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HomeMy WebLinkAboutUnion 01-12-19 ~ .~ , r IN THE MATTER OF AN ARBITRATION BETWEEN: CANADIAN BLOOD SERVICES (Hereinafter refened to as the Employer) AND ONTARIO PUBLIC SERVIC~EMPLOYEES UNION AND ITS LOCAL 106 (Hereinafter refened to as the Union) . AND IN THE MATTER OF A GRIEVANCE REGARDING SICK LEAVE (OPSEU FILE NO. 00~206~1.63) . ARBITRATOR: Gail Brent APPEARANCES: FOR THE EMPLOYER: Frances R. Gallop, COUllsel Andrew Ashenhmst, Student-at-Law Rob Bunvash; Manager, Human Resources FOR THE UNION: Kelly Waddingham, COlUlsel Hearing held at Hamilton, Ontario on December 14, 2001. DECISION TIlis matter arises out of a grievance (Ex. 2) dated November 8, 2000 alleging that the Employer "has violated articles 25,04, 15.03 and any other relevant articles" by denying employees, who had formerly been full-time employees, credit for their prior service in relation to sick leave accruals whcn they returned to full-time employment 11'om part-time cmploymcnt. There were no 2 preliminary objections raised concerning arbitrability or jurisdiction. The parties elected not to cal~ viva voce evidence. The facts relied on for the pmpose of this hearing were set out in an agreed statement of facts, the body of which is reproduced below: 1. In 1995 and early 1996, Canadian Blood Services (then the Canadian Red Cross Society) was going through restructming and downsizings, and a number of layoffs o'ccurred. 2. At that time, there was a collective agreement covering palt-time service employees at the Hamilton Centre, and there was a collective agreement covering full-time employees at the Hamilton. Centre. These agreements remained in' force until November 14, 1996 and are attached. 3. In 1995 and early 1996, certain full-time service employees in Hamilton were laid off in accordance with the full-time agreement. Some of these laid off employees took part-time positions covered by the" part-time collective agreement. These employees were not recalled to full-time status and remained in part-time positions until November 1999, when they were successful in securing full-time positio~s thrOllgh a job posting process. It is those individuals that the grievance is concerned with. 4.. The grievance together with cOlTespondence between the parties relating to the grievance is attached. Also attached are the current collective agreement (1998-2001) and the previous collective agreement (1996-1998). In addition to those documents referred to in the agreed statement offacts, the parties also filed the letters (Exs. 8, 9, 10, and 11) written by the Employer to one; of the employees who was affected by the layoff and whose employment pattem .is as set out in paragraph 3 of the agreed statement of facts. TIlOse letters indicate the following: e On January 4, 1996 the employee was given notice oflayoff (Ex. 8) effective February 8, 1996. It infoffiled her, inter alia, of her right to bump and of her right to severance pay at the expiry of her recall rights in twelve months. e On January 22, 1996 the employee was offered parHime employment with the Employer effective February 9, 1996. It infonnedher of her salary and that shc would 3 be receiving a percentage in lieu of benefits and would be covered by the part-time collective agreement. (See Ex. 11) · On September 3, 1999 the employee was offered full-time empl~yment with the Employer and informed of her salary and that she would now be eligible for benefits as a fulltime-employee. This was effective October 11, 1999. (See Ex. 9) · On November 11, 1999 the employee was sent a letter (Ex. 10) setting out "the important changes to your conditions of employment resulting from your hew statusH as follows: Seniority Date: You will now appear on the Full Time Seniority list. Your hours work~d up to the date of your transfer have been converted into days to determine your seniority date as it will appear on the seniority list. Your Seniority date is 1991~12~17. Sick Leave: You are now eligible to receive wages during absences due t~ illness. A schedule of the sick leave plan is attached. Your length of service for the plUposes of sick leave will commence as of 1999-10-11. Every year on this date you will be credited with "additional sick leave days according to the schedule. Paid Vacation: Pay in lieu of vacation will ce~se. Yom length of service will be carried over for vacation pUlposes. You are eligible for 4 weeks at 1 2/3 days per. month. Your department can provide you with details on procedures for scheduling vacation. Your department will also h'ack your ~acation entitlement and days taken. Your date for determining vacation increment is 1991-12-17. Benefits: You are now eligible to join the Staff Benefit Plan and Pension Plan in accordance with the regulations of the plans. . . . TIle question of how those individuals who had begun as full-time employees and remained employees of the Employer, even though their status had changed to part-time and then back to fulI- time, should be credited with service for the pmpose of determining sick leave entitlement under the collecti ve agreement was raised at a Labour Management meeting. That inquiry was answered by the Employcr in writing on July 5, 2000 (Ex. 3) as follows: 4 Upon transfelTing to full time, accmal of sick leave benefits shall commence on the date of transfer to the full time position and pay in lieu of sick leave will cease. Previous length of service is not used in determining amounts in the sick leave bank. A transfer to part time would result in the commencement of pay in lieu of sick leave andthe cessation paid sick leave (sic) and the cancellation of any balances in the sick leave bank. The Union took issue with that interpretation in a letter dated July 25,2000 (Ex. 4). Its position was that the change in status did not affect "continuous service", the criterion for sick leave accrual in Article 25.04. The parties disagreed and the grievance was filed. The relevant provisions ofthe current collective agreement (Ex. 1) to which I was referred in argument afe set out below; 1.03 "EmployeesU shall mean persons identified in Article 2.01 of this Agreement as members of the bargaining unit. 1.04 A "Full-time Employee" is one who is employed for an indefinite 'duration of time to work the full prescribed homs as specified in this Collective Agreement. 1.05 A "Part-time Employee" is one who is employed for an indefinite duration and who is scheduled to work normally les~ than full-time hours. 1.14 Part-time, temporary and casual employees shall be covered by the provisions ofthis agreement lmless otherwise stated, amended or where specific reference is made in articles as to that article's appiicability to certain employee group or groups. ' 2.01 The Employer recognizes the Union as the exclusive bargaining agent of all non-professional employees (support staff) of the Canadian Blood -Services working at or out of the Toronto, London, Hamilton an~ Ottawa Blood Services Centres, together with all employees hired to work ill or out of specific locations outside the boundaries ofthe aforementioned Blood Services Centres as set out in the Celiificate issued by the Labour Relations Board of Ontario dated the 8th day of August, 1994 employed as Clinic Assistants, Clerical Staff, Trailsport Staff, LaboratOlY' Helpers, Data Enby Clerks and Utility Persons, Tclerccruiters save and except Co-ordinators, Supervisors, Assistant Supervisors, Administrative Assistants performing supervisory functions or involved in confidential matters related to labour relations and persons ernployed above these ranks, 5 15.02 c) Seniority shall only be applicable within a Blood Centre, Region or at a permanent location for the purpose of vacation scheduling, in cases of._ promotion, the filling of vacancies (subject to Article 16.01 b), transfers, layoffs and. recall. 15.03 An employee shall lose her seniority and her employment sh~ll be deemed to have been terminated if she: a) - quits for any reason; , b) is discharged for just cause and is not reinstated through the grievance procedure or arbitration; c) has been on lay-off for more than twelve (12) months, however, if an employee is rehired by a Centre within a fmther twelve (12) months she shall be credited with the seniority she has earned prior to her termination; d) fails to report to work within fourteen (14) calendar days after being notified by the Employer. . . following a lay-off; e) fails to retum to work upon termination of an authorized leave ofilbsence and fails to notifY the Employer that she is unable to retnrn to work within five (5) working days following the termination of the leave due. to circumstances beyond her control; f) fails to retum to work after an unauthorized absence of three (3) working days; g) retires; h) meets the conditions outlined under Article 23.05 e). 15.07 A part-time or temporary employ'ee changing her status shall be credited with seniority eamed on the basis of each 1950 hours worked equals one year of seniority prorated as necessary. 15.08 'A full-time employee who changes her status shall be credited with seniority earned on the basis of each year worked equals 1950 hours prorated as necessary. 16.05 A part-time or temporary employee who is pemlanently transfened or is promoted to a full-time position will be entitled to participate in the insured benefit plan and Pension Plan commencing on the date of transfer subject to the rules and regulations outlincd in those plans and the applicable articles unrler this collective ngrecmenL ACCll]nj of sick lenve benefits shnll also 17.04 d) 17.05 25.04 6 cOlnmence on the date of transfer to the full-time position. For the purpose of vacation entitle~ent the employee's accrued seniority in the part-time or temporalY position will be applied. Full-time employees who are lai~ off, if they so desire, may b~mp to part~time status in their same job classification. The employee bumped as a result of this transfer will only be eligible for the recall rights as provided for in Article 17.06. On transfer to part-time status, such employees will be credited with their accumulated full-time seniority on the basis of each year \vorked being equal to 1950 hours worked. They shall also retain their rights to be recalled to full-time employment subject to Article 17.06 (a) (ii) and (iii). Laid off employees will not accrue or be entitled to any benefits under this agreement with the exception of recall rights. . msmed benefits the employee was participating in immediately prior to the layoff, excluding LTD, may be continued for a period or six (6) policy months following the layoff. The employee must make alTangements with the Employer for the prepayment of the full cost of premi ums (Employers ( sic) and employees (sic ) share) to ensme such continuing coverage. Employees shall accrue seniority in accordance with Article 15.04 d). Based on continuous service, sick leave credits will accme to each employee as listed below. One (1) day of accmed sick leave shall be credited as seven and one 11alf(7.5) hours in the employee's sick banle Length of . Service Less than 1 year .,100% Salary 5 days 75% Salary 5 days 66-2/3% . Salmy 1 year 10 days. 20 days 45 days 5 years 30 days 80 days 10 years. 55 days 155 days 15 years 80 days 180 days 20 years 105 days 155 days 7 25 years 130 days 130 days 25.1 0 Upon telmination of employment all sick leave shall be cancelled and no . payment shall be que therefore. 25.11 a) The sick benefits outlined in this article shall not apply to part-time; temporalY and casual employees. However, an employee must report sick absences without pay to their supervisor in accordance with Article 25.02 above. b) Part-time, temporary and casual employees shall be paid two percent (2%) pay in lieu of sick leave; based on the applicable straight time earnings as outlined in Article 23.03a)~ The Union contends that there is portability of service for the purpose of sick leave accrual where there is no break in employment but changes in status from full-time to part-time and back to full-time. It argued that Article 16.05 provides for the accrual of sick leave benefits upon being transferred to full-time and that Article 25.04 provides for the manner in which those.benefits are to be accrued; that is, based on "continuous service", It submitted that "continuous service" should be given its dictionary definition or common usage application in that an employee should be considered to be in the continuous service of an employer fi-om the date ?f hire throughout the unintenupted employment relationship. It also contended that "continuous service" should be defined in the context of the collective agreement as a whole and that the collective agreement provides a formula for detennining seniority and benefits when an employee's status changes from part-time to full-time and vice versa. The Ullionrefened to Articles 15.07; 15.08 a~d 16.05 as speaking to the issue of seniority and the benefits that flow from that. It submitted that the absence of any such conversion table that relates to "continuous service" or of any article in the collective agreement that says employees lose "service" by changing status while continuing their employment is significant and shows that there is no express restriction on the accumulation of "continuous service", 8 The Employer's view is that the clear language ot'the collective agreement provides that for the purpose of Article 25.04 "continuous service)) is limited to full-time service, and in the alternative that under the pr~visions of the collective agreement which was in force at the tinie of the layoffs, and which applied only to full-time employees, seniolity and employment was lost after twelve months from being laid 'off, resulting in a loss of all full-time sick credits. At the time of the layoffs in question the collective agreement in force (Ex. 6) provided for separate bargaining units for full-time and part-time employees. The bargaining units were combined in the collective agreement which succeeded that (Ex. 7) and there has been only' a single bargaining unit since then. The Employer further pointed out that the Union i~ claiming a substantial and expensive benefit and the onus is on it to show that there was a clear mutual intention to provided the benefit to these employees. . - The Employer submitted that Article 25 does distinguish between full-time and part-time employees. and that Article 25.11 is a clear indication that the article is only for full-time employees, as Article 1.14 contemplates. It argued that when Article 25.04 is read in conjunction with A.rticle25.11, the only reasonable interpretation is that continuous full-time service is what is refen-ed to in Article 25.04. The Employer took the position that the cQllective agreement read as a whole supported ~hat view, in that Article 25.10 provided for no payment and cancellation of sick leave credits on telmination,and that this would be applicable only to full-time employees. It also pointed to Article 16.05 as setting out what employees who change status fi:om part-time to.full-time get and providing for the start of the accrual of sick benefits rather than for the continuation or resumption of that accrual. By way of contrast, the Employer pointed to what that article says about vacation entitlement, which clearly provides for the application of accrued seniority. The Employer argued thai where the collective agreement intended time as a part-time employee to be portahle it said so clearly 9 and that this :implies that the parties did not agree that accmed seniority as a part-time employee would be taken into account in calculating sick leave benefits. The Employer also referred to Articles 17.04 (d) and 17.05 as indicating what a full-time employee retains on layoff. It said that Article 17.05 is a' clear indication that laid off employees are not entitled to benefits except as provided. The Employer argued that A.1iicle 25.04 and the other provisions cited by the Union do not support the Union's interpretation and that the Union was not able to discharge the onus on it to establish that the parties intended that employees would continue to accrue sick leave benefits available for full-time employees when they ceased being' full-time employees. It asserted that there has been no breach of A.1ticle 25.04 and that there is no evidence of any breach of A.1ticle 15.03 because there is no evidence that anyone lost seniority contrary to it. It submitted that the Union was confusing seniority and service, and that Article 15 .02( c) clearly sets out the circmllstances where seniority will be applicable and does not allow seniority to be used to establish sick leave entitlement, which is what it says that the Union is hying to do. As a further position, the Employer submitted that, when the provisions of the collective agreement in force at the time of the layoff are examined, it is cl.ear.t~at "employees;' as used in that agreement applied only to full-time employees and that employment was terminated after recall rights expired. TIlat collective agreement also contained provisions regarding the accrual of sick leave based on continuous service and provided that on temunation of employment all accumulated sick leave was cancelled and there was no payout. The Employer submitted that the collective agreement wluch applied to part-time employees (Appendix A to Ex. 6) expressly provided which benefits under thc full-tiine agreement applied to part-time employees and said that there was no provision for continuing rights to f1Ccruc or receive sick leave in that agreement. 10 In reply the Union submitted that it was not trying to equate service and seniority and that the collective agreement was very specific in separating the concepts. It argued thatArticle 25.04 contains strong language isolating contiriuous service from the conversion provisions. It also, pointed out that although there is a substantial benefit in the sick leave provisions it is not paid unless someone becomes ill, and the increase in tandem with continuous service reflects the commitment the employee has to the Employer. It also said that there was no termination of employment in fact here as shown by the letters filed, and that there is a violation of Article 15.03 insofar as the Employer has deemed a tennination of employment undei Article 15.03(c). The parties cited the following cases in support of their arguments: Re Wellaltd County General Hospital and Ontario Nurses' Association (1986),24 L.A.C.(3d) 421 (T. A, B. Jolliffe);Re Salvation Army GNlCe Hospital ami Ontario Nurses' Assoc. (1986),24 L.A,C,(3d) 318 (Roberts); Re Government oftheProviltce of British Columbia (GoverltmentEmployeeRelations Bureau) and Pl'ofessionalEmployees' Association (1985),19 L.A.C.(3d) 347 (Thompson, B.C.); andReDouglas Mem orial Hospital an d C a nadimt Union of Pll bUc Employees, Locill153 (1991), 19 L.A. C. (4th) 14 -(R. D. Brown). In reaching my decisioJl I have considered only-the ,evidence placed before me, the collective agreement, the submissions of the parties, and the authorities'cited. Both the Weiland General and Salvatioll Army cases dealt with the same contract language and both relied heavily 011 an lUlTeported 1986 decision of Arbitrator E. B. Jolliffe in Re Olltario Nurses' Assoc. AmI Hospital. Comm'll Sal'llia General Ho,vpital, which dealt with that same agreement. TIle cases concerned the calculation of service of nurses whose employment with their respective hospitals was LUllIltenupted but whose status had been both part-time and full-time in some combinations. Both hospitals had an insurance pInn covering short term disability uuder which the 11 percentage of payment during sick leave varied with years of service. The basic collective agreement language being intelpreted provided that (1) seniority would be retained upon transfer from part-time to full-time and vice versa, (2) when going from full-time to part-time there was a conyersion fonnula for seniority and language which said that that the formula was "for"the pmposes ofthe application of seniority, if any, 'under the Agreement but not for the purposes of service under any provisions of the Collective A~eement (save as expressly provided otherwise in this Agreement)" (see Art. 10 as reproduced at p. 319 of Salvation Army), and (3) when going from part-time to full-time seniority would be credited on the basis ofthe conversion fOlIDula, but did not contain the language reproduced in (2) above. Both cases cited the passage from ArbitratorE. B. Jolliffe's award where he cited Arbitrator MacDowell in an unrepOlted decision in Ryerson Polyteclmical Institute to this effect in connection with the proposition that "service" should be intelpreted in collective agreements with the same strictness that "seniority" is because of the importance of the concept Arbitrators have applied this approach to the interpretation of the word 'service', and have almost unanimously held that, in the absence.of specific contractual language to the contrary, the telm must be given its plain meaning and includes all service with the employer whether or not 'in the bargaining unit. Thus, phrases such as 'length of service with the .Company' . . . and 'accumulated service with.the company'., . . havc been read literally to include all forms of service. . , (See Wellaud at page 437 and Salvation Army at pages 320 - 321) Both Arbitrators T. Jolliffe and Roberts dealt with the policy and/or equitable considerations in the following ways: I am also unable to agree that there is any policy argmnent to be made out here. . . that it would be simply unfair for a persoll , . . who had worked several years as a casual or part- timer to imrnediately qualify for 100% benefits on transfer to full-time cmployment. An equal policyargulllent could be made from the other side that it would be unL1ir for a person who had workcd several years as a full-time moving to part-time for a short while and back to fuIl- time before going on sick leave fa suff!)r lhe conseqllentialloss of her previously (lchieved 12 . 100% benefit level. I would think it best to let the full-time agreement speak for itselfand shy away fi.-om clouding the issue by injecting policy Concerns. (We/land at p. 439) Counsel for the hospitaf made a further subullssion that it would be inequitable to allow a nurse who changed from part-time to full-time status to claim sick pay based upon his or her total accumulated "service" with the hospital. TIllS inequity, it was submitted, resided in the fact that while on part-time status, the nurse received an additional 14% of wages as payment in lieu of benefits. The inequity, however, is difficult to see - at least with respectto sick leave. So far as this arbitrator is aware, the percentage in lieu of benefits was intended as a rough-and-ready measure of compensation to part-time nurses for their lack of access to the benefit package in any particular year. It was not necessarily intended to compensate them for being denied the progressive increase in benefits which they would have received if their "service'; had been in the full-time bargaining unit. fudeed, it would seem, that in most cases the equities would fall the o'ther way, that it would be more inequitable to require a long-term employee to accept benefits at the level given to a probationer merely because their "service" was accumulated in the part-time bargaining unit. (palvation Army at p. 323-4) The Government of British Columbia case concerned the effect of a resignation ~ollowed by re-employment after a period of time. The case held that, unless the collective agreement provided othelwise, accrued sick leave credits would be lost on termination of employmen~. Of more significance is the Douglas Memorial case which dealt the ~ccrual of service based sick leave entitlement when an employee's status changed during a continuous period of employment. The relevant language in that case (article 9.07), is reproduced at page 15: . For application of seniority for purposes of promotion, demotion, transfer, layoff and recall and service for purposes of vacation entitlement and wage progression: (i) an employee whose status is changed fl.-om full-time to part-time shall receive full credit for his seniority and service; (ii) an employee whose status is changed from part-time to full-time shall receive credit for his seniority and service on the basis of one year for each 1725 hours worked. At page 19 Arbitrator Brown found: . , . The collective agreement, however, does not provide the right upon an employee's transfer Crom the part-time to the full-time bargaining unit to use service with the hospital in the part. 13 time bargaining unit for the purposes of a benefit claim under the provisions for the full-time. employees on either a calendar 01' conversion basis. In the wage progression for part-time employees, it is indicated that one year is equivalent to 1,725 hours worked. A similar formula has not been included by the parties in art. 9.07 for the application of part-time service credits to benefits applicable to full-time employees. . . In the Ryel'solJ award, supra, reference is made to the requirement for strict construction of contractual terms. We can agree with the proposition in that case that "service" includes -all service whether or not in the bargaining unit for the puiposes of construmg the articles of this collective agreement. But at issue here, is how that service gained by employment in the part-time bargaining unit can be applied if afall, to the benefit provisions available for full-,time employees only. . . . As always, while the casyS might provide some guidance, each case will depend on the specific collective agreement language. In this collective agreement Articles 15.07 and 15.08 provide conversion fOlmulas for the purposes of seniority being credited on transfer from full-time to parHime and vice vers~. The provisions are silent as to "service" or "continuous service". Article ,16.05 deals with transfers to full-time from part-time specifically in the context ofbenefits. It provides as follows: (1) for the "insured benefit plan and Pension Plan" entitlement to pmticipate commences on the date of transfer; (2) "accrual of sick leave benefits shall also connnence on the date oftransfer to the fulI- time position"; (3) for vacation entitlement acclUed senioritY as a part-time or temporary employee will apply. Hence we know tllat the parties have not provided a fOllliula for converting "service" when employees change status, and that they have provided for what happens with benefits when the status changes from part-time to full-time. In particul<lf, they have provided that sick leave benefits will start to accrue on the date of the transfer and that accrued seniority will be used to calculate vacation entitlement. 14 The pal1ies have also provided in Article 25.11 (a) that sick benefits as set out in the article will not apply to part-time employees, and have instead provided in 25.11 (b) that part-time employees will receive a percentage payment in lieu of si~k leave. Therefore, sick benefits do not ac~rue to parHime employees while they are part-time employees but accrual comniences on becoming a full-time employee. This is further reinforced by Article 17.05, which provides that laid off employees wiII not accrue benefits under the collective agreement. Therefore, a laid off filII-time employee wiII not accme or be entitled to sick leave benefits even if she continues her employment by becoming' a part-time employee. Article 25.10 provides, that yvhen employment ceases there is no payout of accrued sick leave but that it is cancelled as of that date. When the parties refer to "telmination of employment" in that article, it is reasona~le to conclude that they are speaking of the telmination of full-time elllployment because no part-time employee has any accrued sick leave to cancel. ill this collective agreement, as in the Douglas case the parties have distinguished between seniority and service and have not provided foy any conversion f01U1Ula in relation to the calculation of service for the purpose of sick leave accrual upon transferring from palJ-time to full-time employment. I am particularly struck by the wording of Article 16.05, where the parties have clearly provided that upon, transfer from part-time to full-time vacation entitlement will be based on accrued seniority but have only provided that sick leave accrual wiII "commence!> on transfer.. That prospec tive provision together with the express exclusion of part-time employees from the sick leave benefits set out in Article 25111eans that "each employee" refelTed to in Article 25.04 is "each full-time employee". If accrual commences upon becoming a full-time employee, by definition it cannot oeem while a part- time employee. Hence il would be rellso11llble to intelvret Article 25.04 as llpplying to continuous fuH- 15 time service only. That would be logically consistent with Article 25.10, which provides that sick leave accrual is cancelled upon the termination offull-time employment) and with Article 17,05, which 'J ~ ~' (",I fl i .\ : \ , "\ would preclude laid off full-time employees from being entitled to any of the bene.fits of full-time employment. It is therefore my conclusion that) like the Douglas case this is a sihtation where the collective agreement does not provide for the application of service as a part-time employee to a benefit which the partie"s have clearly reserved for full-time employees - a benefit of full-time emploYment. For all ofthe reasons set out above, the grievance is denied. DATED AT LONDON, ONTARIO THIS 19TH DAY OF DECEMBER, 2001. Gail Brent CANADIAN BLOOD SERVICES & OPSEUJ LOCAL 106 ARBITRATOR BRENT . The Union grieved the denial of the accural of sick leave benefitsJ based on prior service when an employeeJs employme'nt status is changed from full~time to part-time to full-time. Collective agreement provides for the benefits which flow from Hseniority/' and provides a conversion table for determining seniority and benefits when an employee's status changes from part-time to full-time and vice versa. Sick leave credits entitlement is based on "continuous s'erviceH and not seniority. GRIEVANCE DENIED: Collective Agreement is silent as to "servicel1 or l'continuous service,." there is no formula for converting service. Other provisions of the collective agreement provide that part-time employee is not-entitled to sick leave benefitsJ but rather payment in lieu ofJ and that sick leave .accural "commencesu on transfer from part-time to full time status. December 2001.