precision, nor
is the time limit for referral to arbitration included as part of any of the
enumerated steps in the grievance procedure, as was the case in Re
James Bay General Hospital. I can find no other factors in the collective
agreement before me that would distinguish the language in Art. 9.02
from the language considered by the Divisional Court and the Court of
Appeal in re Leisureworld.
15. After considering all of the above, I find I am bound by the court
decisions in re Leisureworld. I am forced to conclude that the time limit
in Article 9.02 is part of the arbitration procedure, and that I have no
jurisdiction to extend such time limits. As a result, the grievance must
be dismissed.
[19] Having carefully reviewed arbitrator Devlin?s award, as well as the Divisional Court
decision in James Bay General Hospital, I do not agree that the current law requires that
the collective agreement provisions must be structured in a particular form, for
jurisdiction to exist to extend time for referral to arbitration. In my view, the following
propositions emerge from the Ajax Precision and James Bay General Hospital
arbitration and court decisions. First, the court decision in Leisureworld does not stand
for the proposition that s. 48(16) of the Labour Relations Act does not confer jurisdiction
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to extend time limits for referral to arbitration regardless of the collective agreement
language. To the extent that any awards had interpreted Leisureworld as standing for
such a proposition, they no longer constitute good law. Second, and related to the first
proposition above, the existence or absence of jurisdiction depends on the language and
construction of the particular collective agreement. As arbitrator Shime stated in Ajax
Precision at para.10, ?Each collective agreement must be considered and a determination
made based on the particular language and construction of the agreement?. Third, and
most important, the test is whether or not, referral to arbitration, having regard to the
language and structure of the particular collective agreement, forms a part of the
grievance procedure, and not part of a separate procedure outside the grievance
procedure.
[20] Surely, where a collective agreement explicitly states that the arbitration procedure is
part of the grievance procedure (as in Re Ajax Precision), or where referral to arbitration
is explicitly made a step in the grievance procedure (as in Re Ajax Precision and Re
James Bay General Hospital) the application of the test becomes easier. In those cases,
the arbitrators relied on the language before them, as evidence of the intention of the
parties to treat referral to arbitration as part of the grievance procedure. However, there
is nothing in the authorities to the effect that that is the only language that could lead to a
finding of jurisdiction.
[21] In Re Ajax Precision the arbitrator?s ultimate finding in paragraph 15, preceding the
denial of the objection to jurisdiction, is to the effect that ?The referral to arbitration in
this agreement is inextricably interwoven with the grievance procedure and is therefore
part of the grievance procedure. In these circumstances and based on the particular
construction of this agreement, a board of arbitration is not precluded from extending the
time limits for arbitration?.
[22] In Re James Bay General Hospital, the Divisional Court wrote: ?If the referral to
arbitration is by the terms of the collective agreement specifically included as a ?step?
in, and part of the grievance procedure, then there is jurisdiction for the arbitrator to
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extend time pursuant to s. 48(16) of the Labour Relations Act. If, however, by the terms
of the terms of the collective agreement, the grievance procedure is distinct from the
referral to arbitration, then no such jurisdiction exists?. (Paragraph 15). The inclusion
of referral to arbitration as a ?step? in the grievance procedure in James Bay General
Hospital was not by itself a precondition for the assertion of jurisdiction. It was the
evidence or reason which led to the finding that in that agreement referral to arbitration
was part of the grievance procedure.
[23] The three arbitration awards which post date Re James Bay General Hospital are not
inconsistent with my finding that the test is a broad one, that is, whether or not referral
to arbitration is part of the grievance procedure or distinct from it. The arbitrators did
contrast the language before them, with the language in decisions where jurisdiction was
found to exist. They do refer to the absence of referral to arbitration as a step in the
grievance procedure in the agreements before them. However, the reason for upholding
the objection to jurisdiction in each case was the finding that in the collective
agreements before them, referral to arbitration was not part of the grievance procedure.
Thus, in Re Columbian Chemicals (supra) it was found that ?In the collective agreement
before us, it is my view that there is a clear delineation between the grievance procedure
and the arbitration process ??. (Paragraph 20) In Re Hotel Dieu Hospital (supra) at
paragraph 22 the arbitrator concluded ?In Leisureworld and the collective agreement
before me the grievance procedure sets out step 1 and step 2, and then in a separate
provision but still under the grievance procedure article, states the timeliness for the
referral to arbitration?. In Re Surex Community Services, (supra), after contrasting the
language before him with the language in Re Ajax Precision and Re James Bay General
Hospital, the arbitrator concluded at paragraph 15, that the provision relating to referral
to arbitration ?is part of the arbitration procedure and I have no jurisdiction to extend
such time limits?.
[24] In summary, I conclude that there is no specific language or structure that must be
utilized as a pre-condition of granting an arbitrator jurisdiction to extend time limits for
referral to arbitration under s. 48(16). It is incumbent on an arbitrator to consider the
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language and the structure of the particular collective agreement before him/her, and
determine whether the parties had included referral to arbitration as a part of the
grievance procedure. Where the finding is that the parties had done that, jurisdiction
would exist under s. 48(16) to extend time for referral to arbitration. However, where
the language and structure is such that referral to arbitration is separate and distinct from
the grievance procedure, no jurisdiction to extend time exists. Thus referring to the
James Bay General Hospital, the authors of Canadian Labour
court decision in
th
Arbitration (4 Ed) Brown and Beatty, at 2.3142 note that ?? some arbitrators have
distinguished between agreements where the referral to arbitration is part of the
grievance procedure and those where it is part of the arbitration procedure, and the
validity of this latter distinction has now been affirmed by the Ontario Divisional Court?.
The test is whether the referral to arbitration has been made part of the grievance
procedure. Inclusion of referral to arbitration as a step in the grievance procedure is a
clear method of doing so. However, it is not the only method. The language and the
structure of the particular collective agreement must be examined in order to determine
whether or not referral to arbitration is distinct from or part of the grievance procedure.
[25] In this regard, I note the recognition by the court in James Bay General Hospital at para.
17 that ?there is a qualitative difference between grievance and arbitration?. Despite that
inherent qualitative difference between the processes, it is open to the parties, if they so
wish, to combine them. However, there must be clear evidence that the parties did
intend that result. There must be a clear indication in the language and structure of a
collective agreement that the parties intended referral to arbitration to be a part of the
Ajax Precision and James Bay General Hospital, that kind of
grievance procedure. In
language and structure were found to exist. In Columbian Chemical,Hotel Dieu
Hospital and Surex Community Services, clear indication of intention to make referral to
arbitration part of the grievance procedure was found to be lacking.
[26] Turning then to the collective agreement before me, the issue is whether it could
reasonably be concluded, from its language and structure, that referral to arbitration is a
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part of the grievance procedure itself, or whether it is distinct from the grievance
procedure.
[27] Upon a careful review, I am led to the conclusion that in this collective agreement,
referral to arbitration is not made part of the grievance procedure. Referral to arbitration
is dealt with in article 22.4, a sub-article of article 22, which appears under the heading,
?Grievance Procedure?. Article 22.2.1 deals with ?Stage One? which involves
discussion of the employee?s complaint with the immediate supervisor within a specified
time period. If the complaint is not settled at stage one, article 22.2.2 provides for the
complaint to proceed to stage two.
[28] The heading ?Stage Two? appears after article 22.2.2. Then article 22.3.1 provides for
the filing of a written grievance through the union with the senior human resources
representative or designee. That initiates stage two.Under article 22.3.2, management
is required to meet with the employee and give its decision within specified time limits.
[29] Article 22.4 is the referral to arbitration provision. A grievance, by the terms of article
22.4, may be referred to arbitration ?If the grievor is not satisfied with the decision of the
senior human resources representative or his or her designee, or if he or she does not
receive the decision within the specified time? at stage two. In short, where no
settlement results at stage two, the grievance may be referred to arbitration under article
22.4.
[30] In my opinion, this language does not integrate referral to arbitration as part of the
grievance procedure. Rather, the language is comparable to the language in Re
Columbian Chemicals (supra), (where there was provision for referral to arbitration ?If
the step 3 response is unsatisfactory?); Re Hotel Dieu Hospital, (supra), (where there
was provision for referral to arbitration, ?Failing settlement under the foregoing
procedure?); and Re Surex Community Services (supra) (where there was provision for
referral to arbitration, ?Failing settlement under the foregoing procedure?). In those
collective agreements, as well as the collective agreement in the present case, it is
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contemplated that where one procedure (i.e. the grievance procedure) does not result in a
settlement, it may be proceed to the arbitration process. There is a separation or
delineation between the two processes, so that it could not be said that in this collective
agreement ?the referral to arbitration is inextricably interwoven with the grievance
procedure, and is therefore a part of the grievance procedure?, as inRe Ajax Precision.
[31] Union counsel relied on the fact that article 22, under the heading ?Grievance
Procedure? covers a number of procedures including the grievance procedure and
arbitration procedure. He referred me to article 22.14 which provides:
22.14 GENERAL
22.14.1 Where a grievance is not processed within the time allowed or has not
been processed by the employee or the Union within the time
prescribed it shall be deemed to have been withdrawn.
22.14.2 In Article 22, ?days? shall include all days exclusive of Saturdays,
Sundays and designated holidays.
22.14.3 The time limits contained in Article 22 may be extended by
agreement of the parties in writing.
22.14.4 The parties agree that principles of full disclosure of issues in dispute
as alleged by a grievance advanced by the Union on behalf of a
member or members, or the Union itself, and full disclosure of facts
relied upon by management in a decision that is subject to a
grievance, are key elements in amicable and expeditious dispute
resolution processes.
22.14.5 The parties agree that at the earliest stage of the grievance procedure,
either party upon request is entitled to receive from the other, full
disclosure.
22.14.6 The GSB shall have no jurisdiction to alter, change, amend or enlarge
any provision of the Collective Agreements.
[32] Counsel pointed out that article 22.14 contains general provisions, including definitions
and disclosure obligations, which apply commonly to both the grievance and arbitration
procedures. Union counsel further referred me to article 22.18 headed ?Interest?.
Relying on case law, he pointed out that the method of calculating interest specified in
article 22.18.1 applies to decisions rendered during the grievance procedure, as well as at
arbitration. He suggested that the existence of common rules that apply to both
processes is an indication that the referral to arbitration was intended to be an integral
part of the grievance procedure.
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[33] There is no question that article 22 under the heading ?Grievance Procedure?, in 18 sub-
articles, deals with much more than the grievance procedure itself. The topics covered
under article 22 include the two stages of the grievance procedure, the referral to
arbitration and special provisions that apply to different types of grievances. In fact,
article 22 also includes provisions which confer substantial rights. Article 22.10
contains the right to freedom from sexual harassment, and article 22.15 is the ?sunset
clause? providing for the removal of the disciplinary record within specified time limits.
Article 22.16 also provides the rules that govern the mediation/arbitration procedure,
with the intervention of a mediator/arbitrator.
[34] Is it reasonable to conclude that the inclusion of all of the foregoing topics in a single
article under the heading ?Grievance Procedure?, makes all of those processes a part of
the grievance procedure? I do not think so. It has been held that ?the mere co-mingling
of the two procedures is not sufficient to form one procedure?. (Re Kingston Whig-
Standard, (supra), at para 17). While referral to arbitration is contained in the same
provision as the grievance procedure, and appears under the heading ?Grievance
Procedure?, there is a clear delineation between the two processes. The arbitration
process begins with the referral to arbitration upon the exhaustion of the grievance
Re Columbian Chemicals (supra),Re Hotel Dieu
procedure without a settlement. As in
Hospital, (supra), and Re Surex Community Services (supra), here also the arbitration
process begins, when the grievance procedure ends with no settlement. Despite the
intermingling of the two processes in a single article under a common heading, and
despite the fact that article 22 deals with both the grievance and arbitration processes, (in
addition to a variety of other processes, and substantive rights), the two processes are
distinct.
[35] For those reasons, I conclude that the rationale in James Bay General Hospital does not
apply so as to confer jurisdiction on this Board to extend time for referral to arbitration
in the instant collective agreement. Accordingly the employer?s objection to the Board?s
jurisdiction to extend the time limits in article 22.4 is upheld.
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[36] As requested by the parties, I remain seized with the grievance to deal with any
outstanding matters over which the Board continues to have jurisdiction.
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Dated at Toronto this 8 day of January 2010.
Nimal Dissanayake, Vice-Chair