HomeMy WebLinkAbout1982-0355.Speedie and Jones.84-03-02, IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
Between:
Before: R. McLaren
T. Traves
J. Morrow
Vice Chairman
Member
Member
For the Grievor: P. Cavalluzzo, Counsel
Cavalluzzo, Hayes & Lennon
For the Employer: D. Brown, Q.C., Counsel
Crown Law Office Civil Ministry of the Attorney General
Hearing: January 31, 1984
OPSEU (B. Speedie & R. Jones) Grievors
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The Crown in Right of Ontario
(Ministry of Transportation
and Communications) Employer
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AWARD ----_
Mr. Speedie, a Survey Party Chief, and Mr. Jones, a
Survey Technician, grieve.
"I grieve that M.T.C. use of a designated
headquarters has no foundation in the
collective agreement and is a method
being used by management to circumvent
the appropriate commuting articles of the
collective agreement, thereby depriving
me of remuneration for out of pocket
expenses in fulfilling my job. I further
grieve that designated~ headquarters is a
departure from established practice."
The evidence establishes that both men are required to
use their automobile while engaged in the business of their
employer. Therefore, the qualification for the application of
Article 22.1 is established. That Article reads:
ARTICLE 22-MILEAGE RATES EXPRESSED IN
KILOMETRES
22.1 If an employee is require3 to use hi5 OW” a”tomObile on
the Employer’s business the lollowing rates shall be paid
effective April 1, 1982:
Kilometres Southern Northern
Driven Ontario Ontario
o- 4.000 km 23.50,k~ 24.0WklTl
4.001-12.000 km lS.OQ/km 18.501km
12.001 km and over 15.OWkm 15.5Cikm
The provision cannot be applied without the use of some
administrative practice to establish the method of measuring the
kilometres travelled for which the entitlement set out in
Article 22.1 is to apply.
Article 22.1 deals with entitlement to payment for an
employee's use of his own automobile while on the employer's
work. Article 23 deals with the entitlement to payment for an
employee's time spent in travelling outside of working hours.
The rate of payment will be determined by an employee's wage
rate. The provision cannot be applied without the use of some
administrative practice to establish the method of measuring the
time associated with the need to travel outside of working hours.
The relevant provisions of that Article read:
ARTlCLE Z:=T,ME CREDITS WHILE TRAVELLING
23.1 Employees shall be credited with all time spent in travel-
ling outside of working hours when authorized by the ’
rmnlstry.
. . .
23.3 When travel is by auiomobile and the employee twels
directly from his home or place of employment, time will
be credited from the assigned hour of departure until he
reaches his destination and from the assigned hour of
departure from the destination until he reaches his home
or place Of employment.
. . .
The employer has used the same administrative practice to
determine the time spent travelling associated with Article 23.3
as has been used to determine the kilometres travelled pursuant
to the application of Article 22.1.
The administrative practice prior to 1978 was to
designate the employee's home as the headquarters for the
purposes of calculating mileage and time spent travelling.
In 1978, the administrative practice was changed and
the employee's home was no longer designated as the headquarters.
Instead, the nearest patrol yard of the Ministry was designated
as the headquarters. The redesignation of a headquarters was
the subject of a review by a panel of this Board in the
Williamson et al decision of Vice Chairman Barton dated May 11,
1982.
In May of 1982, the administrative practice was again
changed. The new practice was to designate headquarters for'
employees closer to the centres of construction activity. In
both Grievers' cases that meant that then headquarters became
the Gormley Patrol Yard, which was 9 miles from their work site
rather than the Lorneville Patrol Yard for Mr. Speedie which
was 50 miles from the work site and the Baldwin Patrol Yard for
Mr. Jones which was 30 miles from the work site. Mr. Tom Smith,
a witness for the employer and in charge of making the redesig-
nation of,headquarters, testified that the change was made
because of the rising cost of getting personnel to the job
sites. He testified thatthe cost was rising because employees
were increasingly selecting payment of travel costs rather than
time off in lieu thereof which seemed to have been the preference
in previous years. He also testified that it was the Ministry's
conclusion that employees were moving away from the urban area
where the work was and then were able to claim compensation for
travelling to work.
The new practice was the subject of review by a panel
of this Board in the Howes decision of Vice Chairman Verity
dated November 25, 1982. That decision was subsequently
reviewed by the Divisional Court in a decision released on
January 9, 1984, in which it was unanimously found that the
panel of the Board had initial jurisdiction and
"We find nothing patently unreasonable in
the interpretation given by the Board
to the agreement and its application.
Accordingly, the application before us
will be dismissed with,costs."
Leave to appeal the Divisional Court decision to the Court of
Appeal was heard on February 6, 1984, and was dismissed.~
The identical issue that was before the panel of
this Board in the Howes decision is now before this panel.
There is an additional issue involving Article 17--Meal
Allowance and in particular, Article 17.2.2(b), which reads:
"ARTICLE 17--MEAL ALLOWANCE
. . .
17.2.2 If during a normal meal period the
employee is travelling on
government business other than:
. . .
(b) within twenty-four (24) kilometres of his assigned
headquarters, or #I . . .
The similar issue was before the panel in the Williamson decision,
but not in the Howes decision. The disposition by this panel
of the first two issues in these proceedings will be determinative
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of this third issue involving the interpretation of Article 17.2.2(b)
because if the employer were entitled to the reassignment of the
headquarters to Gormley, then no meal allowance would be paid
under the Article. Alternatively, if the employer was not
entitled to make the reassignment, then meal allowances would be
required to be paid under the Article. Therefore, the violation
or non-violation of Article 17:2.2(b) will follow logically from
the results determined by this panel in respect of the interpre-
tation and application of Article 22.1 and 23.3 and the
administrative practise associated with those provisions.
At issue is the employer's ability to change, during
the life of the collective agreement, an administrative practice
which provides the method of measurement to determine amounts
owed under Article 22.1 and 23.3.
The case deals with the grey area between the costs any
employee is normally expected to bear in getting to and from
work and the costs an employer is normally expected to bear in
requiring employees to use their automobiles in the course of
their employment. The employer in changing the admini-
strative practice shifted costs out of its pocket
and into the employee's pocket, rationalizing that they were
legitimate costs associated with travel to and from work and
not costs associated with the use of an automobile in the course
of employment. While the rationalization on the part of the
employer may be a sound one, it bears little relation to the
contractual obligations of the collective agreement.
Counsel for the union in his most able, excellent and
very complete argument, essentially reiterated the arguments
found to be persuasive by the panel in the Howes matter and
added some additional arguments not placed before that panel.
Counsel for the employer argued that the equities ought to
be balanced.
Through the testimony of Mr. Jones and with the
acquiesence of counsel for the employer, a ,policy manual of the
employer was proved to be in existence and to be that discussed in
the Howes decision. The provisions of the policy manual quoted
in that award read as follows:
"1.02 Eligibility for Expenses
To establish the authority for reimbursement
of an employee for expenses incurred by him
on Ministry busin'ess the appropriate District
Engineer or Branch Head must designate for
that employee a stated headquarters as the
point of departure of his operations. The
employee must be officially notified of the
location of this headquarters (See paragraph
1.07)
1.10 Location and Permanence of Headquarters
The headquarters of an employee shall be at the
place considered most convenient for the
efficient conduct of the Ministry's business.
The location of an employee's headquarters shall
be periodically reviewed by his District
Engineer or Branch Head to determine'whether
or not the original arrangement continues t0
be equitable to both the employee and the
Ministry. Subject to the periodic review,
an employee's headquarters shall be moved only
when he is officially transferred to another
District or Branch, or to a job site at which
it is anticipated that he will work for at
least two years.
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1.11 Headquarters - Home Located Outside of
Regional or bistrict Boundaries
'Should management'choose to make an employee's
home his headquarters, and that home is located
outside the Region or District in which he is
employed, a location on a Provincial Highway
where it crosses the Regional or Dis.trict
Boundary on the most direct route between the
employee's home and the Regional or District
Headquarters, shall b,e designated as his
headquarters." ,
This manual, in the submission of counsel for the
employer, is said to be used by the Ontario Government to cover
more employees than merely those associated with the M.T.C.
While that may be the case, that has nothing to do with whether
the manual ought to be considered as part and parcel of the
collective agreement.
The panel of this Board in the Howes decision found
at page 11:
"We would aqree with the Barton rationale in Re Williamson et al, that where there is
no regular place of employment (as in.the instant Grievance), the Ministry may
designate headquarters and pay mileage
from that designated headquarters to the
job site. Similarly, the Ministry has
the right, if it so desires, to designate
an employee's home as his headquarters."
The panel then went on to extend what it had interpreted the
prior award as saying by stating:
"This Board would extend the Barton rationale
to state that any redesignation of
"designated headquarters" must be equitable to both the employee and the Ministry
within the meaning of paragraph 1.10 of the
Ministry's Manual."
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In effect, the panel in the Howes decision
incorporated the statement of the employer's manual into
the collective agreement because Article 22.1 could not be
interpreted without reference to an administrative practice.
That practice called for periodic reviews of the headquarter
designation and was to be done in the following fashion:
I, . ..district engineer or branch head to
determine whether or not the original
arrangement continues to be equitable
to both the employee and Ministry..."
The panel then went on to find at page 11 that:
"In our view, the redesignation of the
designated headquarters of the Grievor
. ..may be equitable to the Ministry,
but that it is totally inequitable to
the Grievor...."
The panel then proceeded to uphold the grievance.
While this panel of the Board might not entirely agree
with the Howes and Williamson decisions and might well have
dealt with the issues using a different analysis, that is not
the question before us.
In the context of general arbitrable jurisprudence,
quite aside from the practice of the Grievance Settlement Board,
it has been said in Re Brewers' Warehousing, 5 L.A.C. 1797, at
1798 (Laskin, 1954) that:
"It is not good policy for one Board of
Arbitration to refuse to follow the award of another Board in a similar
dispute between the same parties
arising out of the same agreement
where the dispute involves the
interpretation of the agreement."
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"Nonetheless, if the second Board has
the clear conviction that the first award is wrong, it is its duty to determine the case before it on
principles that it believes are
applicable."
To a similar effect, see the cases of Re Falconbridge Nickel
Mines, 23 L.A.C. 165 (Simmons, 1971); Re Prince Rupert Fishermen's
Co-Op Association, 29 L.A.C. (2d) 69 (Lawson, 1980--B.C.); and
Re Stelco, 27 L.A.C. (2d) 252 (McLaren, 1980).
If an arbitration board reaches the conclusion that
an earlier decision was manifestly wrong, it should then refuse
to follow the earlier decision. See Re Stelco, 27 L.A.C. (2d)
252 (McLaren, 1980). In this case, the best that this panel of
the Board could say is that it might not have reached the same
conclusion nor done so in the fashion in which the prior Boards
did so. This Board. cannot say that the prior decisions are
manifestly wrong, particularly in view of the review of the
Howes decision by the Divisional Court and the subsequent
dismissal of the leave to appeal that decision to.the Court of
Appeal. The Divisional Court was of the view that it ought to
exercise restraint in reviewing the interpretation placed upon
the language of the agreement negotiated under the provisions
of a statute which established a specialized board such as the
Grievance Settlement Board. The principle ought to apply with
even more vigour when a panel of the Board is faced with the
identical issue to a previous decision of another panel of the
same Board. If this Board were to depart in its reasoning and
i
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conclusions from that of the panel dealing with the Howes matter,
then the result would be that employees within the same Ministry
affected by the same change in administrative practice would
have entirely different results flowing from their grievances.
In a situation where the jurisdiction of the Board is as broad
and covers as many employees as in this case, it is obviously
sound policy for this panel to exercise restraint in reconsidering
and reinterpreting the same issue unless it has come to the
conclusion that the prior Board was manifestly wrong. This
Board does not come to that conclusion nor was it argued to be
such. Therefore, the grievances must succeed on the rationale found in the
Howes decision. The result of that conclusion will be the
following orders.
The Board finds that the employer has violated its
own administrative practice as set out in paragraph 1.10 of
the manual in redesignating the grievers' headquarters to
Gormley. In so doing, it violated the provisions of Article 22.1
and 23.3. It is ordered that the matter be remitted to the
parties to be dealt with in accordance with the provision as
set out in the manual which requires a headquarter designation
which would be equitable to both parties. Until that process
has been completed, the grievors are to be placed in the
position that they were in prior to the change in the
administrative practice, which in the case of Mr. Speedie means
that his designated headquarters is to be Lorneville and in the
case of Mr. Jones, it is to be Baldwin. This order is to remain
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in effect until a headquarter designation which is equitable
to both parties has been achieved. It is ordered that the
grievors be compensated for all monies lost as a result of the
breach of Article 22.1 and 23.3. It is further found that
there has been a breach of Article 17.2.2(b) and the grievers
are to be paid for the cost of meals pursuant to that
provision.
The Board is retaining jurisdiction to determine the
quantum of the monies which would be owing to the grievors as
a result of these orders.
DATED at London, Ontario, this 2 day of March,
1984.
R. McLaren ice Chairman '
T. Traves Member
d Morrow. Member